Custody transfer

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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.[1]
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.[2]
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.

Contents

 1Metering methods
o 1.1Differential pressure flowmeters
o 1.2Turbine flowmeters
o 1.3Positive displacement flowmeters
o 1.4Coriolis flowmeters
o 1.5Ultrasonic flowmeters
 2Components
 3Accuracy
 4Custody transfer requirements
o 4.1Legal
o 4.2Contract
 5Liquid custody transfer
o 5.1Mode of measurement
 5.1.1Volume or mass measurement
 5.1.2Sampling system
 5.1.3Temperature and pressure measurement
 6Gaseous custody transfer
o 6.1Mode of measurement
 6.1.1Volume or mass unit
  6.1.2Sampling
 6.1.3Gas density
 7Best practices
 8General formula for calculating energy transferred (LNG)
 9References
 10External links

Metering methods[edit]
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.[3]
Differential pressure flowmeters[edit]
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.[4]
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.[5]
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[edit]
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 (see turbine meters) . There are many types of
turbine meters, but many of those used for gas flow are called axial meters.[6]
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[edit]
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.[7]
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[edit]
Coriolis flowmeters have been around for more than 30 years and are preferred in process industries
such as chemical and food and beverage.[8] 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.
It has to be mentioned that any measurement instrument that relies on one measurement principle
only will show a higher measurement uncertainty under two-phase flow conditions. Conventional
measurement principles, like positive displacement, turbine meters, orifice plates will seemingly
continue to measure, but will not be able to inform the user about the occurrence of two-phase flow.
Yet modern principles based on the Coriolis effect or ultrasonic flow measurement will inform the
user by means of diagnostic functions.
Flow is measured using Coriolis meters by analyzing the changes in the Coriolis force of a flowing
substance. The force is generated in a mass moving within a rotating frame of reference. An
angular, outward acceleration, which is factored with linear velocity is produced due to the rotation.
With a fluid mass, the Coriolis force is proportional to the mass flow rate of that fluid.
A Coriolis meter has two main components: an oscillating flow tube equipped with sensors and
drivers, and an electronic transmitter that controls the oscillations, analyzes the results, and
transmits the information. The Coriolis principle for flow measurement requires the oscillating section
of a rotating pipe to be exploited. Oscillation produces the Coriolis force, which traditionally is sensed
and analyzed to determine the rate of flow. Modern coriolis meters utilize the phase difference
measured at each end of the oscillating pipe.[9]
Ultrasonic flowmeters[edit]
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.
In June 1998, The American Gas Association published a standard called AGA-9. This standard lays
out the criteria for the use of Ultrasonic flowmeters for Custody Transfer of Natural Gas.[10]

Components[edit]
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.

Accuracy[edit]
In the ISO 5725-1 standard accuracy for measuring instruments is defined as “the closeness of
agreement between a test result and the accepted reference value”. This term “accuracy” includes
both the systematic error and the bias component.[11] Each device has its manufacturer stated
accuracy specification and its tested accuracy. Uncertainty takes all the metering system factors that
impact measurement accuracy into account. The accuracy of flowmeters could be used in two
different metering systems that ultimately have different calculated uncertainties due to other factors
in the system that affect flow calculations. Uncertainty even includes such factors as the flow
computer's A/D converter accuracy. The quest for accuracy in a custody transfer system requires
meticulous attention to detail.

Custody transfer requirements[edit]

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[edit]
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.[12]
Contract[edit]
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.

Liquid custody transfer[edit]

Custody transfer of liquid flow measurement follow guidelines set by the ISO. By industrial
consensus, liquid flow measurement is defined as having an overall uncertainty of ±0.25% or better.
The overall uncertainty is derived from an appropriate statistical combination of the component
uncertainties in the measurement system.
Mode of measurement[edit]
Volume or mass measurement[edit]
Liquid flow measurements are usually in volumetric or mass unit. Volume is normally used for stand-
alone field tanker loading operations, while mass is used for multi-field pipeline or offshore pipeline
with an allocation requirement.
Mass measurement and reporting are achieved by

 Measurement of volume flow rate (for example, by turbine or ultrasonic meter) and fluid density
 Direct mass measurement by Coriolis meter
Sampling system[edit]
An automatic flow-proportional sampling system is used in flow measurement to determine the
average water content, average density and for analysis purposes. Sampling systems should be
broadly in accordance with ISO 3171. The sampling system is a critical section during flow
measurement. Any errors introduced through sampling error will generally have a direct, linear effect
on the overall measurement.
Temperature and pressure measurement[edit]
Temperature and pressure measurement are important factors to consider when taking flow
measurements of liquids. Temperature and pressure measurement points should be situated as
close to the meter as possible, in reference to their conditions at the meter inlet. Temperature
measurements that affect the accuracy of the metering system should have an overall loop accuracy
of 0.5 °C or better, and the corresponding readout should have a resolution of 0.2 °C or better.
Temperature checks are performed by certified thermometers with the aid of Thermowells
Pressure measurements that affect the accuracy of the metering system should have an overall loop
accuracy of 0.5 bar or better and the corresponding readout should have a resolution of 0.1 bar or
better.

Gaseous custody transfer[edit]

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[edit]
Volume or mass unit[edit]
All gaseous flow measurement must be made on single-phase gas streams, having measurements
in either volumetric or mass units.
Sampling[edit]
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[edit]
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[edit]
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.[13]
General formula for calculating energy transferred (LNG)[edit]
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 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.[14]
In all cases, the transferred energy can be calculated with the following formula:
E =(VLNG × DLNG × GVCLNG) - Egas displaced ± Egas to ER (if applicable)
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

References[edit]
1. ^ "Custody Transfer: The Value Of Good Measurement And The Search For The Truth". Archived
from the original on 2011-01-06. Retrieved 10 April 2011.
2. ^ "Custody Transfer: Flowmeter As Cash Register". Retrieved 10 April 2011.
3. ^ "Custody Transfer Flow Measurement". Archived from the original on 9 July 2010. Retrieved 10
April 2011.
4. ^ "Energy Demand Propels Custody Transfer Flow Measurement". Archived from the original on
2011-01-06. Retrieved 10 April 2011.
 5. ^ "Flow and Level Measurement". Retrieved 11 April 2011.
6. ^ "The World Market for Custody Transfer of Natural Gas". Retrieved 10 April 2011.
7. ^ Jesse Yoder Phd. "Considering Traditional Technology Flowmeters". Archived from the original on
28 July 2011. Retrieved 10 April 2011.
8. ^ "Custody transfer of oil products with Coriolis mass flowmeters". Retrieved 10 April2011.
9. ^ "Digital Coriolis Flowmeters in Oil and Gas Custody Transfer". Retrieved 10 April 2011.
10. ^ "Ultrasonic Flowmeters for Custody Transfer" (PDF). Retrieved 10 April 2011.
11. ^ "LNG CUSTODY TRANSFER HANDBOOK" (PDF). Retrieved 10 April2011.[permanent dead link]
12. ^ "Proving Liquid Ultrasonic Flow Meters for Custody Transfer Measurement" (PDF). Retrieved 10
April 2011.
13. ^ "Calculating Natural Gas Custody Transfer Flow Measurements". Pipeline & Gas Journal. 2001.
Retrieved 10 April 2011.
14. ^ "LNG CUSTODY TRANSFER HANDBOOK" (PDF). Retrieved 10 April2011.[permanent dead link]

External links[edit]
 Measurement Canada.
 CMC
 Tokyo KEIKI
 API
 Flow Research
 GUIDANCE NOTES FOR PETROLEUM MEASUREMENT (Highly recommended)
 ISO