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HOW TO PERFORM A LOST & UNACCOUNTED-FOR GAS PROGRAM

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October 1, 2018

any (likely most) gas pipeline companies struggle with lost-and-unaccounted-for-gas (L&U) and it can be a significant cost to their bottom line as shown below.

As shown in this inset, by reducing L&U from 0.6 percent to .25 percent, a typical company with a 2 BCF daily throughput could save Over 7.6 million dollars annually based on $3.00 gas prices, which is a daily loss of $21,000.

730,000,000

0.6%

4,380,000

730,000,000

0.25%

1,825,000

4,380,000

(1,825,000)

2,555,000 $3.00

$7,665,000

MMBtu Annual Throughput Average Percentage of L&U MMBtu Lost Annually

MMBtu Annual Throughput Average Percentage of L&U MMBtu Lost Annually

MMBtu Lost Annually at .6 Percent MMBtu Lost Annually at .25 Percent MMBtu Potential from Loss Reduction Price per MMBtu

Value Potential from Loss Reduction

FIGURE 1. L&U Reduction Value Example

NOTE: For simplicity, the formula assumed a Btu factor of 1,000.

Key Considerations

Now that you see the amount of money your company can save by performing a lost and unaccounted for gas program, you need to consider the key issues to achieving the goal, and making it sustainable.

  • ๏‚ท  First, you will need managementโ€™s โ€œbuy inโ€ to insure cooperation throughout the lost and unaccounted for process and the company must be willing to make changes. Those changes involve implementing industry โ€œbest practicesโ€ for measurement and gas loss control, i.e.
    • ๏€ญ  A state-of-the-art, measurement collection, balancing, and reporting system,
    • ๏€ญ  Pipeline segmentation for loss control,
    • ๏€ญ  Well trained people in both the field and measurement support,
    • ๏€ญ  Regional Measurement Specialists,
    • ๏€ญ  The proper equipment for testing and calibration,
    • ๏€ญ  Good standards and procedures, etc.

Coming soon