NATURAL GAS ENINEERING DIPLOMA Measurements, Transportation & Storage NG 504 1 Fathy Ibrahim Emam Morgan Engineering Consultant Oil/Gas Piping and Pipelines Engineering Consultants Group (ECG) E-mail: fathymorgaan@yahoo.com Cell No 0122 475 5741 Contact Information 2 MSRC - Natural Gas Engineering Diploma - Measurements, Transportation & Storage NG 504 Eng. Fathy Morgan For successful implementation of a pipeline project, the following steps are to be considered in general: 1. Market survey-Present & Future demand 2. Map of the preliminary selected pipeline route(L) 3. Selection of ROW 4. Detailed survey and Preparation of alignment drawings 5. MAOP & Design pressure Pipeline Design 3 MSRC - Natural Gas Engineering Diploma - Measurements, Transportation & Storage NG 504 Eng. Fathy Morgan 6. Pipe Size (D) 7. Pipe specification / grade 8. Wall Thickness (t) 9. Bill of Materials 10. Total cost estimate Pipeline Design (Contd.) 4 MSRC - Natural Gas Engineering Diploma - Measurements, Transportation & Storage NG 504 Eng. Fathy Morgan Load Consideration: Presently pipeline design is being done considering the present load as well as the assumed gas load of the that particular area for the next 20 years (effective life of the pipeline) Now-a days, the use of natural gas increased tremendously. As a result the concept of pipeline design has also changed. Pipeline Design (Contd.) 5 MSRC - Natural Gas Engineering Diploma - Measurements, Transportation & Storage NG 504 Eng. Fathy Morgan Line Pipe Wall Thickness Calculation: t= DP/(2YFLJT) Where, t = Pipe wall thickness, mm P= design pressure, psig D= outside dia of pipe in mm Y= minimum yield strength, psig F= Design factor L= Location factor based on class location J= welding joint factor T= Temp. derating factor Pipeline Design (Contd.) 6 MSRC - Natural Gas Engineering Diploma - Measurements, Transportation & Storage NG 504 Eng. Fathy Morgan Grade Minimumyield strength (MPa) Minimum Tensile Strenght (Mpa) B 241 413 X42 289 413 X46 317 434 X52 358 455 X56 386 489 X60 413 517 X65 448 530 X70 482 565 X80 551 620 Line Pipe : API 5L Grades 7 MSRC - Natural Gas Engineering Diploma - Measurements, Transportation & Storage NG 504 Eng. Fathy Morgan Canadian Standards association(CSA) suggests design factor of 0.8 While location Factors are: Design and Location Factor Area Class Location ASME CSA Deserted 1 0.72 0.80 Village 2 0.60 0.72 City 3 0.50 0.56 Metropolis 4 0.40 0.44 8 MSRC - Natural Gas Engineering Diploma - Measurements, Transportation & Storage NG 504 Eng. Fathy Morgan Weld type ASME B31.8 Seamless 1 ERW 1 SAW 1 But Welled 0.6 Spiral seam 0.8 Joint Factor 9 MSRC - Natural Gas Engineering Diploma - Measurements, Transportation & Storage NG 504 Eng. Fathy Morgan Temperature ( F) ASME B31.8 Up to 250 1.00 251-300 0.97 301-400 0.93 401-450 0.91 451 and above 0.87 Temperature Factor 10 MSRC - Natural Gas Engineering Diploma - Measurements, Transportation & Storage NG 504 Eng. Fathy Morgan DPP Land acquisition & Requisition Tender Document Preparation Tender Bid Evaluation Tender Award Procurement Mobilization Clearing, Grading and Stringing Pipeline Construction Process 11 MSRC - Natural Gas Engineering Diploma - Measurements, Transportation & Storage NG 504 Eng. Fathy Morgan Welding and NDT Trenching, Lowering and Backfilling Tie-in Hydrostatic Testing Cleaning Commissioning Operation Pipeline Construction Process (contd.) 12 MSRC - Natural Gas Engineering Diploma - Measurements, Transportation & Storage NG 504 Eng. Fathy Morgan Row Acquisition and Requisition ROW SELECTION DC Office Compensation Crop Compensation Pre Construction 13 MSRC - Natural Gas Engineering Diploma - Measurements, Transportation & Storage NG 504 Eng. Fathy Morgan Minimize overall pipe length Parallel existing utility corridors (Highway, High tension Electric transmission line). Avoid areas of high population density Minimize highways, railways, river, khals, canals, ponds, hills & mountains corssing to reduce the project cost. Cross highways, railways, river, khals, canals at or close to 90 deg. Angle Minimize crossover of existing facilities Provide adequate construction area. Pre Construction (Contd.) General Guideline For Pipeline Routing 14 MSRC - Natural Gas Engineering Diploma - Measurements, Transportation & Storage NG 504 Eng. Fathy Morgan Avoid the following areas: Swamps and Wetlands Rocky areas Unstable soil Populated areas Historical areas Environmental sensitive areas ( Forest, Tea garden, Rubber garden etc.) Religious sensitive areas ( Mosque, Graveyard, temple etc.) Pre Construction (Contd.) General Guideline For Pipeline Routing 15 MSRC - Natural Gas Engineering Diploma - Measurements, Transportation & Storage NG 504 Eng. Fathy Morgan Land acquisition / Requisition Normally 10m wide strip along the proposed pipeline route is to be acquisition and a 15 m wide strip on one side of the acquisition strip is to be requisition. Acquisition is permanent possession for use of land but requisition is completely a temporary affair, only for the working period. For scraper station and Valve station separate block lands of required size have to be acquisition. Pre Construction (Contd.) 16 MSRC - Natural Gas Engineering Diploma - Measurements, Transportation & Storage NG 504 Eng. Fathy Morgan Submission of proposal for land acquisition & requisition: The company submit the proposal with requisite no. of drawings ( Normally mouza map) showing acquisition & requisition strip in two distinct colors (red for acquisition & green for requisition) to DC office. The process of acquisition and requisition in our country is done through the DC office of the particular distinct. The whole process continues in accordance with Ordinance, Arts, Rules and Regulation issued by the government from time to time. Pre Construction (Contd.) 17 MSRC - Natural Gas Engineering Diploma - Measurements, Transportation & Storage NG 504 Eng. Fathy Morgan Tender Floating Bid Receiving & Evaluation Contract Award & Contract Management Procurement Mobilization Pre Construction (Contd.) 18 MSRC - Natural Gas Engineering Diploma - Measurements, Transportation & Storage NG 504 Eng. Fathy Morgan Cleaning & Grading the ROW Stringing the pipe along ROW Welding the pipe joints together NDT of welding joints Coating and Wrapping Ditching / Trenching Holiday test Lowering & backfilling Pigging Hydro Test Commissioning Major steps for pipeline Construction 19 MSRC - Natural Gas Engineering Diploma - Measurements, Transportation & Storage NG 504 Eng. Fathy Morgan Bulldozer- Used to clearing & grading of ROW. Excavator- Used to trenching, pipe lifting, pulling the welding machine etc. Side boom- Used to lift the pipe during welding and lay the pipeline in the trench. Crane- Used to handle heavy equipment and machineries. Welding generator Trailer/ Truck- used to carry the line pipe from store yard to the working site. Equipment used for Pipeline Construction 20 MSRC - Natural Gas Engineering Diploma - Measurements, Transportation & Storage NG 504 Eng. Fathy Morgan Pipeline Construction Equipment 21 MSRC - Natural Gas Engineering Diploma - Measurements, Transportation & Storage NG 504 Eng. Fathy Morgan ROW is cleared of barriers and graded for movement of construction equipment, materials and ultimately construction of pipeline. ROW Clearing and Grading 22 MSRC - Natural Gas Engineering Diploma - Measurements, Transportation & Storage NG 504 Eng. Fathy Morgan Welders test- an example for the welders before going to production weld. Selection Criterion- Visual inspection & NDT (API 1104) PQR / WPS Test Tensile strength test Face bend test Root bend test Charpy V notch test Pre Welding Activities 23 MSRC - Natural Gas Engineering Diploma - Measurements, Transportation & Storage NG 504 Eng. Fathy Morgan Stringing is aligning the pipe along the ROW ready for welding. Trailer, Side boom etc. are used to stringing the pipe. Stringing 24 MSRC - Natural Gas Engineering Diploma - Measurements, Transportation & Storage NG 504 Eng. Fathy Morgan Root pass/ Stringer pass Hot pass Filling pass Cap pass Cleaning the welds Welding 25 MSRC - Natural Gas Engineering Diploma - Measurements, Transportation & Storage NG 504 Eng. Fathy Morgan Dye penetrant test Magnetic particle test Eddy current test Radiographic test Ultrasonic test NDT personnel certification ( level 1, 2 &3) NDT (Non Destructive Test) 26 MSRC - Natural Gas Engineering Diploma - Measurements, Transportation & Storage NG 504 Eng. Fathy Morgan Radiographic test Equipment Method Source Film examination as Per API 1104 Standard NDT (Non Destructive Test) 27 MSRC - Natural Gas Engineering Diploma - Measurements, Transportation & Storage NG 504 Eng. Fathy Morgan Ultrasonic test Equipment Method Source Weld examination NDT (Non Destructive Test) 28 MSRC - Natural Gas Engineering Diploma - Measurements, Transportation & Storage NG 504 Eng. Fathy Morgan Porosity Cluster porosity Slag inclusion Lack of fusion Lack of penetration Internal concavity Burn through Crack Common welding defects 29 MSRC - Natural Gas Engineering Diploma - Measurements, Transportation & Storage NG 504 Eng. Fathy Morgan Welding defects: 30 MSRC - Natural Gas Engineering Diploma - Measurements, Transportation & Storage NG 504 Eng. Fathy Morgan The final weld to join two separate section together. Should be properly aligned without use of jacks or any external force. Should be done within operating temp (5-30 deg. Celsius). NDT test. Tie-in welds 31 MSRC - Natural Gas Engineering Diploma - Measurements, Transportation & Storage NG 504 Eng. Fathy Morgan Two different ways Thurst boring/ horizontal boring method Drill a hole under the roadway without disturbing the road / rail surface. A casing pipe is placed through the hole and then the pipeline is placed inside the casing. Spacer is used to center the pipeline within the casing pipe. Open Cut method. Roads and Railway Crossing 32 MSRC - Natural Gas Engineering Diploma - Measurements, Transportation & Storage NG 504 Eng. Fathy Morgan All except a portion (about 6 inch) of each pipe is often coated in the factory before deliver to the site Three types of coating 3LPE coating FBE coating Polyethylene coating 3LPE coating Apply adhesive on clean pipe surface Epoxy paint (40-100 micron) Polyethylene coating Pipe Coating 33 MSRC - Natural Gas Engineering Diploma - Measurements, Transportation & Storage NG 504 Eng. Fathy Morgan Bare pipe 34 MSRC - Natural Gas Engineering Diploma - Measurements, Transportation & Storage NG 504 Eng. Fathy Morgan Features: Cleaning (sand Blasting) Apply Adhesive Apply epoxy paint ( 40 100 micron thick) Polyethylene coating 3 LPE Coated Pipe 35 MSRC - Natural Gas Engineering Diploma - Measurements, Transportation & Storage NG 504 Eng. Fathy Morgan Apply 3LPE Coating Set wire mesh above 3LPE Coating Apply Concrete coating Provide Ve buoyancy force Apply on ditch, canal, pond, khal, small river Features: Concrete Coated Pipe 36 MSRC - Natural Gas Engineering Diploma - Measurements, Transportation & Storage NG 504 Eng. Fathy Morgan Put on above 3LPE coated pipe One on each pipe Provide Ve buoyancy force Apply on Marchy area Features: Set-on-Weight 37 MSRC - Natural Gas Engineering Diploma - Measurements, Transportation & Storage NG 504 Eng. Fathy Morgan Heat shrink sleeves Approx. 14 inch length and dia larger than pipe dia. Shrink on applying heat and fitted to the pipe. Joint coating 38 MSRC - Natural Gas Engineering Diploma - Measurements, Transportation & Storage NG 504 Eng. Fathy Morgan Ditching Holyday test Apply 10 KV on coated pipe surface Any coating defect will result an audible sound. Lowering Lay pipeline on Trench of approx. 1.2m depth Put set-on-weight on buried pipe for anti buoyancy force. Ditching, Holyday test, Lowering and Backfilling 39 MSRC - Natural Gas Engineering Diploma - Measurements, Transportation & Storage NG 504 Eng. Fathy Morgan Bruch/ cup pig Clean internal rust Gauge pig To check pipe ovality Foam Pig To dry internal surface Testing: 40 MSRC - Natural Gas Engineering Diploma - Measurements, Transportation & Storage NG 504 Eng. Fathy Morgan Natural Gas Equipment Distribution System Each time the pressure is reduced, over pressure protection is provided by a relief valve or automatic shut off A relief valve venting gas to the atmosphere is performing its proper function and should never be cut off or restricted until the gas company arrives and makes corrections to the system 41 MSRC - Natural Gas Engineering Diploma - Measurements, Transportation & Storage NG 504 Eng. Fathy Morgan Properties of Natural Gas Odorless Colorless - Tasteless Methyl Mercaptan is added to give it its distinguishable rotten egg odor Odorized natural gas is detectable at concentrations significantly less than 1% 42 MSRC - Natural Gas Engineering Diploma - Measurements, Transportation & Storage NG 504 Eng. Fathy Morgan Natural Gas Equipment Distribution System Type of System Pressure Transmission Line (High Pressure) 300 1000 psig Distribution Main (High Pressure) 60 300 psig Distribution Main (Modified High Pressure) 5 60 psig Distribution Main (Low Pressure) psig Service / Customer Line psig 43 MSRC - Natural Gas Engineering Diploma - Measurements, Transportation & Storage NG 504 Eng. Fathy Morgan Natural Gas Equipment Material Color Size Pressure Bare Steel - - - - - - 2 6 Up to 60 psi Wrapped Steel Yellow / brown 20 Up to 1000 psi Wrought Iron - - - - - - 2 6 Up to 60 psi Polyethylene Plastic Black / orange / yellow 6 Up to 60 psi Cast Iron - - - - - - 4 20 psi Copper - - - - - - - psi Piping 44 MSRC - Natural Gas Engineering Diploma - Measurements, Transportation & Storage NG 504 Eng. Fathy Morgan Natural Gas Equipment Polyethylene pipe is buried with a 12 gauge wire for ease of locating it has nothing to do with grounding or bonding POLYETHYLENE PIPE Piping 45 MSRC - Natural Gas Engineering Diploma - Measurements, Transportation & Storage NG 504 Eng. Fathy Morgan Natural Gas Equipment Distribution piping is normally buried between 12 and 18 below ground level Piping 46 MSRC - Natural Gas Engineering Diploma - Measurements, Transportation & Storage NG 504 Eng. Fathy Morgan Natural Gas Equipment Shut-off Valves Square - Handle L - Handle T - Handle Side View 47 MSRC - Natural Gas Engineering Diploma - Measurements, Transportation & Storage NG 504 Eng. Fathy Morgan Natural Gas Equipment Shut-off Valves Closed Position Open Position Top View 48 MSRC - Natural Gas Engineering Diploma - Measurements, Transportation & Storage NG 504 Eng. Fathy Morgan Natural Gas Equipment Typical Residential Installation 49 MSRC - Natural Gas Engineering Diploma - Measurements, Transportation & Storage NG 504 Eng. Fathy Morgan Natural Gas Equipment Typical Residential Installation Regulator Relief Valve Valve 50 MSRC - Natural Gas Engineering Diploma - Measurements, Transportation & Storage NG 504 Eng. Fathy Morgan Natural Gas Equipment Typical Residential Installation Meter 51 MSRC - Natural Gas Engineering Diploma - Measurements, Transportation & Storage NG 504 Eng. Fathy Morgan Natural Gas Equipment Commercial Installation Meter Valve Regulator 52 MSRC - Natural Gas Engineering Diploma - Measurements, Transportation & Storage NG 504 Eng. Fathy Morgan Natural Gas Emergencies Types of Emergencies Odors / Leaks Fire 53 MSRC - Natural Gas Engineering Diploma - Measurements, Transportation & Storage NG 504 Eng. Fathy Morgan Natural Gas Emergencies Emergency Response Odors / Leaks Inside: 1) Approach incident from upwind, if possible. 2) Position apparatus at least 150 from scene. 3) Investigate for the source of the odor with the GasTrac & Mini-Gas. 4) If a strong odor is encountered or leak is confirmed, evacuate the bldg. of all occupants. 54 MSRC - Natural Gas Engineering Diploma - Measurements, Transportation & Storage NG 504 Eng. Fathy Morgan Natural Gas Emergencies Emergency Response Odors / Leaks Inside: 5) Notify BC GAS - Gas Op's to respond. 6) Ventilate the bldg. by opening doors & windows. Remember to open windows on top. 7) Do not operate electrical switches / telephones. 55 MSRC - Natural Gas Engineering Diploma - Measurements, Transportation & Storage NG 504 Eng. Fathy Morgan Natural Gas Emergencies Emergency Response Odors / Leaks 9) If a leak is confirmed, the IC should determine if it can be stopped or if the gas needs to be shut off at the valve. Inside 8) Use only intrinsically safe radios / handlights. 56 MSRC - Natural Gas Engineering Diploma - Measurements, Transportation & Storage NG 504 Eng. Fathy Morgan Natural Gas Emergencies Emergency Response Odors / Leaks 11) Gas valves turned OFF by FD personnel SHOULD NEVER be turned back on without BC GAS - Gas Op's on scene. 12) No one should re enter the bldg. until BC GAS - Gas Op's has secured the leak and determined that it is safe to enter. Inside 10) Hand tools should be spark-proof (1663 / 1665). 57 MSRC - Natural Gas Engineering Diploma - Measurements, Transportation & Storage NG 504 Eng. Fathy Morgan Natural Gas Emergencies Emergency Response Odors / Leaks Outside 1) If unignited gas is escaping from the ground, either from an excavation site or from an open pipe outside of a bldg., notify BC GAS - Gas Op's immediately. 2) Establish a safe area around the incident scene. 3) Extinguish all open flames. 4) Check surrounding bldgs., especially basements, for the presence of gas. Gas can migrate through the ground, following pipes or natural stratifications in the earth. 58 MSRC - Natural Gas Engineering Diploma - Measurements, Transportation & Storage NG 504 Eng. Fathy Morgan Natural Gas Emergencies Emergency Response Odors / Leaks Outside 5) Restrict or re-route traffic until BC GAS - Gas Op's personnel can bring the gas flow under control. 6) Although water fog streams can be used to disperse escaping vapors, they are usually ineffective since the lighter-than-air gas naturally rises. 7) If water fog is used, caution must be exercised to avoid filling excavation sites with water. 59 MSRC - Natural Gas Engineering Diploma - Measurements, Transportation & Storage NG 504 Eng. Fathy Morgan Natural Gas Emergencies Emergency Response Odors / Leaks Outside 8) FD personnel should never clamp or crimp a gas line. Static electricity could ignite escaping gas, resulting in a sudden and violent ignition. 9) Hand tools should be spark-proof (1663 / 1665). 60 MSRC - Natural Gas Engineering Diploma - Measurements, Transportation & Storage NG 504 Eng. Fathy Morgan Natural Gas Emergencies Emergency Response Fires Inside: 1) Notify BC GAS - Gas Op's immediately upon receipt of alarm. 2) The IC should determine if the gas can safely be shut off inside the bldg. or at the meter. 61 MSRC - Natural Gas Engineering Diploma - Measurements, Transportation & Storage NG 504 Eng. Fathy Morgan Natural Gas Emergencies Emergency Response Fires Inside: 3) In certain industrial / commercial settings, turning off the gas supply can seriously interrupt important and costly industrial processes and should only be done upon evaluation with company personnel and BC GAS - Gas Op's. 4) If the gas supply cannot be shut off, the surrounding combustibles should be kept wet with a fog stream. 62 MSRC - Natural Gas Engineering Diploma - Measurements, Transportation & Storage NG 504 Eng. Fathy Morgan Natural Gas Emergencies Emergency Response Fires Outside: 1) Notify BC GAS - Gas Op's immediately upon receipt of alarm. 2) The best method of controlling outdoor gas fires is to shut off the gas flow. 3) In most cases, FD personnel should not attempt to extinguish the fire while the gas is still escaping. 4) BURNING GAS WILL NOT EXPLODE. 63 MSRC - Natural Gas Engineering Diploma - Measurements, Transportation & Storage NG 504 Eng. Fathy Morgan Natural Gas Emergencies Emergency Response Fires Outside: 5) Secure the area and protect exposures, if necessary. 6) IF it is necessary to extinguish the fire before the gas flow can be stopped, use a Dry Chem extinguisher aimed at the base of the flame and wet the surrounding area with water fog to prevent the re-ignition of combustibles. 64 MSRC - Natural Gas Engineering Diploma - Measurements, Transportation & Storage NG 504 Eng. Fathy Morgan Natural Gas An Operational Perspective 65 MSRC - Natural Gas Engineering Diploma - Measurements, Transportation & Storage NG 504 Eng. Fathy Morgan EXPLORATION AND PRODUCTION 66 MSRC - Natural Gas Engineering Diploma - Measurements, Transportation & Storage NG 504 Eng. Fathy Morgan GATHERING AND PROCESSING 67 MSRC - Natural Gas Engineering Diploma - Measurements, Transportation & Storage NG 504 Eng. Fathy Morgan Natural gas has to go from Point A to Point B. Point Ainvolves getting the gas out of the ground and into the pipeline. Point B is where the gas eventually ends up, so you can cook your food and heat your home. The line that connects Point A to Point B is where the midstream industry takes over. 68 MSRC - Natural Gas Engineering Diploma - Measurements, Transportation & Storage NG 504 Eng. Fathy Morgan Gas Processing connecting A to B Raw natural Gas consists of hydrocarbons: Methane Propane Butane Pentane plus many more It also contains undesired materials: sulfur compounds, water, mercury, etc. 69 MSRC - Natural Gas Engineering Diploma - Measurements, Transportation & Storage NG 504 Eng. Fathy Morgan That raw natural gas must be purified, or processed, to meet quality standards and specifications set by the major pipeline and distribution companies 70 MSRC - Natural Gas Engineering Diploma - Measurements, Transportation & Storage NG 504 Eng. Fathy Morgan A more detailed view 71 MSRC - Natural Gas Engineering Diploma - Measurements, Transportation & Storage NG 504 Eng. Fathy Morgan 72 MSRC - Natural Gas Engineering Diploma - Measurements, Transportation & Storage NG 504 Eng. Fathy Morgan TRANSMISSION AND STORAGE 73 MSRC - Natural Gas Engineering Diploma - Measurements, Transportation & Storage NG 504 Eng. Fathy Morgan 74 MSRC - Natural Gas Engineering Diploma - Measurements, Transportation & Storage NG 504 Eng. Fathy Morgan Natural Gas Equipment Distribution piping is normally buried between 12 and 18 below ground level Piping 75 MSRC - Natural Gas Engineering Diploma - Measurements, Transportation & Storage NG 504 Eng. Fathy Morgan Agenda Transporting Gas Interruptible Pipeline Map Basic Rules of Interstate Transportation Services Business Processes 76 MSRC - Natural Gas Engineering Diploma - Measurements, Transportation & Storage NG 504 Eng. Fathy Morgan What is Gas Transportation? Gas Transportation - service provided by the pipeline for the party that has requested the transportation service. The pipeline is the link between the gas supplies and the markets. Involves the receipt of the gas by the transporter, the movement of gas through the transporters system and the delivery of gas by the transporter for the shippers account. Service can be firm or interruptible. 77 MSRC - Natural Gas Engineering Diploma - Measurements, Transportation & Storage NG 504 Eng. Fathy Morgan Interruptible Service Firm Service is a service that is offered on a guaranteed basis. The pipeline, also known as the Transportation Service Provider (TSP), warrants that it will make the service available on every day of the contract unless prevented by an act of Force Majeure. For this firm service, the customer, also known as the Service Requester (SR), will generally pay a demand and a commodity charge. The total charge is generally higher than interruptible services. Firm services have a higher priority than interruptible services. Firm service contracts generally have a term of over a year. 78 MSRC - Natural Gas Engineering Diploma - Measurements, Transportation & Storage NG 504 Eng. Fathy Morgan Interruptible Service Interruptible Service is a service that is not a guaranteed service. The TSP can generally cease the performance of the service with short or no notice. The TSP will interrupt if the pipeline space used for interruptible service is required to serve a higher priority customer. The SR of the interruptible service will generally pay only a commodity charge when the service is utilized. The total cost of the service is usually less than the cost of a firm service. The interruptible service is less reliable by definition. 79 MSRC - Natural Gas Engineering Diploma - Measurements, Transportation & Storage NG 504 Eng. Fathy Morgan 80 MSRC - Natural Gas Engineering Diploma - Measurements, Transportation & Storage NG 504 Eng. Fathy Morgan Basic Rules of Interstate Transportation When Crosses state boundaries. As such, the service: - Must be offered on a non-discriminatory basis. - Must allow firm contract holders to release to other parties so some of the reservation costs paid by the firm shipper ma be recovered when the capacity would otherwise not be used. - Customers must be able to change their firm receipt and delivery points. All other receipt points must be made available to the customers on an interruptible basis. - Customers have rights beyond their contract path but within the same rate zone. 81 MSRC - Natural Gas Engineering Diploma - Measurements, Transportation & Storage NG 504 Eng. Fathy Morgan Services Offered by Pipelines Firm Transportation The highest quality transportation service offered to customers under a filed rate schedule that anticipates no planned interruption. No-Notice Service A bundled, city-gate service that allows customers to receive gas on demand to meet peak service needs subject to delivering supplies into the pipeline. Interruptible Transportation Transportation service subject to interruption at the option of the pipeline. Storage Service A firm or interruptible service that allows customers to store natural gas that has been transferred from its original location 82 MSRC - Natural Gas Engineering Diploma - Measurements, Transportation & Storage NG 504 Eng. Fathy Morgan Services offered by Pipelines (continued) Pooling Service A firm or interruptible service that allows customers to aggregate natural gas from many receipt points to serve a number of contracts without tying a particular receipt point to a particular contract. Parking Service An interruptible service which allows a customer to request that the pipeline hold on its system, gas quantities that have been delivered by the customer under any transportation agreement between the pipeline and the customer, and then return such gas quantities at thecustomers request. Loan Service An interruptible service which allows a customer to receive gas quantities from the pipeline and then return such loaned quantities of gas to the pipeline at the point in which the gas was borrowed. 83 MSRC - Natural Gas Engineering Diploma - Measurements, Transportation & Storage NG 504 Eng. Fathy Morgan Local Distribution 84 MSRC - Natural Gas Engineering Diploma - Measurements, Transportation & Storage NG 504 Eng. Fathy Morgan 85 MSRC - Natural Gas Engineering Diploma - Measurements, Transportation & Storage NG 504 Eng. Fathy Morgan How the Natural Gas Distribution System Works Local Gas Distribution Companies Overview Natural gas distribution is the last step in the delivery process What is a natural gas LDC? Generally state regulated entities which operate gas distribution piping systems that serve gas locally to homes, businesses and industrial customers Some are municipally-owned Operate in defined, exclusive service territories Statutorily obligated to provide reliable natural gas service to customers at just and reasonable rates, terms and conditions Local distribution is exempt from FERC jurisdiction under NGA 1(b) NGPA definition 86 MSRC - Natural Gas Engineering Diploma - Measurements, Transportation & Storage NG 504 Eng. Fathy Morgan Where does transportation end and local distribution begin? No bright line from FERC; but generally movement through large diameter pipelines at higher pressure (over 350 psia) is considered transportation; particularly if the line is not regulated by a state PUC Supreme Court decision in FPC v. East Ohio Gas Co., 338 U.S. 464 (1950) Congress responded with Hinshaw exemption NGA 1(c) How the Natural Gas Distribution System Works contn. 87 MSRC - Natural Gas Engineering Diploma - Measurements, Transportation & Storage NG 504 Eng. Fathy Morgan Differences from Interstate Pipelines Generally, LDCs operate at lower pressures, use smaller diameter pipes, and the distribution pipes directly connect to the house lines of local homes and businesses LDC systems differ among themselves, but generally consist of: high pressure transmission lines, lower pressure mains and service lines, regulators, a wide variety of meters, and odorization equipment May include on-system storage, LNG storage, and propane-air 88 MSRC - Natural Gas Engineering Diploma - Measurements, Transportation & Storage NG 504 Eng. Fathy Morgan LDC Customers and Services Types of LDC customers: retail, commercial, and industrial Types of LDC services: Sales Service to Core/Retail (firm and interruptible services) Transportation Service (firm and interruptible) Retail unbundling (customers purchase gas commodity directly from suppliers/marketers) LDCs connect to interstate pipelines at citygate points LDCs purchase natural gas commodity at wholesale from producers/marketers Receive the gas from the supplier at the citygate; and/or Receive the gas at upstream points and move the gas on interstate pipeline capacity 89 MSRC - Natural Gas Engineering Diploma - Measurements, Transportation & Storage NG 504 Eng. Fathy Morgan LDC Resources Used to Serve Core Customers Typical LDC resources include: Gas purchased outside of the LDCs service territory Supplies previously purchased and held in storage facilities outside of the LDCs service territory Supplies previously purchased and held in peaking facilities inside the LDC service territory Supplies purchased from local production wells in the state Diversion of supplies from interruptible customers understate-approved tariff curtailment provisions 90 MSRC - Natural Gas Engineering Diploma - Measurements, Transportation & Storage NG 504 Eng. Fathy Morgan LDC Operating- System Movement on LDC systems involves moving smaller volumes of gas at lower pressures to numerous individual customers. To ensure flow, gas may be perioducally compressed at compressor stations, but the pressure required on LCD systems is much lower than on an interstate pipeline. Supervisory control and SCADA systems monitor gas flow on the distribution network. To detect leaks, gas is odorized at the citygate with mercaptan Piping system is steel for higher pressure main and polyethylene(plastic) in lower pressure mains and service lines. 91 MSRC - Natural Gas Engineering Diploma - Measurements, Transportation & Storage NG 504 Eng. Fathy Morgan LDC Operations - Service Generally, customers do not make nominations. Gas consumed at the residance or business is measured by a onsite meter. Customers are billed according to use and rate schedule. Storage or on-system needle peaking storage is used as an additional resource to meet core needs. 92 MSRC - Natural Gas Engineering Diploma - Measurements, Transportation & Storage NG 504 Eng. Fathy Morgan LDC Focus on Safety LDC safety programs include: Leak detection response Safety education One Call Systems Emergency plans and responsiveness State statutes and regulations adopt DOT safety requirements 93 MSRC - Natural Gas Engineering Diploma - Measurements, Transportation & Storage NG 504 Eng. Fathy Morgan