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Orchid completes USA and Mexico LNG market Study

Orchid Group was hired by a confidential client in China to assess LNG projects in USA and Mexico for investment and off-take opportunities. The client is a significant owner and operator of natural gas and LNG infrastructure, including pipeline, distribution, and refueling facilities and trucks, import terminals, and storage.

The selection of Orchid for the assignment was a result of a 20-year successful track record of working with the client on gas and power projects in China beginning in the mid 1990’s.

Orchid performed due diligence on federal, state, and local laws and regulations; natural gas upstream investments and long term supply options; midstream transportation tariffs and pipeline capacity fundamentals; EPC and technology choices; investment and ownership structures; regulatory approvals; permits and licenses; environmental studies; commodity and shipping costs, logistics and operations and findings on foreign partners and management team capabilities and track records.

Lilly Teng, Senior Partner and General Counsel, presented the report to the executive management team in Beijing, China along with advice on potential foreign partners, local business customs and laws, legal and regulatory considerations, and next steps on a long-term investment strategy in a supply and value chain.

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Case Study: #2 Commercial Advisory

xemc

Background: Chinese wind turbine manufacturer, XEMC, approached Orchid to advise it on a brownfield wind power project in California that the firm was considering purchasing and re-powering with its own turbines.

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Case Study: #1 Commercial Advisory

kosep

Background: Korea South-East Power Co. (“KOSEP”) was considering the acquisition of a greenfield CCGT project in Pennsylvania within the PJM market and hired Korea Ratings (“KR”) to assess the feasibility of the project. On behalf of KOSEP, KR hired Orchid to lead due diligence from on the ground.

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Case Study: #2 Market Research

Background: The Electricity Generating Public Company Limited wished to bid on the sale of a 49% stake in an 1800 MW CCGT in South Korea and needed an adviser to forecast power market prices and advise on issues related to LNG supply agreements and a terminal use agreement.

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Case Study: #1 Market Research

Background: A confidential client was required by the lenders to two of its gas-fired power projects to demonstrate the competitiveness of its LNG supply agreements. Orchid Group was engaged to conduct the study.

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Case Study: Deal Origination

Background: Energy Initiative Japan (EIJ), a Japanese developer of solar projects hired Orchid to lead the sale of a portfolio of greenfield solar projects developed under the Feed-in-Tariff (FIT) established under the “Act on Special Measures Concerning the Procurement of Renewable Electrical Energy by Operators of Electric Utilities” in Japan.

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Case Study: Strategy Consulting

doosan

Background: Doosan Heavy Industries (DHI) was eyeing the United States as their key market for selling wind turbines, but wanted to understand whether they could compete there, what models were most competitive the logistical network required for them to compete in the USA. They hired Orchid to help them work through developing market entry strategy.

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Orchid provided DHI with a comprehensive package complete with strategic options for entering the USA.

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