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Power & Gas: Process & Technology: Undisclosed: Systems Strategy to Support Asset-Backed Trading

Super Major LNG Co. (“LNG Co.”) is the LNG production and marketing business unit for a super major oil company. LNG Co. has global production and sales activities. Historically, the LNG business model has been long-term sales (20 years) tied to the development of specific LNG production facilities and there has not been a liquid LNG market to support shorter-term trading activities. As the LNG market is evolving, new LNG pricing markets are developing that will support a more traditional commodity marketing and trading business. Additionally, LNG Co. is changing their corporate strategy to become an asset-backed trading business.

Opportune was retained by LNG Co. to evaluate IT system and business process changes necessary for supporting a new asset-backed trading model. An evaluation of current systems and business processes was compared to the requirements to transition to an asset-backed trading business model to identify key gaps. The scope of business activities included:

  • Trading and supply
  • Risk management and analysis
  • Planning and optimization
  • Shipping
  • Marketing
  • Transactional accounting
  • Integration with financial reporting and forecasting systems
  • Overall IT systems integration

In addition, Opportune professionals were involved in the following activities:

  • Led system selection for new ETRM system;
  • Supported evaluation of LNG planning and optimization tool and integration with transactional accounting systems;
  • Developed new business processes and associated roles and responsibilities to support new business model and integration with new IT systems; and
  • Managed overall project implementation and systems integration

Opportune was able add unique value to the client’s efforts because of its in-depth understanding of the LNG business and expertise in trading, supply and risk management. Our extensive experience in systems selection and implementation in situations where the systems and business processes need to be tailored to a client’s unique needs allowed us to help deliver a custom-made solution to meet the client’s needs integrated into their system architecture. Finally, our experienced professionals were able to develop new business processes, roles and responsibilities and training necessary to ensure that the expected business value was fully captured. For more information on Opportune’s breadth of experience in assisting clients in the Power & Gas sector, CLICK HERE.

Charlie Palmer

Managing DirectorOpportune LLP