The midstream sector comprises a vast collection of unit operations and assets. Oil and gas produced from wells and oilfields are usually transported through a series of unit operations and assets comprising gas gathering, natural gas processing, natural gas liquid or NGL fractionation, regional and international pipelines, and local distribution pipelines and companies. Refined products also rely on a few midstream assets including petroleum product pipelines, blending and distribution terminals, and regional and international shipping routes. Some industry players also classify LNG and hydrocarbon exports as midstream activities.
The North American oil and gas industry made massive investments over the past decade in the Great Midstream Build-Out to facilitate the transportation and processing of oil and gas production from the shale plays to refineries, liquefaction and power plants, and international export terminals. As the shale revolution matures, and oil and gas faces significant competition from renewables towards the Energy Transition, midstream capacity will face challenges such as expiring contracts, declining volumes, tariff pressures, regulatory and investor pressure on environmental, social, and governance (ESG) issues, and environmental footprint and sustainability challenges.
How ADI helps midstream companies
ADI Analytics brings deep expertise, rich experience, and numerous models, analytics, and databases on oil & gas midstream assets, costs, capacity and assets, demand, trade flows, contracts and minimum volume commitments, and other analytics to help clients with a wide range of needs. Our teams have helped midstream operators conduct insightful market research on new plays and develop and optimize pipeline and gas processing asset strategies and portfolios.
In other work, ADI has led market-focused due diligence to underwrite private equity transactions in midstream assets. Commercial support to help midstream operators is another area where ADI can bring data and analytics on comparables to support negotiations for open season contracts, minimum volume commitments, and terminal use and sales and purchase agreements.
Finally, ADI is supporting a number of midstream operators with their strategies to address growing investor and regulatory scrutiny on ESG issues, emissions reporting, and Energy Transition strategies. Evaluating and recommending new technologies to help midstream operators optimize and reduce their environmental and emission footprint is a focus area of ADI’s expertise and experience in the midstream sector.
Relevant examples
A few examples of our work in the natural gas and LNG sector are presented here. Please contact us to learn more about how ADI can help you.
Asset strategy
- Advised operator on new gas pipeline in Niobrara based on drilling, existing pipe, markets, rates, firm contracts, and flows
- Assessed the global DRA (drag reducing agent) market for a specialty chemical manufacturer
- Provided market research and entry strategies to a major midstream player considering an investment in the DJ Basin
- Prioritized NGL monetization options in Marcellus/Utica based on exports, local sales, and takeaway for gas processor
Due diligence
- Assessed capacity utilization, revenue, contracts portfolio, and risk for valuation of gas gathering system in Marcellus
- Led due diligence on natural gas and NGL storage assets acquisition in the U.S. Gulf Coast for investor
Commercial support
- Supported E&P player with origination, commercial structuring, and pipeline TSA for NGL supply in the Appalachia
- Benchmarked terminal use (TUA) and sales and purchase agreements (SPA) for Asian major for U.S. ethane
- A gas processing plant vendor approached ADI Analytics for voice-of-customer based competitive benchmarking.
Fuel sourcing
- Developed feed gas plan, procurement strategies, and commercial models for U.S. LNG export terminal developer
- Crafted LNG import strategy based on economics, and origin, regas, and shipping options for African EOR asset
Technology assessments
- Designed and piloted operational excellence and reliability improvement strategy for oil major’s pipeline assets
- Identified, profiled, and ranked over 20 new technologies to improve pipeline safety and reliability for oil major
Access our thinking
ADI is a thought leader in the midstream sector. Access our latest thinking including blog posts, white papers, conference presentations, and videos on the ADI insights section.
