Political Risk Analysis for the Natural Gas Sector

Services

Political and Economic Risk Analysis

Challenge

Our client was an investment bank that invests in natural resources around the world. After getting wind of the fact that two multinational companies had suspended their investments in the methanol sector in Trinidad and Tobago, the client hired Americas Market Intelligence (AMI) to investigate the reason behind their backing out. In an effort to protect future investments, the client wanted to understand the future potential of the sector and why certain investors were shying away from what seemed like a profitable investment.

Approach

AMI’s consultant on the ground in Trinidad and Tobago conducted nearly 20 in-depth interviews with government officials, methanol and natural gas companies, investment banks, and oil and gas associations to uncover the reasons for investor scare. Interviews touched on the public bidding process, the government’s role in regulating the methanol sector, and shifting natural gas prices, among other factors, to understand the elements driving changes in the investment environment.

Result

The intelligence generated by AMI helped the client understand the nuanced factors affecting the methanol sector, including the bidding and negotiation processes in the face of shifting world commodity prices. The insight the client gained helped it to make informed decisions about future investments in Trinidad and Tobago and mitigate risk in such and rapidly changing sector.

Client Benefit

AMI gained access to government officials and key private sector players, which provided client with inside information regarding the viability of an investment in methanol, allowing it to make informed investment decisions and mitigate risk.

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