Case Study: BG Group achieves optimized natural gas pricing and streamlined modeling with Lumina Decision Systems' Analytica

Optimizing Pricing for Natural Gas Distribution

BG Group, a global natural gas producer and distributor, needed a robust analytic decision tool to optimize consumer tariffs across competitive, regulated markets while modeling price elasticity, capital investment and operating-cost impacts over time. To replace an unstable, >100 MB Excel model, BG Group selected Analytica from Lumina Decision Systems to provide a clearer, more checkable platform capable of handling large data sets and regulatory constraints.

Lumina Decision Systems built the Market Optimization Tool (MOT) in Analytica, shrinking the model to 4 MB (under 4% of the original spreadsheet) while adding expanded capabilities: simultaneous scenario comparison, a scenario database with flexible horizons, real-time consistent calculations, and both summary and drill-down reports. The MOT has been deployed by BG Group’s subsidiaries (including Comgás and Gujarat Gas Company Ltd.), delivering greater stability, faster analysis, and more reliable tariff-optimization insights for decision makers.

BG Group