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Commercial Gas Management Solutions - GL Group

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Energy <strong>Solutions</strong><br />

<strong>Commercial</strong> <strong>Gas</strong> <strong>Management</strong> <strong>Solutions</strong><br />

Germanischer Lloyd – Service/Product Description


<strong>Commercial</strong> <strong>Gas</strong> <strong>Management</strong><br />

<strong>Solutions</strong><br />

2<br />

Germanischer Lloyd – Service/Product Description<br />

Service Title: Energy <strong>Solutions</strong><br />

Lead Practice: <strong>GL</strong> - Energy <strong>Solutions</strong><br />

Page 3<br />

Pages 4 - 12<br />

a:<br />

b:<br />

c:<br />

d:<br />

Pages 13 - 15<br />

a:<br />

b:<br />

c:<br />

Contents<br />

Service Description and Values Generated<br />

Detailed Method Statement<br />

The detailed method statements explain how the<br />

work is conducted, which inputs are required and<br />

which outputs and results can be expected.<br />

System Requirements Study (SRS)<br />

Third Party Access <strong>Solutions</strong> for Underground <strong>Gas</strong><br />

Storage Operators and LNG Facilities<br />

Forecaster Implementation Services<br />

Application Support & Hosting Services<br />

Case Studies and Examples<br />

Access Manager for Star Energy (Underground <strong>Gas</strong><br />

Storage)<br />

Access Manager Implementation for Grain LNG<br />

E.ON Földgáz Trade (EFT) - Imbalance Penalty<br />

Reduction Through Accurate Demand Forecasting


Service Description<br />

and Values Generated:<br />

Liberalisation of energy markets around the world is having a<br />

profound impact upon the way in which energy suppliers and utilities<br />

operate. Historically it was not uncommon for a single company, often<br />

state owned, to own and operate the entire gas chain from well to<br />

meter. The introduction of competition is increasing the number of<br />

market players and more often than not, results in the unbundling of<br />

production, transmission, distribution, storage and supply. Operating<br />

in this new competitive environment requires fundamental changes to<br />

business processes and the software solutions that support them.<br />

Germanischer Lloyd (<strong>GL</strong>) is a world leading provider of commercial<br />

gas management and Third Party Access solutions and services:<br />

� System Requirement Studies<br />

An essential first step for any company looking to procure<br />

(or develop) a software solution is to clearly and<br />

unambiguously define their requirements. <strong>GL</strong> have a team<br />

of experienced consultants and a proven methodology<br />

for developing systems requirements specifications that<br />

can be used as the basis for an Invitation To Tender (ITT).<br />

� Third Party Access and Hydrocarbon Allocation<br />

<strong>Solutions</strong> for Underground <strong>Gas</strong> Storage Operators<br />

and LNG Facilities<br />

Access Manager provides a suite of configurable software<br />

modules to support the commercial operation,<br />

hydrocarbon allocation and Third Party Access for<br />

Underground <strong>Gas</strong> Storage Operators and LNG facilities.<br />

� <strong>Gas</strong> Demand Forecasting for Transmission and<br />

Distribution System Operators, and Energy<br />

Suppliers/Retailers<br />

Forecaster is an advanced forecasting solution that<br />

delivers future short term daily and hourly energy<br />

demands that are essential to gas transmission and<br />

distribution system operators and energy suppliers.<br />

Forecaster gives you manageable forecasts that maximize<br />

accuracy while minimizing effort.<br />

SERVICE DESCRIPTION<br />

� Application Support and Hosting Service<br />

<strong>GL</strong> provide a comprehensive application support and<br />

hosting operation, ready to meet the specific operational<br />

requirements of our customers in the energy industry. A<br />

24/7 application support operation ensures that our<br />

customers have access around the clock to our team of<br />

expert software engineers & consultants, ensuring that<br />

their business critical operations can continue to operate<br />

no matter the situation.<br />

3


DETAILED METHOD STATEMENT<br />

a. System Requirements Study (SRS)<br />

An essential first step before procuring (or developing) any software<br />

system is to clearly and unambiguously define the system<br />

requirements in a System Requirements Specification (SRS). This<br />

document can then be used as a basis for an Invitation To Tender (ITT)<br />

and/or used to evaluate the suitability of alternate solutions.<br />

The System Requirements Specification would typically include the<br />

following sections:<br />

4<br />

1) Problem Definition/Business Drivers<br />

This section will clearly define the business drivers and<br />

purpose for implementing the system. It will establish a<br />

common vision for the system and ensure that the<br />

requirements are business driven.<br />

2) Stakeholders<br />

This section will identify the users of the system and any<br />

parties (internal or external) that could be materially<br />

affected by its implementation.<br />

3) System Boundary<br />

The system boundary will define the border between the<br />

new system and any existing corporate systems. All data<br />

inputs and outputs will be defined.<br />

4) Functional Requirements<br />

This will describe the functional requirements of the<br />

system - how the system must behave - and will<br />

constitute the bulk of the report. It will be organized by<br />

module (for example nominations, contracts or<br />

allocations). Each of the features or behaviours will be<br />

classified as mandatory, desirable or “nice to have”. This<br />

last step is important for two reasons: firstly, it enables<br />

the requirements to be weighted when evaluating the<br />

suitability of off the shelf solutions, and secondly, it<br />

enables resources to be focused on essential features.<br />

For example, the functional requirements for a third party<br />

access system will typically cover the following functional<br />

areas:<br />

- Nominations<br />

- Allocations<br />

- Inventory<br />

- Contracts<br />

- Availability (including Site Operations Interface,<br />

Outages and Operations Support)<br />

5) Non-functional Requirements<br />

This section will identify the non-functional requirements<br />

for a system, such as:<br />

- Hardware (Client and Server)<br />

- Network infrastructure<br />

- Backup and Recovery<br />

- User Interface<br />

- Reliability<br />

- Availability<br />

- Performance<br />

- Support<br />

6) Design Constraints<br />

This section will identify restrictions on the design of the<br />

system, or the methodology by which it will be developed<br />

or implemented. Likely issues for consideration will be<br />

the existing IT infrastructure and ongoing support<br />

considerations.


Implementation<br />

<strong>GL</strong> use a tried and tested four-phase approach to conducting System<br />

Requirements studies:<br />

DETAILED METHOD STATEMENT<br />

Phase 1 - Data Gathering<br />

Our consultants carry out a number of structured workshops (typically<br />

over a period of two weeks) with representatives from the customer’s<br />

business to capture the system requirements. Feedback sessions are<br />

incorporated throughout the schedule to ensure that the consultants<br />

have correctly captured and understood the requirements before<br />

drafting the System Requirements Specification (SRS).<br />

Phase 2 - Compile System Requirements Specification.<br />

It typically takes two to three weeks for the consultants to complete<br />

their analysis of the information gathered in the workshops and<br />

produce the first draft of the SRS (Ver 0.1) for the customer to review.<br />

Phase 3 – Review Draft<br />

Two to three weeks is typically sufficient time for the customer to carry<br />

out a review of the draft SRS (Ver 01.) and for the Consultants to<br />

incorporate comments and issue SRS Ver 0.2.<br />

Phase 4 – Final Review<br />

One to two weeks is then required for a further review cycle before<br />

the final version, SRS Ver 1.0 is issued for sign-off by the customer.<br />

5


DETAILED METHOD STATEMENT<br />

b. Third Party Access and Hydrocarbon Allocation <strong>Solutions</strong><br />

for Underground <strong>Gas</strong> Storage Operators and LNG Facilities<br />

Access Manager is a Web-enabled system that provides a robust and<br />

reliable platform that meets the demands of today’s liberalised energy<br />

markets. Access Manager was developed specifically for the<br />

commercial environment of Third Party Access.<br />

Access Manager was first implemented in 2002 for the five LNG peak<br />

shaving sites in the UK. <strong>GL</strong> has continued investment and<br />

development in the system so that it has become a core solution. In<br />

Access Manager, we have the only proven end-to-end (ship to send<br />

out) terminal system in the UK.<br />

The experience of operating in the UK’s energy market has enabled <strong>GL</strong><br />

to develop a system that can be configured and customised to meet<br />

the constantly evolving market requirements. Access Manager is<br />

purposely designed to fit around the business, not the business<br />

around Access Manager.<br />

6<br />

Key Benefits of Access Manager:<br />

� Reduction in Operational Expenditure - Automation of<br />

key processes minimises manpower requirements. One<br />

customer was able to save in excess of £400k p.a. by<br />

configuring the system to electronically send alerts by<br />

phone removing the need for a 24/7 <strong>Commercial</strong><br />

Operations team<br />

� A proven solution that reduces risk and delivery timescales<br />

compared with a bespoke development<br />

� Facilitates the optimisation of operations through the<br />

provision of accurate and timely information to key<br />

stake-holders (including commercial and system operations,<br />

customers, shareholders etc.)<br />

� Highly flexible – Modules can be configured or tailored<br />

to meet specific customer requirements<br />

� Security and audit features ensure confidentiality of the<br />

user parties’ data and demonstrates regulatory<br />

compliance<br />

� Low cost of ownership achieved through flexible user<br />

configurability and support, for example simple changes<br />

(such as screen appearance) can be made by system<br />

administrators<br />

� Demonstrates regulatory compliance and supports<br />

Secondary Trading and UIOLI rules (Use It Or Lose It)<br />

� The modular nature of the system reduces the cost and<br />

risk of extending the system to other users and future<br />

project phases<br />

� Business process automation enables internal IT staff to<br />

maintain the system without detailed knowledge of<br />

stakeholder processes<br />

� Remote, secure web based access to the system<br />

� Multi language support enables the system to be<br />

deployed World wide


Implementation<br />

<strong>GL</strong> follows a tried and tested process for implementing its Access<br />

Manager solution:<br />

Project Phases:<br />

Stage 0 - Pre-project Planning<br />

The project begins with an internal kick-off meeting to mobilise the<br />

project team, assign roles and responsibilities, and discuss the overall<br />

project objectives. During this stage the <strong>GL</strong> project manager will<br />

develop the project plan including a detailed quality plan, for approval<br />

by the customer<br />

Stage 1 - Gap Analysis (Analysis & Design)<br />

During this phase <strong>GL</strong> will analyse the gap between the base Access<br />

Manager solution and the customer requirements. A solution will be<br />

designed and documented in the Functional Design Specification<br />

(FDS).<br />

Stage 2 - Configuration and Customisation<br />

This phase incorporates the key activities of making configuration and<br />

customisation changes to Access Manager in order to meet the<br />

Functional Design Specification.<br />

Stage 3 - FAT Testing<br />

<strong>GL</strong> carry out comprehensive factory acceptance testing at it’s premises<br />

which includes Unit, Module and end to end System Integration<br />

testing.<br />

Stage 4 - Deploy and SAT<br />

Following a successful Factory Acceptance Test the system is installed<br />

at the client’s site and Site Acceptance Testing is carried out.<br />

Stage 5 - Training<br />

End users and administrators are trained in how to use and<br />

administrate the system prior to carrying out User Acceptance Testing.<br />

Stage 6 - User Acceptance Testing<br />

The system is comprehensively tested by the customer to ensure that<br />

it delivers the functionality as defined in the Functional Design<br />

Specification.<br />

DETAILED METHOD STATEMENT<br />

Post Implementation Support and Services<br />

<strong>GL</strong> provides comprehensive 2nd line technical support for our clients.<br />

This includes call logging, tracking and management, through to<br />

problem diagnosis and problem resolution, including escalation<br />

management.<br />

A number of options with defined service levels are available ranging<br />

from working hours support through to 24/7 including application<br />

hosting.<br />

7


8<br />

DETAILED METHOD STATEMENT<br />

c. Forecaster Implementation Services<br />

Forecaster Overview<br />

<strong>Gas</strong> transmission and distribution companies, shippers and traders<br />

are all interested in forecasting gas demand. The extent of this<br />

depends largely on the type of market they are operating in. The key<br />

drivers behind gas forecasting will be a subset of the following:<br />

� The need to reduce imbalance penalties imposed by the<br />

regulator/transporter<br />

� The need to maintain security of supply<br />

� The need to manage gas storage efficiently<br />

� The need to book sufficient capacity in the future<br />

� The need to operate a gas network efficiently and safely<br />

� The need to optimise CAPEX by pinpointing capacity<br />

constraints<br />

� The need to make informed buying/selling decisions in<br />

times of price volatility<br />

The <strong>GL</strong> Forecaster product is aimed at addressing all these business<br />

drivers by providing the flexibility to operate within different parts of<br />

the industry. Forecaster can drive operations by providing accurate<br />

short term predictions (within the day and day ahead) at each<br />

metered demand point, or at any aggregation of points. Moreover,<br />

the granularity, frequency and forecast horizon are all configurable<br />

within the system. The product can also be configured to predict<br />

long term demand patterns, and is therefore a powerful tool to feed<br />

into planning activities.<br />

Built into the product are a number of algorithms that can be used to<br />

generate forecasts and the choice of algorithm depends on the nature<br />

of the problem being solved. Forecaster currently supports the<br />

following methodologies:<br />

� Neural networks<br />

� Multiple Linear Regression<br />

� Multiple Non-Linear Regression<br />

� ARIMA (Auto-Regressive Moving Average)<br />

� Adaptive Combination<br />

� Bayesian<br />

� Profiling and utility models<br />

Forecaster has built in capability to automate the key processes<br />

required to capture input data, train the models, generate forecasts<br />

and output the results.<br />

Forecaster - Key Benefits<br />

� The most important benefit is improved accuracy of<br />

demand forecasts as these feed into many other business<br />

processes. Some of our clients have achieved reductions<br />

in Mean Absolute Percentage Error by as much as 50%<br />

compared with existing forecasting methods with typical<br />

improvements of between 5-35%. This very much<br />

depends on client’s existing modelling methods, data<br />

quality, history and availability. For example one client<br />

reduced their average portfolio error from 15% to 7%,<br />

another from 5.5% to


Forecaster Implementation Service Overview<br />

<strong>GL</strong> has world-class gas demand forecasting expertise with specific<br />

knowledge of how forecasting models are configured within<br />

Forecaster.<br />

An extensive range of consultancy services are available to guide the<br />

customer through a successful Forecaster implementation. These<br />

include:<br />

� Detailed requirements capture to understand and<br />

document the clients needs<br />

� Initial Study – to demonstrate our forecasting capability<br />

and the level of accuracy that can be achieved using client<br />

data<br />

� Forecaster Trial – to set up a trial version of the product to<br />

allow the client to use for a defined period of time<br />

� Forecaster Implementation – client data analysis and<br />

model configuration through to installation, integration,<br />

training and testing<br />

� Continuous Improvement – application and configuration<br />

support through the <strong>GL</strong> dedicated support function.<br />

Ongoing modelling consultancy can also be provided to<br />

monitor forecasting accuracy and adapt models to<br />

changing market conditions.<br />

DETAILED METHOD STATEMENT<br />

Requirements Capture<br />

Once the client has established their business case for purchasing a<br />

forecasting solution, <strong>GL</strong> can provide consultancy support to elicit the<br />

detailed business and IT requirements of the customer in respect of<br />

the system. <strong>GL</strong> have a tried and tested methodology for capturing<br />

and documenting these requirements.<br />

Initial Study<br />

Business<br />

Case<br />

Using <strong>GL</strong> forecasting expertise, we suggest to the client a two to three<br />

week consulting study that analyses representative data for a few<br />

demand points, configures them into Forecaster, develops and assigns<br />

models, and reports on the likely accuracy that could be achieved<br />

highlighting any data issues.<br />

To support this activity, the client provides <strong>GL</strong> with input data for up<br />

to 10 demand points the client has historically forecast. The client<br />

may wish to provide a range of demand types representative of their<br />

portfolio to test our capability. Input data would typically include<br />

historical demand and other information considered to be a driver of<br />

the forecast, such as weather data.<br />

We will analyse the input data for each demand point, and depending<br />

on the demand pattern, data quality etc, configure and train the<br />

Forecaster models on an agreed test period and generate forecasts<br />

over the remaining period. The results of this study are presented to<br />

the client and compared with equivalent accuracy figures.<br />

The evaluation delivers a summary report providing an outline of<br />

accuracy, data issues and recommendations. Fees are based on<br />

estimated cost of services.<br />

9


10<br />

DETAILED METHOD STATEMENT<br />

Forecaster Trial<br />

Following on from an initial study where we have demonstrated the<br />

potential accuracy that Forecaster can achieve, the client may wish to<br />

trial the Forecaster product to test its robustness as an operational<br />

tool to ensure it meets their functional requirements and fits in with<br />

their IT infrastructure.<br />

Typically, as part of an evaluation or pilot, <strong>GL</strong> would set up a trial<br />

database with a small number of demand points configured to run<br />

operationally. The client may wish to create an automated data<br />

loading mechanism to feed the system using ‘as-live’ data, or they<br />

could set up a manual procedure to carry out the required activities<br />

each day.<br />

<strong>GL</strong> would help the client set up the database, install the system (with<br />

a temporary licence) and deliver an introductory training course<br />

enabling the client to make full use of the product during the<br />

evaluation period.<br />

The Forecaster trial will assist the client’s understanding of what can<br />

be achieved and helps refine their requirements so that we can<br />

provide a detailed proposal for subsequent implementation. This has<br />

the benefit of ensuring that the solution meets the client’s<br />

expectations.<br />

Implementation<br />

<strong>GL</strong> employs a tried and tested method for implementing Forecaster<br />

according to the following basic stages:<br />

1) Analysis and Specification<br />

Involves workshops with the client to understand how<br />

Forecaster needs to be configured, what data is available,<br />

what is to forecast etc. The output from this is a<br />

Configuration Specification which the client signs off.<br />

2) Initial Configuration<br />

Following approval of the Configuration Specification, we<br />

create a Forecaster database configured for the client.<br />

This includes forecast horizons, demand points, weather<br />

and other input variables.<br />

3) Data Migration<br />

Demand and other input data (e.g. temperature) is<br />

migrated into the Forecaster database either by the client<br />

or <strong>GL</strong>. This information is provided by the client. We can<br />

optionally carry out analysis of the data quality and clean<br />

up the data as necessary.<br />

4) Modelling (optional)<br />

As an optional phase, <strong>GL</strong> will carry out analysis of the<br />

migrated data and investigate the best type of model to<br />

apply to each demand point. If the client has already<br />

carried out this analysis, or if the client has specific models<br />

they wish to implement directly in Forecaster, these will be<br />

configured in the next stage.<br />

5) Model Configuration<br />

Based on models identified in stage 4, or models the<br />

client wishes to be implemented, <strong>GL</strong> will carry out the<br />

necessary model configuration and assign them to the<br />

demand points according to their classification. At this<br />

stage the Scheduler component is also set-up to<br />

automate all the key tasks.<br />

6) Factory Acceptance Testing<br />

The fully configured Forecaster system is thoroughly<br />

tested at our office to ensure it fully meets the needs of<br />

the client. This includes an element of operational<br />

testing, where Forecaster runs on ‘as-live’ information.<br />

7) Installation<br />

We carry out on-site installation of Forecaster and the<br />

database. At this stage, the client is guided through this<br />

process, with reference to the installation guide, to ensure<br />

this knowledge is transferred.<br />

8) Site Acceptance Testing<br />

Once Forecaster has been installed on-site, <strong>GL</strong> engineers<br />

run a sub-set of the critical Factory Acceptance Tests to<br />

ensure the system runs as expected in the target<br />

environment.<br />

9) Training<br />

Before the system is handed over to the client, we carry<br />

out an introductory and intermediate training course<br />

aimed at key users of the system and testers the client<br />

may be using. A System Administration course which<br />

covers installation, system architecture and<br />

troubleshooting for the Forecaster system is also<br />

provided.<br />

10) User Acceptance Testing Support<br />

Following successful SAT and client training, the system is<br />

handed over to the client for them to carry out their<br />

testing. Typically, the client will have pre-defined the tests<br />

they wish to carry out based on their user requirements.<br />

Following this phase, the client signs off the system as<br />

ready for go-live. <strong>GL</strong> would provide support as part of<br />

the implementation project during this period to address<br />

any issues that may arise.


Post Implementation Support and Services<br />

<strong>GL</strong> provides comprehensive technical support for Forecaster clients.<br />

This includes call logging, tracking and management, through to<br />

problem diagnosis and problem resolution, including escalation<br />

management.<br />

A number of options with defined service levels are available ranging<br />

from working hours support through to 24/7.<br />

In addition to application support, <strong>GL</strong> can provide additional<br />

consultancy to monitor the on-going accuracy of the client’s<br />

forecasting models and provide recommendations for potential<br />

improvements. This situation may be beneficial to the client if they do<br />

not have the resources in-house to carry out this activity themselves.<br />

Additional training can also be provided, including an Advanced<br />

Training course which covers model configuration and is aimed at<br />

users who have used the system for a while and would like to take the<br />

models to the next level.<br />

There are a wide range of forecasting methods available in Forecaster<br />

which covers most client needs. However, there may be some<br />

situations where the client would like to investigate new techniques<br />

such as neural fuzzy, support vector machines, Artificial Logic<br />

Networks etc. <strong>GL</strong> have a long history of carrying out research and<br />

development activities in the area of gas demand forecasting and<br />

have provided this level of service to clients in the past.<br />

DETAILED METHOD STATEMENT<br />

d. Application Support & Hosting Services<br />

<strong>GL</strong> recognises the importance of an effective application support and<br />

hosting service and the business benefits of a responsive, high quality<br />

service to support key business solutions in the energy industry. <strong>GL</strong><br />

has an excellent record for quality of service and have a commitment<br />

to provide a level of responsiveness driven by customer defined service<br />

levels.<br />

<strong>GL</strong> have been providing support services to the UK energy industry<br />

for over 20 years, ensuring that the systems operating the UK gas<br />

networks continue to function around the clock.<br />

Call handling software is used to log, record and monitor calls against<br />

customer specific service levels.<br />

Support Services<br />

� Location and Availability<br />

With <strong>GL</strong> offices around the world, 1st line support<br />

services can be established in locations closest to the<br />

customer, operating in their time zone and their<br />

language. Depending on the nature of the customer’s<br />

business and the business criticality of the operations, <strong>GL</strong><br />

can offer expert support coverage right through to 24<br />

hours a day, 7 days a week. This gives the customer<br />

access to expert software engineers and consultants, who<br />

can promptly resolve and get to the root cause of any<br />

application issue.<br />

� Call <strong>Management</strong><br />

Each call received by the helpdesk teams is recorded in a<br />

call logging system and given a call reference number.<br />

The caller is asked to provide the following information:<br />

- User identification and contact details<br />

- Description of the problem<br />

- Priority of call<br />

<strong>GL</strong> will acknowledge the acceptance of the call within the<br />

agreed SLA timings and contact the customer for further<br />

information, if required including:<br />

- Requests for screen shots<br />

- Error message texts<br />

- Confirmation of local IS problems (e.g. network or<br />

desktop failure; failed web access)<br />

- Information on actions taken to date<br />

- Information on steps required to reproduce the failure<br />

or circumstances under which failure occurred<br />

11


12<br />

DETAILED METHOD STATEMENT<br />

Initial problem diagnosis will be undertaken on the<br />

production system. In order to achieve the level of<br />

support required as effectively as possible, the Support<br />

Team often have controlled access to the production<br />

system so that the particular problem can be monitored<br />

and assessed.<br />

Further investigation, when necessary, takes place on<br />

internal development systems. Additional information<br />

and diagnostic data is often made available by the user on<br />

request to help with the resolution of the problem.<br />

In some cases, diagnosis may involve duplicating the<br />

problem to understand the issues. It may also be<br />

necessary to investigate the data and functionality of the<br />

system. The customer will often provide assistance and<br />

access in this regard.<br />

� Problem Resolution<br />

Once the problem has been identified and fixed, the issue<br />

is closed by the support team in agreement with the user.<br />

When the correction of the problem entails the<br />

implementation of a fix, the call will be closed once a solution<br />

or an acceptable workaround has been provided.<br />

� Reporting and Performance Review<br />

<strong>GL</strong> provide customers with monthly performance reports,<br />

keeping the customer informed about the number of calls<br />

being taken, details of the calls, and the support teams<br />

performance against the agreed service levels.<br />

Face to face meetings are also held on a regular basis to<br />

ensure that the service being provided is meeting<br />

requirements and achieving the level of system availability<br />

that the customer needs to keep their business operating<br />

at the optimum level.<br />

� Hosting Capabilities<br />

<strong>GL</strong> offer full end-to-end service delivery, support and<br />

hosting capabilities. With our expert knowledge of<br />

hardware requirements best suited to meet the demands<br />

of our applications, we work with our customer to design<br />

a hardware solution that meets their requirements with<br />

regards to performance, disaster recovery and cost.<br />

System availability right through to 99.99% availability<br />

can be provided, removing the need for companies to<br />

provide their own infrastructure and hardware support.<br />

Benefits<br />

Customers gain the following benefits by adding application support<br />

and hosting services to a <strong>GL</strong> software solution:<br />

� Assurance that problems in operating important and<br />

business critical software systems are resolved within a<br />

defined service level<br />

� Assurance that your business processes will be supported<br />

to reduce disruption from problems<br />

� <strong>GL</strong> experts support the system from both a software and<br />

IT domain and the commercial/engineering domain to<br />

ensure that the solution continues to meet your business<br />

objectives<br />

� <strong>GL</strong> can support the solution from end-to-end including<br />

software and hardware<br />

� A <strong>GL</strong> support service can easily add extra support for<br />

additional analysis and modelling using the data from<br />

supported systems<br />

� Regular reports give you key information about the<br />

system and how it has been supported within the<br />

required service levels<br />

In addition, <strong>GL</strong> application hosting services offer further benefits:<br />

� Significant savings in both time and cost when<br />

implementing <strong>GL</strong> solutions<br />

� Greater agility to respond to your business need quickly<br />

� <strong>GL</strong> experts provide a single team to support every aspect<br />

of your system including implementation, configurations,<br />

hardware and software to keep the system running at<br />

peak efficiency.


a. Access Manager for Star Energy (Underground <strong>Gas</strong> Storage)<br />

Client: Star Energy<br />

Country: UK<br />

Timeline: Approximately 9 months<br />

Issue:<br />

The client is an oil production company with a number of depleted oil<br />

fields suitable for conversion to underground gas storage facilities.<br />

One such oil field has been converted.<br />

The client required a commercial third party access solution to<br />

automate and manage the commercial interactions between the<br />

storage operator and the storage customers across a number of<br />

storage services.<br />

The system was also required to communicate commercial storage<br />

requirements to the operator’s plant operation team, and to capture<br />

all required plant operation data.<br />

The client required that the system should have the flexibility to<br />

support additional storage services as they are made available, and<br />

to support multiple storage sites as further depleted oil fields are<br />

converted for gas storage use.<br />

Methodology and results:<br />

The <strong>GL</strong> Access Manager solution was chosen to meet this need. The<br />

client recognised that our industry experience, technology and price<br />

made us the best choice in this field. We secured this project against<br />

some very tough competition.<br />

The system was implemented in a number of phases, using the <strong>GL</strong><br />

proven Access Manager Implementation Methodology.<br />

Critical customer nomination and allocation functionality was urgently<br />

required to support the commencement of the operator’s first storage<br />

contract following commissioning of the storage facility. This<br />

functionality was provided as phase 1 of the project, and was tested,<br />

implemented and operational in time for the first contractual storage<br />

nominations at the site.<br />

Subsequent phases have added site availability functionality, which<br />

enables the storage operator to plan maintenance schedules and<br />

record breakdown details. It also ensures that the contractual<br />

implications of storage availability are applied to the nomination and<br />

allocation of gas.<br />

An interface to the storage operator’s financial system has been<br />

added to provide details of storage activities for the billing of services<br />

used by storage customers.<br />

The solution was developed using an Oracle 10g database accessed<br />

via a secure web interface.<br />

Key deliverables included:<br />

� A fully configured and customised Access Manager<br />

system<br />

� Consultancy and analysis of system requirements<br />

� Phased implementation to provide support for the client’s<br />

business when needed<br />

� Training and documentation<br />

� On site assistance with user acceptance testing<br />

� Changes to scope and requirements requested by the<br />

client and managed by <strong>GL</strong> throughout the development<br />

period<br />

� A comprehensive support service<br />

Benefits:<br />

The client experienced the following benefits:<br />

� Automation of business processes against a timescale<br />

that met business requirements<br />

� Able to implement new storage services as they became<br />

beneficial to the business<br />

� Flexible phasing of new system functionality<br />

CASE STUDIES<br />

� Parameterisation of storage services allows the business to<br />

change contract details without the need for <strong>GL</strong><br />

intervention<br />

� Reliable third party access system continues to support<br />

the business with minimal need for <strong>GL</strong> support<br />

� A system delivered to a timescale dictated by the physical<br />

commissioning of the store and the commencement of<br />

contractual storage provision<br />

13


14<br />

CASE STUDIES<br />

b. Access Manager Implementation for Grain LNG<br />

Client: Grain LNG<br />

Country: UK<br />

Timeline: Approximately 9 months<br />

Issue:<br />

Grain LNG Ltd (<strong>GL</strong>NG) needed a solution to support the commercial<br />

management of their LNG importation facility at the Isle of Grain. The<br />

Isle of Grain facility affords deep-water access for LNG ships and is<br />

located in Kent, close to the demand for gas. The facility has a<br />

deliverability rate of 243GWh/day and began operation in June 2005.<br />

Methodology and results:<br />

<strong>GL</strong> implemented Access Manager for <strong>GL</strong>NG. Access Manager provides<br />

a set of electronic tools for <strong>GL</strong>NG to support, control and manage<br />

their entire commercial processes:<br />

� Automatically validates customer nominations<br />

� Based upon customer contracts automatically allocates<br />

hydrocarbons<br />

� Forecasts the ‘end of day’ gas imbalance i.e. the<br />

difference between nominated delivery and actual<br />

delivery (<strong>Commercial</strong> Balancing)<br />

� Provides a mechanism to inform sites to flow gas<br />

� Provides a mechanism to inform customers of<br />

interruptions to their services<br />

� Maintains an up to date record of the services purchased<br />

by customers<br />

� Maintains up to date customer invoice information<br />

� Communicates with potential customers via a bulletin<br />

board<br />

� Provides a record of commercial inventory for each<br />

customer<br />

� Communicates the latest unloading programme and its<br />

impact on forecast inventory<br />

Benefits:<br />

As described above, Access Manager provides a set of electronic tools<br />

for <strong>GL</strong>NG to support, control and manage their entire commercial<br />

processes. In addition the system provides customers with secure<br />

on-line access via a standard Internet connection to live information<br />

relevant to their LNG importation and storage services and enables<br />

them to perform the following activities:<br />

� View the <strong>GL</strong>NG Services they have purchased<br />

� View their current inventory<br />

� View site availability (site status)<br />

� Make Delivery Nominations<br />

� Monitor Delivery Nominations against actual delivery<br />

� Trade berthing rights, storage capacity, deliverability and<br />

gas with other <strong>GL</strong>NG customers<br />

� Communicate with other customers via a bulletin board


c. E.ON Földgáz Trade (EFT) - Imbalance Penalty Reduction<br />

Through Accurate Demand Forecasting<br />

Date: 2007<br />

Customer: E.ON Földgáz Trade<br />

Savings: Improved forecasting accuracy and improved<br />

efficiency through automation.<br />

Issue:<br />

E.ON Földgáz Trade (EFT) contracted <strong>GL</strong> to deliver a solution to<br />

provide accurate demand forecasts to reduce imbalance penalties<br />

within the regulated Hungarian market. The key project objectives<br />

were to:<br />

� Provide forecasts for 50 exit points including local<br />

distribution companies and total system load.<br />

� Provide re-nominations on request to the transmission<br />

operator within one hour<br />

� Automate time-consuming processes<br />

� Provide day, day-ahead and week-ahead forecasts.<br />

� Manage the system with minimal assistance<br />

Methodology & Results:<br />

An initial conceptual phase defined data requirements, forecasting<br />

needs and required Forecaster configuration details. EFT provided<br />

data that was analysed and modeled by <strong>GL</strong> for deployment. An<br />

interface was developed to automate the data transactions from EFT’s<br />

legacy database and the <strong>GL</strong> system using XML.<br />

A set of reports were developed to allow EFT to monitor and manage<br />

the system. <strong>GL</strong> carried out a comprehensive series of tests to ensure<br />

smooth system operation and provided a detailed training course.<br />

There were a number of issues with the data sources that impacted<br />

the project timelines, however, the teams worked together to re-plan<br />

and ensure the data issues were resolved to result in a smooth testing<br />

phase.<br />

The initial model accuracy showed improvements over current<br />

processes particularly at total system load level.<br />

During project implementation and testing, EFT provided excellent<br />

access to its IT systems to ensure these activities were successful.<br />

Training course material was translated into Hungarian, which meant<br />

the training course was well received and ran smoothly.<br />

The deliverables for this project were:<br />

� Forecaster product documentation<br />

� Model summary presentation and detailed documentation<br />

� Forecaster configuration specification<br />

� Forecaster training course and material<br />

� Access Manager and Forecaster installation<br />

� Fully-configured database containing historical data and<br />

models<br />

� Overall test plan<br />

� Interfaces to existing business systems<br />

� Sample reports<br />

� An ongoing support service<br />

Benefits<br />

CASE STUDIES<br />

� Increased efficiency through automated critical<br />

forecasting processes<br />

� Improved accuracy to reduce imbalance penalties and<br />

improved decision-making<br />

� Better understanding of forecast models and reduced risk<br />

15


Energy <strong>Solutions</strong><br />

Asset Integrity Systems<br />

� <strong>Commercial</strong> <strong>Gas</strong> <strong>Management</strong> <strong>Solutions</strong><br />

Pipeline <strong>Management</strong> <strong>Solutions</strong><br />

Network Development Services<br />

Issue no.001 15.05.2008<br />

Germanischer Lloyd<br />

Industrial Services GmbH<br />

Oil and <strong>Gas</strong><br />

Steinhöft 9<br />

20459 Hamburg, Germany<br />

Phone +49 40 36149-7700<br />

Fax +49 40 36149-1781<br />

glis@gl-group.com<br />

www.gl-group.com/glis<br />

Germanischer Lloyd does not warrant or assume any kind of liability for the<br />

up-to-date nature, accuracy, completeness or quality of the information provided.<br />

Liability claims against Germanischer Lloyd arising out of or in connection with<br />

material or non-material loss or damage caused by the use or non-use of information<br />

provided, including the use of incorrect or incomplete information, are excluded<br />

unless such loss or damage is caused by the proven wilful misconduct or grossly<br />

negligent conduct of Germanischer Lloyd.<br />

All offers are subject to alteration and are non-binding. Germanischer Lloyd expressly<br />

reserves the right without notice to change, supplement or delete parts of the pages<br />

or the entire offer or to stop the publication temporarily or definitively.

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