Asset and Risk Management Solutions for Gas Utilities

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1 Asset and Risk Management Solutions for Gas Utilities Evolving Advanced Technology for Gas Utilities Alnoor Ebrahim Southern Cross 11/5/2018 1

2 Strategic -Aging infrastructure -Environmental pressures -Aging workforce -Managing enterprise risk Understanding Industry Challenges Regulatory Operational -Prioritize hazardous leaks -Reduce leak repair backlogs -Reduce construction costs -Improve compliance survey -Prepare for the rate case -Continually demonstrate compliance -Integrity Management (DIMP) -Environmental regulations 11/5/

3 Unique Partnership Model Southern Cross and Picarro PARTNERSHIP Southern Cross decades of industry field knowledge and best practices Picarro s latest in advanced leak detection technology VISION Southern Cross continuing to add new advanced technology to its toolbox Best of both worlds traditional leak detection model with technological benefits of a best-in-class solution 11/5/2018 3

4 Southern Cross - Advanced Technology Solutions 11/5/

5 Detecting in PPB Sensitivity Implications? Advances in mobile leak detection technology allow natural gas leak plume data to be collected from a distance and at a speed and scale not previously possible Advances in Big Data Analytics allow data to support innovation across a number of Leak Survey & DIMP initiatives The ability to estimate leak density & emissions the gas flow rate (cubic feet per hour) of individual leaks or collections of leaks Traditional Equipment works here Methane plume dilutes and grows in size very quickly Wind direction Advanced Sensors works here (large, lowconcentration plume) (small, highconcentration plume) /5/

6 Solution Overview Drive Analyze Act + + Data Collection Driving is the most efficient means of data collection skilled labor is used to grade leaks rather than to walk pipeline Data Management Visualization of collected data enables more informed labor and resource utilization: prioritization of leak investigations, repair vs. replace, avoidance of crew overtime Decision Support Analytics output optimizes decisions to reduce both cost and risk 11/5/2018 6

7 Big Data analytics combine raw data from multiple drives to improve leak location, FOV coverage & source attribution Drive 1 Drive 2 Drive 3 Possible Natural Gas Possible Natural Gas (80% confidence) (57% confidence) Possible Natural Gas (72% confidence) Drives 1,2,3 raw data overlay + + Ethane source attribution, search areas & Field of View combined by analytics over multiple drives Drives 1,2,3 data processed by analytics Natural Gas (93% confidence) Asset Boxes highlight pipes to search for leak 11/5/2018

8 Use Cases - Portfolio of Analytical Solutions Descriptive Analytics Construction QC Non-Compliance Pre-Construction Leak Pinpointing Suite of modules to address each customer requirement Complianc e Post-Disaster Source Discrimination Frost Patrol Auditing Survey Pre-Event System Assessment Diagnostic Analytics Construction Prioritization Emissions Quantification System Risk Reduction Leak Risk Ranking Predictive Analytics Budget & Risk Forecasting

9 Southern Cross Solution-Based Approach Southern Cross takes a partnership approach to all business with the intent to help solve a problem and provide a solution Each client has a unique set of challenges and criteria that we work together to understand before providing a proposal Based on the needs determined by our customers, we would suggest a specific operations plan with a given set of tools 11/5/2018 9

10 Benefits Quality More comprehensive and richer information & digital reporting to identify priority leaks & characterize asset infrastructure Risk Mitigation Prioritizes the most important leaks and investigative areas first, and above all achieve unprecedented efficiency with safety Efficiency Reduce the impact of weather and resource constraints on a project and ensures project delivery on time and on budget Information USEFUL INFORMATION for forecasting and planning, pipe replacement prioritization, emissions quantification etc. 11/5/

11 Thank You 11/5/