McKinsey Oil & Gas Practice - Global Gas Work

We help gas companies create distinctive outcomes across the energy value chain and in every region.

Natural gas is one of the world’s largest sources of energy, with a rising share of the global energy mix. The explosive growth in liquefied-natural-gas (LNG) trade and the opening of historic market monopolies has transformed a largely regional business into a global commodity, involving multiple types of players.

To help clients navigate this increasingly complex landscape, McKinsey brings an unparalleled depth of experience from decades of work in the world’s major energy hubs. We have led projects in a variety of topics, including portfolio strategy, regulatory and policy making, commercial excellence, contracting and trading, capital productivity, organization, and digital and advanced analytics.

1,000+

engagements

across all industry sectors and functions

100+

dedicated practitioners

4

major hubs

London, Houston, Singapore, Amsterdam

Examples of our work

McKinsey Oil & Gas Practice - Global Gas Work
In our work in natural gas, we combine our proven management-consultancy approach with an extensive network of gas experts, a broad range of proprietary sector-specific tools, and deep insight into industry trends and challenges. Our recent projects include the following:

Supporting Client with Market Entry in SE Asia

Helping an integrated utility to enter Southeast Asia by developing detailed LNG-market insights, identifying more than 35 sales leads, and facilitating outreach to 20 opportunities that resulted in eight opportunities to volume and pricing

Gas Contract Arbitration Support

In working with a client—holding a large gas-supply contract that was in price arbitration proceedings with its counterpart—McKinsey developed an independent factual expert report that was used in the arbitration process between the two parties

Featured capabilities

We invest heavily in developing proprietary tools, databases, and methods, including:

  • Global gas model, forecasts supply, demand, infrastructure requirements, and global gas flows using flexible scenarios to allow “what if” analyses.
  • LNG buyers’ survey, explores buyers’ most pressing concerns and needs and covers more than 80 percent of the market.
  • LNG cost curve, provides a bottom-up perspective on liquefaction costs, project feasibility, price structure, and export capacity.
  • Gas arbitration-support model, uses a proven methodology to provide a fact base for contracting and arbitration decisions, including dispute resolution.
  • LNG fleet monitor app, gives clients access to analytics and insight into global LNG fleets, flows, and market dynamics.

Featured expert

Senior Partner, Amsterdam

Otto Waterlander

Serves clients in the oil and gas, utilities, and chemicals sectors on issues relating to strategy development, business transformation, mergers and acquisitions, performance improvement, and long-term planning

Related Insights

Global gas & LNG market outlook to 2030

– In this latest update, we explore the impact of key discontinuities on supply and demand, offer a view of expected growth in LNG volumes and cross-border pipeline flows, and consider the impact of regional pricing mechanisms to 2030.

Slide in gas storage margins set to continue

– Narrowing seasonal price spreads have been exerting considerable pressure on gas-storage holders exposed to spot prices across Western Europe, and there appears to be little sign of improvement any time soon.

The rise of trading houses in the LNG world

– Over the past 10 years, the LNG market has doubled in size and moved from long-term trade to spot sales, tenders, and benchmark-linked trade, along with an increase in re-trades and destination swaps.