ETS Exam 2 Review

What is the simplest scheduling transaction

Buy/Sell

What is NGL

Natural Gas Liquids

What is commodity?

Priced based on activities

What is the primary facilities for storage?

Gas Reservoirs

What is the major chemical composition/component in natural gas?

Methane

How do you resolve an imbalance?

Cash out

What is a Pipeline Interconnect

When two pipes meet

What is inlet?

This is the entrance of a processing plant

What is outlet?

This is the exit of a processing plant

What is the schedulers primary objective?

To balance receipts to fuel to deliveries using the most cost effective paths

When you store a gas, is there something you do for profit?

Arbitrage

Storage is considered which part of the flow?

Secondary Part

What is logistical cost?

All prices in buy/sell

Where are the processing plants found?

Near the production area

What is a demand charge?

Prices based on a right

What is injection?

Index, Wacog, Landed Price

Which of the three parts found in Logistics is said to make Natural Gas?

Market Ready

What is the entrance and exit of processing plants called?

Plant Inlet (Higher BTU) --> Plant Outlet (Lower BTU)

What is the difference in value of units of gas, if any between intended and unintended imbalance?

Intended is sale storage and unintended is sale imbalance

What is the purpose of a pool transaction?

The practice of transporting multiple supplies from various points to one aggregated supply at a single point. This aggregate supply point is called logical pool and is used to simplify the scheduling process.

What are the names of the natural gas that is retained by the pipeline as fuel?

Braden head gas, oil well gas, wet gas, or solution gas.

What is the value of commodity and what is it often called?

Pricing the value of gas in the ground and is often called: Asset.

Four types of scheduling transactions

Buy/Sell
Single Leg/Multi-Leg
Pools
Interconnects

Buy/Sell

Simplest of the scheduling transactions, where the buy and sell are at the same point (no transport)

Single-leg

Where the ultimate receipt and delivery points are only one leg (link) apart

Multi-leg

Where the ultimate receipt and delivery points are two or more legs (links) apart

Pools

The practice of transporting multiple supplies from various points to one aggregated supply at a single point

Interconnects

Represents a location where two pipelines meet and transport service gas flows from one to the other pipeline. The scheduler must sometimes navigate across multiple pipelines (via interconnects) in order to have supply delivered to a customers.

Which of the four scheduling transactions is used when flowing gas from one pipeline to another pipeline

Interconnects

Can storage service have demand charges

Yes. Gas storage pricing. Demand charge (right to capacity)

What is the transaction set of storage

Physical injection and fuel retained (max daily injection rate
Physical withdrawals and fuel retained (max daily withdrawal rate)
Gas in-place (balance in storage)

What are the storage cost of service fees?

Injection Fees / Fuel
Withdrawals Fees / Fuel
In place Fees

What are the types of physical storage facilities?

Depleted oil and gas reservoirs, aquifers, salt caverns, mines and man made tanks

What are the names of three types of units referred to in the transportation and scheduling process?

Nominated Unit, Confirmed Unit, Actual Unit.

Nominated unit

What the transport customer requests to be moved receipt to delivery

Confirmed unit

What the receipt and delivery side coutnerparties have confirmed

Actual unit

What the pipeline meters have actually measured received and delivered.

What are the reasons for storing gas?

Operational stability
Seasonal demand
Peak Demand
Arbitrage (profit)

What is the difference between storage gas and imbalances

Storage gas is intended and planned strategy whereas imbalance is UNintended operational variance

Who are the storage players

Facility operators
Pipelines
Storage users (local distribution companies, marketing companies, end users)

What is the fuel retained to process the gas?

Processing fuel

What is the charges for processing the gas?

Processing fees

Where are the processing plants located?

South and closer to the supply side

Transport pipeline is

Closer to the supply side

Storage inventory is

Closer to the demand side

What are the two transportation parties

Pipeline and schedulers

What are the primary objectives of both transportation parties

Pipeline: Safely, reliably and efficiently manage (deliver) the flow of customer gas
Schedulers: Balance receipts to fuel to delivers using the most cost effective paths

What is the overall flow of the natural gas supply chain and how does it work?

Supply > Transport > Processing > Storage > Demand

What is done with NGL that is extracted at processing plants?

Natural gas liquids (NGL) are hydrocarbons, they are used as inputs for petrochemical plants, burned for space heat and cooking, and blended into vehicle fuel.
Processed Natural gas and market ready gas

What are the 3 types of pipeline systems we discussed

Nothern Natural Gas Pipelines (NNG)
Natural Gas Pipeliens (NGPL)
ANR Pipeline (ANR)

What does a single haul mean?

Where the ultimate receipt and delivery points are but one leg (link) apart.

What does a multi-leg haul mean?

Where the ultimate receipt and delivery points are two or more legs (links) apart.

What propels natural gas to its destination?

It relies on the pressure of gas at the wellhead to propel the gas to its ultimate destination

Which one of them aggregate the gas to a single point?

Pools: The practice of transporting multiple supplies from various points to one aggregated supply at night

What is a processing plant by pass and how is it used?

Natural gas that goes around the plant without being processed. Bypass gas is the gas that bypassed when liquid market is high, process more. When liquid market is low, bypass more.
Used: gas is charged by the plant to make gas market ready from inlet to

What is bypass gas?

Natural gas that goes around the plant without being processed. Bypass gas is the gas that bypassed when liquid market is high, process more. When liquid market is low, bypass more.

What are the transportation players

Pipeline Personnel (Dispatchers) and Transport customer (Scheduler)

Pipeline Personnel (Dispatcher)

Manages the daily flow of all customers gas on each pipeline

Transport Customer (Scheduler)

Manages the daily flow of its gas across multiple pipelines

Which type of pipeline has the largest diameter pipe?

Natural gas pipeline (NGPL)

Which type of pipeline types is the one actually delivering to the customers?

ANR Pipeline

Withdrawals

FIFO, LIFO, FOFI, WACOG

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