As pipeline regulations increase and midstream activity remains high, smart and solid engineering has become the starting point to a successful midstream project.

As 2013 gets under way, midstream build out is expected to rise, and as the industry strengthens, there is a growing need for full-service engineering firms capable of keeping up with the fast-moving business.

“We are clearly seeing an increase in opportunities with the midstream companies for services,” Aubrey Harper, vice president of IPS Engineering, tells Midstream Business. “There is an increased demand for engineering services as many new companies are entering into the midstream industry.”

Follow the leader

The old saying “where the mind goes, the body will follow” is an apt description of the long-standing relationship between the midstream and the engineering industry. As takeaway capacity evolves to meet exploration and production demand, so, too, must the engineering firms that serve the industry.

“We are seeing a shift in the production, which affects the midstream and the engineering companies,” Harper says. “Many of the most active plays are in areas where there is a tremendous potential for crude. Because of this, IPS has shifted and revaluated our focus to crude areas. And we are now focusing on the Mississippi Lime, the Appalachian basin, the Marcellus and the Utica.”

With that shift in focus comes a renewed commitment to customer service, Harper says. Supported by a team that has a combined 250 years of experience, IPS Engineering/EPC has focused on providing engineering, construction, fabrication and project management services for the oil and gas industry since 2009.

Engineering is a competitive business, and, according to Harper, staying in line with customer demands helps keep companies relevant in this fast-paced industry.

“We are looking at what we are designing for customers, and we are asking questions,” Harper says. “We are constantly looking at new technology from an engineering- design standpoint.”

There is a changing climate within the industry, Harper says. Along with technology advancements, he says, time commitment has become a fundamental focus for midstream clients.

“The big driver with midstream is schedule,” he says. “Midstream companies are the link between the wellhead and the main transportation pipeline. Producers cannot get product to market without them, so their contracts drive engineering firms to give a level of customer service that includes a great amount of detail to schedule management.”

To meet the needs of its clients, IPS has streamlined its process, developing a standard design for a company’s multitude of projects, thus saving the midstream company time and money.

“If a client has, in its system, 15 of the same projects, we don’t engineer each one. Instead we, on our own time, come up with a standard design process, make minor modifications, saving the client time and money,” he says

One-stop shop

Attempting to simplify the course of action for a client is something that engineering, procurement and construction (EPC) companies also strive for on a daily basis.

One such company, S-Con. Inc., is described by its vice president of engineering and construction W.G. “Trey” Brown, as a “one-stop shop.” S-Con is a full-service process and design EPC firm working with the natural gas processing industry to solve various challenges that arise with every project. S-Con is dedicated to address those challenges, he tells Midstream Business.

Since its inception in 1990, S-Con has been able to satisfy customer demand by providing clients with a single point of contact and limiting the amount of channels they have to go through for the execution of their projects.

“The engineering and time we spend at the beginning with our clients is typically focused toward a specific job,” says Brown, who has more than 30 years of experience in the natural gas industry. “By discussing client project needs up front, we are able to understand what is actually required and better address how to meet those customer requirements.”

“We [(S-Con] give our clients full access to our shops so that they can see everything that we do,” Brown says. “Our clients benefit from being able to view the progress as we go through the entire process. And, S-Con will do whatever it takes to get the job the done.”

Boutique business

Engineering firms offer services that come with a personalized format. “For a business like ours, we are providing experienced people,” Roy Meredith, director of business development at Gulf Interstate Engineering (GIE), tells Midstream Business. “People are dedicated, knowledgeable, engaged and possess different personalities; it is different than just selling a joint of pipe. It is important that our people remain in tune with our clients’ demands.”

GIE has made pipelines and the pipeline industry a focal point for more than half a century, allowing the company to provide clients with the resources, technology and support system that a specific pipeline project would require, Meredith says.

“GIE has always stayed in the pipeline and pipeline facilities realm. We have accumulated an extensive knowledge base to become one of the most progressive pipeline engineering firms in the world,” he says. “Our experience and commitment to the pipeline industry is our competitive advantage. We are truly a boutique pipeline engineering firm.”

Talented team, big tasks

Regardless of the firm, accumulating the talent to build these experienced teams has remained a difficult task. According to BEST (Building Engineering & Science Talent)— a public-private partnership that is “dedicated to building a stronger, more diverse U.S. workforce in science, engineering and technology” — only 5% of America’s 132-million-person workforce is made up of engineers, scientists and advanced-degree technologists.

But, the partnership says, during the last 50 years, more than half of America’s sustained economic growth has come from that 5% and soon that “engine of growth” may come to a halt.

Companies such as GIE have taken a stand and are working tirelessly and successfully to combat this challenge. “We embarked on a program more than two years ago to hire young engineers,” Meredith tells Midstream Business. Finding talent and managing the size of our workforce remains a challenge, but our diligent efforts to attract young professionals have become more successful as we have made this initiative a priority.”

Despite the challenges the industry faces, the outlook for the industry remains good. As production grows and business moves forward, the industry remains attentive to the task at hand.

“There is awareness in the industry, from an engineering standpoint; we need to engineer these things for the environment we live in,” Harper says. “And, for the first time, America has energy independence within its grasp, and, because of that, I see many bright things in the industry’s future.”

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