Gas Supply & Pipeline Infrastructure

Supply Chain Assessment

LAI is nationally recognized for providing innovative solutions to natural gas supply and infrastructure problems through the rigorous application of gas pipeline hydraulic simulation, economic, and financial models. Our operations research specialists and fuel experts possess in-depth knowledge of North American gas markets. For various ISOs, we have conducted cutting-edge assignments concerning gas and electric interdependencies, pipeline / storage adequacy, and reliability impacts across the RTO. We bring a tested, real-world approach to the operational and market challenges associated with increased dependence on natural gas for generation and as an operational hedge for the integration of intermittent resources. Across the U.S., LAI has represented utilities, generators, and large end-users on gas commodity and pipeline risk management, FERC certificate and rate proceedings, NAESB scheduling protocols, imbalance resolution, and portfolio optimization.

LAI's fuel experts track production changes from the Marcellus and other shale formations in regard to the displacement of conventional flow from western Canada and the Gulf Coast. Our clients rely on our perspective on changing transport basis, displacement patterns, reversal-of-flow, and deliverability changes ascribable to new gas gathering and pipeline infrastructure.

Over two decades of applied expertise throughout PJM, New York, New England, Ontario and the West promotes an enlightened perspective on fuel assurance and gas / electric interdependencies affecting bulk power security. We have developed interstate pipeline simulation and linear programming models that capture complex market dynamics. Our models incorporate changes in LNG deliveries, shale gas development, new infrastructure investments, and fuel substitution effects.

LAI can help clients:

• Quantify the value of new pipeline and storage infrastructure
• Assess fuel assurance for new gas-fired generation
• Evaluate pipeline and storage infrastructure adequacy, including resiliency to withstand gas or electric contingencies
• Apply steady-state and transient flow hydraulic models
• Assess operational and financial risk management oversight procedures and best practices
• Identify seasonal deliverability constraints attributable to pipeline integrity management
• Calculate tradeoffs between firm versus non-firm service and net plant profitability
• Evaluate pipeline and utility service options