Gas Quality

1
Gas Quality Interchangeability UpdateNARUC
Annual Convention November 11-14, 2007
2
Gas Quality InterchangeabilityAn LDC
Perspective

• Understanding the technical issues
• Merging Policy Science NGC Reports
• Utilization Issues Do we really have the
  answers ?
• Defining the implementation Process

3
Can We Reasonably Rationally
Meet The Challenges of The Second Great
Conversion

• Supply Mix Is Changing
• LNG Imports Will Play A Major Role
• End-use Technology Has Evolved
• Begs The Question.
• Is Yesterdays Research Sufficient
• To Examine Todays Challenges ??

4
How Do Supply Compositions Vary? Its Not Just
Methane!
5
Global LNG Supply Profile
6
What is Gas Interchangeability?

• The ability to substitute one gas for another
  without impacting end use
• Adjustment Gas
• Substitute Gas
• End Use Impacts
• Flame Characteristics
• Emissions
• Efficiency
• Safety
• Equipment/system integrity

7
Interchangeability IS NOT a New Concept.

• Dates back to early days of manufactured gas as
  well as SNG
• and current peak shaving operations
• AGA Bulletin 36 1940s
• Experience of Brooklyn Union, PSEG, Boston Gas,
  
• Commonwealth, Baltimore Gas, SOCAL, GTI to
  name a few
• Recent work of TIAX for the proposed Crown
  Landing facility
• and the reactivation of Cove Point and Elba
  Island

8
Potential LDC Gas Quality Issues

• Day-to-Day gas distribution operations
• Domestic peak shaving liquefaction
• Conventional gas combustion equipment
• Electric production (Gas Turbines)
• Distribution System Infrastructure Concerns
• NGVs, Engines

9

• Did The White Paper Help ???
• Interim Guidelines Include
• Historical Wobbe /-4
• Capped at 1,400 1,110 HHV
• Butanes 1.5
• Total Inerts 4
• Wobbe Alone May Not
• Be The Answer !!

Wobbe
10
Utilization ConsiderationsReal or Perceived ?

• Appliances
• Power Generation - DLE Gas Turbines
• Vehicle Stationary Engines
• Infrastructure Issues
• Feedstock Applications Including LNG Liquefaction
  Peak Shavers

11
Interchangeability Concerns for Turbine Operators

• GT combustion technology has advanced
  significantly yet
• manufacturers fuel specifications have not
• Fuel compositions may vary beyond design /
  startup fuel
• composition analysis
• Emissions, combustion dynamics tuning to
  address variation
• in fuel composition become critical parameters
• We need relatively consistent fuel
  compositions!!!!

12
Flame Regime Illustration
Footnote (Glassman 1996)
13
Preferred Interchangeability Parameters to
Address Combustion Turbine Issues

• Wobbe Index most robust, however Wobbe alone is
  not the
• answer for all applications including gas
  turbines
• Modified Wobbe (MWI) for turbines vs Wobbe
  offers turbine
• operators some flexibility as MWI can be
  adjusted via pre-heat
• Additional parameters such as heating value
  coupled with
• MWI MWI time-rate-of-change may be required
  for turbines
• Specific constituent limits such as C4() and
  inerts may be
• required based on specific manufacturers
  requirements.

14
Distribution System Infrastructure Concerns

• Compositional changes may contribute to changes
  within
• certain infrastructure components (elastomers
  in compression
• couplings etc..).
• These changes alone do not necessarily result in
  component
• failures (leaks), rather there are
  synergistic effects
• (temperature, pressures, installation
  practices etc..) that may
• lead certain component designs to experience
  performance
• changes.

15
LNG Liquefaction Feedstock Remains an Issue

• 62 Plants in North America which make up a
  critical component
• of LDC supply Infrastructure.
• Specific Limits on Non-Methane Hydrocarbons are
  necessary
• to ensure continued reliable and efficient
  operations.
• Nitrogen added by terminals for BTU
  stabilization also impacts
• operation.

16
Northeast LNG Liquefaction Plants

• 7 Plants spanning New York through MA
• Critical component of regional supply
  infrastructure
• Over 66 MM / Day potentially impacted
• Retrofits will most likely be required some
  substantial

17
Merging Policy ScienceImpact of Recent FERC
Decisions

• FERC has recognized that the NGC White Paper
  needs to be considered not simply the interim
  guidelines
• Dont forget Finding 10 Recommendations 6
  10 !!!
• Stop whining unless your directly connected to
  the pipeline under consideration
• MUST SHOW IMPACTS BASED ON SOUND ENGINEERING and
  DATA No What ifs
• End Use retrofit cost recovery is not within
  FERCs jurisdiction ??

18
Interchangeability Implementation Process
3
2
4
5
1
Identify Sensitive Receptors
Understand Zone of Influence
Understand Historical Supply
Settlement Agreement
Assessment

• - Establish interchangeability
• Tariff parameters
• - Establish most economical
• Retrofit strategy ,
• schedule cost sharing mechanism ?

- Work with Pipelines to establish system
adjustment gas

• Work with
• Pipelines and
• Suppliers
• Establish
• reasonable
• supply
• compositions

- Assess sensitive equipment - Establish
extent of retrofits - Negotiate fixes
- LDCs catalog potential sensitive
customer equipment
19
Survey Participants

• KeySpan
• PSEG
• Connecticut Natural
• Southern Connecticut
• NISOURCE

• NStar
• ConEd
• New England Gas
• Middleboro Gas Elec
• Bay State

20
Specific Industry Groups Include

• Commercial Food Processing
• Chemicals Allied Products
• Rubber Miscellaneous Plastics

• Electronic Other Equipment
• Stone, Clay Concrete
• Primary Metals Industries

21
Other Applications Considered

• Distributed Generation
• - Engines/Cogen
• - Fuel Cells
• - Micro Turbines
• Power Generation
• - Gas Turbines
• NGVs
• LNG Liquefaction Plants

22
Interchangeability Implementation Strategy

• Establish a Communications Strategy For Existing
  Customers
• Establish Guidelines For Potential New Customers
• Assess Installed Appliance Population
• Evaluate / Establish Retrofits For LNG
  Liquefaction
• Evaluate Potential Elastomer Impacts For
  Distribution Systems

23
Implementation Experience Summary

• Work collaboratively with Pipelines Suppliers
  to establish appropriate tariff requirements
  based on the
• five step process
• KNOW YOUR ADJUSTMENT GAS !!
• Review Understand FERCs Policy Statement
• Make sure you are talking to your supplier. your
  OEM and that you are collecting data today you
  will need for tomorrow.

24
Resulting Settlement Proposal Under
Consideration Taking a Fresh Look

• Wobbe HHV Capped at 1400 / 1110
• Non-methane Hydrocarbons 12 (C4 capped at 1.5)
• Total Diluents 2.75 (Oxygen Nitrogen with
  Oxygen capped at 0.2)
• Total Inerts Diluents 4 (CO2 capped at 2.0)
• CHDP 15F Equivalent
• Appropriate Tariff Language to afford us all the
  certainty and flexibility we need to maximize
  supply while minimizing end use impacts

25
Research Holds The Key To Unlocking Supply Access
As It Relates To End Use..

• DOE challenged by FERC to help lead the research
  necessary
• to answer questions identified by the NGC,
  particularly with DLE
• combustion turbines engines.
• NYSEARCH GTI are currently looking into
  infrastructure
• material impacts related to changing
  composition.
• GAMA AGA are looking into new appliances.
  NYSEARCH has
• recently approved a project to study
  in-service appliances
• potential risks associated with maladjustment
• SOCAL / CEC are leading research into Commercial
  / Industrial
• Burners with various industry stakeholders.

26
SUMMARY

• Recognition Implementation of the White Paper,
  not simply the interim guidelines will help
  bridge the trust gaps. Realization that not all
  LNGs fit the U.S. marketplace
• 80-85 of reasonably expected global
  supply can meet the interim guidelines with
  approximately 2 nitrogen addition
• KNOW YOUR ADJUSTMENT GAS !!
• Work collaboratively with impacted Pipelines
  Suppliers to establish appropriate tariff
  requirements based on the
• five step process
• Settlement Agreements must consider both
  downstream and upstream effects on long haul
  systems potential impacts with interconnecting
  pipelines as well as reasonably anticipated new
  supplies