Processing of LPG

LPG – liquefied petroleum gas or liquid petroleum gas – (LP gas), the constituents of which are propane
and butane, are flammable hydrocarbon fuel gases used for LPG heating, cooking and vehicles.

LPG is mixture of flammable hydrocarbon gases that include propane, butane, isobutane and mixtures of
the three LPG gases.

LPG is commonly used for home heating gases, cooking, hot water, and autogas – fuel for LPG cars and
vehicles.

LPG gas comes from oil and gas wells, as it is a fossil fuel.

LPG gas manufacturing process includes natural gas processing and the crude oil refinery process.

LPG, liquefied through pressurization, comes from natural gas processing and oil refining.

In different countries, the LPG heating fuel gases supplied can be propane, butane or propane-butane
blends.
 Composition of LPG
LPG – Liquefied petroleum gas or liquid petroleum gas, also denoted as just propane or butane,
are both flammable hydrocarbon gases used as fuel for LPG heating gases, cooking and
vehicular fuel.

LPG is made up of carbon and hydrogen atoms forming propane and butane whilst natural gas
is made up of lighter methane, the simplest carbon and hydrogen molecule.

LPG is comprised primarily of propane and butane LPG heating gases, whilst the natural gas
primary constituent is methane.

LPG is made up of a group of flammable hydrocarbon gases that are liquefied through
pressurisation and commonly used as fuel. Natural gas is liquefied cryogenically.

LPG is made up of a number of gases under the LPG products label, including propane, butane,
isobutane and mixtures of these gases and are also referred to as natural gas liquids – NGL.

LPG is stored in steel vessels ranging from small BBQ gas bottles to larger gas cylinders and
tanks.
 About LPG

LPG – Liquefied petroleum gas or liquid petroleum gas (LP gas) – is primarily the
flammable hydrocarbon gases propane and butane used as fuel for gas heaters, cookers and
LPG vehicles. LPG is also referred to as “bottled gas”.

There are a number of fuel gases that fall under the LPG products label, including propane,
butane (n-butane) and isobutane (i-butane), as well as mixtures of these gases and are also
referred to as natural gas liquids – NGL.

 LPG (or LP Gas) is the acronym for Liquefied Petroleum Gas or Liquid Petroleum Gas.

 LPG products are made up of a group of flammable hydrocarbon gases that are liquefied
through pressurisation and commonly used as fuel.

 LPG comes from natural gas processing and petroleum refining.

 LPG gases can all be compressed into liquid at relatively low pressures.

 LPG is frequently used for fuel as LPG heating gases, cooking, hot water and vehicles,
as well as for refrigerants, aerosol propellants and petrochemical feedstock.

 LPG is generally stored, as a liquid, in steel vessels ranging from small BBQ gas
bottles to larger gas cylinders and LPG storage tanks.

 LPG is mixture of flammable hydrocarbon gases that include propane, butane, isobutane
and mixtures of the three LPG gases.
 LPG comes from

 LPG comes from drilling oil and gas wells.

 It is a fossil fuel that does not occur in isolation.

 LPG products are found naturally in combination with other hydrocarbon

fuels, typically crude oil and natural gas.

 LPG is produced during natural gas processing and oil refining.

 It is isolated, liquefied through pressurisation and stored in pressure vessels.

LPG comes from
LPG is made during natural gas processing and oil refining.

LPG is separated from unprocessed natural gas using refrigeration.

LPG is extracted from heated crude oil using a distillation tower.

This LPG can be used as is or separated into LPG products three primary
parts: propane, butane and isobutane.

It is stored pressurized, as a liquid, in cylinders or tanks.

 LPG is produced during natural gas processing and petroleum refining.

 Propane does not occur naturally in isolation.

 LPG processing involves separation and collection of the gas from its petroleum base.

 LPG is isolated from the hydrocarbon mixtures by separation from natural gas or by the
refining of crude oil.

 Both processes begin by drilling oil wells.

 The gas/oil mixture is piped out of the well and into a gas trap, which separates the stream
into crude oil and “wet” gas, which contains LPG and natural gas.
 The heavier crude oil sinks to the bottom of the trap and is then pumped into an oil storage
tank for refining.

 Crude oil undergoes a variety of refining processes, including catalytic cracking, crude
distillation, and others.

 One of the refined products is LPG.

 The “wet” gas, off the top of the gas trap, is processed to separate the gasoline (petrol) from
the natural gas and LPG.
 LPG gas (propane) comes from oil and gas wells, as it is a fossil fuel.

 Then LPG process continues with LPG coming from two LPG gas manufacturing process
sources: natural gas processing and crude oil refining, where it is a co-product of both.
60% of LPG-propane comes from natural gas processing “stripper plants” and 40% of
LPG-propane comes from the crude oil refinery process.

 LPG manufacturing process (LPG production process) starts with where LPG (propane)
comes from – drilling oil and gas wells.

 LPG comes from a natural combination with other hydrocarbons.

 LPG is a fossil fuel that comes from drilling oil and gas wells and does not occur in
isolation.
 LPG Process

 The LPG process begins with natural gas processing and crude oil refining.

 This is a precursor to the LPG process and LPG products, as it separates the LPG from the
raw natural gas and oil, which is the beginning of the LPG refinery process.

 The LPG process continues with LPG fractionation, to separate the LPG into its constituent
gases: propane, butane and isobutane.

 It is then placed in large LPG tanks and LPG cylinders for storage and distribution.
 LPG Manufacturing Process
 LPG is manufactured by refining crude oil or processing raw natural gas, all of which are sourced from
fossil fuel.

 LPG is produced by stripping it from the “wet” natural gas stream as it comes out of the well or
separating it from the crude oil during LPG refinery process.

 Liquefied petroleum gas – LPG – is produced by stripping it from the raw natural gas stream during
natural gas processing and during crude refinery process.

 The primary LPG constituents produced are propane and butane, with small amounts of other natural gas
liquids.

 Liquefied through pressurization, LPG is easier to store and transport.

 LPG is produced during fractional distillation of crude oil or is separated during natural gas processing.

 To transport or store it, LPG gas needs to be liquefied under pressure.

 LPG can be stored or transported in LPG gas cylinders or vessels. If released from pressure, LPG gas is
emitted.
 LPG is manufactured during crude oil refining or is stripped from natural gas during natural
gas production.

 LPG gas is liquefied under modest pressure after manufacturing so it can be stored and
transported.

 If LPG liquid is released from pressure, gas is released.

 LPG comes from two sources, with roughly 60% stripped from raw natural gas during
natural gas processing and the approximately 40% of the LPG coming from crude oil
refinery process.

 LPG is a co-product that occurs naturally. It is stored and distributed in LPG gas cylinders
and larger vessels.
 LPG gas is made from an LPG gas manufacturing process (LPG production process) that
occurs during the natural gas processing and fractional distillation of crude oil.

 LPG comes from separation during natural gas processing using an LPG gas refrigeration
manufacturing process (NGL fractionation process).

 LPG is made from crude oil refining and comes from fractional distillation of crude oil
using an LPG fractionation type of LPG manufacturing process (LPG production process).

 This LPG can be used as is or separated into its three primary parts: propane, butane and
isobutane.
 LPG gas (propane) comes from being found naturally in combination with other
hydrocarbons.

 The LPG process (LPG production process) consists of the natural gas processing,
fractional distillation of crude oil and LPG manufacturing involving these hydrocarbons.

 Propane (LPG) is a naturally occurring gas but propane does not occur purely by itself.

 Propane-LPG is produced (obtained) from the LPG gas manufacturing process (LPG
production process) and comes from fractional distillation of crude oil, the separation and
collection of the propane from its petroleum base.
 About 60% of LPG gas (propane) comes from natural gas processing followed by LPG gas
manufacturing of the raw natural gas that comes out of the wellhead.

 The other 40% of LPG (propane) is produced (obtained) during the fractional distillation of
crude oil.

 LPG gas manufacturing process isolates from the hydrocarbon mixtures by its separation
during natural gas processing or by the fractional distillation of crude oil.

 Natural gas liquids (NGL) range obtained is from 1% to 10% of the natural gas flow.

 Similarly, LPG produced (obtained) from fractional distillation of crude oil constitutes
between 1% and 4% of the crude oil refining process.
 Processing of CNG
About 75% of the raw natural gas in the United States comes from underground reservoirs
where little or no oil is present.

This gas is easier to process than gas from oil wells.

Regardless of the source, most raw natural gas contains dirt, sand, and water vapor, which
must be removed before further processing to prevent contamination and corrosion of the
equipment and pipelines.

The dirt and sand are removed with filters or traps near the well.

The water vapor is usually removed by passing the gas through a tower filled with granules of
a solid desiccant, such as alumina or silica gel, or through a liquid desiccant, such as a glycol.

After it has been cleaned and dried, the raw gas may be processed further or it may be sent
directly to a compressor station and pumped into a main transportation pipeline.
 If the raw natural gas contains a large amount of heavier hydrocarbon gases, such as
propane and butane, these materials are removed to be sold separately.

 The most common method is to bubble the raw gas up through a tall, closed tower
containing a cold absorption oil, similar to kerosene.

 As the gas comes in contact with the cold oil, the heavier hydrocarbon gases condense into
liquids and are trapped in the oil.

 The lighter hydrocarbon gases, such as methane and ethane, do not condense into liquid
and flow out the top of the tower.

 About 85% of the propane and almost all of the butane and heavier hydrocarbons are
trapped this way.

 The absorption oil is then distilled to remove the trapped hydrocarbons, which are
separated into individual components in a fractionation tower.
 At this point, the natural gas contains methane, ethane, and a small amount of propane
that wasn't trapped.

 It may also contain varying amounts of carbon dioxide, hydrogen sulfide, nitrogen, and
other materials.

 A portion of the ethane is sometimes removed to be used as a raw material in various

chemical processes.

 To accomplish this, the water vapor in the gas is further reduced using one of several
methods, and the gas is then subjected to repeated compression and expansion cycles to
cool the ethane and capture it as a liquid.
 Some natural gas contains a high percentage of carbon dioxide and hydrogen sulfide.

 These chemicals can react with the remaining water vapor in the gas to form an acid, which
can cause corrosion.

 They are removed by flowing the gas up through a tower while a spray of water mixed with
a solvent, such as monoethanolamine, is injected at the top.

 The solvent reacts with the chemicals, and the solution is drained off the bottom of the
tower for further processing.
 Some natural gas also contains a high percentage of nitrogen.

 Because nitrogen does not burn, it reduces the heating value of the natural gas.

 After the carbon dioxide and hydrogen sulfide have been removed, the gas goes through a
low-temperature distillation process to liquefy and separate the nitrogen.

 Together, the processes in steps as previously discussed are sometimes called "upgrading"
the gas because the natural gas is now cleaner and will burn hotter.

 If helium gas is to be captured, it is done after the nitrogen is removed.

 This involves a complex distillation and purification process to isolate the helium from
other gases.

 Natural gas is the primary source of industrial helium in the United States.
Gas to liquids (GTL) is a refinery process to convert natural gas or other
gaseous hydrocarbons into longer-chain hydrocarbons, such as gasoline or diesel fuel.

Methane-rich gases are converted into liquid synthetic fuels.

Two general strategies exist:

(i) direct partial combustion of methane to methanol
(ii) Fischer–Tropsch-like processes that convert carbon monoxide and hydrogen into
hydrocarbons.

Strategy ii is followed by diverse methods to convert the hydrogen-carbon monoxide mixtures

to liquids.

Direct partial combustion has been demonstrated in nature but not replicated commercially.

Technologies reliant on partial combustion have been commercialized mainly in regions

where natural gas is inexpensive.
The motivation for GTL is to produce liquid fuels, which are more readily transported than
methane.

Methane must be cooled below its critical temperature of -82.3 °C in order to be liquified
under pressure.

Because of the associated cryogenic apparatus, LNG tankers are used for transport.

Methanol is a conveniently handled combustible liquid, but its energy density is half of that
of gasoline.
 Fischer–Tropsch process
A GTL process may be established via the Fischer–Tropsch process which comprises several chemical
reactions that convert a mixture of carbon monoxide (CO) and hydrogen (H2) into long chained hydrocarbons.

These hydrocarbons are typically liquid or semi-liquid and ideally have the formula (CnH2n+2).

In order to obtain the mixture of CO and H2 required for the Fischer–Tropsch process, methane (main
component of natural gas) may be subjected to partial oxidation which yields a raw synthesis gas mixture of
mostly carbon dioxide, carbon monoxide, hydrogen gas (and sometimes water and nitrogen).

The ratio of carbon monoxide to hydrogen in the raw synthesis gas mixture can be adjusted e.g. using
the water gas shift reaction.

Removing impurities, particularly nitrogen, carbon dioxide and water, from the raw synthesis gas mixture
yields pure synthesis gas (syngas).

The pure syngas is routed into the Fischer–Tropsch process, where the syngas reacts over an iron or cobalt
catalyst to produce synthetic hydrocarbons, including alcohols.
FT synthesis is classified into high temperature (310–340°C) and low
temperature (210–260°C) reactions (Leckel, 2009).

The low temperature and high temperature methods give different

compositional outcomes. Low temperature provides a higher cetane number and
paraffinic compounds more suitable as diesel fuels.

High temperature FT is more suitable as a gasoline substitute. One draw-back to

the low temperature product is the lower density than conventional diesel which
may lead to a need to reconfigure the fuel injection strategy and hardware
(Larsson and Denbratt, 2007).
 Methanol to gasoline (MTG) and methanol to olefins
In the early 1970s, Mobil developed an alternative procedure in which natural gas is converted to syngas, and
then methanol.

The methanol reacts in the presence of a zeolite catalyst to form alkanes. In terms of mechanism, methanol is
partially dehydrated to give dimethyl ether:

2 CH3OH → CH3OCH3 + H2O

The bifunctional catalyst historically used for DME synthesis is made up of CuO/ZnO/Al2O3 (CZA) for the CO2
hydrogenation and has been proven to be highly active (Ali et al., 2015) working alongside a solid acid catalyst HZSM-5
or γ-Al2O3 for the methanol dehydration to DME

The mixture of dimethyl ether and methanol is then further dehydrated over a zeolite catalyst such as ZSM-5, which in
practice is polymerized and hydrogenated to give a gasoline with hydrocarbons of five or more carbon atoms making up
80% of the fuel by weight.

The Mobil MTG process is practiced from coal-derived methanol in China by JAMG. A more modern implementation of
MTG is the Topsøe improved gasoline synthesis (TiGAS).

Methanol can be converted to olefins using zeolite and SAPO-based heterogeneous catalysts. Depending on the catalyst
pore size, this process can afford either C2 or C3 products, which are important monomers.
 Syngas to gasoline plus process (STG+)
A third gas-to-liquids process builds on the MTG technology by converting natural gas-derived
syngas into drop-in gasoline and jet fuel via a thermochemical single-loop process.

The STG+ process follows four principal steps in one continuous process loop.

This process consists of four fixed bed reactors in series in which a syngas is converted to
synthetic fuels. The steps for producing high-octane synthetic gasoline are as follows:

Methanol Synthesis: Syngas is fed to Reactor 1, the first of four reactors, which converts most
of the syngas (CO and H2) to methanol (CH3OH) when passing through the catalyst bed.
Process Chemistry
Catalytic conversion of hydrogen (H2) and carbon monoxide (CO) from coal-derived syngas into methanol can
be done with conventional gas-phase processes, or with a liquid phase methanol (LPMEOH™) process
developed by Air Products and Chemicals. The reactions of interest are:
2 H2 + CO → CH3OH
CO2 + 3H2 → CH3OH + H2O
CO + H2O → CO2 + H2
Dimethyl Ether (DME) Synthesis: The methanol-rich gas from Reactor 1 is next fed to
Reactor 2, the second STG+ reactor.

The methanol is exposed to a catalyst and much of it is converted to DME, which involves a
dehydration from methanol to form DME (CH3OCH3)
3. Gasoline synthesis: The Reactor 2 product gas is next fed to Reactor 3, the third reactor
containing the catalyst for conversion of DME to hydrocarbons including paraffins
(alkanes), aromatics, naphthenes (cycloalkanes) and small amounts of olefins (alkenes), mostly
from C6 (number of carbon atoms in the hydrocarbon molecule) to C10.

4. Gasoline Treatment: The fourth reactor provides transalkylation and hydrogenation treatment
to the products coming from Reactor 3.
The treatment reduces durene (tetramethylbenzene)/isodurene and trimethylbenzene
components that have high freezing points and must be minimized in gasoline.
As a result, the synthetic gasoline product has high octane and desirable viscometric properties.

5. Separator: Finally, the mixture from Reactor 4 is condensed to obtain gasoline.

The non-condensed gas and gasoline are separated in a conventional condenser/separator.
Most of the non-condensed gas from the product separator becomes recycled gas and is sent
back to the feed stream to Reactor 1, leaving the synthetic gasoline product composed of
paraffins, aromatics and naphthenes.
 Commercial uses

Using gas-to-liquids processes, refineries can convert some of their gaseous waste products
(flare gas) into valuable fuel oils, which can be sold as is or blended only with diesel fuel.

The World Bank estimates that over 150 billion cubic metres (5.3×1012 cu ft) of natural gas
are flared or vented annually, an amount worth approximately $30.6 billion, equivalent to
25% of the United States' gas consumption or 30% of the European Union's annual gas
consumption, a resource that could be useful using GTL.

Gas-to-liquids processes may also be used for the economic extraction of gas deposits in
locations where it is not economical to build a pipeline.

This process will be increasingly significant as crude oil resources are depleted.
Royal Dutch Shell produces a diesel from natural gas in a factory in Bintulu, Malaysia.

Another Shell GTL facility is the Pearl GTL plant in Qatar, the world's largest GTL facility.

SASOL has recently built the Oryx GTL facility in Ras Laffan Industrial City, Qatar and
together with Uzbekneftegaz and Petronas builds the Uzbekistan GTL plant.

Chevron Corporation, in a joint venture with the Nigerian National Petroleum Corporation is
commissioning the Escravos GTL in Nigeria, which uses Sasol technology.

PetroSA, South Africa's national oil company, owns and operates a 22,000 barrels/day
(capacity) GTL plant in Mossel Bay, using Sasol GTL technology.
 Custody transfer

Custody Transfer in the oil and gas industry refers to the transactions involving transporting physical
substance from one operator to another.

This includes the transferring of raw and refined petroleum between tanks and tankers; tankers and
ships and other transactions.

Custody transfer in fluid measurement is defined as a metering point (location) where the fluid is being
measured for sale from one party to another.

During custody transfer, accuracy is of great importance to both the company delivering the material
and the eventual recipient, when transferring a material.

The term "fiscal metering" is often interchanged with custody transfer, and refers to metering that is a
point of a commercial transaction such as when a change in ownership takes place.

Custody transfer takes place any time fluids are passed from the possession of one party to another.
Custody transfer generally involves:
•Industry standards;
•National metrology standards;
•Contractual agreements between custody transfer parties; and
•Government regulation and taxation.

Due to the high level of accuracy required during custody transfer applications,
the flowmeters which are used to perform this are subject to approval by an organization
such as the American Petroleum Institute (API).

Custody transfer operations can occur at a number of points along the way; these may
include operations, transactions or transferring of oil from an oil production platform to a
ship, barge, railcar, truck and also to the final destination point, such as a refinery.
 Metering methods

Custody transfer is one of the most important applications for flow measurement.

Many flow measurement technologies are used for custody transfer applications; these
include differential pressure (DP) flowmeters, turbine flowmeters, positive displacement
flowmeters, Coriolis flowmeters and ultrasonic flowmeters.
 Differential pressure flowmeters

Differential pressure (DP) flowmeters are used for the custody transfer of liquid and gas to
measure the flow of liquid, gas, and steam.

The DP flowmeter consist of a differential pressure transmitter and a primary element. The
primary element places a constriction in a flow stream, while the DP transmitter measures the
difference in pressure upstream and downstream of the constriction.

In many cases, pressure transmitters and primary elements are bought by the end-users from
different suppliers.

However, several vendors have integrated the pressure transmitter with the primary element to
form a complete flowmeter.

The advantage of this is that they can be calibrated with the primary element and DP
transmitter already in place.
Standards and criteria for the use of DP flowmeters for custody transfer applications are
specified by the American Gas Association (AGA) and the American Petroleum
Institute (API).

An advantage of using a DP flowmeters is that they are the most studied and best understood
type of flowmeter.

A disadvantage of using a DP flowmeters is that they introduce a pressure drop into the
flowmeter line.

This is a necessary result of the constriction in the line that is required to make the DP flow
measurement.

One important development in the use of DP flowmeters for custody transfer applications has
been the development of single and dual chamber orifice fittings.
 Turbine flowmeters

The first turbine flowmeter was invented by Reinhard Woltman, a German engineer in 1790.

Turbine flowmeters consist of a rotor with propeller-like blades that spins as water or some other fluid
passes over it. The rotor spins in proportion to flow rate.

There are many types of turbine meters, but many of those used for gas flow are called axial meters.

The turbine flowmeter is most useful when measuring clean, steady, high-speed flow of low-viscosity
fluids.

In comparison to other flowmeters, the turbine flowmeter has a significant cost advantage
over ultrasonic flowmeters, especially in the larger line sizes, and it also has a favourable price compared
to the prices of DP flowmeters, especially in cases where one turbine meter can replace several DP
meters.

The disadvantage of turbine flowmeters is that they have moving parts that are subject to wear. To
prevent wear and inaccuracy, durable materials are used, including ceramic ball bearings.
Positive displacement flowmeters

Positive displacement (PD) flowmeters are highly accurate meters that are widely used for
custody transfer of commercial and industrial water, as well as for custody transfer of many
other liquids.

PD flowmeters have the advantage that they have been approved by a number of regulatory
bodies for this purpose, and they have not yet been displaced by other applications.

PD meters excel at measuring low flows, and also at measuring highly viscous flows, because
PD meters captures the flow in a container of known volume.

Speed of flow doesn’t matter when using a PD meter.

 Coriolis flowmeters

Coriolis flowmeters have been around for more than 30 years and are preferred in process industries such
as chemical and food and beverage.
Coriolis technology offers accuracy and reliability in measuring material flow, and is often hailed as among the
best flow measurement technologies due to direct mass flow, fluid density, temperature, and precise calculated
volume flow rates.

Coriolis meters do not have any moving parts and provide long term stability, repeatability, and reliability.

Because they are direct mass flow measurement devices, Coriolis meters can handle the widest range of fluids
from gases to heavy liquids and are not impacted by viscosity or density changes that often effect velocity based
technologies (PD, Turbine, Ultrasonic).

With the widest flow range capability of any flow technology, Coriolis can be sized for low pressure drop.

This combined with the fact that they are not flow profile dependent helps eliminate the need for straight runs and
flow conditioning which enables custody transfer systems to be designed with minimal pressure drop.
 Ultrasonic flowmeters

Ultrasonic flowmeters were first introduced into industrial markets in 1963 by Tokyo Keiki (now Tokimec) in Japan.

Custody transfer measurements have been around for a long time, and over the past ten years,
Coriolis and ultrasonic meters have become the flowmeters of choice for custody transfer in
the oil and gas industry.

Ultrasonic meters provide volumetric flow rate.

They typically use the transit-time method, where sounds waves transmitted in the direction of
fluid flow travel faster than those travelling upstream.

The transit time difference is proportional to fluid velocity.

Ultrasonic flow meters have negligible pressure drop if recommended installation is
followed, have high turndown capability, and can handle a wide range of applications.

Crude oil production, transportation, and processing are typical applications for this
technology.

The use of ultrasonic flowmeters is continuing to grow for custody transfer.

Unlike PD and turbine meters, ultrasonic flowmeters do not have moving parts.

Pressure drop is much reduced with an ultrasonic meter when compared to PD, turbine, and
DP meters.

Installation of ultrasonic meters is relatively straightforward, and maintenance requirements

are low.
 Components of Custody Transfer

Custody transfer requires an entire metering system that is designed and engineered for the
application, not just flowmeters. Components of a custody transfer system typically include:
•Multiple meters/meter runs;
•Flow computers;
•Quality systems (gas chromatographs to measure energy content of natural gas and sampling
systems for liquid);
•Calibration using in-place or mobile provers for liquid, or master-meter for liquid or gas; and
Supporting automation.

A typical liquid custody transfer skid includes multiple flowmeters and meter provers.

Provers are used to calibrate meters in-situ and are performed frequently; typically before,
during, and after a batch transfer for metering assurance. A good example of this is a Lease
Automatic Custody Transfer (LACT) unit in a crude oil production facility.
 Custody transfer requirements

Custody transfer metering systems must meet requirements set by industry bodies such
as AGA, API, or ISO, and national metrology standards such
as OIML (International), NIST (U.S.), PTB (Germany), CMC (China), and GOST (Russia),
among others. These requirements can be of two types: Legal and Contract.
Legal

The national Weights & Measures codes and regulations control the wholesale and retail
trade requirements to facilitate fair trade.

The regulations and accuracy requirements vary widely between countries and commodities,
but they all have one common characteristic - “traceability”.

There is always a procedure that defines the validation process where the duty meter is
compared to a standard that is traceable to the legal metrology agency of the respective
region.
Contract
A contract is a written agreement between buyers and sellers that defines the measurement
requirements.

These are large-volume sales between operating companies where refined products and crude
oils are transported by marine, pipeline or rail.

Custody transfer measurement must be at the highest level of accuracy possible because a small
error in measurement can amount to a large financial difference.

Due to these critical natures of measurements, petroleum companies around the world have
developed and adopted standards to meet the industry's needs.

In Canada, for instance, all measurement of a custody transfer nature falls under the purview
of Measurement Canada.

In the USA, the Federal Energy Regulatory Commission (FERC) controls the standards which
must be met for interstate trade.
 Gaseous custody transfer

Custody transfer of gaseous flow measurement follow guidelines set by the international
bodies.

By industrial consensus, gaseous flow measurement is defined as mass flow measurement

with an overall uncertainty of ±1.0% or better.

The overall uncertainty is derived from an appropriate statistical combination of the

component uncertainties in the measurement system.
Mode of measurement

Volume or mass unit

All gaseous flow measurement must be made on single-phase gas streams, having measurements in either
volumetric or mass units.

Sampling
Sampling is an important aspect, as they help to ascertain accuracy. Apt facilities should be provided for the
purpose of obtaining representative samples. The type of instrumentation and the measuring system may
influence this requirement.

Gas density
Gas density at the meter may be determined either by:
•Continuous direct measurement, by on-line densitometer
•Calculation, using a recognised equation of state together with measurements of the gas temperature, pressure
and composition.

Most industries prefer to use the continuous measurement of gas density.

However, both methods may be used simultaneously, and the comparison of their respective results may provide
additional confidence in the accuracy of each method.
 Best practices
In any custody transfer application, a true random uncertainty has an equal chance of favouring either party, the net
impact should be zero to both parties, and measurement accuracy and repeatability should not be valued.

Measurement accuracy and repeatability are of high value to most seller because many users install check meters.

The first step in designing any custody transfer system is to determine the mutual measurement performance
expectations of the supplier and the user over the range of flow rates.

This determination of mutual performance expectations should be made by individuals who have a clear
understanding of all of the costs of measurement disputes caused by poor repeatability.

The second step is to quantify the operating conditions which are not controllable. For a flow measurement, these
can include:
•Expected ambient temperature variation;
•Maximum static line pressure;
•Static line pressure and temperature variation;
•Maximum allowable permanent pressure loss;
•Flow turndown; and
•Expected frequency of flow variation and/or pulsation.
The third and final step is to select hardware, installation and maintenance procedures which
will ensure that the measurement provides the required installed performance under the
expected (uncontrollable) operating conditions.

For example, the user can:

•Select a static and/or differential pressure transmitter which has better or worse performance
under the given real-world operating conditions.
•Calibrate the transmitter(s) frequently or infrequently.
•In the case of a DP flowmeter, size the primary element for a higher or lower differential
pressure (higher DP's provide higher accuracy, at the expense of higher pressure loss).
•Select a flowmeter and pressure transmitter with faster or slower response.
•Use long or short interconnection (impulse) lines, or direct connect for fastest response.

While the first and second steps involve gathering data, the third step may require calculations
and/or testing.
 General formula for calculating energy transferred (LNG)

The formula for calculating the LNG transferred depends on the contractual sales
conditions.
These can relate to three types of sale contract as defined by Incoterms (International
Commercial Terms) 2000: an FOB sale, a CIF sale or a DES sale.

In the case of an FOB (Free On Board) sale, the determination of the energy transferred and
invoiced for will be made in the loading port.

In the case of a CIF (Cost Insurance & Freight) or a DES (Delivered Ex Ship) sale,
the energy transferred and invoiced for will be determined in the unloading port.
In FOB contracts, the buyer is responsible to provide and maintain the custody transfer
measurement systems on board the vessel for volume, temperature and pressure determination
and the seller is responsible to provide and maintain the custody transfer measurement systems
at the loading terminal such as the sampling and gas analysis.

For CIF and DES contracts the responsibility is reversed.

Both buyer and seller have the right to verify the accuracy of each system that is provided,
maintained and operated by the other party.

The determination of the transferred energy usually happens in the presence of one or more
surveyors, the ship’s cargo officer and a representative of the LNG terminal operator.

A representative of the buyer can also be present.

In all cases, the transferred energy can be calculated with the following formula:

E =(VLNG × DLNG × GVCLNG) - Egas displaced ± Egas to ER (if applicable)

E - Egas displaced =(VLNG × DLNG × GVCLNG) - Egas displaced ± Egas to ER

Where:

E = the total net energy transferred from the loading facilities to the LNG carrier, or from
the LNG carrier to the unloading facilities.

VLNG= the volume of LNG loaded or unloaded in m3.

DLNG = the density of LNG loaded or unloaded in kg/m3.

GCVLNG = the gross calorific value of the LNG loaded or unloaded in million BTU/kg
E gas displaced = The net energy of the displaced gas, also in million BTU,
which is either:
sent back onshore by the LNG carrier when loading (volume of gas in cargo tanks displaced
by same volume of loaded LNG), Or, gas received by the LNG carrier in its cargo tanks when
unloading in replacement of the volume of discharged LNG.

E(gas to ER) = If applicable, the energy of the gas consumed in the LNG carrier’s engine
room during the time between opening and closing custody transfer surveys,
i.e. used by the vessel at the port, which is:
+ For an LNG loading transfer or
- For an LNG unloading transfer