The global development and future of natural gas measurement Jacob Freeke, Director Marketing Daniel Ultrasonic

13 May, 2015

Grand opening of the world’s largest closed loop for high-pressure calibration of gas meters

[File Name or Event] Emerson Confidential 27-Jun-01, Slide 2

Outline Market view

Oil & Gas Custody Transfer key aspects

Why do we need HP NG Calibration?

Overview HP NG flow facilities

Overview technologies and manufacturers

Market Needs for a new HP NG Flow facility

Harmonized Reference Value (EuReGa)

Future trends

Sharing ambitions

Acknowledgements

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[File Name or Event] Emerson Confidential 27-Jun-01, Slide 3

View at Natural Gas market Natural gas market has shown a

steady growth (50+ years)

Will continue to be one of the main sources of energy.

Its role in the energy mix is on a rise:

– Natural Gas is ~23% of total energy supply and growing CAGR ~2.5%

– World energy demand is expected to grow 45% by 2030

Gas is good, gas CARES..

– key fuel for the transition to sustainable energy

Are we entering a Golden Age of Gas?

– International Energy

Agency 2011 report

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[File Name or Event] Emerson Confidential 27-Jun-01, Slide 4

Gas is good…gas cares

The key fuel for the transition to sustainable energy

Clean

Secure

Affordable

Reliable

Efficient

• Less Emission of nitrogen oxide

• 50% less CO2 Emission then coal

• No Sulphur and no Solid waste

• Natural gas is abundant; production will increase in next 20 years

• Natural gas is safe; The natural gas sector has best safety record in the industry

• Gas fired power plants capital cost = 50% of Coal fired plants 33% of Nuclear plants 20% of onshore wind energy

• Affordable fuel to reduce CO2 emissions

• Available now; CO2 emission reduction can be realized immediately

• Natural gas is flexible; can be used as carrier for Biogas and storage medium for solar/wind power (Hydrogen conversion)

• Modern gas fired power plants are 40% more efficient then coal plants

• Time saving; Gas fired plants require less time to build then nuclear plants

[File Name or Event] Emerson Confidential 27-Jun-01, Slide 5

Custody Transfer Metering – Oil & Gas Natural gas is a valuable primary energy - It has to be handled economically

The greater the transaction volume, the larger the financial interest.

– Value of uncertainty risk

– Balance affordable cost versus acceptable risk

A measurement error of 0.1 % means for:

– Netherlands: 40M Euro per year (~115 Billion m3/annum at ~€0.35/m3)

Critical for Custody Transfer measurement between buyer and seller:

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Uncertainty Reliability

• Quality of the measurement

• CMC- Calibration

Measurement Capability

• References and Traceability

• Standard deviation / stability

• Installation effects

• Wind, temperature, rain

• Sizing…

• Gas composition

• Dual meters

• 100% Redundant systems

• # of metering lines

• Condition Based Monitoring

[File Name or Event] Emerson Confidential 27-Jun-01, Slide 6

Demand for HP NG calibration is growing

– Growing number of new meters – initial verification

– Existing meters – re-verification

– Unbundling – 3rd party access: more meters as buyers / sellers sharing same ‘pipeline infrastructure’ (Liberated trade)

– Growing awareness

Expanding capacity of HP NG flow facilities

– Euroloop 2010

• closing Westerbork and Bergum

– Force Technology HP Flow loop 2015

Growing demand - debottlenecking

[File Name or Event] Emerson Confidential 27-Jun-01, Slide 7

In the early seventies, it was discovered that the reading of Gas Meters (flow) was dependent on the type of gas, its density and its viscosity. See the chart:

It was then decided that gas meters should be calibrated at their operating conditions in the field as far as possible.

This is the main reason why a number of high pressure test facilities were founded in the Netherlands, with the Bernoulli laboratory in Westerbork at the high end.

Why do we need high pressure test facilities and metrology?

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Aerial overview of the Bernoulli

laboratory Westerbork , built in

1978

[File Name or Event] Emerson Confidential 27-Jun-01, Slide 8

The oldest HP NG Flow facilities Bishop Auckland, DNV GL, UK, 1985?

35 – 60 bar,

Up to 1.250.000 nm3/h

Lowest uncertainty ~0,30%

Westerbork, Gasunie, NL, 1973

63 bar

Up to 40.000 m3/h

Lowest uncertainty 0,23%

Bergum, The Netherlands, 1975?

8 – 50 bar

Up to 4.000 m3/h

Lowest uncertainty 0,21%

[File Name or Event] Emerson Confidential 27-Jun-01, Slide 9

Pigsar, Dorsten, Germany, 1993

14 – 50 bar

Up to 6.500 m3/h

Lowest uncertainty 0,16%

TransCanada Calibrations, Winnipeg, 1999

65 bar

Up to 55.000 m3/h

Lowest uncertainty 0,19%

Euroloop, Rotterdam, The Netherlands, 2010

9 – 61 bar

20 to 30.000 m3/h

Lowest uncertainty 0,17%

The most known HP NG Flow facilities

[File Name or Event] Emerson Confidential 27-Jun-01, Slide 10

And a brand new one

opening today…!

[File Name or Event] Emerson Confidential 27-Jun-01, Slide 11

High Pressure Calibration Capabilities

Overview European Test Facilities

Qact up to 30,000 m3/h

Qact up to 32,000 m3/h

Credits to Dietrich Dopheide, PTB for the basis of this slide.

[File Name or Event] Emerson Confidential 27-Jun-01, Slide 12

History

80 years ago, Selling orifice fittings for the Natural gas industry with quality fiscal flow measurement from the trunk of the car…

[File Name or Event] Emerson Confidential 27-Jun-01, Slide 13

Orifice fittings (~1900)

Turbine meters & Rotary Meters (~1960)

Ultrasonic meters (~1990)

Most common HP NG Flow meter technologies and manufacturers

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Disclaimer: Apologies in case some logo’s may have been accidentally

forgotten. Please kindly notify me if you want your logo to be added.

[File Name or Event] Emerson Confidential 27-Jun-01, Slide 14

What are the Market needs for a HP NG Flow facility? 1 of 2 Full flow range

– Without seasonal limitations

– Independent of external users

– Calibrate as close as possible to operating conditions of meter in the field

Sufficient capacity. No long waiting list, Short calibration run time.

Underpinned quality

– CMC (Calibration Measurement Capability) Low measurement uncertainty

– ISO 17025

– Long term stability

Stable, smooth, well developed flow profile

In-door facility, no outside effects (wind, sun, rain)

Traceability to European Harmonized reference

– Minimize differences between labs

– Participating in international Key comparisons

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[File Name or Event] Emerson Confidential 27-Jun-01, Slide 15

What are the Market needs for a HP NG Flow facility? 2 of 2 Ability to handle all kind of meters:

– Turbine Meters,

– Ultrasonic Meters,

– Coriolis meters, Vortex Meters, Rotary Meters, etc

Flexibility to calibrate:

– standalone meter

– Meter run including flow conditioner, upstream and downstream piping

– Metering skid

Various meter inputs:

– Analog: Pulse, Frequency or 4-20mA,

– Digital: Serial RS232 and 485 and Ethernet.

Minimum 2 meters in parallel, up to 4 max. (2 dual meter in series)

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[File Name or Event] Emerson Confidential 27-Jun-01, Slide 16

Should be answered by Force in the first place

– $$$ Investment

– Return?

From Manufacturers point of view

– Debottlenecking, welcoming more capacity

– Welcoming a 4th member of the European Harmonized Reference Value (now named EuReGa)

Is it good to open a new facility?

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[File Name or Event] Emerson Confidential 27-Jun-01, Slide 17

What is EuReGa?

..the reference value with the lowest uncertainty, is being realized through the consortium called:

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European Reference for Gasmetering

Force has recently been

added as 4th member

[File Name or Event] Emerson Confidential 27-Jun-01, Slide 18

Achievements of the cooperation so far

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The next table depicts the achievements of the Harmonization group in Europe

year Achievement / event

1996 Difference observed between German and Dutch traceability

chains

1999 PTB and NMi signed contract to start Harmonization. France

indicated interest to join. First Harmonization cycle realized.

2004 France (LNE) joined. Second cycle completed

2008 3rd harmonization cycle completed

2011 Efforts seem to pay off! Stability of traceability improved

dramatic, mass balance of pipeline grid show better results.

2013 After 14 years of success, now EuReGa is there, consortium of

4 members PTB, VSL, LNE and FORCE and open to more.

2014 4th harmonization cycle “project 800” completed.

[File Name or Event] Emerson Confidential 27-Jun-01, Slide 19

Result of EuReGa 2014

All delta-curves (correction curves) for each participating Calibration Facility (NMI)

These curves will be used until the next HRV cycle

• This is a 3 yearly sequence

NMI 1

NMI 2

NMI 3

NMI 4

This graph shows

that Force as 4th

party is mature

member!

• Great to see Denmark has been

added so there are four European

NMi's in this group.

• Wondering whether any NMI from

outside Europe such as

Americas, MEA, Russia or Asia

is considering joining the

Harmonized Reference Value.

• In my view it would be great if this

work can evolve into a Global

Harmonized Reference Value in

the end, which would help

improving mass balance in

pipeline grids between

international and intercontinental

gas trading partners.

Sneak preview. Mijndert van der Beek will present

full story at WGC2015 in Paris

[File Name or Event] Emerson Confidential 27-Jun-01, Slide 20

Future trends Calibrating full Metering

packages to minimize installation effects

Ultrasonic meter CBM / Diagnostics to extend re-verification interval

Atmospheric Air calibration to replace HP Natural Gas calibration gradually?

In-field validation with tracers.

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Lifting HP NG calibrations

to a higher level?

[File Name or Event] Emerson Confidential 27-Jun-01, Slide 21

When ambitions meet… We said: Critical for Custody Transfer measurement between buyer

and seller:

Where ambitions meet of:

Manufacturers: improving measuring devices by means of innovation

Independent flow lab : Improving the ability to demonstrate the true performance of these devices

…Gas metrology will be brought to a higher level

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Uncertainty Reliability

[File Name or Event] Emerson Confidential 27-Jun-01, Slide 22

[File Name or Event] Emerson Confidential 27-Jun-01, Slide 23

Following individuals have contributed in various ways to bringing this presentation together:

Mijndert van der Beek, VSL

Bodo Mickan, PTB

Dietrich Dopheide, PTB

Dieter Stirnberg, Elster

Matt Dobson, Emerson Daniel

Martin Schlebach, Emerson Daniel

Henk Riezebos, DNV GL

Acknowledgements

Thank you! Jacob Freeke

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