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Project Management in the Natural Gas Utility Industry

Project Management in the Natural Gas Utility Industry. Gil Soto Vice President – Operations Mobile Gas February 27, 2013. Sempra Energy Overview. Fortune 500 company 2011 Revenues: $10 billion 17,500 employees serving more than 31 million customers worldwide. California

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Project Management in the Natural Gas Utility Industry

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  1. Project Management in the Natural Gas Utility Industry Gil Soto Vice President – Operations Mobile Gas February 27, 2013

  2. Sempra Energy Overview • Fortune 500 company • 2011 Revenues: $10 billion • 17,500 employees serving more • than 31 million customers worldwide California Utilities Global Infrastructure San DiegoGas & Electric Southern California Gas Co Sempra International Sempra U.S.Gas & Power • 3.5 million customers • 4,100 square mile service territory • Largest US gas utility • 20.7 million customers • 20,000 square mile service territory • Gas/Power Utilities in Latin America • Gas Pipelines in Mexico • LNG • US Natural gas infrastructure • Renewable electric generation • Southeast gas distribution assets • Commodity services

  3. California Utilities • SDG&E • Provider of electric and natural gas services • 3.5 million consumers • 4,100 square miles of service territory • 2.3 million electric & gas meters • SoCalGas • Provider of natural gas services • 20.9 million consumers • 20,000 square miles of service territory • 5.8 million gas meters

  4. Sempra International - Mexico • Sempra is the largest private energy investor in Mexico • Operations • LNG regasification • Combined cycle power plant • Natural gas Pipelines • Propane pipeline • Natural gas distribution • Five natural gas pipelines interconnecting with the U.S.

  5. Sempra International – South America • Luz Del Sur • Electric utility serving eastern, central and southern Lima • Over 930,000 customers • Chiliquinta Energia • Electric distribution company serving greater Valparaiso and Vina Del Mar area • Over 610,000 customers

  6. Sempra U.S. Gas & Power Footprint

  7. Mobile Gas • Continuous operations since 1836 • Approx. 89,000 customers in Mobile and Baldwin counties in southwest Alabama • Diversified customer base, including residential, small and large commercial and industrial customers

  8. Gil Soto • 30 years of natural gas distribution experience • Worked many of the different field positions • Worked many of the different manager/supervisor positions • Worked with the Southern Cal Gas Company • Work with the Sempra International group • Currently working under the USG&P group • And currently working for Mobile Gas • Earned a bachelor’s degree and an MBA • Honorably discharged from the U.S. Marine Corps Reserves • Worked on many company teams, projects and initiatives, not only in gas • distribution, but also with IT, labor relations, safety, and many other areas

  9. Regulatory Agencies • U.S. Department of Labor’s Occupational Safety and Health Administration (OSHA) • U.S. Department of Transportation (DOT) • Pipeline and Hazardous Materials Safety Administration (PHMSA) • Enforcement – Alabama Public Service Commission, Pipeline Safety Division (APSC) • 49 CFR(Code of Federal Regulations) Part 192 • Part 192 – Guidelines

  10. 49 CFR Part 192 • Part 192 • Subpart (1970) • A – General • B – Materials • C – Pipe Design • D – Design of Pipeline Components • E – Welding of Steel in Pipelines • F – Joining of Materials Other Than by Welding • G – General Construction Requirements for Transmission Line and Mains • H – Customer Meters, Service Regulators and Service Lines • I – Requirements for Corrosion Control • J – Test Requirements • K – Up-rating • L – Operations • M – Maintenance • N – Qualification of Pipeline Personnel (1999) • O – Gas Transmission Pipeline Integrity Management (2003) • P – Gas Distribution Pipeline Integrity Management (2009)

  11. Project Management (Scope) • Basic Main and Service Line Replacement Projects • First item is to create a clearly identified project scope • An average local distribution company job is about 2 miles (@ 10,560 feet) of mainline with about 150-200 service lines • Identify requirements for the project • Permits (city, state, railroad. etc.), right of ways, special materials and equipment, substructure information, project schedule & goals and others • Special conditions and/or exceptions • Special conditions and or exceptions that may apply to the project include: inclement weather, work zones/times, environmental issues, and others

  12. Project Management (Resources) • Basic Main and Service Line Replacement Projects (continue) • The second item is to create a resource list • With the information obtained from your project scope and from past history of other projects you should be able to estimate your need for resources for the project • Items include: people (company and contract employees), basic and special materials & equipment and others • As a reminder, most of these folks are working for you on this project, but don’t actually report to you • Communication and relationships are important

  13. Project Management (Budget) • Basic Main and Service Line Replacement Projects (continue) • The third item is to create an estimated project cost • Again, with the information obtained from your project scope, past history of other projects and your resource list you should be able to create a good estimate for your project • Create a line item cost sheet even if you will go out to bid for a total price project • Companies use different templates for cost estimating • Some companies allow for a contingency in your budget • Change orders and approvals • Create final budget

  14. Project Management (Time Management) • Basic Main and Service Line Replacement Projects (continue) • Lastly, the PM has to create a project plan • The plan should include tasks, schedule and if needed a critical path • Task – Identify major task • Schedule – How long will it take to complete the task • Critical Path – Identify task that have to be completed before other task can start • I believe this is where a PM makes a name for himself or herself • If the PM is involved with the previous steps (scope, resources, and budget) and has prior experience then the PM should be able to create a schedule and execute the project on time and within budget • If the PM was not involved in any of the previous steps, it would behoove him/her to get up to speed on the project as soon as possible • NOTE!!! The Schedule is subject to change and often does

  15. Project Management (Risk) • Basic Main and Service Line Replacement Projects (continue) • Steps for risk management planning • Identifying the risk • Quantifying the risk – assess the probability and impact of the risk • Respond to the risk – avoid, transfer, mitigate or accept the risk • Monitor/Control the risk – change of status or the risk turns into an issue • Risk Management associated with the project • Permits – usually a very long lead time is needed to obtain RR crossing permits • Materials – there may be a long lead time for special materials • Equipment – there may be a long lead time for special equipment • Project Scope Creep – small changes to the project, but collectively are significant • Schedule – Need to built in some schedule float

  16. Project Management (Tools) • Some identified tools to assist with project management • Policies, processes and procedures • Excel spreadsheets • Microsoft Project • Gantt Charts • Change Orders • Journal • Meetings • Check-In Points • And many others • Final Steps Include • Complete documentation, obtain sign off for the project, report project results, document lessons learned and thank those that assisted with the project

  17. Project Management • Questions • Thank You

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