LNG Custody Transfer: LNG Energy determination

Hans Buytaert - SGS Belgium

Warsaw: 29/01/2019
 SGS IS THE
WORLD’S
LEADING
INSPECTION,
VERIFICATION,
TESTING AND
CERTIFICATION
COMPANY

Version: April 2018

2
 HISTORY

ONE BRAND SERVING

SGS GLOBAL EXPANSION SGS ORGANISATIONAL
THE VALUE CHAIN
1878 1913 1928 1939 1955 1981 GLOBALLY AND GROWTH
Rouen, Pan-Europe 21 further South Africa Expands to TODAY ACROSS INDUSTRIES
France global countries America Asia ex-USSR 2017
2001
SGS rebranded CHF 6.3 BILLION
1913 total revenue
Leader in grain 1981 SGS INDUSTRY EXPANSION 2 400 offices and laboratories
inspection Listed on the Swiss 1990 95 000 employees
(21 million tons) Stock Exchange Consumer Testing

1946 1980 1985

1915
Headquarters moved Inspection Life Sciences CHF 1.5 BILLION
of European Automotive total revenue
from Paris to Geneva
imports Certification

1919 1981
1970
Company Environmental CHF 780 MILLION
named SGS total revenue
1960 180 offices and laboratories
1955 Oil and Gas
Chemical
10 675 employees
Public Sector
1913
1955 45 offices and laboratories
1878 Industrial Manufacturing
ESTABLISHED 1939
Mining

1878
Agriculture and Food

3
AT A GLANCE

Nº1 95 000 2 400

WORLD LEADER EMPLOYEES OFFICES AND
LABORATORIES

11 GLOBAL
SERVICE
GLOBAL LOCAL
INDUSTRIES EXPERTISE

4
GLOBAL SERVICES TAILORED
TO INDIVIDUAL INDUSTRIES

INSPECTION
VERIFICATION
TESTING
CERTIFICATION
CONSULTANCY
OUTSOURCING
TRAINING

5
LNG Value Chain

6
LNG MSA Table of content (discharge)

1. DEFINITIONS AND INTERPRETATION 16. INDEMNITY AND LIMITATION OF

LIABILITY
2. SALE AND PURCHASE
17. GENERAL
3. TERM
4. QUANTITY AND DELIVERY WINDOW
SCHEDULE A FORM OF CONFIRMATION
5. QUALITY
MEMORANDUM
6. DELIVERY LIABILITIES
SCHEDULE B BUYER’S FACILITIES, LNG
7. GAS SUPPLY, FACILITIES, SHIPS AND DISCHARGE PORT
TRANSPORTATION AND ALTERNATE
SCHEDULE C DETAILS OF ADDRESSES
LOCATIONS
SCHEDULE D MEASUREMENT, SAMPLING
8. CONTRACT PRICE
AND TESTING
9. TRANSFER OF TITLE AND RISK
SCHEDULE E FORM OF BUYER’S LC
10. TAXES, DUTIES AND CHARGES
SCHEDULE F FORM OF PERFORMANCE
11. INVOICING AND PAYMENT SECURITY
12. FORCE MAJEURE SCHEDULE G INTEGRITY PACT
13. EVENTS OF DEFAULT AND REMEDIES
14. GOVERNING LAW AND JURISDICTION
15. DISPUTE RESOLUTION

7
LNG SPA Table of content

8
LNG CONTRACTS

 Avoiding disputes

 Loading vs unloading

 Responsibility

 International Standards

 Terminal regulations vs Contractual regulations

9
LNG Custody Transfer

10
LNG Custody Transfer

 Ship: Quantity  Shore: Quality

• Temperatures • Sampling
• Pressure • analysis
• Level
• Trim/List
• BOG Consumption

Volume Composition

Energy Determination
11
 LNG Custody Transfer

 Ship: Quantity  Shore: Quality

• Temperatures • Sampling
• Pressure • analysis
• Level
• Trim/List
• BOG Consumption

DES: Seller

Volume Composition

Energy Determination
12
LNG Custody Transfer

 Ship: Quantity  Shore: Quality

• Temperatures • Sampling
• Pressure • analysis
• Level
• Trim/List
• BOG Consumption
DES: Buyer

Volume Composition

Energy Determination
13
Inaccuracy Gauging Devices: ISO 10976

14
Sensitivity analysis: Vapour Temperature

* For a 150000 m³ vessel

15
 Sensitivity analysis: Vapour Temperature

Sensitivity Analysis T vap

3.000
Energy [MMBTU]

2.500
2.000
1.500
1.000
500
0
-130 -135 -140 -145 -150 -155
Temperature Vapour [°C]

* For a 150000 m³ vessel

16
 Sensitivity analysis: Liquid Temperature

Sensitivity Analysis T liq

3.510.000
Net Energy [MMBTU]

3.508.000
3.506.000
3.504.000
3.502.000
3.500.000
3.498.000
-160,2 -160,1 -160,0 -159,9 -159,8 -159,7 -159,6
Temperature LNG [°C]

* For a 150000 m³ vessel

17
 Sensitivity analysis: Liquid Temperature

Sensitivity Analysis T liq

8.000
Energy [MMBTU]

6.000

4.000

2.000

0
-160,2 -160,1 -160,0 -159,9 -159,8 -159,7 -159,6
Temperature LNG [°C]

* For a 150000 m³ vessel

18
 Sensitivity analysis: Vapour Pressure

Sensitivity Analysis Pvap

3.508.000
Net Energy [MMBTU]

3.506.000

3.504.000

3.502.000

3.500.000
1025 1050 1100 1150 1200
Vapour Pressure [mbar]

* For a 150000 m³ vessel

19
 Sensitivity analysis: Vapour Pressure

Sensitivity Analysis Pvap

2.500
Energy [MMBTU]

2.000

1.500

1.000

500

0
1025 1050 1100 1150 1200
Vapour Pressure [mbar]

* For a 150000 m³ vessel

20
Lng sampling: challenges

 LNG: mixture Hydrocarbons & Nitrogen

 Difference in Boiling Point*
• N2: -195.8 °C
• C1: -161.5 °C
• C2: -88.7 °C
• C3: -42.1 °C
• iC4: -11.2 °C
• nC4: -0.4 °C
• iC5: 30.1 °C
• nC5: 36.1 °C
• nC6: 68.8 °C

* NIST Chemistry WebBook

21
LNG sampling: challenges

 Composition Vapour Phase

C1, N2
• Methane
• Nitrogen

 Composition LNG C1-C6, N2

• Hydrocarbons C1 – C6
• Nitrogen

 Fractionation effect

22
LNG Sampling and analysis

IC
E

23
LNG Custody Transfer

24
GENERAL
LNG CUSTODY TRANSFER

GIIGNL

26
 ENERGY BALANCE: DISCHARGE OPERATION

BEFORE Discharge vapour line

Liquid line
BOG
Shore Tank (FSRU) Vessel Tank

AFTER Discharge
vapour line

Liquid line

Shore Tank (FSRU) Vessel Tank BOG

27
 ENERGY BALANCE: LOADING OPERATION

BEFORE Load vapour line

Liquid line
BOG
Shore Tank Vessel Tank

AFTER Load
vapour line

Liquid line

Shore Tank Vessel Tank BOG

28
ENERGY BALANCE

 Liquid phase (Gross Energy)

 Vapour phase (Vapour Displaced)

 Boil Off Gas (BOG) consumed

29
ENERGY BALANCE

 Liquid phase (Gross Energy)

 Vapour phase (Vapour Displaced)

 Boil Off Gas (BOG) consumed

 Gas Up / Cool Down (loading only)

 Other: ref terminal rules (flaring, venting, etc)

30
ENERGY BALANCE

Discharge Loading

 Liquid (Gross)
+  Liquid (Gross)
+
 Vapour Displaced -  Vapour Displaced -
 BOG consumed -  BOG consumed
+
 Gassing Up (if any) +

 Cool down (if any) +

31
ENERGY BALANCE: LNG CONTRACTS

 Energy Balance Discharge

▪ Liquid – Vapour Displaced – BOG
▪ Liquid – Vapour Displaced

 Energy Balance Loading

▪ Liquid – Vapour Displaced + BOG
▪ Liquid
▪ Liquid + BOG
▪ Liquid – Vapour Displaced
▪ Gas up + Cool Down + Liquid – Vapour Displaced +
BOG

32
GROSS ENERGY
ENERGY BALANCE: GROSS ENERGY

 Liquid phase (Gross Energy)

▪ Volume
▪ Volume x Density  Mass
▪ Mass x Gross Heating Value Mass based  Energy

 Vapour phase (Vapour Displaced)

 Boil Off Gas (BOG) consumed

34
ENERGY BALANCE: GROSS ENERGY

 Liquid phase (Gross Energy)

▪ Volume (m³)
▪ Volume (m³) x Density (kg/m³)  Mass (kg)
▪ Mass (kg) x Gross Heating Value Mass based (MJ/kg,
MMBTU/kg, kWh/kg, etc.)  Energy

 Vapour phase (Vapour Displaced)

 Boil Off Gas (BOG) consumed

35
ENERGY BALANCE: GROSS ENERGY

 Volume
▪ As per Ships CTMS

 Density
▪ Composition (from lab)
▪ Temperature (from Ship CTMS)
▪ Calculation method (as per contract)

 Gross Heating Value Mass based

▪ Composition (from lab)
▪ Calculation method (as per contract)

36
DIFFERENT STANDARDS: GHV - DENSITY

 Density (Vi, k1,k2)

▪ ISO 6578
▪ NBS TN 1030
▪ NBS IR 77-867
▪ etc.

 GHV Mass based

▪ GPA 2145/2172
▪ ISO 6976
▪ ISO 6578
▪ IP 251/76
▪ etc.

37
DIFFERENT STANDARDS: REVISION STANDARDS

 ISO 6976
▪ 1995 edition
▪ 2016 edition

 ISO 6578
▪ 1991 edition
▪ 2017 edition

 GPA 2145
▪ 2003 edition
▪ 2009 edition
▪ 2016 edition

38
DENSITY
GROSS ENERGY: DENSITY CALCULATION

There are two ways of determining density:

 Measuring the average value directly in the LNG tank by

means of densitometers
▪ Not used for custody transfer
▪ Used for monitoring inventory (ref rollover)
▪ Kongsberg (ref below)

 Calculation on the basis of composition and temperature

of the LNG
▪ LNG contracts: Revised Klosek McKinley method
▪ Other methods (ref below)

40
DENSITY: REVISED KLOSEK MCKINLEY

 Easy to apply and only requires the

▪ LNG temperature
▪ Composition
▪ (Pressure: ref below Enhanced KMK)

 Limitations*
▪ Molar mass LNG < 20 kg/kmol
▪ < 5 mol% Nitrogen
▪ < 5 mol% Butanes
▪ < 1 mol% Pentanes
▪ -167.15 °C < LNG temperature < -155.15 °C

ISO 6578 (2017)

41
DENSITY: REVISED KLOSEK MCKINLEY

 This method is based on an empirical evaluation of the

molar volume of the mixture in the thermodynamic state
of the LNG considered.

GIIGNL

42
 DENSITY: REVISED KLOSEK MCKINLEY

- Vi is the molar volume of each component at LNG temperature

- Vc is the reduction in volume on mixing components;
- k1 is the correction factor, in cubic meters per kilomole, due to the
presence of hydrocarbons and based on the average molar mass and
temperature of the mixture
- k2 is the correction factor, in cubic meters per kilomole, due to the
presence of nitrogen and
- x1: molar fraction of Methane in LNG
- x2: molar fraction of Nitrogen in LNG
ISO 6578 (2017)

43
DENSITY: DIFFERENT STANDARDS

 Xi, Xn, Xm determined by analysis in laboratory

▪ Xi: Molar fraction of the ith component
▪ Xn: Molar fraction of Nitrogen
▪ Xm: Molar fraction of Methane
 Mi by standard
▪ Molecular mass of the ith component

 Vi by standard and dependent on LNG temperature

▪ Molecular volume of the ith component
 K1, k2 by standard and dependent on LNG temp. and molar mass
▪ Volume correction factors for Nitrogen and Methane

44
 DENSITY: DIFFERENT STANDARDS

Volume GHV mass Density Gross Energy Difference with

[m³] [MJ/kg] [kg/m³] [MMBTU] Minimum [MMBTU]
Lean LNG ISO 6578 (1991) 155.000 55,434 421,64 3.433.817 0
ISO 6578 (2017) 155.000 55,434 421,66 3.433.980 163
NBS TN 1030 155.000 55,434 421,69 3.434.224 407
NBS IR 77-867 155.000 55,434 421,69 3.434.224 407

Volume GHV mass Density Gross Energy Difference with

Middle LNG [m³] [MJ/kg] [kg/m³] [MMBTU] Minimum [MMBTU]
ISO 6578 (1991) 155.000 54,925 439,42 3.545.710 726
ISO 6578 (2017) 155.000 54,925 439,33 3.544.983 0
NBS TN 1030 155.000 54,925 439,36 3.545.225 242
NBS IR 77-867 155.000 54,925 439,44 3.545.871 888

Volume GHV mass Density Gross Energy Difference with

Rich LNG [m³] [MJ/kg] [kg/m³] [MMBTU] Minimum [MMBTU]
ISO 6578 (1991) 155.000 54,208 465,65 3.708.303 0
ISO 6578 (2017) 155.000 54,208 465,70 3.708.701 398
NBS TN 1030 155.000 54,208 465,73 3.708.940 637
NBS IR 77-867 155.000 54,208 465,67 3.708.462 159

45
GHV MASS
GROSS ENERGY: GHV MASS CALCULATION

 Gross Heating Value = amount of heat that would be

released by the complete combustion with oxygen of a
specified quantity of gas (i.e. 1 kg), in such a way that the
pressure, p1, at which the reaction takes place remains
constant, and all the products of combustion are returned to
the same specified temperature, t1, as that of the reactants,
all of these products being in the gaseous state except for
water, which is condensed to the liquid state at t1

 Gross Heating Value = Higher Heating Value = Superior

Heating Value = Poder Calorific Superior (PCS)

 GHV = HHV = SHV

As per ISO 6976 (2017)

47
GROSS ENERGY: GHV MASS CALCULATION

As per ISO 6976 (2017)

48
 GROSS ENERGY: GHV MASS CALCULATION

GHVMass based calculation GHVmol based calculation

σ 𝑿𝒊 ∙ 𝑴𝒊 ∙ 𝑮𝑯𝑽𝒊,𝒎𝒂𝒔𝒔 σ 𝑿𝒊 ∙ 𝑮𝑯𝑽𝒊,𝒎𝒐𝒍
𝑮𝑯𝑽𝒎𝒂𝒔𝒔 = 𝑮𝑯𝑽𝒎𝒂𝒔𝒔 =
σ 𝑿 𝒊 ∙ 𝑴𝒊 σ 𝑿𝒊 ∙ 𝑴𝒊
𝑋𝑖 = molar fraction of component i (mol/mol) 𝑋𝑖 = molar fraction of component i (mol/mol)

𝐺𝐻𝑉𝑖,𝑚𝑎𝑠𝑠 = mass based Gross Heating Value of 𝐺𝐻𝑉𝑖,𝑚𝑜𝑙 = mol based Gross Heating Value of
component i (MJ/kg) component i (MJ/kmol)

𝑀𝑖 = molecular mass of component i 𝑀𝑖 = molecular mass of component i

(kg/kmol) (kg/kmol)

49
 GROSS ENERGY: GHV MASS CALCULATION

σ 𝑿𝒊 ∙ 𝑴𝒊 ∙ 𝑮𝑯𝑽𝒊,𝒎𝒂𝒔𝒔
𝑮𝑯𝑽𝒎𝒂𝒔𝒔 =
σ 𝑿𝒊 ∙ 𝑴𝒊

𝑋𝑖 = molar fraction of component i, determined by analysis in

laboratory

𝐺𝐻𝑉𝑖,𝑚𝑎𝑠𝑠 = mass based Gross Heating Value of component i (MJ/kg)

by standard

𝑀𝑖 = molecular mass of component i (kg/kmol) by standard

50
 GHV MASS: DIFFERENT STANDARDS SUMMARY

Lean LNG

Middle LNG

Rich LNG

51
GHV – DENSITY COMBO
 GHV – DENSITY: LEAN LNG
Density GHV Gross Energy
Volume (m³)
(kg/m³) mass (MMBTU)
155 000 421.64 55.439 3 434 103
155 000 421.66 55.439 3 434 266
155 000 421.69 55.439 3 434 511
155 000 421.69 55.439 3 434 511
155 000 421.64 55.438 3 434 042
155 000 421.66 55.438 3 434 204
155 000 421.69 55.438 3 434 449
155 000 421.69 55.438 3 434 449
155 000 421.64 55.438 3 434 042
155 000 421.66 55.438 3 434 204
155 000 421.69 55.438 3 434 449
155 000 421.69 55.438 3 434 449
155 000 421.64 55.421 3 432 989
155 000 421.66 55.421 3 433 151
155 000 421.69 55.421 3 433 396
155 000 421.69 55.421 3 433 396
155 000 421.64 55.437 3 433 980
155 000 421.66 55.437 3 434 142
155 000 421.69 55.437 3 434 387
155 000 421.69 55.437 3 434 387
155 000 421.64 55.435 3 433 856
155 000 421.66 55.435 3 434 019
155 000 421.69 55.435 3 434 263
155 000 421.69 55.435 3 434 263

min 3 432 989 MMBTU

max 3 434 511 MMBTU Difference 1 522 MMBTU
53
GHV – DENSITY: MIDDLE LNG

Density GHV Gross Energy

Volume (m³)
(kg/m³) mass (MMBTU)
155 000 439.42 54.926 3 545 798
155 000 439.33 54.926 3 545 072
155 000 439.36 54.926 3 545 314
155 000 439.44 54.926 3 545 959
155 000 439.42 54.925 3 545 733
155 000 439.33 54.925 3 545 007
155 000 439.36 54.925 3 545 249
155 000 439.44 54.925 3 545 895
155 000 439.42 54.925 3 545 733
155 000 439.33 54.925 3 545 007
155 000 439.36 54.925 3 545 249
155 000 439.44 54.925 3 545 895
155 000 439.42 54.908 3 544 636
155 000 439.33 54.908 3 543 910
155 000 439.36 54.908 3 544 152
155 000 439.44 54.908 3 544 797
155 000 439.42 54.924 3 545 669
155 000 439.33 54.924 3 544 943
155 000 439.36 54.924 3 545 185
155 000 439.44 54.924 3 545 830
155 000 439.42 54.922 3 545 540
155 000 439.33 54.922 3 544 813
155 000 439.36 54.922 3 545 056
155 000 439.44 54.922 3 545 701

min 3 543 910 MMBTU

max 3 545 959 MMBTU Difference 2 049 MMBTU
54
GHV – DENSITY: RICH LNG

Density GHV Gross Energy

Volume (m³)
(kg/m³) mass (MMBTU)
155 000 465.65 54.211 3 708 542
155 000 465.70 54.211 3 708 940
155 000 465.73 54.211 3 709 179
155 000 465.67 54.211 3 708 701
155 000 465.65 54.210 3 708 474
155 000 465.70 54.210 3 708 872
155 000 465.73 54.210 3 709 111
155 000 465.67 54.210 3 708 633
155 000 465.65 54.210 3 708 474
155 000 465.70 54.210 3 708 872
155 000 465.73 54.210 3 709 111
155 000 465.67 54.210 3 708 633
155 000 465.65 54.195 3 707 448
155 000 465.70 54.195 3 707 846
155 000 465.73 54.195 3 708 084
155 000 465.67 54.195 3 707 607
155 000 465.65 54.209 3 708 405
155 000 465.70 54.209 3 708 803
155 000 465.73 54.209 3 709 042
155 000 465.67 54.209 3 708 565
155 000 465.65 54.208 3 708 337
155 000 465.70 54.208 3 708 735
155 000 465.73 54.208 3 708 974
155 000 465.67 54.208 3 708 496

min 3 707 448 MMBTU

max 3 709 179 MMBTU Difference 1 732 MMBTU

55
REFERENCE CONDITIONS
INFLUENCE REFERENCE CONDITIONS

LNG industry: different reference temperature for

combustion
 0 °C (ISO 6976)
 15 °C (ISO 6976, ISO 6578, GPA 2145)
 60 °F (ISO 6976, GPA 2145)*
 20 °C (ISO 6976)
 25 °C (ISO 6976)

Depending standard 60 °F can be defined as 15.56 °C or 15.55 °C

57
INFLUENCE REFERENCE CONDITIONS

58
 INFLUENCE REFERENCE CONDITIONS

Gross Energy delivered

Difference with
Gross Energy
minimum
Tref 0 °C 3.549.624 9.183 [MMBTU]
Tref 15 °C 3.544.090 3.649 [MMBTU]
Tref 15.55 °C 3.543.893 3.452 [MMBTU]
Tref 20 °C 3.542.284 1.843 [MMBTU]
Tref 25 °C 3.540.441 0 [MMBTU]

59
INFLUENCE REFERENCE CONDITIONS

60
INFLUENCE REFERENCE CONDITIONS

61
VAPOUR DISPLACED
VAPOUR DISPLACED

 Vapour displaced vs. vapour return

 Energy of the vapour phase

▪ Before loading
▪ After Discharge
▪ “Vapour heel”

63
 VAPOUR DISPLACED: CALCULATIONS

𝑻𝑹𝒆𝒇 𝑷𝑽𝒂𝒑
𝑽𝒂𝒑𝒐𝒖𝒓 𝑫𝒊𝒔𝒑𝒍𝒂𝒄𝒆𝒅 = 𝑽 ∙ ∙ ∙ 𝑮𝑯𝑽𝑽𝒂𝒑𝒐𝒖𝒓
𝑻𝒗𝒂𝒑 𝑷𝑹𝒆𝒇

𝑽 volume of Gas Displaced = volume of LNG loaded/discharged

𝑻𝑹𝒆𝒇 Temperature correction: actual vapour temperature (before

𝑻𝒗𝒂𝒑 loading/after unloading to reference temperature (in Kelvin)

𝑷𝑽𝒂𝒑 Pressure correction: actual vapour pressure (before loading/after

unloading) to reference pressure
𝑷𝑹𝒆𝒇
𝑮𝑯𝑽𝑽𝒂𝒑𝒐𝒖𝒓 GHV volume based of the vapour:
- based upon analysis of the vapour
- fixed values (e.g. 100% methane)
- ref below

64
VAPOUR DISPLACED: GHV VAPOUR

GHV Vapour determination can be done by either of the

following:

 Analysis vapour return

▪ Several terminal in Europe: France, Spain, Greece, Italy
 Analysis onboard composition
▪ Not common
▪ only for dewpoint or Oxygen
 Assumed a fixed composition
▪ Most common in contract
▪ Assumed composition (at reference conditions
applicable)
• 100% Methane
• Mixture Methane, Nitrogen
65
BOG CONSUMPTION
BOG CONSUMPTION

 EU directive
 Contract shipper friendly
 Gas to Engine vs Gas to GCU
 Determination quantity
▪ counters
▪ fixed
▪ percentage

67
 BOG CONSUMPTION

Venting

BOG Engine

Gas Combustion
LNG unit (GCU)
Reliquefaction

68
BOG COUNTERS: STEAM SHIP

69
GHV VS. NHV

Heating Values

GHV NHV
55,011 49,547 MJ/kg @ 0 °C
54,925 49,538 MJ/kg @ 15 °C
54,922 49,538 MJ/kg @ 15.55 °C
54,897 49,536 MJ/kg @ 20 °C
54,869 49,532 MJ/kg @ 25 °C
Calculated as per ISO 6976 (2016)

70
GHV VS. NHV

Calculated as per ISO 6976 (2016) for volume of 155 000 m³ @ -159,5 °C, grade middle LNG

71
Hans Buytaert - SGS Belgium
LNG Business Development manager

Hans.Buytaert@sgs.com