The Project:
Profiting in the North American midstream business requires addressing and overcoming several risks and challenges. Perhaps the most formidable of these is the combination of market price volatility with convoluted gathering and processing agreements. Leaders who thrive in this space leverage innovative technologies to ensure optimal insight into the best and most profitable decisions.
EPAM’s client is an integrated group of energy companies focused on the gathering, transportation, storage, processing and logistics, as well as marketing/trading, of natural gas, LNG, LPG, and transportation fuels. The client’s energy trading and risk management (ETRM) system was outdated, requiring the client to rely on excessive use of spreadsheets. These complex and large spreadsheets stretched the monthly accounting process, creating operational and accounting risks. A recent acquisition increased the client’s business to nearly a dozen processing agreements, almost 1,700 meters, and over 3BCF of volumes per day, and thus became the catalyst for change, compelling the client executive team to seek out a replacement for the incumbent.
The client conducted an evaluation that resulted in the selection of the TIES ETRM software from Trilogy Energy Solutions (https://trilogyes.com). Known for its strengths in ETRM and a lengthy track record of successful and referenceable client deployments, EPAM is a trusted partner to Trilogy. As deployment planning got underway, Trilogy introduced EPAM to the client. Impressed with EPAM’s deep expertise in gathering, producer services, plant accounting, and midstream marketing, the client agreed with Trilogy’s recommendation and chose EPAM to assist in the deployment project.
Under EPAM’s leadership, the TIES ETRM was rapidly deployed for all client use cases. Following a hypercare period during which multiple month-end closes were successfully concluded, the customer is now running TIES for its business and is quite pleased with the outcomes. With cloud-based TIES and its intuitive, web user interface, the client’s team is equipped to deliver better margins, and the customer has a foundation for additional growth and acquisitions. Per the client executive sponsor, “our business can think creatively and act quickly in the pursuit of opportunities that benefit the company and our end customers.”
Industry
Midstream Energy
Commodities
Natural Gas Liquids (NGLs)
Natural Gas (NG)
Liquified Natural Gas (LNG)
Liquified Petroleum Gas (LPG)
Transportation Fuel
Technologies Involved
Trilogy TIES application
Trilogy Connect
Solution Offerings
Packaged ETRM Software Implementation
Functional and Technical Support Desk
EPAM Trading & Risk Team Provided:
As recognized experts in ETRM platforms, EPAM provided the roll-up-your-sleeves know-how to rapidly deploy an ETRM system. This included:
( 1 ) Subject Matter Expertise in natural gas gathering, processing, and marketing.
( 2 ) A successful go-live within 8 months, for the client’s multiple subsidiaries, retiring hundreds of linked spreadsheets.
( 3 ) A delighted customer who gave EPAM glowing feedback.
The client executive sponsor sums up the project this way; “It’s hard to find individuals who understand both the functional and technical sides of the business and can provide guidance in the adoption of technology. People generally understand one side or the other; EPAM has mastery of both.”
Client Benefits:
A rapid launch of the project, enabled by EPAM’s deep expertise in ETRM systems and the midstream industry, made for minimal impact to client’s work schedules.
Strong project controls, including:
- Project Change Management – EPAM monitored scope changes and facilitated modifications flexibly and in a timely manner.
- Project Status Communication – EPAM is serious about delivery of project status updates and hitting milestones.
- Change Request Process – EPAM implemented a closely monitored change order process to ensure the project stayed on track, issues were dealt with in a timely manner and close attention was paid to details.
Continuous availability of qualified resources to meet the needs of the client, with backups available as needed, when needed, sourced from EPAM’s global Commodity Trading and Risk talent pool.