NATURAL GAS

Restructuring and Privatization

The natural gas sector continues to undertake significant changes, driven by different priorities, reflecting the ownership structure and market development stage in any particular country. There is no generally appropriate model for gas sector restructuring, but the competitive advantage of unbundling and the potential economies of vertical integration must be carefully balanced, certainly before privatization takes place. Considering the experiences provided by a large number of privatizations in the 1980s and 1990s, both in developed and developing countries, scrutiny is now exercised over the potential to deliver the efficiency gains promised and the social equity balance. Restructuring and privatization, combined with effective regulation, can significantly improve performance in the natural gas sector. The degree and nature of restructuring or unbundling of the natural gas sector are key factors in promoting competition and efficiency. However, this has to be considered in the context of the specific prevailing circumstances, particularly in developing economies requiring the expansion of natural gas infrastructure.

Priorities for reform may be different, e.g. enhancing security of supply or creating competition. In many developing countries the restructuring of the gas sector is driven by the need to attract private investment in natural gas transmission and distribution, in view of increasing demand. In mature economies emphasis is generally on services and environmental issues.

Nexant Services

Nexant has broad experience in the restructuring and privatization of natural gas and energy sectors, particularly in Eastern Europe. Our expertise extends to the upstream, midstream, and downstream gas sectors, covering the following key areas:

  • Operational review and asset assessment
  • Buy-side and sell-side transaction support
  • Market assessment and strategy development
  • Assistance to governments and privateinvestors
  • Technical and economic feasibility
  • Gas master planning

Selected Project Experience

  • Gas sector technical, commercial, and environmental due diligence, private investor —Romania
  • Business strategy development for restructured NOC division—Southeast Asia
  • Energy sector restructuring—Romania
  • Valuation, privatization strategy, and implementation plan for Kyrgyzgas—Kyrgyzstan
  • Restructuring of the energy sector—Latvia
  

Services By Sector

Tools, Reports and Events

Contacts