Demand Estimation Study - Oil & Gas
Case Study- Demand Estimation Study
Our client, who is one of India’s leading natural gas distribution companies. They are currently supplying natural gas to over lakhs of household and hundreds of commercial and industrial establishments. They wanted to expand their operations to other potential locations in India itself. There is a huge cost involved with the foray into new regions as it involves cost of distribution, sunk cost for loss of natural gas during transmission, exploration of natural gas from basins to meet the potential supply of the region, etc
Due to involvement of such high costs, our client didn’t want to go wrong about this. So, they have asked Market Search to determine potential demand of natural gas in the regions they were planning to enter. They also wanted to capture willingness of the current users of other type of fuels to switch to natural gas in future. In addition to this, they wanted to forecast future demand for 25 years down the line so that the client might get idea about the expected revenue after they enter the proposed regions and can also get an idea about their own breakeven point.
Market Search conducted face to face interviews with the target audience i.e. various commercial (like hotels, restaurants, bakeries, etc.) and industrial establishments in the proposed locations.
Desk research was also carried out to identify potential industries which can be the users of natural gas.
From the study insights, various industries which can be potential users of natural gas were identified. They were also checked for the willingness to get converted to natural gas from their current type of fuel. In the process, we were able to capture pros and cons about natural gas which may help the client to approach potential users effectively.
We were able to identify potential benefits of natural gas from the perspective of users which would help the client building their marketing initiatives.
The study also helped to identify issues faced by potential users for their current type of fuel usage which can proved to be trigger for their conversion to the natural gas in future.
We had also given estimated demand of natural gas from the current establishments present along with the consideration of their growth which also helped the client to fix the price point accordingly. The study helped the client to estimate the demand for natural gas in commercial, industrial, residential and transport segment for the current scenario and in future. For estimating future demand, appropriate penetration factors were applied to generate year wise demand for natural gas.