Gas Overview

Today natural gas is a global commodity which is traded in the energy markets worldwide on a daily basis. Due to this interdependence, developments in regional gas markets are no longer isolated. Unlike in the past, investment is a more serious concern. Bottlenecks in upstream production and LNG liquefaction capacity are tightening. While in downstream, continuing regulatory uncertainty is the primary factor slowing down investments. This is especially so in Europe, in both national and international pipelines, as well as storage.

The mild winter in 2006 reduced gas demand globally, but more so in the OECD countries. This disguised the underlying trend where lack of supply creating higher gas prices globally. Gas demand for power generation remains consistently strong and is very vulnerable to fluctuations in supply affecting price instantaneously. Policy uncertainty is slowing the revival of coal-fired and other power, despite extensive plans and environmental concerns. All of this leads to a shortage in supply and therefore higher gas prices which lowers gas usage by consumers. Consumption patterns determine the revenues and fortunes of all organization involved in the industry.

This forces the gas utilities to carefully monitor their expenditure and profitability. A commercially transient market is perfect for some high-performers to gain market share through mergers and acquisition. The commercial driver, high rate of M & As and the continuing regulation forces utilities to rethink their strategies, performance and efficiency across their organization. This is the age of constant direct and indirect competition among utilities, forcing each of them to meet new challenges. This is where Fortech Global, can assist because of its in-depth knowledge of the gas industry and its ability through consulting specialists to increase efficiency and reduce costs.

Fortech’s Gas Practice focuses on identifying the needs of this fast changing industry, to design & develop innovative frameworks and solutions that enable utilities to thrive and excel in this new economic environment.