case study
POWERING PIPELINES WITH ONSITE GENERATION + STORAGE
Client: Major U.S. Pipeline Operator
Scope: 600+ Facility Locations Across Multiple Regions
The Challenge
Pipelines are among the most energy-intensive segments of the oil & gas value chain. With electricity costs rising and reliability increasingly under pressure, our client — a top-tier pipeline company — sought to cut costs, reduce exposure to volatile power markets, and explore new revenue streams.
NOVUS Approach
The Strategy
Onsite Power: Deploy distributed generation (gas gensets, microgrids, renewables where viable) to offset purchased power, hedge against outages, and stabilize O&M costs.
Battery Storage: Add FTM battery assets sized for local load and market opportunity. These batteries provide both operational reliability and market participation — enabling the client to arbitrage wholesale power markets in ERCOT, PJM, and other competitive regions.
Market Optimization: Structure operations to capture peak pricing events, capacity payments, and ancillary service revenues, while lowering exposure to curtailment and volatility.
The Results
• 30 facilities prioritized for near-term deployment, representing the highest ROI potential.
• Power cost reduction of up to 25% at targeted sites.
• New revenue streams from storage arbitrage and grid services, projected in the tens of millions annually.
• Risk mitigation through improved reliability and reduced exposure to price spikes during peak demand.
Why It Matters
For midstream companies, the shift from molecules to electrons is not theoretical — it’s happening at the compressor station, at the pump station, and across the footprint. By combining onsite power with storage, this pipeline operator not only cut costs but positioned itself as a player in the evolving power markets.
Work with NOVUS Energy Advisors
At Novus Energy Advisors, we help energy leaders navigate complex infrastructure challenges with clarity and confidence. If you’re facing critical decisions about your assets, strategy, or the energy transition, our team is ready to guide you forward. Let’s start a conversation about how we can help.