MSI Consultancy Case Study – Market Overview and Entry Strategy

The client, a sovereign wealth fund, wanted to evaluate the opportunity of supporting a new entrant into the LNG market. As part of their internal processes, it required a third-party market study on the LNG sector to help evaluate the project.

MSI provided a detailed overview of LNG market fundamentals. This included detailed analysis of the key supply, demand and vessel earnings drivers, based on MSI’s interactive Excel model.

We mapped the market landscape based on granular data for chartering arrangements for all LNG vessels and all liquefaction projects. This included comprehensive details of the market structure in terms of vessel owners, cargo interests and their chartering strategies.

We developed a detailed market entry strategy based on real experience from both a vessel owner and charterer perspective, with supporting financial modelling and analysis. We also assessed the potential financial returns of entering the LNG market.

MSI performed an assessment of optimal fleet size and composition by vessel specification and age, with particular focus on the various merits of entering the market via ordering newbuild vessels or purchasing second-hand assets.

We also identified potential charterers which might consider switching chartering strategies.

The MSI team delivered a phased series of reports and data/forecasts over the course of the project that addressed all elements of the project scope to enable the client to get comfortable with both the market and the specific investment opportunity under consideration.

Each phase of the project was bookended by a call with the client to present key findings and answer their questions. A final workshop was held at the end of the project to draw together major takeaways.

To learn how MSI’s Consultancy Services can help your business understand and profit from market dynamics in shipping, offshore and shipbuilding, please get in touch.