Gas Plant Accounting – in this industry, you’ve heard of it, but such a complex process can be hard to grasp, even for a seasoned veteran in oil and gas. When it comes to getting the numbers right, you don’t want to take your chances. That’s where we come in!
PetroLedger has over 20 years of experience in Gas Plant Accounting, including software implementation and training, wellhead-to-plant tailgate accounting, setting up new meters and contracts, allocations, and working with producers and third parties to ensure we have the correct data for accurate and efficient settlement each month. Sounds like a lot? It is!
But, what exactly is Gas Plant Accounting?
Gas plant processing includes getting the raw gas from the wellhead to the processing plant, removing the waste, separating the natural gas and liquids, and ultimately getting it to the end users. Gas plant accounting uses the tailgate/sales volumes and values to determine how much each producer is entitled to based on the allocated and contractual data. The allocation to each well is based on the volume and physical components at the wellhead. Contractual settlement can vary, depending on the terms of each contract.
How is Gas Plant Accounting Done?
Accurate gas plant accounting starts with a solid understanding of the process - from wellhead to plant tailgate. This includes the source of the gas coming into the plant, how it moves through the field to the plant, what is involved with processing the gas, how gas is used in the processing, and what happens to the gas at the plant tailgate. This can be a complex process, but having a high level of knowledge can create a seamless process.
Gas plant accounting can be straightforward, but most of the time, it is quite complex. While there can be similarities, no one gas plant is quite like the last. They vary in number of meters, contracts, sales points, producers, and more. Some clients have a very basic allocation-based settlement, and others have a complicated setup from the allocation to the settlement. This is where PetroLedger’s scalability comes into play. We can tackle all these differences both big and small all while providing you the best service.
PetroLedger’s plant accounting team is highly skilled and understands the complexities that are involved, and we can help navigate the challenges and complexities of gas plant accounting.
Need help with your gas plant accounting? From allocations and settlements to gross margin analysis, we can assist you in simplifying and optimizingf your accounting processes. Reach out to us today for a consultation.
Melissa's career started when she graduated from Marquette University and started working as a general ledger accountant for a marketing company. She and her husband moved to Oklahoma in 1999, where she started doing payroll accounting for an airline. 9/11 caused a significant downturn for the airlines, so she found a position doing inventory accounting for an oil & gas company until they moved headquarters to Houston. From there, she worked for a midstream company doing gas plant settlement accounting, and found that she really enjoyed it!
When that company moved out of state, she worked for a few different companies doing revenue and inventory accounting, but she was not excited about what I was doing. An opportunity to do gas plant settlement accounting came along, so she decided to see where it led— she started working for The Resource Company, which was later merged with Eddye Dreyer to create PetroLedger, in 1999. She has really enjoyed working with different clients and creating the different setups they need.
