Gas Pipelines are Becoming Intelligent Networks
by Bob Shively, Enerdynamics President and Lead Facilitator
If you're in the energy infrastructure business, you've heard "digitalization" thrown around countless times. But what does it mean for a pipeline company? Here we’ll explain what digitalization is and what it promises.
From data collection to data intelligence
Pipeline operators have always been data companies. For decades, they’ve collected pressure readings, flow rates, and temperature measurements. Years ago, much of this data was collected manually by sending an employee out in the field. More recently, SCADA (supervisory data control and acquisition) systems, coupled with sensors, introduced remote data collection. Now, a modern pipeline network generates approximately 1 terabyte of data daily, equivalent to 500 hours of high-definition (HD) video flowing through monitoring systems continuously.
The data itself is not transitional, but what pipelines do with the data is. Traditionally, information served limited purposes such as reactive responses to alarms, identifying where operational issues were occurring, and providing data for billing users. Digitalization means collecting a much deeper level of data and then transforming data streams into predictive insights, improved operations, and enhanced service offerings.
Digitalization leads to financial returns
According to a recent study by DNV titled “Pipeline Insights 2025”, the global pipeline sector leads the entire energy industry in digital transformation, with 63% of companies planning to increase digitalization spending. Why? Because the returns are tangible.
According to DNV, organizations with advanced data analytics capabilities report 15-20% improvements in asset utilization and longer lifespans, plus 12-18% reductions in both unplanned downtime and maintenance costs. Beyond maintenance, digitalization delivers operational agility. Pipeline teams with mature digital capabilities achieve 20-25% faster crisis response times and recover from disruptions approximately 30% quicker than their less digitized peers.
Above: % of respondents from the pipeline industry answering major impact or massive impact when asked "How impactful are the following areas of data-driven innovation for your business?"
Digitalization offers numerous benefits
Here are some examples of the benefits:
- Digital twins: These virtual replicas of physical infrastructure enable testing of maintenance procedures, optimization of flow configurations, and simulation of emergency scenarios without risking actual assets.
- Predictive maintenance: Instead of waiting for something to break, advanced analytics and machine learning identify patterns that predict when infrastructure is on the verge of failure, allowing operators to fix problems before they occur. This provides high up-times and also avoids unnecessary maintenance for assets that are working fine.
- Process optimization: With improved demand and production forecasting, knowledge of how the system operates under various conditions, and integrating data from multiple sources pipeline operators can optimize how the system is scheduled and operated.
- Better customer service: Better data means better utilization of pipeline capabilities. This provides higher levels of service and often allows customers to move more gas on days that they would have historically experienced curtailments. Customers can also be better informed on what to expect in the coming days, meaning they can hone their trading and buying strategies to better match pipeline capacity.
Digitalization requires robust cybersecurity
Digitalization also brings new responsibilities. The 2021 ransomware attack that disrupted East Coast fuel supplies sent an important warning to the industry. Pipeline operators must increase cybersecurity investments, recognizing that protecting digital systems is as critical as maintaining physical infrastructure. The challenge lies in securing both traditional IT systems, operational technology systems like SCADA, and remote devices such as Remote Terminal Units (RTUs) and Programmable Logic Controllers (PLCs). Modern pipeline networks connect previously isolated domains, which creates the need for defensive measures plus resilience capabilities that enable rapid recovery from incidents.
The digital transformation is reshaping workforce needs
Digitalization for pipeline operators isn't about implementing technology for technology's sake. It's about transforming decades of operational data into competitive advantages: predicting failures, optimizing performance, reducing costs, enabling faster, smarter responses to operational challenges, and better serving pipeline customers. The sector's digital leadership creates the foundation for strategic transformation—from predictive analytics that optimize complex networks to digital twins that model new molecular flows. These capabilities provide the platform needed for tomorrow's diversified energy systems. For pipeline professionals, the question isn't whether to prepare for digitalization—it's how quickly you can learn the skills to turn existing data assets into operational intelligence that delivers measurable results.
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