Gas Contracts Measurement Language And Its Evolution

Author: Lohit Datta-BaruaDownload File

The business environment in our industry has seen tremendous change since early 1980s. This has in turn forced the industry to change its measurement technology and the process. Open access concept with multiple shippers through the same meter requires timely data to monitor nomination and allocation and to comply with commercial terms. The introduction of digital flow computer for electronic gas measurement (EGM) system has resulted in almost real time transactional information with enhanced accuracy and reliability. With respect to orifice measurement, the transition from mechanical chart recorders to EGM had an unprecedented impact on our ability to measure natural gas and adjust to market demands throughout the country. In order to realize the benefits of EGM, gas contracts had to evolve with time and include measurement provisions specific to this technology and its downstream data management requirements. Furthermore, such contract language should represent transporter and shipper or buyer and seller as the case may be in the most equitable manner possible. This paper discusses gas contract language from a measurement perspective addressing some of those challenges while recommending more up-to-date measurement provisions for gas contracts