We assist natural gas pipelines in applying for expansion certification and evaluate pipeline certification applications for other affected parties. In addition, our economic consultants assess worldwide LNG markets, evaluate natural gas market supply and demand conditions, and analyze the likely price impacts of pipeline expansions.
For a large South American power company, The Brattle Group prepared a report analyzing worldwide LNG markets to assist the company in evaluating fuel alternatives for a power plant in the Caribbean. The report analyzed the supply and demand of LNG, reviewed recent LNG import and export projects, and compared price forecasts for LNG to forecasts for alternative fuels.
The Brattle Group has pioneered research into separating the direct costs of regulatory compliance from the impacts of the regulations on market dynamics and behavior. Local and regional fuel blend requirements, for example, can segment markets leading to an increased reliance on a reduced number of suppliers. The regulations may also impact the reliability of the remaining suppliers of the market. Our economic analyses have demonstrated how the effect of greater dependence on fewer and less reliable suppliers can lead to significantly greater price volatility and more numerous and severe supply disruptions.
We have evaluated the market, economic, and competitive conditions surrounding several proposed project-financed natural gas pipelines and pipeline expansions in California, the Midwest, the Northeast, and Florida. We have prepared market assessments to support certification of the pipelines or to evaluate the desirability of investing in the pipeline and have identified uneconomic projects that depended on cross-subsidies for viability.
On behalf of an Australian natural gas pipeline company, The Brattle Group provided advice on the use of pipeline expansion capacity options. We explained how such options could be designed, quantified the benefits relative to a greenfield pipeline, and demonstrated how uncertainty in future gas demand affects the value of the options. In addition, we created a decision-tree framework that quantified the value of the options under alternative scenarios of future demand.
Our regulatory experience extends to LNG terminals, natural gas storage facilities, and gas supply. We have provided studies or testimony on several LNG projects or development policies. For example, we advised a European network operator on the terms and prices to make its LNG terminal accessible for spot shipments in order to comply with third-party access obligations. In Greece, our proposed Network Code included specific provisions that facilitated the sharing of an LNG terminal for base-load import contracts by different shippers. In the UK we advised the sponsor of an LNG terminal on the development of "use-it-or-lose-it" mechanisms to assure third-party access in the event that the project sponsors did not utilize a slot.
In Turkey, our advice to the Energy Market Regulatory Authority (EMRA) included proposals that would allow third-parties to benefit from the flexibility of the LNG terminal while maintaining a single user of the terminal and centralized control by the TSO. In Singapore, we analyzed the optimal regulatory policies for accommodating the construction of an LNG terminal in a relatively small market.