Our client is a prominent player in the South African energy industry and was looking to diversify its portfolio by expanding investments into the Liquefied Petroleum Gas (LPG) sector. We were challenged in developing an investment strategy to shape the next phase of growth while maintaining their current market leading position in the sector. Our team conducted an in-depth analysis of the transition, identified market trends, challenges and strategic opportunities to position our client as a leading player in the evolving energy landscape.
- Outcome 1: 50+ opportunities evaluated
- Outcome 2: 15 key metrics incorporated
- Outcome 3: 5 high-level business cases built
The challenge
The South African energy industry is driven by a shifting opportunity landscape, specifically within the oil and gas sector. As the market has evolved, major players have recognised the growing need to explore diversification of their portfolio in order to maintain their shares. A governmental push for cleaner energy adoption has resulted in the exploration of the LPG sector, as it is a cleaner-burning fuel. Our client, a prominent player in this industry, sought to enter this sector as a way of diversification of their assets across the value chain.
Our client faced the challenge of creating a thorough investment strategy that would allow them to seize the opportunities within the LPG sector but also maintain their current market leading position. They sought our team’s support to guide them through this strategic plan to navigate the complexities of a dynamic market and to position themselves well in the market for future growth.
The approach
To assist our client in creating their investment plan, we took a structured, multi-step approach:
1.Market research and analysis: We conducted comprehensive market research and landscape analysis to identify key trends, opportunities and threats in South Africa’s oil and gas sector, as well as the impact to our client.
2. Expert validation: Leveraging in-house oil and gas SMEs, we validated our findings and identified additional growth opportunities aligned with our client’s strategic goals.
3. Review of growth plans: We reviewed the organisation’s current growth plan to understand the existing opportunities being pursued in the business and to ensure our recommendations complemented these ongoing initiatives.
4. Assessment framework: Our team developed a comprehensive assessment tool and framework, based on investment hypotheses, that was designed, tested and validated in collaboration with our client.
5. Opportunity prioritisation: Incorporated 15 key metrics to screen and prioritise the longlist of potential opportunities ensuring alignment with our client’s strategic objectives.
6. Business case development: Our team built five high-level business cases that included market sizing to provide more of a foundation for investment decisions.
The value delivered
By conducting an in-depth analysis of the LPG/LNG transition, identifying market trends, challenges and strategic opportunities to position our client as a leading player in the evolving energy landscape, we delivered a 10-year strategic investment approach with actionable next steps, key warm contacts and specific areas to monitor. Our team evaluated over 50 opportunities using the developed framework, narrowing them down to a shortlist of 15, and prioritised the top five through the assessment tool. The five high-level business cases we delivered outlined key next steps, giving our client opportunities to take immediate, strategic action. Overall, our work gave our client a structured and strategic investment plan to shape their next phase of growth and diversify their assets moving forward.