NATURAL GAS

Tariff Assessment

Restructuring of the natural gas sector and regulatory reform have expanded options for seller and buyers of natural gas, resulting in increased competition in the industry. This has several significant implications: increased concerns over discrimination of access to natural gas, efficient use of the gas infrastructure assets, avoidance of monopoly profits, increased trade and cost-reflectivity. All of these and in particular the level and structure of tariffs have been important features of the gas industry over the last few years.

In developing gas markets there is a need to understand the applicability of the tariffs methodology so that the tariffs support the natural gas policy goals, very often related to developing gas infrastructure in transportation and distribution, attraction of private capital and increase of gas utilizations. In these markets there is also a need to balance the cost of regulation against the capacity of an expanding gas companies to provide adequate information to meet the regulators' demand.

Nexant Services

Gas tariffs and promotion of investments in developing gas markets
  • Rate design and assessment for gas pipeline companies, regulators, and private investors
  • Allocation of costs over time or between different services and customers
  • Design tariff structures and incentives for companies in industries undergoing regulatory reform
  • Recommendations for gas transportation tariffs methodologies and cross-border transactions
  • Tariffs for third party access
  • Cost of capital analysis for newly regulated companies

Selected Project Experience

  • Review of gas tariff for the cross-border West Africa gas pipeline
  • Advisor to the Gas Office and Energy Regulatory Commission—Philippines
  • Gas pricing study for major gas pipeline company—Indonesia
  • Tariff study for Kyrgyzgas—Kyrgyzstan
  

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