© 2019 AVEVA Group plc and its subsidiaries. All rights ... AWC NA...Forecasting • Upstream facility operators request to place a certain volume onto the pipeline by submitting

© 2019 AVEVA Group plc and its subsidiaries. All rights reserved.

Presented by:

Session ID: OGP-16

Efficiently Manage Pipeline Volumetric Accounting from Forecasting to Month Close


Yaser Ghanam, Product Owner

November 14th, 2019

Agenda


Introduction: Volumetric Accounting

Forecasting Process

Mid-Month Operation

Closing

AVEVA Commercial Advisor – Overview & Roadmap

Summary

Q&A

Volumetric Accounting

Forecasting

• Process information for liquid productions expected to be shipped on the pipeline in future months

Mid-Month

• Receive and validate measurement data of liquid productions in the current month

Closing

• Calculate and issue invoices to parties involved in the production and shipment of liquid productions.

What processes are involved?


Volumetric AccountingWhat actors are involved?

Pipeline company (Carrier)

Upstream facility

operator (Producer)

Shipper

Downstream facility

operator


Volumetric AccountingWhere does it fit in the big picture?

SCADA (OASyS, Clear SCADA, etc) + Realtime Applications (LMS, Gas

Realtime, etc)

Field Devices

Measurement System (GMAS)

Field Tools

(EAGLE)

Work Order

Management

System

Asset Management

System

Volumetric Accounting System

(POLARIS)

Financial System

(SAP, MS

Dynamics NAV, MS

Dynamics AX, etc)Customer Portal

Schneider Electric Products 3rd

Party Corporate Systems

Field/Operations

Financials &

Customer

Reporting

Scheduling System


Volumetric Accounting System (Commercial Advisor)

Forecasting


Mid-Month


Closing



Forecasting

• Based on COLC (Crude Oil Logistics Committee)


The big picture

Pipeline Company

(Carrier)

Upstream Facility Operator

(Producer) Shipper

Form A

Form D

NOS

Form C

Notice of

Apportionment

Form B*

*Outside of the scope of POLARIS

Downstream Facility Operator

Delivery

Nomination Report

Forecasting

• Upstream facility operators request to place a certain volume onto the pipeline by

submitting a document (Form A) to the pipeline company showing:

1. Information of the facility originating the volume

2. How much each shipper owns of the volume

3. Other information


Form A: Request from the upstream facility operator to the carrier

Forecasting

• The Carrier sends an acknowledgement (Form C) to each Shipper showing:

1. How much volume the shipper owns at each upstream facility

2. Any adjustments made by the Carrier to the nominated volume


Form C: Acknowledgment from the carrier to the shippers

Forecasting

• The Carrier sends an acknowledgement (Form D) to each upstream facility operator

showing:

1. A confirmation of the volume the carrier is expecting to receive at each upstream facility

2. Any adjustments made by the Carrier to the nominated volume


Form D: Acknowledgment from the carrier to the upstream facility operators

Forecasting

• The Carrier sends a report (Form C) to the shippers listing volume forecasts at upstream

facilities.

• Shippers submit to the pipeline documents (NOSs) that show:

• Confirmations of the volumes the shipper forecasts to receive at upstream facilities

• Volumes the shipper would like to sell to or buy from other shippers

• Volumes the shipper would like the carrier to deliver to downstream facilities


Notice of Shipment: Direction from the shippers to the carrier on how to manage their volumes

Forecasting

• Forecast the quantity of diluent required to be blended with forecasted crude products in

order to achieve a target density.

• Forecast the share of the diluent each shipper has to purchase from the carrier or other

shippers.

• Forecast the amount of shrinkage that will result from the blending process

• API 2509C

• API 12.3

• Novacor (aka Husky Method)


Diluent Forecasting

Forecasting

• Physical Working Stock: The volume of liquid products required to be held back by the

carrier within the pipeline system for operational and scheduling purposes. This includes:

• Linefill

• Tank bottoms

• Float volume

• Shipper Working Stock: The portion of the Physical Working Stock that the Shippers are

obligated to maintain on the Pipeline


Working Stock (Holdback)

Forecasting


Mid-Month


Closing



Mid-Month


The big picture

Draft Shipper

Balance

Labs

Shipper

Volumetric Accountant

and/or

Scheduler

(Carrier)

Truck Driver

Truck System

SCADA


Weekly Delivery

Split

TicketsTruck

Tickets

Truck Ticket

AccumulatorLinefill

Volume

Tank

Levels/

Volume

Product

Quality

Information

Battery

Allowables

Upstream Facility Operator

(Producer)

Shipper

Notification of

Restrictions

Operator

Notification of

Restrictions

Allowable Report

SCADA Operator

(Carrier)

Revised NOS

Mid-Month

• Receipts onto or deliveries off of the pipeline

• SCADA Accumulator Readings (Estimated volumes)

• Measurement Tickets

• Connected Tickets

• Trucked Tickets

• Inventory volumes

• Linefill Volume – Volume in a segment of pipe

• Tank Volume – Volume stored with a vertical or horizontal metal container

• Product Quality Information

• Lab samples – Reports information like S&W, Sulphur content, vapor pressure, density, and possibly hydrocarbon chain

composition (C1, C2, C3, iC4, nC4, iC5, nC5, C6+, H2S, CO2, N2, etc.)


Measurements

Mid-Month

• Gross Standard Volumes (GSV) are calculated by correcting measured volumes using American Petroleum

Institute’s (API) standards for volume corrections.

• Corrections take into consideration:

• Temperature

• Pressure

• Meter Proves

• Net Standard Volumes (NSV) are calculated by adjusting GSV to account for sediment and water volume.


Measurements

Mid-Month

• A report that shows a Shipper’s Inventory Position based on the following sources

• Nominated Data

• Month-to-date Actuals or Estimates

• Projected Data: linear projection of actuals to the end of the month (or other projection method)

• Information includes:

• Opening position

• Receipts, Diluent, Transfers In (volumes bought)

• Deliveries, Transfers Out (volume sold)

• Other information (e.g. Working Stock, Allowances, Adjustments, … etc)

• Closing position© 2019 AVEVA Group plc and its subsidiaries. All rights reserved.

Draft Shipper Balance

Mid-Month

• A weekly process to split the volume delivered at a given delivery point to shippers


Delivery Splits

Forecasting


Mid-Month


Closing



Closing


The big picture

Producer Splits

Producer Activity

ReportEqualization


Final Delivery Split

ShipperUpstream Facility Operator

(Producer)

Pipeline Company

(Carrier)

Facility Volumetric

Data

Final Shipper’s

Balance

Invoices Invoices

Delivery Tickets

Government

Stats CanadaNEB 163

$$

Finance

Invoice DataCOLC Report

COLC

Closing

• A Producer Activity Report is sent to the producers to initiate the Producer Splits process

• Producers review the data and submit to the carrier the volume split to shippers

• The carrier splits the received volume at each facility to the shippers that were listed on the

Form A

• The total receipt split volume for the month must match the total volume for receipt tickets


Receipt Splits (aka. Producer Splits)

Closing

• The carrier splits the delivered volume at each delivery point to the shippers that listed that

delivery point on their Notice of Shipment

• The total delivery split volume for the month must match the total volume for delivery

tickets

• If weekly splits were used during the month, the carrier will split the difference between

the total ticketed volume and the sum of previous weekly splits


Final Delivery Splits

Closing

• Volume to reconcile the physical recorded inventory at the end of the month to the

inventory recorded on the Shipper and Carrier books

• End of Month Physical Inventory = End of Month Tank Levels + End of Month Linefill

• End of Month Book Inventory = Opening Inventory + Receipts + Transfers In – Transfers Out

– Deliveries

• Over Short Volume = Physical Inventory – Book Inventory


Over/Short

Closing

• A report that shows a Shipper’s Inventory Position based on month end actuals

• Information includes:

• Opening position

• Receipts, Diluent, Transfers In (volumes bought)

• Deliveries, Transfers Out (volume sold)

• Other information (e.g. Working Stock, Allowances, Adjustments, … etc)

• Closing position


Final Shipper Balance

Closing

• Process to compensate Shippers for bringing differing quality product into a commingled

stream

• Shippers that bring product with quality higher than the stream average get compensated

• Shippers that bring product with quality lower than the stream average get penalized

• Equalization is calculated in accordance with the Canadian Association of Petroleum

Producers (CAPP) Equalization Steering Committee Guidelines

• Similar to the concept of Quality Bank

• For Crudes, quality is defined using density/gravity, and Sulphur content.

• For Condensates, quality is defined using density/gravity, Sulphur content, and Butane content.


Equalization

Closing

• Various types of tariffs in addition to equalization charges/credit are assessed based on the

tolls and charges publicly disclosed by the carrier.

• Invoices could be issued to:

• Shippers

• Operators

• Working Interest Owners


Invoicing

Commercial Advisor

• Web-based solution – can be deployed on prem or on a private cloud.

• Single environment for all pipelines

• Configurable assets

• Configurable business associates (operators, producer, shippers)

• Configurable methods to support various business needs

• Interfaces to import and export data from and to other systems


Pipeline Operations, Logistics And Revenue Information System

Commercial Advisor


Invoices and Volumes

-

50,000,000.00

100,000,000.00

150,000,000.00

200,000,000.00

250,000,000.00

300,000,000.00

350,000,000.00

400,000,000.00

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

~ Volume Received (m3)

$-

$200,000,000.00

$400,000,000.00

$600,000,000.00

$800,000,000.00

$1,000,000,000.00

$1,200,000,000.00

$1,400,000,000.00

$1,600,000,000.00

$1,800,000,000.00

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

~ Amount Invoiced (CAD)

Commercial Advisor

• Crude Oil Logistics Committee

• www.colcomm.com

• Forecasting procedures

• Canadian Association of Petroleum Producers (CAPP)

• www.capp.com

• Equalization Steering Committee

• Crude Oil Monitor

• http://www.crudemonitor.ca/

• Product qualities and reports.

• Diluent Calculator


• American Petroleum Institute (API)

• www.api.org

• Manual of Petroleum Measurement Standards (MPMS)

• Alberta Energy Regulator

• http://www.aer.ca/

• Regulations and Directives

• Formerly Energy Resource Conservation Board (ERCB)

• Petrinex (Formerly the Petroleum Registry of Alberta)

• http://www.petrinex.ca/

• Petrotranz (Web-based communication)

• https://www.petrotranz.com

Standards, Regulations and Industry Partners

http://www.api.org/

http://www.aer.ca/

http://www.petrinex.ca/

https://www.petrotranz.com/

Commercial Advisor

• The solution provides interfaces for the user to configure:

• Physical Assets: Pipeline Systems, Facilities, Tanks, Meters, Analyzers

• Logical groupings: Segments, System Groups, Over/Short Areas, Line Spaces

• Business Entities: Carriers, Shippers, Producers, Operators

• People: Users of the system and their roles, Contacts that receive reports

• Tariffs: Tolls and Charges that apply based on certain business rules


Configuration

• Example – Facility configuration


POLARIS: Configuration

Commercial Advisor

• Based on a three-period cycle

• Example: In October, POLARIS allows users to:

• Process Forecast information for November

• Receive and validate measurement data for October

• Close September

• Users can work within the context of a pipeline, period and a grade (product)


General Workflow

• Example – Managing Form As


POLARIS: Forecasting

Commercial Advisor


Example – Ticket Entry Screen

Commercial Advisor

• The solution provides integration points to allow the user to import:

• Form As

• Notice of Shipments

• Receipt Splits

• Tickets

• Quality samples

• The solution provides integration points to allow the user to export:

• Financial data (to SAP for example)

• Volumetric Submissions to the government

• PDF/XML Reports


Integrations


Commercial Advisor Roadmap2019 2020 Future

2019 Customer Business Theme 2020 Customer Business Theme Longer Range Themes

• Lower the total cost of ownership by simplifying deployment and installation

• Continued productization


• Continued productization


• Provide more business value by providing functionality to support to a range of scheduling and accounting needs

2019 in Development 2020 Short-term Development Longer Range Plans

• Lower Total Cost of Ownership• Upgrade to the latest Java and Tomcat versions to stay

up to date with security patches and bug fixes

• Continued refactoring to deprecate Java servlets/Tomcat

• Cloud deployment (PAAS)

• Augmented Intelligence & Decision Support• New and improved reports to increase analyst

awareness and provide better decision support

• Support for Sulphur blending to improve the accuracy of Equalization calculations

• Support for Multiple Equalization Areas to handle multiple injection points and delivery locations

• Improved workflow for apportionment processes to allow post-apportionment edits

• Enhancement to allow analysts to lock measurement data at month end in order to prevent erroneous edits

• Diluent Forecasting/Allocation alignment

• Lower Total Cost of Ownership• Continued refactoring to deprecate Java

servlets/Tomcat

• Automated testing

• Ease of use• Usability improvements in the Delivery Splits process.

• Augmented Intelligence & Decision Support• Improved trim allocation

• Auto-balancing of shipper positions

• Improved Working Stock calculations to allow for the use of blend volumes

• Improved reporting to achieve better communication of production estimates with upstream operators

• Support for Truck Loading

• Ease of use• Redesign of the Quality Analysis module

• A graphical configuration tool that can be leveraged in different volumetric accounting modules.

• Improved workflow management and dashboard usability

• Units of measure support

• Augmented Intelligence & Decision Support• Tiered/Progressive tariffing

• Movement-based tariffing

• Batch accounting

• Vessel scheduling

• Improved truck movement tracking

• Lower Total Cost of Ownership• Continued refactoring to deprecate Java

servlets/Tomcat

• Refactor the installation into smaller more independent assemblies

• Common installer and licensing

• Cloud-SAAS offering38

Summary

• Volumetric Accounting serves pipeline carriers in the layer between the measurement systems and the financial

systems.

• Volumetric Accounting consists of activities that include forecasting future months, processing current month, and

closing previous months.

• Volumetric Accounting in Alberta adheres to industry and government regulations and standards

• Commercial Advisor is a solution offered by AVEVA to address the business needs of Volumetric Accounting.

Any questions?


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@avevagroup

ABOUT AVEVA

AVEVA is a global leader in engineering and industrial software driving digital transformation across the entire asset and operational l ife cycle of capital -intensive industries.

The company’s engineering, planning and operations, asset performance, and monitoring and control solutions deliver proven results to over 16,000 customers across the globe. Its customers are supported by the largest industrial software ecosystem, including 4,200 partners and 5,700 certified developers. AVEVA is headquartered in Cambridge, UK, with over 4,400 employees at 80 locations in over 40 countries.

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© 2019 AVEVA Group plc and its subsidiaries. All rights ... AWC NA...Forecasting • Upstream facility operators request to place a certain volume onto the pipeline by submitting