Canadian Midstream Operator Logistics Project

Logistics project for Canadian Midstream Operator, including a five-year subscription and deployment of 3 assets in a phased approach.

This client is one of the largest Canadian midstream operators: gathering, processing, transporting, and storing and marketing energy. The company services oil and gas producers in Western Canada and transports natural gas liquids such as propane, ethane, butane, condensate, and iso-octane to markets throughout North America. 

The project is anchored by multiple long-term agreements, averaging 14 years in length with 75% take-or-pay commitments, as well as specific facility and area dedications. The customer base is broad and includes meaningful commitments from investment grade counterparties. The firm volume commitments over the length of the agreements make up over 60% of the initial aggregate capacity of the pipeline system, leading to the requirement for a robust logistics management solution which is efficient, effective, and scalable.  

he project scope is to implement a solution that will manage the following key logistic processes and will include the potential to expand/extend the system or transfer the solution to other pipelines:  

  • Nominations 
  • Scheduling
  • Component Balancing
  • Line Fill
  • Inventory Allocation
  • Losses
  • EQ (Equalisation)

The company's current logistics processes are mostly manual consisting of Excel spreadsheets and manual manipulation of data to support the entire pipeline logistics lifecycle.  This project will systemise those manual processes and integrate with their commercial system to provide an efficient, standardised, automated and scalable solution pipeline logistics solution.

Challenges

This Canadian midstream operator approached EnergySys as part of a preliminary evaluation for a solution (People, Process and Technology (EnergySys)) to conduct nominations/scheduling, component balancing, equalisation, inventory allocation, losses and Line-fill activities to support the logistics operations of the new capital pipeline project.  

Following a successful demo, EnergySys were invited to participate in a tender process, led by Platinum Reseller Partner, Elite Energy Consultants. 

Methodology

Elite Energy Consultants lead this opportunity as prime.  

The operator led a rigorous RFP process with multiple demonstrations, stages gates and client engagement meetings, ultimately culminating in Elite being selected as the preferred vendor.   

Elite's previous experience with implementing EnergySys for pipeline management meant they were able to support the midstream operator with expert industry and EnergySys knowledge.   

Elite were able to demonstrate the true value of their skills combined with EnergySys’ low-code software to meet the company's challenges, employing Elite’s proven “factory model” methodology to the discovery, design and implementation phases 

A key feature of the solution was to capture, validate, store, report on and disseminate data in the platform. Integrating with key commercial systems has been key to the success of the project.    

While the project scope will include additional asset implementations, the system has been designed to scale EnergySys to support "in-house” additional asset onboarding with ease, thus, reducing costs of technology implementations, solution upgrades and capital project implementation costs.   

Outcomes

EnergySys offered the operator a highly flexible, secure, and resilient solution that met their needs while delivering exceptional value. In addition to the initial solution, several of the company's super users have attended the EnergySys Application Builder Training to support the business in managing, sustaining and improving the EnergySys solution post project completion.   

A key contributing factor for choosing Elite and the EnergySys platform to systemise their manual logistics processes was the ability for this Canadian midstream operator to be self-sufficient post project in the management, sustainment and future enhancement of their EnergySys instance. 

Ever prudent and enabled by the cloud-native EnergySys, the company de-risked the implementation of their logistics project by adding two assets that served as beta assets to prove out the functionality prior to implementing the solution. They currently remain in production.  

The operator intends to onboard additional assets as the solution stabilises and they build their own internal knowledge on how to sustain and implement additional functions, business processes and assets.  

Contact information:

Stephen Finnie-Locke, Managing Director, Elite Energy Consultants

Email: stephen.finnie@ei-cs.com

 

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