What We Do
Client Results
What We Do
Industries
Contributing to Business Innovation and Value Enhancement for Diverse Clients

Looxent provides clients with practical and implementable solutions, driving fundamental change that leads to significant improvements in business value. Through this approach, Looxent positions itself as the most trusted partner for clients, consistently proving its reliability and commitment.

Energy & InfrastructureEfficiency and Investment Optimization in City Gas Supply: Strategic Assessment and Implementation


The transition to a hydrogen economy marks a pivotal moment for the energy industry to redefine its operational paradigm. While modern society remains heavily reliant on fossil fuels, the finite nature of these resources necessitates strategic planning for a sustainable future. Technological advancements and government-driven renewable energy initiatives underscore the urgency for transformation.

City gas supply companies face unique challenges: rigid pricing structures, declining demand, increasing operational costs, and stagnant revenues. Against this backdrop, Looxent partnered with a leading city gas provider to develop an operational strategy aimed at achieving cost and investment efficiency while ensuring sustainable growth.

Unlocking Growth Through Systematic Demand Generation in Commercial and Industrial Segments

Residential gas demand continues to decline due to shifts in demographics, such as the rise of single-person households, and the proliferation of electric appliances. To offset this trend, expanding the commercial and industrial customer base is critical. Looxent conducted a comprehensive diagnostic to establish a systematic framework for identifying and capturing new demand.

We recommended integrating a centralized database to track and manage prospective customers currently reliant on alternative fuels, such as LPG and anthracite. Additionally, promoting gas-powered solutions like Gas Heat Pumps (GHP) and residential fuel cells was identified as a key strategy to drive usage. Implementing these measures is expected to enhance revenues while minimizing the need for price increases, contributing to broader societal benefits.

Mitigating Operating Cost Increases Through Digital Transformation

Labor-related expenses, particularly in customer service operations like call centers, constitute a significant portion of city gas supply costs. Rising minimum wages and regulatory changes, such as the 52-hour workweek, further pressure operating budgets while maintaining affordability remains paramount.

To address this challenge, we devised a “Smart Works” framework, leveraging IT advancements to minimize inefficiencies and optimize workflows. This enterprise-wide initiative aims to curtail labor cost growth, even as demand scales, ensuring stable supply costs.

Given the capital-intensive nature of infrastructure businesses, optimizing CAPEX investments is equally critical. Looxent proposed enhancements to CAPEX management processes, focusing on eliminating inefficiencies during execution and achieving cost savings through strategic procurement. These measures are expected to significantly reduce the capital expenditure required for new customer connections.

Adapting to Paradigm Shifts and Enhancing Corporate Responsibility

As a regionally monopolistic industry governed by strict regulations, the city gas sector’s growth strategies historically centered on network expansion to accommodate rising demand. However, the shift towards a hydrogen economy, coupled with increased expectations for corporate social responsibility, calls for a recalibrated approach.

The project underscored the necessity of streamlined operational processes and efficient cost and investment strategies to meet evolving market demands and regulatory requirements.

Key Outcomes and Strategic Vision

Through this project, the client developed a forward-looking operational strategy aligned with governmental energy policies and industry trends. By presenting this vision to stakeholders and ensuring minimal cost escalation, the company reinforced its commitment to social responsibility and long-term value creation.

The collaborative efforts resulted in:

  • A roadmap for systematic demand generation in the commercial and industrial sectors.
  • Implementation of digital transformation initiatives to manage labor costs and operational efficiency.
  • Optimized CAPEX processes to reduce investment outlays for new customer connections.

The client positively evaluated the project, recognizing its contribution to corporate social value and securing organization-wide consensus on the execution strategy. This initiative sets a strong foundation for the client’s continued leadership in the city gas sector and its transition to the hydrogen economy.



LOOXENT

A  21F. Parc.1 Tower2, 108, Yeoui-daero, Yeongdeungpo-gu, Seoul, Korea 07335

T  02-546-8222      F  02-546-8226      E  service@looxent.com 

Contact us     |    Terms of use

© 2024 LOOXENT. ALL RIGHTS RESERVED.


LOOXENT

A  21F. Parc.1 Tower2, 108, Yeoui-daero, Yeongdeungpo-gu, Seoul, Korea 07335

T  02-546-8222      F  02-546-8226

E  service@looxent.com 

© 2024 LOOXENT. ALL RIGHTS RESERVED.