In the issue of World Pipelines magazine that came out in January 2023, there was an article that was published with the title A Case for Automation: Automating Processes in Commercial Gas and Transportation Cycles. In this summary of the article, we look more closely at how modern automation solutions can be leveraged to achieve risk management, regulatory compliance, and business administration goals in an energy industry that is constantly evolving.
Views on this evolution are increasingly being filtered through a lens that reflects a more diverse, regionalized, regulated, and competitive marketplace for natural gas. This is happening more and more frequently. Demands for greater regional energy independence and more reliable access to natural gas products have encouraged transmission and distribution companies to take the first steps toward decarbonization. These companies have been taking these steps in response to these demands. These shifting energy dynamics are heavily influenced by the rising potential of carbon capture utilization and storage (CCUS) programs, as well as hydrogen.
Emerson is aware of the necessity, both from the point of view of the global commercial gas business and the transportation cycle. During the process of planning, it has been determined that major considerations to take into account include regulatory compliance, risk management, and cybersecurity. In order to achieve long-term operational viability and corporate sustainability, we are aware that it is essential to have a process that is clearly defined and to carefully manage each component of it.
In an ideal world, businesses will move toward a more comprehensive integration of their processes and systems. Implementing a highly flexible, integrated software-driven solution that is capable of supporting all commercial gas business activities is a significant step in this direction, and it is also one of the most important steps. PipelineTransporter, TransactionManager, and GasLoadForecaster are some examples of automated solutions that users are implementing and integrating in order to overcome the challenges. Our agnostic gas software suite at Emerson is built on agility and flexibility.
Bringing Down the Complexity of the Business Cycle
The spectrum of activities that comprise the gas pipeline business cycle ranges from nomination management to confirmation, scheduling to allocation, balancing calculations to invoicing, and even reconciliations with physical product flows. Subject to the stipulations of the terms, conditions, and contractual obligations, among other things.
The day-to-day alignment of risk management, business administration, and operational goals is becoming increasingly obligatory for commercial gas shippers and pipeline transportation companies in the United States. We get asked on a regular basis how manual processes that take a long amount of time can be automated and how the logistics can be improved in order to achieve better results.
The shifting mentality toward energy consumption is having an effect on our clientele. They are interested in learning more about the ways in which cutting-edge software is being utilized across all stages of the pipeline transportation business cycle.
What kinds of solutions are there that can better inform and facilitate accurate gas load forecasts while also improving customer service and aligning with solutions for pipeline modeling, oil & gas production and transportation simulators, and operational management?
Shippers and operators can be found searching for transformative solutions an increasing amount of the time as a response to the changing product mix carried by gas pipelines. What we provide is a system-based approach that allows for the necessary flexibility and agility to help customers stay ahead of changing dynamics, as well as an ever-changing environment for the management of gas systems and pipeline assets.
Take for instance Emerson's PipelineTransporterTM, which was designed to serve as a logistics and commercial management system for long-distance pipelines and LDCs. PipelineTransporter is a transactional management tool that was developed specifically for the purpose of administering gas transportation contracts. PipelineTransporter can handle nominations, generate schedules, balance accounts, and create invoices, among other things.
Another solution for the management of gas transactions is called TransactionManagerTM, and it is offered to shippers and pipeline operators in regulated or merchant markets all over the world.
Defending Critical Assets Against Cybercriminals
As gas shippers and pipeline operators search for potential new plays in established markets and emerging regions around the world, safety and the reliable security of gas networks are emerging as major themes that are being etched into the global landscape.
The major oil and gas companies have a lot riding on successfully reducing risks. This includes mitigating the risk posed by ransomware and other forms of cyberattacks that have the potential to put the functioning of essential infrastructure at risk.
Authorities in the United States provided pipeline owners and operators with directions regarding their OT and IT system infrastructure. These instructions included requirements for a cybersecurity contingency and recovery plan, as well as a cybersecurity architecture design review. The most recent guidance brought attention to a cybersecurity requirement notification that called for network segmentation policies and controls. This ensures the capacity to continue operations in a secure manner in the event that the IT system is compromised.
While a more diverse and competitive energy marketplace is beginning to emerge, new standards and regulations are being implemented in various parts of the world, which are helping to level the playing field on a global scale. In addition, successful change management practices have been shown to have a direct correlation with successfully overcoming risks at an operational level in order to accomplish the goals of an organization.
Recent years have seen Nigeria serve as an example of a nation that has begun the process of establishing frameworks for new standards and regulations governing gas pipeline transportation systems. In the context of gas transmission activities, general doctrines have been established, and these general doctrines have been influenced by general open access principles like capacity certification, general terms, and publicity.
A contractual framework between the network operator and shippers to provide open and competitive access to the gas transportation infrastructure was established by the new code. This framework was designed to set forth a series of rules that govern the use of the gas transportation system.
Another illustration of this would be how in 2013, Mexico changed its constitution so that it now permits private investment in the petroleum and electric industries. This led to the creation of new laws that encouraged an aggressive program for the construction of natural gas transmission infrastructure and the opening of commercialization activities to private businesses. It resulted in a significant and relatively swift opening of the oil, gas, and electricity sectors in Mexico.