The analytical challenges of operating in the LNG market are complex. There are potentially very large risks and rewards to companies operating in this space, and ‘getting the numbers right’ is often critical to the success and viability of these businesses. This has been particularly true in the past five years as volatility has increased, and price and spread dynamics have all changed substantially. There have been big winners and big losers, with the winners invariably proactive in their analytic analysis, using strategies designed to manage risk, capitalise on volatility, and monetise value.
This article, which appeared in LNG Industry October 2020, looks at the key drivers of value, risks, and rewards in the LNG market over the past few years, as well as the outlook for the future. Further, the four key areas where LNG companies typically perform analytical analysis, and how they use analytics to build successful businesses by both managing risk and capitalising on the opportunities presented by the market, are reviewed. Read the article