Driving Efficiency in Pipeline Maintenance: Trends, Challenges and Transformation Opportunities
Maintenance and repair (M&R) activities for midstream pipelines have surged over the past five years, driven by an evolving regulatory environment and aging infrastructure. Regulatory changes led by the Pipeline and Hazardous Materials Safety Administration (PHMSA), including expanded requirements for inspections in moderate consequence areas, have significantly raised the integrity burden on pipeline operators. These regulatory changes have necessitated broader deployment of in-line inspection (ILI) tools to ensure compliance and safety. At the same time, maintenance costs are rising, driving cost performance for pipelines down.
Peer benchmarking reveals considerable variation in cost efficiency, with top-performing companies often spending significantly less than peers on a maintenance expense basis that considers nominal pipe size (NPS) and mileage ($/NPS-mile). These discrepancies highlight the influence of company-specific processes, practices, and operating models. Despite widespread confidence among operators that their maintenance programs are optimized, Alvarez & Marsal (A&M) has repeatedly identified substantial savings opportunities through data-driven assessments and structured transformation efforts. Typical results include a 10–15 percent reduction in maintenance expenses and an over 20 percent reduction in repair program scope.
This white paper explores the drivers behind these trends, shares key insights from industry data, and outlines A&M’s proven five-stage approach to maintenance transformation. By implementing a structured, data-driven strategy, midstream executives can reduce costs, ensure compliance and enhance reliability.
