The Utilities industry is becoming more challenging. Companies in this sector have to cope with a consolidating competitive environment, demand for heavy investment in generation and grid, new regulatory developments, and more sophisticated customers, to name a few. Industrial clients of power and gas companies need to evaluate new sourcing strategies to optimize their costs and their risk position in energy supply. Regulators must simulate market conditions and at the same time make sure that these companies continue investing in the future.

Boxley Group has deep Utilities industry consulting expertise and exceptional execution capabilities to help our power and gas clients. It’s about making difficult decisions in an unpredictable environment where the differences are often subtle. This is especially true today as utilities confront changing regulations, aging infrastructure assets, skills shortages, fuel price volatility, and the growing consideration of environmental directions. However, utilities looking to build for the future can also look to a fresh set of business solutions enabled by new digital technologies, sensing devices, and software capabilities.

Natural Gas Transportation

As the US natural gas industry has evolved through deregulation it’s been transformed from a relatively benign industry to highly sophisticated value chain fraught with complexities. The global gas industry has generally followed a similar path. The domestic natural gas industry is a complex landscape comprised of 210 natural gas pipeline systems with over 305,000 miles of pipeline, and 400 underground storage facilities that support 24 hubs/market centers. Today’s business is characterized by rapid supply and demand imbalances, unpredictable price volatility, and new supply forces (growth in LNG and expansion of unconventional gas sources). As a result, the players have to continuously refresh strategies and in some cases re-invent themselves to stay on top of the market’s dynamic. Boxley Group has domain experience through the competitive natural gas delivery chain, wellhead to burner tip.

Recent Engagement Profiles

  • Research and strategy project regarding the evolution of natural gas markets in the United States, Canada, and the United Kingdom, following deregulation. This information was used to help a large overseas gas utility understand the implications of deregulation on their uncontested markets. Our team proposed several changes to the utilities tariff offerings, market strategy, and operations strategy to enable them to maintain a competitive advantage as a fully contested market environment was enacted through deregulation.
  • Software evaluation and implementation project for intrastate pipeline company. We evaluated their physical, marketing, and accounting system needs, then selected and implemented a state of the art gas management system for several of their intrastate pipelines. This enabled straight-through processing of nominations, confirmations, and scheduling data to settlements in SAP.

Functional Experience

We have helped our clients with innovative solutions in the following functional areas:

  • Gas Gathering and Processing.
  • Pipeline Operations – Gas Control, Gas Scheduling, Allocations and Balancing Storage.
  • LDC Operations – Supply, Demand Forecasting, Load Balancing, Gas Control, Gas Scheduling, Curtailments and OFOs, and Balancing.
  • Hub Services and Market Services Operations.
  • Trading and Risk Management.
  • Regulatory – FERC/NAESB Tariff Filings and Compliance.