Introduction
Copano Energy is a natural gas pipeline operator and midstream company based in Houston, Texas. Founded in the early 2000s, Copano specializes in natural gas gathering, processing, and transportation. It is known for its extensive infrastructure and ability to connect natural gas production with key energy markets, primarily serving the US midstream sector.
Copano operates a network of pipelines, natural gas processing plants, and storage facilities that are strategically located to serve key energy-producing regions. Due to its strategic positioning in the US energy landscape, Copano has a unique advantage in transporting and processing natural gas to the Gulf Coast.
Copano operates more than 8,000 miles of pipeline in the US, an essential part of its operations that helped deliver natural gas to various parts of the country. Its extensive infrastructure includes pipelines across key Texas, Oklahoma, and Louisiana production regions.
In 2013, Copano Energy was acquired by Kinder Morgan, a large energy infrastructure company that operates pipelines, terminals, and processing plants across the United States.
Kinder Morgan sought to expand its footprint in the midstream sector, particularly in natural gas transportation and processing. Copano’s infrastructure and assets aligned perfectly with Kinder Morgan’s goal to dominate the natural gas transportation and processing markets.
The acquisition provided Kinder Morgan with additional processing capacity and a more expansive network of pipelines, making it one of the largest players in the midstream sector.
The Challenge: Outdated Spreadsheets and Inefficient Accounting
Prior to implementing TIES, Copano Energy relied heavily on spreadsheets to manage plant and purchase statement settlements. While widely used, spreadsheets lack the capabilities to meet the complex demands of midstream plant processing.
For Copano Energy, this method resulted in:
Data Entry Errors: Manual input led to frequent mistakes in calculations and data transfers, compromising accuracy.
Slow Processing: The large volume of data required time-consuming manual processing, which delayed settlements.
Limited Scalability: As the business grew, spreadsheets became increasingly laborious and inefficient, struggling to keep up with the expanding operations.
Integration Challenges: Their legacy accounting system, initially developed in-house, was outdated and struggled to accommodate the evolving demands of modern plant processing.
Additionally, Copano’s gathering systems were complex, with multiple pipelines feeding into a third-party pipeline before reaching the plant. The company needed a more advanced, automated solution to streamline allocations, purchases, and financial reporting—one that could handle these processes with greater accuracy and efficiency.
The Solution: TIES Automates Allocations and Simplifies Accounting
Recognising the shortcomings of their spreadsheet-based approach, Copano Energy implemented TIES, a robust plant processing software designed to simplify complex allocations and settlements. With TIES, Copano Energy experienced immediate improvements in several critical areas:
Automated Plant Allocations
TIES automated plant allocation calculations, eliminating the need for time-consuming manual spreadsheet processing. This shift reduced errors, increased efficiency, and ensured consistent data across their operations.
Seamless Integration with Accounting Systems
During the implementation of TIES, Copano Energy also transitioned to a new accounting system. TIES facilitated this upgrade by automating data exports, ensuring financial information flowed smoothly into the new system. This automation eliminated manual data entry, improving both accuracy and operational efficiency.
Efficient Management of Complex Gathering Systems
Copano’s network involved multiple gathering systems feeding into a third-party pipeline, creating significant complexity. TIES was equipped with a flexible and powerful allocation engine that effortlessly managed this complexity. It ensured accurate tracking of gas movement, allocations, and financial distributions without requiring additional manual intervention.
Advanced Pricing and Fee Management
Copano Energy needed a system capable of handling conditional pricing based on gas analysis and managing low-volume fees. TIES met these needs by:
Implementing conditional pricing models customised for gas composition analysis.
Adding functionality to manage low-volume fee structures, essential to the company's business model.
Integration with Measurement Systems
Accurate measurement data is vital for precise allocations, and TIES seamlessly integrated with Copano’s measurement systems. Initially, data was imported from Flowcal, but as Copano was acquired by Kinder Morgan, TIES’ adaptable gateway tables allowed for an easy transition to the VMA measurement system.
The Results: Enhanced Efficiency, Precision, and Cost Savings
The implementation of TIES significantly transformed Copano Energy’s plant processing and settlement workflows, delivering measurable improvements across several areas:
Eliminated Spreadsheet Dependency: TIES removed the reliance on manual spreadsheets, reducing errors and eliminating time-consuming calculations.
Boosted Accuracy: With automated data imports and financial reporting, TIES minimises the risk of human error, ensuring greater precision in financial data.
Accelerated Settlements: The automation of key processes sped up allocations and purchase statement settlements, improving overall turnaround time.
Scalable Operations: TIES offered the flexibility to manage expanding operations and adapt to future acquisitions.
Reduced Costs: By seamlessly integrating with accounting and measurement systems, TIES minimized administrative overhead and reduced the need for manual labor.
Conclusion: Why Spreadsheets Are Inadequate for Midstream Processing
While spreadsheets may suffice for smaller operations, they fall short when it comes to managing the intricate allocations, dynamic pricing structures, and system integrations essential in midstream processing.
Copano Energy's shift from spreadsheets to TIES underscores the transformative impact of automation, precision, and operational efficiency in plant processing.
For midstream companies still relying on spreadsheets, TIES presents a modern, scalable, and cost-effective solution that streamlines plant processing, accounting, and settlements, paving the way for enhanced performance and growth.
