liquefied natural gas (LNG) portfolio optimization

Alessandro Agosta, Dumitru Dediu, Timo Leenman, and Marijn van Diessen, LNG portfolio optimization: Putting the business model to the test, McKinsey, April 12, 2021.

The analysis indicates that in third quarter 2020, traditional marketers saw a 47 percent decline in realized prices compared with third quarter 2019, whereas the portfolio optimizers saw a 31 percent decline in realized prices over the same period (Exhibit 3). Although there are some obvious short­comings in this comparison—for example, the declines could be due to different geographic presences or a time lag on indexation—the findings do suggest that in the gas industry, portfolio opti­mizers were less affected by the recent downturn.