Description
Business Case Scenarios Modeling for Midstream Company:
- Midstream company established on unconventional HCs basin required an extensive study to decide upon a convenient business model for the development of gathering and processing alternatives for multiple exploitation scenarios of several producers distributed across an extensive area.
- Business model would have to consider:
- Gathering facilities
- Processing facilities
- Production metering and allocation facilities
- Collection, transfer, and export pipeline networks
- Required investments and operational costs.
Challenge
- Limited time to develop multiple scenarios that required technical solutions and cost estimation to define the business model
- Built-in flexibility for future expansions, to handle incremental production from customers and to incorporate potential new operators
- Manage uncertainty in third party’s production forecasts plus fluid properties
Project Development
- Assessment of multiple production scenarios
- Fluids characterization and determination of blended fluids properties
- Defined multiple gathering, processing, and fluids transfer alternatives
- Defined most convenient and flexible process schemes
- Sizing of main equipment
- Cost estimation to determine CAPEX/OPEX to weigh different alternatives
Outcome
- Scalable and upgradeable facilities designed to maximize business model opportunities
- Generated multiple design scenarios providing quality information to the midstream operator to reassess the business model accordingly with E&P operators entering or leaving the network.
