Gas Liquefaction

This is one of many cases from MC’s BCG case library. Dive in to the case intro now.

Case Intro 

Our client is a U.S. regional power company. They currently use natural gas fired power plants to produce electricity, which is then transmitted via the existing power grid. Our client currently gets their gas directly from a field located in the Gulf of Mexico, but they are concerned about the capacity of this supplier going forward. They are considering investing in capabilities to allow them to utilize liquefied natural gas.

Natural gas is a cleaner burning and relatively low cost fuel, but cannot be transported over long distances in gas form. The gas can be liquefied essentially through a combination of dropping the temperature and  pressurizing the gas. The compression factor for LNG vs. normal gas is 1/600th of the gas volume.

How would you go about analyzing this decision?

Overview

In this case from the BCG case library, the client is a power company. The company is analyzing a decision to invest in liquefied natural gas. Your job is to investigate any relevant factors that will help you determine the feasibility of the client’s decision. Ultimately, you will present your findings to the client and give them a strong recommendation.

We recommend using the Profitability Framework to build the structure for the case. However, don’t limit yourself to the basic frameworks; the best candidates blend frameworks and their own business experience to create a custom framework.

With a qualitative difficulty score of 2/4, this is a case study you would most likely see in a BCG second round. There is 1 math diagram in the case to be interpreted by you.

BCG Interview Pointers

What does BCG value in its case interview candidates? Brilliant structuring abilities.

In this case, make the structure your focus. Is it MECE? Can you communicate it clearly?

For out-loud case practice, book a session with an ex-MBB coach. Remember, quality practice > quantity practice.

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