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Economic Consulting

The FTI Consulting Energy team has extensive skills and experience in addressing key economic issues that affect mid-stream gas companies, either directly or through government policy and regulation. We have advised clients on issues of market design, on pricing and on other elements of strategy. We have provided detailed analysis and recommendations on environmental policy, policies related to security of supply, and other key issues. Our work combines rigorous economics with real industry knowledge, and clear communication of our findings.

Our Service Offerings

Market Design

Market design of wholesale gas markets addresses such key issues as the arrangements for trading gas (including the design of gas hubs), the charges for accessing the gas networks and the regulatory arrangements for investing in gas infrastructure. The Midstream Natural Gas professionals at FTI Consulting are well versed in doing high-level design as well as implementation in a range of countries in Europe and worldwide. We are expert at designing the network code arrangements that support high level market design and implementation. In addition, some of our professionals are ex-regulators. We advise governments, the European Commission, and regulators on market design rules. Also, we advise the companies that are subject to these rules — what they might mean for their business model, what they need to know to comply, how they can influence these rules, how they can assess the impact of them, and what alternative approaches are feasible.

Gas Strategy

The European natural gas industry faces a number of challenges. Currently gas demand in Europe has fallen due to an increase in the use of coal and renewables in the generation of electricity, which in turn dampens the incentive to invest in gas infrastructure or production. Yet given its growing dependence on gas imports due to the decline in domestic production, there have been concerns about security of supply and policy makers have called for an increase in cross-border interconnection across Europe. The need for a common European natural gas market to ensure the EU has both the storage and delivery capacity to absorb any supply disruption is key. The integration of gas networks across the EU is therefore an essential step to guaranteeing Europe’s energy security. Furthermore, given the potential for exports of LNG from the U.S. to Europe in the coming years, there is a question about how the outlook for the gas supply/ demand balance in Europe will evolve and which investments are likely to be profitable. FTI Consulting Midstream Natural Gas professionals are well versed in these issues. Our experts have worked with market participants, regulators, governments and the European Commission, to develop the strategies, market designs, policies and regulations that will help bring about a stable European gas supply.

Environmental Regulation

Managing and resolving environmental challenges and financial exposure potential through strategic consulting, communications or litigation support are of vital importance to both public and private entities. FTI Consulting offers a comprehensive suite of services aimed at helping organisations deal with specific environmental issues or programmatic challenges. Our team includes financial and accounting, cost allocation, forensic history, private investigation, data management and technical/engineering professionals. The Environmental Solutions team has broad and in-depth experience serving clients and have provided expert and 30(b)(6) witness testimony. Our specialists provide clients with services in the areas of alternative dispute resolution (arbitration and mediation), clean-up cost and damages allocation, financial and cost accounting, forensic historical research, private investigations and environmental claims analysis.

Security of Supply

FTI Consulting has expertise and deep knowledge of security of supply conditions and arrangements in different European countries. We have provided reports and studies to clients on the types of measures that could be introduced and have assessed the impact of these different measures. We have advised transmission system operators, gas shippers who buy and sell gas, storage operators, regulators and governments.

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