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Volatility in gas prices, but positives for gas focused basins

Back in January when the calendar flipped over from 2019 to 2020, the outlook for natural gas in the United States was extremely bearish. Continued growth in oil production in the Permian meant increasing volumes of gas flooding the market regardless of benchmark prices given that gas production there is a by-product of oil production and, therefore, is not impacted by declining gas prices.

2020년 1월 미국 천연가스 전망은 극도로 약세였다. Permian 분지의 지속적인 석유 생산량 증가는, 기준가격과 관계없이 시장에 넘쳐나는 가스 양의 증가를 의미했다. Permian에서의 가스 생산은 석유 생산의 부산물이고, 그래서 가스 가격 하락에 영향을 받지 않기 때문이다.

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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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