Gas Processing, Storage & Transportation
The gas processing, storage and transportation segment involves processing products into a salable condition and transporting those products to market. This segment currently is in a significant expansion mode. There is an increased emphasis on attracting capital, especially in the form of master limited partnerships (“MLP”). FTI Consulting professionals have deep experience across the midstream MLP space, particularly in storage and transportation. We combine analytical rigor with extensive industry experience and expertise and an intimate knowledge of both the policy and the workings of the industry necessary to meet any client’s needs.
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Shale gas production in the Northeast has caused historic path flows to reverse as gas now seeks to flow from north to south and from east to west. This has created disputes involving expansion of pipeline infrastructures, environmental issues, pipeline rate challenges and increased regulatory involvement. In addition, gas processing activities often are an issue in royalty disputes. FTI Consulting professionals have the requisite industry knowledge and experience to analyze all issues in the midstream arena.
Many issues for clients involved in gas processing, storage and transportation include understanding of specific accounting requirements and analysis of tremendous amounts of data. FTI Consulting has in-depth industry knowledge of oil and gas accounting, as well as computing expertise and infrastructure to analyze large data sets and uncover issues to assist clients with any investigation.
With gas now being produced in non-traditional areas, the existing infrastructure is being expanded, and infrastructure is being built to store and move the gas. As a result, additional environmental challenges are arising, and pricing structures are being adapted to new conditions. The regulatory environment has become much more aggressive. Energy professionals at FTI Consulting, having previously worked in government entities such as the Environmental Protection Agency or the Department of the Interior or for energy or pipeline companies, are extremely knowledgeable about how policy is created and are highly skilled at crafting policy, regulations and amendments that favor our clients’ interests.
Expanding existing pipelines or building new ones to increase the supply of natural gas often encounters public resistance. It is critical that key audiences — legislators, regulators and the public — get the correct information about key gas distribution issues. FTI Consulting Energy professionals are dedicated to strategic communications and stakeholder involvement. We understand the policy, the politics and the communications challenges associated with the industry. We have extensive experience executing effective community relations and education plans, rapid response campaigns, crisis management, CEO positioning, and issue campaigns that educate and influence legislators, regulators and the public on behalf of our clients’ interests.
As companies look at maximizing the value of their assets in the midstream arena, M&A, carveout, spin-off and divestiture strategies become part of the deliberation. Key to evaluating such strategies is examining potentially problematic issues — such as commodity risk, antitrust concerns, shareholder resistance, etc. — and developing creative alternatives that address the issues without forsaking the benefits to be delivered by the deal. FTI Consulting has the ability to combine the knowledge and capabilities of some of the foremost economists and antitrust experts in the world. In addition, our team includes former senior energy executives who provide extensive financial and operational expertise across the entire natural gas supply chain.
Clients often need critical, hard-to-find historical, retrospective evidence to support an environmental claim or counterclaim. FTI Consulting energy professionals have the expertise and resources to evaluate claims against our clients and the costs of those claims, initiate litigation and support cost recovery, and apportion costs among responsible parties.
The success of a restructuring, merger, acquisition, carveout, spin-off or divestiture may depend on how quickly management voids can be filled once the transaction is completed. The seasoned energy professionals with C-level experience at FTI Consulting are prepared to fill the void when client companies face leadership, financial or operational challenges. In a moment’s notice, our experienced and credentialed senior executives assume C-level roles, providing the leadership and strategic decision-making ability to maintain momentum, establish corporate priorities, build morale and provide critical continuity. Our C-level executives serve in the following roles: chief executive officer, chief operating officer, chief financial officer, chief restructuring officer, controller and treasurer.