PEE 508: Petroleum Transport and Storage 4 credits

Contents: Transportation of crude oil: pipelines; tankers-loading and unloading techniques.

Offshore loading systems, international regulations on tanker transportation. Custody transfer,
storage of crude oil, tank farm operations-gauging, sampling, quality control; underground
storage-caverns, porous rocks. Gas transportation: compressors, pipelines. Liquefied natural gas
transportation. Storage of natural gas; pressure tanks, re-injection in porous rocks, storage in
caverns. Storage of LNG.

1. Transportation of crude oil:

- pipelines;
- tankers-loading and unloading techniques.
2. Offshore loading systems, international regulations on tanker transportation. Custody
transfer (Ebama+ Leonad)
3. Storage of crude oil, (Rodney)
- Tank farm operations: -gauging, sampling, quality control;
4. Underground storage: -caverns, - porous rocks.(Fabrice)
5. Gas transportation: (Gareth)
- compressors,
- pipelines.
- Liquefied natural gas transportation.

6. Storage of natural gas (Berinyuy)

- pressure tanks,
- re-injection in porous rocks, storage in caverns.
- Storage of LNG.

1 PEE 508 Petroleum Transport And Storage Dr Fozao Lecture Notes

 PART 1: TRANSPORTATION OF CRUDE OIL

CHAPTER 1: PIPELINES
1.1 Introduction
Crude oil, petroleum products of natural gas are all moved by:
1- Pipelines; 2- Barges; 3- Tankers; 4- Railway tank cars; and 5- Track
Once oil and gas are located and the well is successfully drilled and completed, the product
must be transported to a facility where it can be produced/treated, stored, processed, refined, or
transferred for eventual sale. The typical system begins at the well flow-control device on the
producing “wing(s)” of the wellhead tree and includes the well “flowline,”
production/treating/storage equipment, custody-transfer measurement equipment, and the
gathering or sales Pipeline.
The piping and pipeline systems typically associated with producing wells include, but are
not limited to, the well flowline, interconnecting equipment piping within the production
“battery,” the gathering or sales pipeline, and the transmission pipeline.

1.2: Classification of pipelines

1. Well Flowline. The well flowline, or simply flowline, is the first “pipeline” system
connected to the wellhead. The flow line carries total produced fluids (e.g., oil, gas, and
production water) from the well to the first piece of production equipment—typically a
production separator. The flow line may carry the well-production fluids to a common
production battery, a gathering pipeline system, process facility, or other.
2. Interconnecting Piping. Interconnecting piping includes the piping between the various
pieces of production/treating equipment such as production separators, line heaters, oil
heaters, pump units, storage tanks, and gas dehydrators. The piping systems may also
include headers, fuel systems, other utility piping, and pressure-relief/flare systems.
3. Gathering/Sales Pipeline. The pipe that delivers the well production to some
intermediate or terminal location is the gathering or sales pipeline. The gathering pipeline
literally “gathers” the production from producing wells and conveys the production to a
collection system, a processing facility, custody-transfer (sales) point, or other.
4. Transmission Pipeline. The transmission pipeline is a “cross-country” pipeline that is
specifically designed to transport petroleum products long distances. The transmission
pipeline collects the specific petroleum products from many “supply” sources along the
pipeline (such as gathering pipelines) and “delivers” the product to one or more end users.
There are three general categories of transmission pipelines: natural gas, “product,” and
crude oil. Natural-gas transmission pipelines carry only natural gas. Product pipelines may
carry a number of processed or refined petroleum products such as processed natural-gas
liquids (e.g., butane and propane), gasoline, diesel, and refined fuel oils. Crude-oil pipelines

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 convey unrefined crude oil from producing areas to large storage areas or directly to
refineries (Fig.1.1).

Figure 1.1 Uses of offshore pipelines (Guo et ai.,2005)

1.2 PIPELINE OPERATIONS

The three major pipeline operations are: pipeline control, pumping stations and delivery
terminals. Storage, cleaning, communication and shipment are also important functions.

1. Pipeline control: Regardless of the product being transported, the size and length of the
pipeline or the terrain, pipeline pumping stations, pressures and flow rates are
completely controlled in order to ensure appropriate flow rates and continuous
operations. Typically an operator and computer controls the pumps, valves end
regulators throughout the pipelines system from a central location.
2. Oil pumping stations: Crude oil and petroleum products pumping stations are located at
wellheads and along the pipeline route as needed to maintain pressure and volume.
Pumps are driven by electric motors or diesel engines, and turbine.
3. Pipeline product storage. Crude and petroleum product pipeline terminals have
breakout storage tanks to which shipments may be diverted, where they are held until
required by a refinery, terminal or user.
4. Pipeline cleaning. Pipelines are cleaned on a scheduled basis or as necessary in order to
continue flow by reducing friction and maintaining as large a diameter interior as
possible. A special cleaning device, called a pig or go-devil is used.
5. Communications: It is important that there be communication and agreement
concerning schedules, pumping rates and pressures and emergency procedures
between pipeline stations and operators and those shipping and receiving crude oil, gas
and petroleum products.
Some pipelines companies have private telephone systems which transmit the signal
along the pipeline, while others use radios or public telephones.
6. Petroleum product shipment: Petroleum products may be shipped a number of
different ways on pipelines. A company operating a refinery may blend a specific grade

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 of its own gasoline with appropriate additives (additive) and ship a batch through a
pipeline directly to its own terminal for distribution to its customers.

1.3 Pipelines design and construction

In earlier days, pipeline design was done considering the present load and 15 to 30%
increment of load.
Presently pipeline design is being done considering the present load as well as the assumed
gas load of that particular area for the next 20 years (effective life of the pipeline).There are
already steel grade pipes available and the choice is made according to type of fluid,
quantity and flow rate, pressure and yield and tensile strength.
We will discuss designing pipes under the following conditions
– Single phase incompressible liquids
– Single phase compressible gases
We will also limit our analysis to the design under steady state flow and isothermal
conditions.

1.3.1 Pipelines design– Single phase incompressible liquids

Under steady state, isothermal conditions and for incompressible Newtonian fluids, this problem
reduces to the solution of the mass and Momentum balance equations
• In this case the fluid properties (density and Viscosity) are known

• The forces acting on a fluid element flowing inside the pipe are:
– Gravity
– Shear stress at the wall
– Force due to the pressure acting on both sides of the element
• A force balance on the fluid element can then be conducted

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 This force balance results in:

This gives the expression that could be used to determine the total pressure gradient
in a pipe when a single phase liquid flows. The pressure gradient components are:

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6 PEE 508 Petroleum Transport And Storage Dr Fozao Lecture Notes
 Analytical solution to this system is difficult to obtain and the solution basically
depends on the flow regime. We have basically two types of flow regimes in pipes;
- Laminar flow
- Turbulent flow
-

Summary

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 The flow of single phase fluids inside pipes is described by the Navier-Stokes
equations:
– Mass balance equation
– Momentum balance equation
– Energy balance equation
– Equation of state (to determine fluid properties)
– Constitutive equation for the fluid rheology

1.3.2 Pipeline construction

Avoid the following areas during pipeline construction:
- Swamps and Wetlands
- Rocky areas
- Unstable soil
- Populated areas
- Historical areas
- Environmentally sensitive areas (Forest, Tea garden, Rubber garden etc.)
- Religious sensitive areas ( Churches, Mosque , Graveyard, temple etc.)
During pipeline construction, the following processes and procedures are followed:
1. Surveying. The right-of-way is a narrow strip of land that contains the pipeline(s) and is
where all onsite construction activities occur. After a planned or proposed route is
determined, it is surveyed to determine the parameters that will be needed to complete the
project.
2. Clearing & Grubbing. The Rout is cleared of brush and trees, and levelled to give workers
and equipment access to build, inspect and maintain the pipeline.
3. Stringing: Stringing is the delivery and distribution of line pipe where it is needed on the
right-of-way and when it is needed.
4. Welding. A technique where another metal is melted and used to join lengths of pipe.
Automatic welding machines are used where possible and some hand welding also takes

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 place. A rigorous quality assurance and quality control program is followed to ensure the
strength and quality of the welding.
5. Digging the trench: The way the trench or ditch is dug, and what equipment is used,
depends mainly on the type of soil. Alternates include bucket wheel trenchers. Other
digging equipment will include backhoes or track hoes.
6. Lowering the pipe. Tractors with special arms called side booms are used to lower the pipe
into the trench. Care is taken to avoid damaging the pipe and its exterior coating.
7. Installing valves and special fittings. Valves and other connections are part of a pipeline.
These assemblies are installed as the pipeline is constructed. They include shut-off valves
that can block off sections of the pipeline for maintenance.
8. Backfilling the trench. Before testing the pipeline, the ditch is backfilled. Sometimes the
excavated soil is used to fill the trench and sometimes other selected backfill is used. Care is
taken to protect the pipe coating from potential damage.
9. Testing. A variety of methods will be used to ensure the integrity of the assembled pipeline
and to comply with code. Some of the test include; ultrasonic test or radiographic test.
10. Cleaning up. The pipeline right-of-way and temporary facilities such as camps will be
reclaimed.

1.4 Corrosion of pipelines and its detection.

1.4.1 External Corrosion: Most transmission pipelines are buried in the ground and are made of
carbon steel. External corrosion is caused by electrochemical interaction between the pipe and the
surrounding environment (soil in the case of buried pipes). Operators try to prevent external
corrosion by coating the pipe with a corrosion resistant material (such as epoxy) and by applying
an external voltage source to the pipe (cathodic protection). Although pipelines are coated and
under cathodic protection, corrosion can still occur. This may occur through a process called
cathodic disbandment (loosening of the coating from pipe).

1.4.2 Internal Corrosion: It occurs when there is significant water content mixed in with the fuel
flowing through the pipe. In large transmission pipeline, it is often required that oil contain no
more than 0.5% water so that the pipe content is not corrosive.

1.4.3 Corrosion pits

Corrosion pits are much localised corrosion defects, or small pits in the metal of the pipe.
Unchecked corrosion pits can result in a pipeline leaking.

1.4.4 How to detect corrosion in pipelines: Corrosion can be detected using intelligent pigs (pig
magnets). It can also determine the size of dents in a pipeline, and determine changes in alignment
of the pipeline. The latter can impose a strain in the pipeline that might lead to leak or a buckle in
the pipeline body. They use either ultrasonic technology or electromagnetic technology.

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Corrosion inside pipelines usually occurs in areas where deposits of sludge build up. Sludge is
comprised of sediments and bacteria that can grow in small pockets of water. At the temperatures
at which crude oil and diluted bitumen are transported through pipelines, heavy crudes are no
more corrosive than light crudes. If crude is found to be corrosive, a chemical corrosion inhibitor
can be injected into the stream to remove this corrosion.

1.5 How to clean pipelines

The different methods of cleaning pipes are;
1. Cleaning by Quenching: Filling of the whole pipeline with chemical product, to allow it to work
passively. Quenching time depends on product concentration, and nature deposit.

2. Cleaning by Batch: introduce a predetermined volume of chemical product between one (or
more) bi- directional pigs, in order to dissolve and carry deposits (Fig.1.2). This solution needs a
perfect sealing capacity of pig to be efficient.

Figure 1.2 - pipeline cleaning by batch

3. Mechanical Pigging: This is by the use of specialised pigging like gel pigging. Their function is as
follows; allows the cleaning of the non-piggable pipelines; can carry high quantities of sand,
deposits or dust without blocking because those products are in suspension in the gel.

1.6 Environmental impact

Because of the large volumes of products which are transported by pipelines on a
continuous basis, there is opportunity for environmental releases. Roughly 9 leaks and spills per
year happened along pipelines while about 44 occurred in facilities such as compressors or pump
station between 2006 and 2010 in Canada.
Internal corrosion, external corrosion, external intervention, soil displacement such as
landslides, material defects, and system malfunctions can cause leaks and ruptures. Usually,
majority of leaks are related to pump stations and valves, rather than the body of the pipeline. In
general, corrosion accounts for about 20% to 30% of pipeline leaks.

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1.7 Challenges Faced by Industries in Managing Corrosion of Pipelines

 The difficulty to identify internal corrosion

 The difficulty to manage the water that is being transported along with the crude oil which
is then responsible for the corrosion that occurs if in contact with the pipeline wall. Heavier
crudes entrain the water than lighter crudes which is beneficial for corrosion protection.

Case study: the chad- Cameroon pipeline

PART 1: TRANSPORTATION OF CRUDE OIL

CHAPTER 2
TANKERS - LOADING AND UNLOADING TECHNIQUES; OFFSHORE LOADING SYSTEMS,
INTERNATIONAL REGULATIONS ON TANKER TRANSPORTATION. CUSTODY TRANSFER

2.1 Types of Tankers

A tanker is a ship for carrying liquids especially mineral oils and gases, in bulk. Unloading involves
removing or getting rid of oil from a ship. Loading involves filling of the tanker with petroleum for
transportation. The following tankers are encountered in the industry:
1. Crude Carriers: They transport crude oil from oil wells in the Persian gulf, Alaska waters, the
north sea and other oil fields to oil refineries where it is converted to useful petroleum products.
These enormous ships hold more than 300,000tones and extend well over 300 meters in length.
The largest tankers afloat are called ultra large crude carriers.
2. Product Tankers: They carry refined petroleum products from oil refineries to ports around the
world where the products are transferred to trucks and rail cars to be distributed to consumers
They are much smaller than crude carriers; the most recent are only around 20 tones and
are 180meters in length.
Besides being smaller than crude carriers, product tankers are more complex. Instead of
consisting of a single giant tank, they feature multiple tanks that can carry a variety of refined
products.
3. Other Specialized Tankers: They include chemical tankers, liquefied gas carriers and ore/bulk/oil
carriers.
4. Chemical Tankers: They carry various chemicals from port to port.

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5. Liquefied Gas Carriers: Transport natural gas and petroleum gas. These products are carried in
the liquefied form rather than as gases because liquids take up less space than the same amount
of gas.
To maintain their cargo in liquid form, liquefied gas carriers hold cargo under pressure and
at very low temperatures to prevent it from vaporizing. They are constructed of special types of
steel that can withstand the stresses of pressure and cold.
6. All Bulk Oil Carriers: These are versatile ships that can perform as tankers but carries several
cargos at once.

2.2 Floating Storage and Offloading Units

Floating storage and offloading units (FSO) are used worldwide by the offshore oil industry
to receive oil from nearby platforms and store it until it can be offloaded onto oil tankers.
A similar system, the floating production, storage and offloading unit (FPSO) has the ability
to process the product while it is on board. This floating unit reduces oil production cost and offers
mobility, large storage capacity and production versatility.
When an oil tanker is chosen to transport the oil, it is necessary to accumulate oil in some
form of storage tanks such that the oil tanker is not continuously occupied during oil production
and it is only needed once sufficient oil has been produced to fill the tanker.

2.2.1 ADVANTAGES OF FPSOs

1. They are cost effective

2. They are particularly effective in remote areas or deep water locations.
3. FPSOs eliminate the need to lay expensive loading long distance pipe lines from the
processing facility to an onshore terminal.
4. When the field is depleted, the FPSO can be moved to a new location.

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2.3 Loading and unloading scheduling.
This is the schedule of the loading and unloading of crude oil in intermediate storage tanks,
between ports and the crude distillation unit.
It is very important that the crude oil is loaded and unloaded continuously primarily, for
security reasons but also to reduce the setup cost incurred when flowed between a port and a
tank or between a tank and a crude distillation unit.
The aim of scheduling is to develop an exact solution approach based on a generic mixed
integer model, which provides not only the optimal schedule of loading and unloading of crude oil,
minimizing the setup cost but also the optimal type of mixture preparation.
The system of scheduling is composed of:

1. a series of tanks to store crude oil

2. ports to accommodate the boats delivering the crude oil
3. CDUs where the mixtures of the crude oil are distilled.
4. Pipelines which connect the ports with the tanks and the tanks with the CDUs
5. Electric pumps for loading and unloading the crude oil
6. Mixers for the preparation of the mixtures required by the CDUs

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 Set up of tanks
Loading quantities of crude oil at the ports and unloading the quantities of mixtures
or crude oil towards the CDU requires a series of operations which are expensive for the
refinery.
They are as follows;
1. Configuring the pipeline networks(e.g. opening of valves)
2. Filling pipelines with crude oil
3. Sampling of crude oil for chemical analysis
4. Measuring of the crude oil stock in tank before loading/unloading
5. Starting the loading/unloading
6. Stopping the loading and unloading.
After loading/unloading;
1. Configuring a pipeline network(e.g. closing of valves)
2. Emptying pipelines
3. Measuring the crude oil loaded/unloaded in the tanks.

Loading and Unloading Constraints

1. Guarantee that the quantities loaded in tanks are equal to the quantities available to
ports in each period.
2. Guarantee that the quantities unloaded towards CDUs are equal to the quantities
required by them.
3. Guarantee that quantities stored in the tank is not greater than the storage capacity.

2.4 TANKER LOADING AND UNLOADING SYSTEMS

The main system of tanker loading and unloading systems is the usage of moorings. Tankers
are very sensitive to wave direction so it is usually best to allow the tanker to weather vane around
the mooring. This will reduce mooring forces and vessel roll. The mooring is attached to a single
point on the tanker, hence the term single point mooring. There are many types of SPMs.

14 PEE 508 Petroleum Transport And Storage Dr Fozao Lecture Notes

 Important design considerations are;
1. Collision between tanker and its mooring column.
2. Control of mooring system forces
3. Control of deflections
4. Environmental condition
The simplest method of mooring a tanker is the fixed tower. The fixed tower can work well
if the water depth and wave height are not too great.

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 Another type of the mooring anchored system is the CALM (quaternary anchored leg mooring).
Fixed towers replaced with a flexible floating hose to transfer the oil. CALM is less sensitive to
water depths.
SALM (single anchored leg mooring): they are placed under water and below the keel level of the
tanker. They are more stable
The ALC (Articulated Loading Column) is a cross between the fixed tower and the SALM. It has a
swivel above the water. It requires a universal joint below the water.
SPAR (single point mooring and reservoir): this is a very large CALM buoy. Large quantity of oil can
be stored between tanker cells.

2.5 Tankers Loading and Unloading Techniques

2.5.1 Loading Techniques
Pre-transfer preparation
1. Prior to any transfer of cargo, the chief officer must develop a transfer plan detailing
specifics of the operation such as how much cargo will be moved, which tanks will be
cleaned, and how the ship's ballasting will change.

16 PEE 508 Petroleum Transport And Storage Dr Fozao Lecture Notes

 2. The next step before a transfer is the pre-transfer conference. The pre-transfer
conference covers issues such as what products will be moved, the order of
movement, names and titles of key people,

3. particulars of shipboard and shore equipment, critical states of the transfer,

regulations in effect, emergency and spill-containment procedures, watch and shift
arrangements, and shutdown procedures

4. After the conference is complete, the person in charge on the ship and the person in
charge of the shore installation go over a final inspection checklist. In the United
States, the checklist is called a Declaration of Inspection [or DOI].

5. Outside of the U.S., the document is called the "Ship/Shore Safety Checklist. Items on
the checklist include proper signals and signs are displayed, secure mooring of the
vessel, choice of language for communication, securing of all connections, that
emergency equipment is in place, and that no repair work is taking place

Loading cargo
1. Oil is pumped on and off the ship by way of connections made at the cargo manifold.
2. Loading an oil tanker consists primarily of pumping cargo into the ship's tanks. As oil
enters the tank, the vapors inside the tank must be somehow expelled.
3. Depending on local regulations, the vapors can be expelled into the atmosphere or
discharged back to the pumping station by way of a vapor recovery line. It is also
common for the ship to move water ballast during the loading of cargo to maintain
proper trim.
4. Loading starts slowly at a low pressure to ensure that equipment is working correctly
and that connections are secure. Then a steady pressure is achieved and held until the
"topping-off" phase when the tanks are nearly full. Topping off is a very dangerous time
in handling oil, and the procedure is handled particularly carefully.
5. Tank-gauging equipment is used to tell the person in charge how much space is left in
the tank, and all tankers have at least two independent methods for tank-gauging.
6. As the tanker becomes full, crew members open and close valves to direct the flow of
product and maintain close communication with the pumping facility to decrease and
finally stop the flow of liquid.

2.5.2 Unloading Techniques

1. This cargo pump aboard a VLCC can move 5,000 cubic meters of product per hour.
2. The process of moving oil off of a tanker is similar to loading, but has some key
differences. The first step in the operation is following the same pre-transfer
procedures as used in loading.

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3. When the transfer begins, it is the ship's cargo pumps that are used to move the
product ashore. As in loading, the transfer starts at low pressure to ensure that
equipment is working correctly and that connections are secure . Then a steady
pressure is achieved and held during the operation.
4. While pumping, tank levels are carefully watched and key locations, such as the
connection at the cargo manifold and the ship's pump room are constantly
monitored.
5. Under the direction of the person in charge, crew members open and close valves to
direct the flow of product and maintain close communication with the receiving
facility to decrease and finally stop the flow of liquid

2.6 Tank Cleaning

1. Tanks must be cleaned from time to time for various reasons. One reason is to
change the type of product carried inside a tank.
2. Also, when tanks are to be inspected or maintenance must be performed within a
tank, it must be not only cleaned, but made gas-free.
3. On most crude-oil tankers, a special crude oil washing (COW) system is part of the
cleaning process. The COW system circulates part of the cargo through the fixed
tank-cleaning system to remove wax and asphaltic deposits. Tanks that carry less
viscous cargoes are washed with water.
4. Fixed and portable automated tank cleaning machines, which clean tanks with high-
pressure water jets, are widely used. Some systems use rotating high-pressure water
jets to spray hot water on all the internal surfaces of the tank. As the spraying takes
place, the liquid is pumped out of the tank.
5. After a tank is cleaned, provided that it is going to be prepared for entry, it will be
purged. Purging is accomplished by pumping inert gas into the tank until
hydrocarbons have been sufficiently expelled.
6. Next the tank is gas freed which is usually accomplished by blowing fresh air into the
space with portable air powered or water powered air blowers. "Gas freeing" brings
the oxygen content of the tank up to 20.8% O2. The inert gas buffer between fuel
and oxygen atmospheres ensures they are never capable of ignition.
7. Specially trained personnel monitor the tank's atmosphere, often using hand-held
gas indicators which measure the percentage of hydrocarbons present.
8. After a tank is gas-free, it may be further hand-cleaned in a manual process known as
mucking.
9. Mucking requires protocols for entry into confined spaces, protective clothing,
designated safety observers, and possibly the use of airline respirators.

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2.7 Consequences of Loading and Offloading
In the course of loading and offloading, some of the oil is spilled into the environment. Also,
from time to time, the tankers and storage systems are cleaned up and the waste from the
cleaning is disposed of in the environment. Oil spills have devastating effects on the environment.
Crude oil contains polycyclic aromatic hydrocarbons (PAHs) which are very difficult to clean up.
The International Tanker Owners Pollution Federation has tracked 9,351 accidental spills that have
occurred since 1974. According to this study, most spills result from routine operations such as
loading cargo, discharging cargo, and taking on fuel oil.

2.8 Custody Transfer

Custody Transfer in the oil and gas industry refers to the transactions involving transporting
physical substance from one operator to another. This includes the transferring of raw and refined
petroleum between tanks and tankers; tankers and ships and other transactions. Custody transfer
in fluid measurement is defined as a metering point (location) where the fluid is being measured
for sale from one party to another. During custody transfer, accuracy is of great importance to
both the company delivering the material and the eventual recipient, when transferring a material.
Custody transfer takes place any time fluids are passed from the possession of one party to
another.
- Custody transfer generally involves:
- Industry standards;
- National metrology standards;
- Contractual agreements between custody transfer parties; and
- Government regulation and taxation.
Due to the high level of accuracy required during custody transfer applications, the flow
meters which are used to perform this are subject to approval by an organization such as the
American Petroleum Institute (API). Custody transfer operations can occur at a number of points
along the way; these may include transferring of oil from an oil production platform to a ship,
barge, railcar, truck and also to the final destination point, such as a refinery.

2.8.1 Components of custody transfer

Custody transfer requires an entire metering system that is designed and engineered for the
application, not just flow meters. Components of a custody transfer system typically include:
- Multiple meters/meter runs;
- Flow computers;
- Quality systems (gas chromatographs to measure energy content of natural gas, and sampling
systems for liquid);
- Calibration using in-place or mobile provers for liquid, or master-meter for liquid or gas; and
- Supporting automation.

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A typical liquid custody transfer skid includes multiple flowmeters and meter provers. Provers are
used to calibrate meters in-situ and are performed frequently; typically before, during, and after a
batch transfer for metering assurance. A good example of this is a Lease Automatic Custody
Transfer(LACT) unit in a crude oil production facility.

2.8.2 Accuracy
In the ISO 5725-1 standard, accuracy for measuring instruments is defined as “the closeness
of agreement between a test result and the accepted reference value”. This term “accuracy”
includes both the systematic error and the bias component. Each device has its manufacturer
stated accuracy specification and its tested accuracy.

2.8.3 Custody transfer requirements

Custody transfer metering systems must meet requirements set by industry bodies such as
API, or ISO, and national metrology standards such as OIML (International), NIST (U.S.), PTB
(Germany), CMC (China), and GOST (Russia), among others. These requirements can be of two
types: Legal and Contract.

1. Legal
The national Weights & Measures codes and regulations control the wholesale and retail
trade requirements to facilitate fair trade. The regulations and accuracy requirements vary widely
between countries and commodities, but they all have one common characteristic - “traceability”.
There is always a procedure that defines the validation process where the duty meter is compared
to a standard that is traceable to the legal metrology agency of the respective region.

2. Contract
A contract is a written agreement between buyers and sellers that defines the measurement
requirements. These are large-volume sales between operating companies where refined products
and crude oils are transported by marine, pipeline or rail. Custody transfer measurement must be
at the highest level of accuracy possible because a small error in measurement can amount to a
large financial difference. Due to these critical natures of measurements, petroleum companies
around the world have developed and adopted standards to meet the industry's needs.

2.8.4 Liquid Custody transfer

Custody transfer of liquid flow measurement follow guidelines set by the ISO. By industrial
consensus, liquid flow measurement is defined as having an overall uncertainty of ±0.25% or
better. The overall uncertainty is derived from an appropriate statistical combination of the
component uncertainties in the measurement system.

1. Mode of measurement
Volume or mass measurement: Liquid flow measurements are usually in volumetric
or mass unit. Volume is normally used for stand-alone field tanker loading

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 operations, while mass is used for multi-field pipeline or offshore pipeline with an
allocation requirement.
Mass measurement and reporting are achieved by
 Measurement of volume flow rate (for example, by turbine or ultrasonic meter) and fluid
density
 Direct mass measurement by Coriolis meter

2. Sampling system
An automatic flow-proportional sampling system is used in flow measurement to determine
the average water content, average density and for analysis purposes. Sampling systems should be
broadly in accordance with ISO 3171. The sampling system is a critical section during flow
measurement. Any errors introduced through sampling error will generally have a direct, linear
effect on the overall measurement.

3. Temperature and pressure measurement

Temperature and pressure measurement are important factors to consider when taking flow
measurements of liquids. Temperature and pressure measurement points should be situated as
close to the meter as possible, in reference to their conditions at the meter inlet. Temperature
measurements that affect the accuracy of the metering system should have an overall loop
accuracy of 0.5°C or better, and the corresponding readout should have a resolution of 0.2°C or
better.
Pressure measurements that affect the accuracy of the metering system should have an overall
loop accuracy of 0.5 bar or better and the corresponding readout should have a resolution of 0.1
bar or better.

2.8.5 Gaseous custody transfer

Custody transfer of gaseous flow measurement follow guidelines set by the international
bodies. By industrial consensus, gaseous flow measurement is defined as mass flow measurement
with an overall uncertainty of ±1.0% or better. The overall uncertainty is derived from an
appropriate statistical combination of the component uncertainties in the measurement system.

1. Mode of measurement
Volume or mass unit : All gasket flow measurement must be made on single-phase gas
streams, having measurements in either volumetric or mass units.
Sampling: Sampling is an important aspect, as they help to ascertain accuracy. Apt
facilities should be provided for the purpose of obtaining representative samples. The
type of instrumentation and the measuring system may influence this requirement.

Gas density: Gas density at the meter may be determined either by:
- Continuous direct measurement, by on-line densitometer
- Calculation, using a recognized equation of state together with measurements of the gas
temperature, pressure and composition.

21 PEE 508 Petroleum Transport And Storage Dr Fozao Lecture Notes

Most industries prefer to use the continuous measurement of gas density. However, both methods
may be used simultaneously, and the comparison of their respective results may provide
additional confidence in the accuracy of each method.

22 PEE 508 Petroleum Transport And Storage Dr Fozao Lecture Notes

 CHAPTER 3: OIL STORAGE
3.0 Introduction
Production, refining, and distribution of petroleum products require many different types and sizes
of storage tanks. Small bolted or welded tanks might be ideal for production fields while larger,
welded storage tanks are used in distribution terminals and refineries throughout the world.
Product operating conditions, storage capacities, and specific design issues can affect the tank
selection process.

3.1 Storage tanks

3.1.1 Types of storage tanks
Storage tanks come in all sizes and shapes. Special applications might require tanks to be
rectangular, in the form of horizontal cylinders, or even spherical in shape. Horizontal cylinders
and spheres are generally used for full pressure storage of hydrocarbon or chemical products. The
most common shape used is the vertical, cylindrical storage tank. Gross capacities can range from
100 bbl to over 1.5 MM bbl in a single storage tank.

Fig.3.1—floating-roof tank.

3.1.2 Production tanks construction practices

The type of construction selected for a storage tank depends on the size of tank required
and might be dependent on the type of product being stored, the location and space available for
storage, prevailing weather or site-specific conditions, and local safety or environmental
considerations.

1. Riveted, bolted, and shop welded tanks

Before the development and perfection of welding processes, petroleum storage tanks used
either bolted or riveted construction techniques.
Riveted tanks dating back to the early 1900s can still be found around the world—many still
in service. It is safe to say, however, that recurring maintenance costs and increased

23 PEE 508 Petroleum Transport And Storage Dr Fozao Lecture Notes

environmental and safety concerns dictate that older riveted tanks be replaced with new, state-of-
the-art storage tanks.
However, bolted tanks are still used, especially in the smaller sizes typical of produced
liquid storage. Current suppliers of bolted tanks can provide capacities up to 40,000 bbl or more
depending on the storage application.
One alternative to bolted construction is the shop welded storage tank. The size and
capacities of this type of tank are limited primarily by the method of transportation used to
transfer the shop built tank to the final production site.
Shop-welded storage tanks provide the production industry with tanks of adequate safety
and reasonable economy for use in the storage of crude petroleum and other liquids commonly
handled by the production segment of the industry
A second alternative for bolted construction is the shop fabricated or field assembled
nonmetallic storage tank. Nonmetallic tanks customarily are constructed from plastic materials.
These have the advantage of being non-corroding, durable, low-cost, and lightweight. Probably
the most common type used is the fiberglass reinforced plastic (FRP) tank.
The temperature limits of plastic tanks are approximately 40 to 150°F. Because plastic tanks are
considered to degrade more quickly than metal tanks when exposed to fire, some operators
prohibit the use of plastic tanks in hydrocarbon service.
2. Field welded storage tanks
Field-welded storage tanks easily meet industry needs for increased storage capacity whether
at a remote production site, at the refinery, or at the marketing terminal. As noted, earlier single-
tank capacities have exceeded 1.5 MMbbl of storage with tank diameters of 412 ft (125.6m) and
shell heights exceeding 72 ft (22m).
The standard covers open-top or fixed-roof storage tanks that generally operate at
atmospheric pressures. Design pressures above atmospheric and design temperatures exceeding
200°F

3.1.3 Current storage options

The petroleum industry has experienced significant changes in the types of products used to
feed the refineries around the world. The increased use of petroleum products has prompted the
industry to turn to other sources for supply. Changes in product, physical, and chemical properties
impose new challenges to the storage tank industry. Environmental and safety requirements
continue to be a significant factor in the selection and design of the storage tanks used by the
petroleum industry.
The general types of atmospheric storage tanks (AST) in use may be open top tanks (OTT),
fixed-roof tanks (FRT), external floating-roof tanks (EFRT), or internal floating-roof tanks (IFRT).
Depending on the product, a closed floating-roof tank (CFRT) may even be selected.

24 PEE 508 Petroleum Transport And Storage Dr Fozao Lecture Notes

 The above ground storage tank has evolved with time. Fig. 2 illustrates this trend, which has
emphasized improved safety and improved product loss control. Production facilities generally rely
on either open-top tanks or fixed-roof tanks operating at or slightly above atmospheric pressure.

Fig. 3.2—Atmospheric storage tank improvements.

3.2 Open top tanks (OTT)

The OTT was one of the first tanks used to store petroleum products. While it provides liquid
containment, direct exposure of the liquid surface to the atmosphere assures high evaporative
losses, product odors, and increased potential for fires. The OTT has only limited use, primarily
for collection of contaminated run-off or wash water and wastewater processes.

3.3 Fixed roof tanks (FRT)

The FRT provides improved containment of product vapors and reduces the potential for fires.
The FRT still exposes the liquid surface to the tank vapor space, producing significant product
evaporative losses. This increases the possibility of forming a combustible gas mixture in the vapor
space for certain more volatile petroleum products. For this reason fixed roof tanks in refineries
are generally used for products with vapor pressures less than 1.5 psia.

Fig.3.3 - Diagram of a fixed roof tank

3.3.1 Fixed roof tanks storage
During the process of storing crude oil, light hydrocarbons such as natural gas liquids,
volatile organic compounds, hazardous air pollutants and some inert gases, vaporize and collect
25 PEE 508 Petroleum Transport And Storage Dr Fozao Lecture Notes
between the liquid level and the fixed roof tanks. As the liquid level in the tank varies, these gases
slowly release out to the atmosphere. A solution to prevent this from occurring is by installing
vapour recovery units. These units capture the BTU-rich units for sale or use it onsite as fuel.
Tank Breathing. When a volatile product is stored in a freely ventilated fixed-roof tank, the
concentration of volatile vapors in the vapor space can vary depending on the tank
operating conditions. During holding periods, when no liquid is added or removed from the
tank, the vapor space comes to equilibrium conditions based on product temperature and
vapor pressure.
Emissions during holding are generated by the vapor space breathing process. As a
result of daily ambient heating and cooling processes or changes in barometric pressure,
the air/vapor mixture in the vapor space expands and contracts. During the daily heating
process, some of the air/vapor mixture is expelled from the tank, resulting in evaporative
emissions. During product cooling, air is drawn into the vapor space and becomes saturated
with product vapor from natural evaporation. The air becomes saturated with product
vapors. Note that this can result in a combustible gas mixture in the vapor space, increasing
the fire risk.
Vent System Design. Safety should be a primary concern when selecting a storage
tank vent system for a specific application. In production operations, this normally means
that a safe way of handling vapors that evolve from the liquid must be designed into the
system, and air must be excluded from entering the tank and mixing with hydrocarbon in
the vapor space. Fixed roof tanks should be configured to operate with a suitable gas
blanketing system that maintains the tank at positive pressures under all operating
conditions. Specially designed pressure/vacuum vent valves should be provided to protect
the tank against overpressure or vacuum conditions.

Tank vent piping should include flame arrestors which protect the tank against ignition of
the vent gases owing to lightning strike or a discharge of static electricity at the vent
location.
Fixed-roof tanks will fail if exposed to excessive internal pressure or extreme vacuum conditions.
Regular maintenance of pressure/vacuum vent valves and flame arrestors is critical to the safe
operation of any fixed-roof tank.
When provided, tank vents should be sized to protect the tank against unusually high
internal pressures (venting required) or low pressure vacuum conditions (in breathing or vapor
makeup required). Normal operating conditions include:
(i) In breathing (vacuum) resulting from maximum outflow of product from the tank.
(ii) In breathing (vacuum) resulting from contraction of vapors caused by a maximum
decrease in atmospheric temperature.

26 PEE 508 Petroleum Transport And Storage Dr Fozao Lecture Notes

 (iii) Out breathing (pressure) resulting from flashing of hydrocarbons as liquid flows from a
higher pressure source into the tank. In production operations this can be the largest
source of vent vapors.
(iv) Out breathing (pressure) resulting from maximum inflow of product into the tank,
hydrocarbon flash vapors, and maximum product evaporation caused by the inflow.
(v) Out breathing (pressure) resulting from expansion and evaporation caused by a
maximum increase in atmospheric temperature.
(vi) Out breathing (pressure) resulting from fire exposure.

3.4 Floating roof tanks

Although not normally used in production operations, floating roof tanks are often used in
pump stations or terminals where the crude oil has been stabilized to a vapor pressure of less than
11.1 psia.

3.4.1 Types of floating roof tank

a) External floating roof tank
A typical external floating roof tank consists of an open top cylindrical steel shell equipped
with a roof that floats on the surface of the stored liquid, rising and falling with the liquid level.
The external floating roof design is such that evaporative losses from the stored liquids are limited
to losses from the rim seal system and deck fittings (standing storage loss) and any exposed liquids
on the tank walls.
b) Internal floating roof tanks:
The tank has both a permanent fixed roof and a floating roof inside. There are two basic
types:
i) Tanks in which the fixed roof is supported by vertical columns within the tank
ii) Tanks with a self-supporting fixed roof and no internal support columns
c) Domed shape external floating roof tanks
They have the heavier type of deck used in external floating roof tanks as well as a fixed
roof at the top of the shell like internal floating roof tanks.

3.4.2 Floating roof tanks (as compared to fixed roofs) – Pros and Cons
Floating roof tanks are advantageous, compared to fixed roof tanks, as it prevents vapour
emissions (that are highly combustible) that help eliminate the chances of fire or an internal tank
explosion.
They are usually used for stable liquids (with no dynamic loads acting, as discussed later).
However, adverse environmental conditions could affect floating roofs as accumulation of snow
and rain water could result in roof submersing in the stored liquid.

3.5 Pressure vacuum valves

27 PEE 508 Petroleum Transport And Storage Dr Fozao Lecture Notes

 The evolution of hydrocarbon vapors is dependent on the product’s physical characteristics,
the operating pressure of upstream equipment, tank storage conditions, and tank operations. In
production operations, the fluid entering a tank often comes from a higher-pressure source
(separator, treater, or other production vessel). As the fluid enters the tank, a portion of the fluid
will "flash" to vapor. Depending on tank design, vapors may be directed through pressure vent
valves directly to a vent or lighted flare. Alternatively, a vapor recovery compressor (or blower)
may be installed to direct vapors vented from storage to downstream compressors for sales or
injection. Vacuum relief valves are needed to keep a vacuum from occurring because of tank
breathing and pumping operations. If a vacuum develops, the tank roof will collapse. Typically,
both pressure and vacuum relief are combined in a single pressure-vacuum relief valve such as
that shown in Fig. 3.

Fig. 3.4 —Pressure vacuum valve operator.

3.6 Tank appurtenances

Tanks may include a variety of appurtenances depending on the storage application, owner
requirements, and applicable design codes. In addition to normal product fill and withdrawal
connections, access man-ways and various instrument or gauging connections, a tank can include
shell-mounted mixers, internal heaters, platforms, ladders, and pressure/vacuum relief vents.
Some features are required for safe operation of the floating roof while others may be
optional based on specific storage requirements. Figs.3.5 identifies several features that must be
considered when designing the floating-roof tank.

28 PEE 508 Petroleum Transport And Storage Dr Fozao Lecture Notes

 Fig. 3.5—Floating-roof tank appurtenances, Example .

3.7 Tank battery

Tank Battery for Hydrogen Sulfide Crude Storage. Constant attention should be given to the
hazardous condition created by iron sulfide deposits. These occur most frequently within the
vapour space and particularly on the underneath exposed side of the deck.
These iron sulfide deposits generate severe corrosion that can go unnoticed when deck
conditions are observed from the topside only.

When sour crude is stored, all openings on the tanks should be kept closed because hydrogen
sulfide is poisonous.
Valves are located at a convenient level to permit sampling on the ground without the tanks
being opened. If available, a small amount of sweet gas should be fed into the top of the tank
continuously to establish a “gas sweep.”

This ensures positive pressure within the tank at all times and prohibits air from entering the tank,
thereby greatly reducing corrosion.

It is advisable to extend the tank vent line well beyond the tank battery and to use a back pressure
valve and flame arrester in the vent line.

The vapors should be flared and not vented

3.7.1 Truck Pit

Trucks hauling oil to the battery dump their load into 300+m3 tanks, called dump tanks, usually
buried in-ground. Some dump tanks have a siphon line at the bottom to remove accumulations of
saltwater. However, all tanks must be cleaned periodically to remove the solids that have settled
out from the raw crude oil.

29 PEE 508 Petroleum Transport And Storage Dr Fozao Lecture Notes

3.7.2 Truck Pit Transfer Pump
This pump transfers the raw crude oil from the dump tank(s) into the first of two charge tanks
located above ground. One of the two tanks may be designated a "slop tank" to handle not only
raw crude but also "recycled" crude which may have to be run through the system a second time
in order to be cleaned sufficiently.
3.7.3 Slop Tank
The slop tank is the primary tank in the charge system of the battery. It receives oil from the
truck pit transfer pump and acts as a sediment bowl where more solids are allowed to settle.
Saltwater is also siphoned off at the bottom of the tank. Pressure created by the pit pump forces
the oil out of the slop tank and into the charge tank. Residual solids from the treaters can be
reintroduced here for further treatment, but more often this slop, along with slop that is produced
in other areas of the battery, is trucked to a more specialized cleaning facility before it is pumped
back into the earth.

3.7.4 Charge Tank

This is the second tank in the battery’s charge system and is another step in the progression
to clean oil. It provides an additional opportunity for water and solids to separate, and it has a
siphon line for water. Pressure supplied by the pit pump provides a head of pressure in the charge
tank as well. Both the slop and the charge tanks have level controls and a portion of the tank
always contains air. When oil is pumped into the tank the trapped air is compressed providing a
relatively constant head of pressure.

3.8 Fluid sampling (in Tank farms. Work on this and not fluid sampling in general) (Do not read
for exams)
Many general petroleum engineering texts have sections covering the measurement of
phase behavior or pressure/volume/temperature (PVT) analysis, but few have detailed
descriptions of reservoir fluid-sampling practices. This article discusses the rationale for fluid
sampling, general guidance for establishing a sampling program, and some special cases that go
beyond the typical fluid sampling approaches.

3.8.1 Overview
An enormous range of reservoir fluids exists, and this means that the limited measurements of
produced oil and gas properties that can be made in the field are far from adequate to provide the
detailed characterization that modern petroleum engineering requires. In addition to PVT analysis,
of fundamental importance to reservoir management, measurements relating to corrosion
potential, solids formation, and nonhydrocarbon constituents have the potential to produce
serious effects on:

 The design of production facilities

30 PEE 508 Petroleum Transport And Storage Dr Fozao Lecture Notes

  Compatibility with pipeline transport
 Product sales value
 Refinery maintenance costs
 Reservoir asset values in general

The lack of such data could easily represent more risk than that tolerated when the decision to
perform sampling and laboratory studies is taken. Examples of the financial impact of errors in
fluid-property measurements are given elsewhere. Fluid samples are thus required to enable
advanced physical and chemical analyses to be carried out in specialized laboratories. Samples
must be collected from a wide range of locations such as:

 Separators
 Pipelines
 Tanks
 Wellbores
 The formation

This topic primarily targets the sampling of fluids under pressures above atmospheric, where
numerous tools and procedures have been developed that are essentially specific to the
petroleum industry. Best practices are proposed for fluid sampling, reporting of data, and quality
control of samples.

Reservoir-fluid-property measurements derive from a complicated series of processes relying both

on the operation of equipment and the performance of people, so the scope for errors is very
significant. The overriding challenge in fluid sampling is that of ensuring that the fluid entering the
sample container is representative of the bulk fluid being sampled. It is equally important that the
sample remains representative during handling and storage, until all required measurements have
been completed. On occasion, laboratory measurements can show that a fluid is definitely not
representative (e.g., saturation pressure is significantly higher than reservoir pressure), but even
here the problem could lie with errors in field measurement data rather than with the samples
themselves. Thus, it is essential that all the necessary precautions are taken to prevent poor
samples from leading to erroneous physical-property measurements.

3.8.2 Sampling procedures

Sampling procedures differ based on whether the fluids are pressurized or not. For applicable
procedures, see

 Downhole fluid sampling

 Surface sampling of reservoir fluids
 Nonpressurized hydrocarbon fluid sampling (check this for tanks)
31 PEE 508 Petroleum Transport And Storage Dr Fozao Lecture Notes
  Oilfield water sampling

CHAPTER 4
UNDERGROUND STORAGE (CAVERNS and POROUS ROCKS)
4.1 Storage of Natural Gas
Natural gas, like most other commodities, can be stored for an indefinite period of time.
The exploration, production, and transportation of natural gas take time, and the natural gas that
reaches its destination is not always needed right away, so it is injected into underground storage
facilities. These storage facilities can be located near market centers that do not have a ready
supply of locally produced natural gas.
Traditionally, natural gas has been a seasonal fuel. That is, demand for natural gas is usually
higher during the winter, partly because it is used for heat in residential and commercial settings.
Stored natural gas plays a vital role in ensuring that any excess supply delivered during the
summer months is available to meet the increased demand of the winter months. However, with
the recent trend towards natural gas fired electric generation, demand for natural gas during the
summer months is now increasing (for instance, due to the demand for electricity to power air
conditioners). Natural gas in storage also serves as insurance against any unforeseen accidents,
natural disasters, or other occurrences that may affect the production or delivery of natural gas.
Natural gas storage plays a vital role in maintaining the reliability of supply needed to meet
the demands of consumers. Storage used to serve only as a buffer between transportation and
distribution, to ensure adequate supplies of natural gas were in place for seasonal demand shifts,
and unexpected demand surges. Now, in addition to serving those purposes, natural gas storage is
also used by industry participants for commercial reasons; storing gas when prices are low, and
withdrawing and selling it when prices are high, for instance.
Natural gas is usually stored underground, in large storage reservoirs. There are three main
types of underground storage: depleted gas reservoirs, aquifers, and salt caverns. In addition to
underground storage, however, natural gas can be stored as liquefied natural gas (LNG). LNG
allows natural gas to be shipped and stored in liquid form, meaning it takes up much less space
than gaseous natural gas.
4.1.1 Base Load vs. Peak Load Storage
There are basically two uses for natural gas in storage facilities: meeting base load
requirements, and meeting peak load requirements. As mentioned, natural gas storage is required
for two reasons: meeting seasonal demand requirements, and as insurance against unforeseen
supply disruptions. Base load storage capacity is used to meet seasonal demand increases. Base
load facilities are capable of holding enough natural gas to satisfy long term seasonal demand
requirements. Typically, the turn-over rate for natural gas in these facilities is a year; natural gas is
generally injected during the summer (non-heating season), which usually runs from April through
October, and withdrawn during the winter (heating season), usually from November to March.

32 PEE 508 Petroleum Transport And Storage Dr Fozao Lecture Notes

 These reservoirs are larger, but their delivery rates are relatively low, meaning the natural
gas that can be extracted each day is limited. Instead, these facilities provide a prolonged, steady
supply of natural gas. Depleted gas reservoirs are the most common type of base load storage
facility.

Peak load storage facilities, on the other hand, are designed to have high-deliverability for short
periods of time, meaning natural gas can be withdrawn from storage quickly should the need arise.
Peak load facilities are intended to meet sudden, short-term demand increases. These facilities
cannot hold as much natural gas as base load facilities; however, they can deliver smaller amounts
of gas more quickly, and can also be replenished in a shorter amount of time than base load
facilities. While base load facilities have long term injection and withdrawal seasons, turning over
the natural gas in the facility about once per year, peak load facilities can have turn over rates as
short as a few days or weeks. Salt caverns are the most common type of peak load storage facility,
although aquifers may be used to meet these demands as well.

4.2 Types of Underground Storage

Underground natural gas storage fields grew in popularity shortly after World War II. At the
time, the natural gas industry noted that seasonal demand increases could not feasibly be met by
pipeline delivery alone. In order to meet seasonal demand increases, the deliverability of pipelines
(and thus their size), would have to increase dramatically. However, the technology required to
construct such large pipelines to consuming regions was, at the time, unattainable and unfeasible.
In order to be able to meet seasonal demand increases, underground storage fields were the only
option. As mentioned, there are three main types of underground natural gas storage facilities.
These are depleted reservoirs, aquifers, and salt caverns. However, there also exist mines and
hard rock caverns

33 PEE 508 Petroleum Transport And Storage Dr Fozao Lecture Notes

 Figure 4.1 Types of underground natural gas storage facility
4.2.1 Types of Gas in the Underground storage facility
Essentially, any underground storage facility is reconditioned before injection, to create a
sort of storage vessel underground. Natural gas is injected into the formation, building up pressure
as more natural gas is added. In this sense, the underground formation becomes a sort of
pressurized natural gas container. As with newly drilled wells, the higher the pressure in the
storage facility, the more readily gas may be extracted. Once the pressure drops to below that of
the wellhead, there is no pressure differential left to push the natural gas out of the storage
facility. This means that, in any underground storage facility, there is a certain amount of gas that
may never be extracted. This is known as physically unrecoverable gas; it is permanently
embedded in the formation.
In addition to this physically unrecoverable gas, underground storage facilities contain what
is known as ‘base gas’ or ‘cushion gas’. This is the volume of gas that must remain in the storage
facility to provide the required pressurization to extract the remaining gas. In the normal operation
of the storage facility, this cushion gas remains underground; however a portion of it may be
extracted using specialized compression equipment at the wellhead.
‘Working gas’ is the volume of natural gas in the storage reservoir that can be extracted
during the normal operation of the storage facility. This is the natural gas that is being stored and
withdrawn; the capacity of storage facilities normally refers to their working gas capacity. At the
beginning of a withdrawal cycle, the pressure inside the storage facility is at its highest; meaning
working gas can be withdrawn at a high rate. As the volume of gas inside the storage facility drops,
pressure (and thus deliverability) in the storage facility also decreases.

4.2.2 Depleted Gas Reservoirs

The first instance of natural gas successfully being stored underground occurred in Weland
County, Ontario, Canada, in 1915. This storage facility used a depleted natural gas well that had
been reconditioned into a storage field. In the United States, the first storage facility was
developed just south of Buffalo, New York. By 1930, there were nine storage facilities in six
different states. Prior to 1950, virtually all natural gas storage facilities were in depleted reservoirs.
The most prominent and common form of underground storage consists of depleted gas
reservoirs. Depleted reservoirs are those formations that have already been tapped of all their
recoverable natural gas. This leaves an underground formation, geologically capable of holding
natural gas. In addition, using an already developed reservoir for storage purposes allows the use
of the extraction and distribution equipment left over from when the field was productive. Having
this extraction network in place reduces the cost of converting a depleted reservoir into a storage
facility. Depleted reservoirs are also attractive because their geological characteristics are already
well known. Of the three types of underground storage, depleted reservoirs, on average, are the
cheapest and easiest to develop, operate, and maintain.

34 PEE 508 Petroleum Transport And Storage Dr Fozao Lecture Notes

Factors determining the suitability of a depleted reservoir as a storage facility
The factors that determine whether or not a depleted reservoir will make a suitable storage
facility are both geographic and geologic.
i. Geographically, depleted reservoirs must be relatively close to consuming regions. They
must also be close to transportation infrastructure, including trunk pipelines and
distribution systems. While depleted reservoirs are numerous in the U.S., they are more
abundantly available in producing regions. In regions without depleted reservoirs, like the
upper Midwest, one of the other two storage options is required.
ii. Geologically, depleted reservoir formations must have high permeability and porosity.
The porosity of the formation determines the amount of natural gas that it may hold,
while its permeability determines the rate at which natural gas flows through the
formation, which in turn determines the rate of injection and withdrawal of working gas.
In certain instances, the formation may be stimulated to increase permeability.
In order to maintain pressure in depleted reservoirs, about 50 percent of the natural gas in the
formation must be kept as cushion gas. However, depleted reservoirs, having already been filled
with natural gas and hydrocarbons, do not require the injection of what will become physically
unrecoverable gas; that gas already exists in the formation.
4.2.3 Aquifers
Aquifers are underground porous, permeable rock formations that act as natural water
reservoirs. However, in certain situations, these water containing formations may be
reconditioned and used as natural gas storage facilities. As they are more expensive to develop
than depleted reservoirs, these types of storage facilities are usually used only in areas where
there are no nearby depleted reservoirs. Traditionally, these facilities are operated with a single
winter withdrawal period, although they may be used to meet peak load requirements as well.
Aquifers are the least desirable and most expensive type of natural gas storage facility for a
number of reasons. First, the geological characteristics of aquifer formations are not as
thoroughly known, as with depleted reservoirs. A significant amount of time and money goes into
discovering the geological characteristics of an aquifer, and determining its suitability as a natural
gas storage facility. Seismic testing must be performed; much like is done for the exploration of
potential natural gas formations. The area of the formation, the composition and porosity of the
formation itself, and the existing formation pressure must all be discovered prior to development
of the formation. In addition, the capacity of the reservoir is unknown, and may only be
determined once the formation is further developed.
In order to develop a natural aquifer into an effective natural gas storage facility, all of the
associated infrastructure must also be developed. This includes installation of wells, extraction
equipment, pipelines, dehydration facilities, and possibly compression equipment. Since aquifers
are naturally full of water, in some instances powerful injection equipment must be used, to allow
sufficient injection pressure to push down the resident water and replace it with natural gas. While
natural gas being stored in aquifers has already undergone all of its processing, upon extraction

35 PEE 508 Petroleum Transport And Storage Dr Fozao Lecture Notes

from water bearing aquifer formation, the gas typically requires further dehydration prior to
transportation, which requires specialized equipment near the wellhead. Aquifer formations do
not have the same natural gas retention capabilities as depleted reservoirs. This means that some
of the natural gas that is injected escapes from the formation, and must be gathered and extracted
by ‘collector’ wells, specifically designed to pick up gas that may escape from the primary aquifer
formation.
In addition to these considerations, aquifer formations typically require a great deal more
‘cushion gas’ than do depleted reservoirs. Since there is no naturally occurring gas in the formation
to begin with, a certain amount of natural gas that is injected will ultimately prove physically
unrecoverable. In aquifer formations, cushion gas requirements can be as high as 80 percent of the
total gas volume. While it is possible to extract cushion gas from depleted reservoirs, doing so
from aquifer formations could have negative effects, including formation damage. As such, most of
the cushion gas that is injected into any one aquifer formation may remain unrecoverable, even
after the storage facility is shut down. Most aquifer storage facilities were developed when the
price of natural gas was low, meaning this cushion gas was not very expensive to give up.
However, with higher prices, aquifer formations are increasingly expensive to develop.
All of these factors mean that developing an aquifer formation as a storage facility can be
time consuming and expensive. In some instances, aquifer development can take 4 years, which is
more than twice the time it takes to develop depleted reservoirs as storage facilities. In addition to
the increased time and cost of aquifer storage, there are also environmental restrictions to using
aquifers as natural gas storage. In the early 1980′s the Environmental Protection Agency (EPA) set
certain rules and restrictions on the use of aquifers as natural gas storage facilities. These
restrictions are intended to reduce the possibility of fresh water contamination.

4.2.4 Salt Caverns

Underground salt formations offer another option for natural gas storage. These formations
are well suited to natural gas storage in that salt caverns, once formed, allow little injected natural
gas to escape from the formation unless specifically extracted. The walls of a salt cavern also have
the structural strength of steel, which makes it very resilient against reservoir degradation over the
life of the storage facility. Essentially, salt caverns are formed out of existing salt deposits. These
underground salt deposits may exist in two possible forms: salt domes, and salt beds.
i) Salt domes are thick formations created from natural salt deposits that, over time, leach up
through overlying sedimentary layers to form large dome-type structures. They can be as
large as a mile in diameter, and 30,000 feet in height. Typically, salt domes used for natural
gas storage are between 6,000 and 1,500 feet beneath the surface, although in certain
circumstances they can come much closer to the surface.
ii) Salt beds are shallower, thinner formations. These formations are usually no more than
1,000 feet in height. Because salt beds are wide, thin formations, once a salt cavern is

36 PEE 508 Petroleum Transport And Storage Dr Fozao Lecture Notes

 introduced, they are more prone to deterioration, and may also be more expensive to
develop than salt domes.

Salt cavern leaching - Once a suitable salt dome or salt bed deposit is discovered, and deemed
suitable for natural gas storage, it is necessary to develop a ‘salt cavern’ within the formation.
Essentially, this consists of using water to dissolve and extract a certain amount of salt from the
deposit, leaving a large empty space in the formation. This is done by drilling a well down into the
formation, and cycling large amounts of water through the completed well. This water will dissolve
some of the salt in the deposit, and be cycled back up the well, leaving a large empty space that
the salt used to occupy. This process is known as ‘salt cavern leaching’. Salt cavern leaching is
used to create caverns in both types of salt deposits, and can be quite expensive. However, once
created, a salt cavern offers an underground natural gas storage vessel with very high
deliverability. In addition, cushion gas requirements are the lowest of all three storage types, with
salt caverns only requiring about 33 percent of total gas capacity to be used as cushion gas.

Salt cavern storage facilities are primarily located along the Gulf Coast, as well as in the northern
states, and are best suited for peak load storage. Salt caverns are typically much smaller than
depleted gas reservoirs and aquifers, in fact underground salt caverns usually take up only one
one-hundredth of the acreage taken up by a depleted gas reservoir. As such, salt caverns cannot
hold the volume of gas necessary to meet base load storage requirements. However, deliverability
from salt caverns is typically much higher than for either aquifers or depleted reservoirs. Therefore
natural gas stored in a salt cavern may be more readily (and quickly) withdrawn, and caverns may
be replenished with natural gas more quickly than in either of the other types of storage facilities.
Salt caverns may also be replenished more quickly than other types of underground storage
facilities.
Example Underground Cavern Gas Storage
Freeport LNG developed a natural gas underground storage cavern in the salt dome to be
able to store natural gas in its gaseous rather than liquid form. The cavern, which has a working
capacity of around 4.5 Bcf of gas and maximum injection/withdrawal rates around 500 MMcf per
day, is integrated into the operation of the LNG receiving facility (See Fig.4.2).

4.3 Storage Measures

There are several volumetric measures used to quantify the fundamental characteristics of
an underground storage facility and the gas contained within it. For some of these measures, it is
important to distinguish between the characteristic of a facility such as its capacity, and the
characteristic of the gas within the facility such as the actual inventory level. These measures are as
follows:

37 PEE 508 Petroleum Transport And Storage Dr Fozao Lecture Notes

1. Total gas storage capacity is the maximum volume of gas that can be stored in an
underground storage facility in accordance with its design, which comprises the physical
characteristics of the reservoir, installed equipment, and operating procedures particular to
the site. Total gas in storage is the volume of storage in the underground facility at a
particular time.

Figure 4.2 Carven gas underground storage facility

2. Base gas (or cushion gas) is the volume of gas intended as permanent inventory in a
storage reservoir to maintain adequate pressure and deliverability rates throughout the
withdrawal season.
3. Working gas capacity refers to total gas storage capacity minus base gas.
Working gas is the volume of gas in the reservoir above the level of base gas. Working gas
is available to the marketplace.
4. Deliverability is most often expressed as a measure of the amount of gas that can be
delivered (withdrawn) from a storage facility on a daily basis. Also referred to as the
deliverability rate, withdrawal rate, or withdrawal capacity, deliverability is usually
expressed in terms of millions of cubic feet per day (MMcf/day). Occasionally, deliverability
is expressed in terms of equivalent heat content of the gas withdrawn from the facility,
most often in dekatherms per day (a therm is 100,000 Btu, which is roughly equivalent to
100 cubic feet of natural gas; a dekatherm is the equivalent of about one thousand cubic

38 PEE 508 Petroleum Transport And Storage Dr Fozao Lecture Notes

 feet (Mcf)). The deliverability of a given storage facility is variable, and depends on factors
such as the amount of gas in the reservoir at any particular time, the pressure within the
reservoir, compression capability available to the reservoir, the configuration and
capabilities of surface facilities associated with the reservoir, and other factors. In general,
a facility's deliverability rate varies directly with the total amount of gas in the reservoir: it
is at its highest when the reservoir is most full and declines as working gas is withdrawn.
5. Injection capacity (or rate) is the complement of the deliverability or withdrawal
rate-it is the amount of gas that can be injected into a storage facility on a daily basis. As with
deliverability, injection capacity is usually expressed in MMcf/day, although dekatherms/day is
also used. The injection capacity of a storage facility is also variable, and is dependent on factors
comparable to those that determine deliverability. By contrast, the injection rate varies inversely
with the total amount of gas in storage: it is at its lowest when the reservoir is most full and
increases as working gas is withdrawn.

4.4 Costs
Underground storage fields have different costs associated with their development and
operation. Costs are estimated by the type of storage facility to be developed and its intended use.
Expenses include development of caverns and/or above ground infrastructure, the amount of
cushion gas required, and the cost of operation for a single cycle facility versus a multi-cycle
facility. General cost comparisons among the four major types of reservoirs are discussed below
and are visualized in Figure 4.5. In the figure, plant costs represent the cost to erect the facility,
cushion gas cost is based on actual examples and are not directly comparable, and operation costs
incorporate facility performance, maintenance, and cost of utilities. Aquifers are generally the
most expensive to develop, whereas salt caverns are the most economic to operate.

Figure 4.5 Cost comparison ($/Mcf) for the development and operation of various natural gas
underground storage options
39 PEE 508 Petroleum Transport And Storage Dr Fozao Lecture Notes
Aquifers have the highest cushion gas requirements and longest development times. It typically
takes five years to develop an aquifer due to reservoir characterization and constructing the above
ground infrastructure. Operating costs (in $/Mcf) are slightly higher than depleted reservoirs
(Beckman et al., 1995).

Depleted Gas Reservoirs are generally cheaper (in $/Mcf) to develop and operate than aquifers.
The reservoirs have an existing infrastructure in place and are already proven to trap and contain
gas. Most depleted gas reservoirs contain residual natural gas that was never recovered from
production. The abandoned gas can be used to meet cushion gas needs, thus reducing the cost
and amount of cushion gas that must be injected (Beckman et al, 1995).

Salt Caverns are the most economical option for underground natural gas storage. However, the
development ($/Mcf) of the caverns and related infrastructure is a large capital expense.
Development of caverns within bedded salts will generally be a greater expense than those
leached within domes. The increase in cost, for the development of bedded salts, is due to the
heterogeneity and sometimes lack of a location for brine disposal (Taylor et al., 1986; Beckman et
al., 1995).
The large reduction in cost in storing gas in salt caverns compared to other storage options
is based on the minimal cushion gas requirements and the low cost of operation. Salt caverns are
cycled multiple times a year resulting in a high annual gas turnover, which significantly reduces the
operational expense (Taylor et al., 1986; Beckman et al., 1995).

Excavated Rock Caverns can be uneconomical depending on the volume to rock needed to be
excavated. Removal of hard rock is more expensive than solution mining (Taylor et al., 1986).
However, studies have concluded that cooling gas before injection can reduce the volume of rock
to be removed and cut expense of cavern development. When compared to other storage options,
excavated caverns are second only to aquifers in expense (Foh et al., 1979).
In summary, looking at the overall cost (in $/Mcf) of each storage option, aquifers will be
the most expensive. Aquifers use a great deal more cushion gas than the other options, whereas
excavated caverns cost the most to develop. For peak load needs salt caverns are the best value,
as are depleted reservoirs for base load operations.

40 PEE 508 Petroleum Transport And Storage Dr Fozao Lecture Notes

 CHAPTER 5
GAS TRANSPORTATION (COMPRESSORS, PIPELINES AND LNG TRANSPORTATION)

5.1 COMPRESSORS
5.1.1 Introduction

This chapter provides an overview of the primary categories of natural gas compressor
services and a description of the different classifications and types of compressors available to the
industry.

Specific topics relating to compression theory include power requirement, isentropic

exponent, compressibility factor, intercooling, adiabatic and polytropic efficiency, actual and
standard volume flow rates, mass flow rates, inlet and discharge pressures, inlet and discharge
temperatures, and adiabatic and polytropic head. Major components and construction features of
centrifugal and reciprocating compressors are emphasized. Installation, safety, and maintenance
considerations also are discussed.
For centrifugal compressors, the performance characteristic curve is presented with
emphasis on process control of capacity by speed variation, suction throttling, or variable inlet
guide vanes. Process control to avoid operation in a damaging surge condition is also addressed.

5.1.2 Overview
Compressors used in the oil and gas industry are divided into six groups according to their
intended service. These are flash gas compressors, gas lift compressors, reinjection
compressors, booster compressors, vapor-recovery compressors, and casing head
compressors.
Flash Gas Compressors. Flash gas compressors are used in oil handling facilities to
compress gas that is “flashed” from a hydrocarbon liquid when the liquid flows from
a higher pressure to a lower pressure separator. Flash gas compressors typically
handle low flow rates and produce high compression ratios.
Gas Lift Compressors. Gas lift compressors are frequently used in oil handling
facilities where compression of formation gases and gas lift gas is required. Gas lift
compressor duty is frequently of low to medium throughput with high compression
ratios. Many gas lift compressors are installed on offshore facilities.
Reinjection Compressors. The reinjection of natural gas is employed to increase or to
maintain oil production. Reinjection compressors can be required to deliver gas at
discharge pressures in excess of 10,000 psi. Reinjection compressors also are used
for underground storage of natural gas. Compressors, applied to these services, have
large compression ratios, high power requirements, and low volume flow rates.
Booster Compressors. Gas transmission through pipelines results in pressure drop
because of friction losses. Booster compressors are used to restore the pressure drop

41 PEE 508 Petroleum Transport And Storage Dr Fozao Lecture Notes

 from these losses. Selection of these compressors involves evaluating the economic
trade-off of distance between pipeline boosting stations and life-cycle cost of each
compressor station. Booster compressors also are used in fields that are experiencing
pressure decline. Most centrifugal pipeline booster compressors are gas turbine
driven. Low-speed integral gas engine reciprocating compressors also are used for
gas transmission applications. Booster compressors typically are designed for high
throughput rates and low compression ratio. Many booster applications can be
configured in a single-stage centrifugal compressor.
Vapor Recovery Compressors. Vapor recovery compressors are used to gather gas
from tanks and other low-pressure equipment in the facility. Often the gas from a
vapor recovery compressor is routed to a flash gas, gas lift, or booster compressor
for further compression. Low suction pressures, high compression ratios, and low gas
throughput rates characterize these compressors.
Casing head Compressors. Casing head compressors are usually used with electric
submersible pumps and rod pumps where formation gas is required to be separated
down hole and then transported through the annulus. Often the compressor
discharge is routed to either a booster or flash gas compressor or to a low-pressure
gathering system. Like vapour recovery compressors, casing head compressors
operate with low suction pressures, high compression ratios, and low gas throughput
rates.

5.1.3 Classification and Types

Figure 5.1 Types of compressors (GPSA, 1987)

A. Reciprocating Compressors. There are two types of reciprocating compressors:

i. High speed( separable compressor)
ii. Low speed ( integral)

42 PEE 508 Petroleum Transport And Storage Dr Fozao Lecture Notes

 A.1 Separable Compressors. The term “separable” is used because this category of
reciprocating compressors is separate from its driver. Either an engine or an electric motor usually
drives a separable compressor. Often a gearbox is required in the compression train. Operating
speed is typically between 900 and 1,800 rpm.

Advantages: - can be skid mounted, self-contained, low cost, easily piped for
multistage compression, suitable for onshore and offshore, flexible capacity.
Disadvanges:- short life, higher maintenance cost

A.2 Integral Compressors. The term “integral” is used because the power cylinders that
drive the compressor are mounted integrally with the frame containing the compressor cylinders.
Integral units run at speeds of between 200 and 600 rpm. They are commonly used in gas plants
and pipeline service where fuel efficiency and long life are critical.

Advantages:- high fuel efficiency, long life, lower operational cost than separable compressor

Disadvantages: require heavy foundations, high installation cost, high vibrations.

B. Rotary Positive Displacement Compressors. The two most common types of rotary positive
Displacement compressors are vane compressors and screw compressors.
B.1. Vane Compressors. The vane-type compressor consists of a cylindrical rotor with
longitudinal slots in which radial sliding vanes are fitted. The rotor is positioned eccentrically
within a cylindrical housing.

Advantages:- Good in vacuum services, No pulsating flow, less space, inexpensive for low hp
or vacuum services
Disadvantages:- must have clean air or gas, uses ten times more oil than reciprocating
machine

B.2. Screw Compressors. The screw compressor, also known as a helical-lobe or spiral-lobe
compressor, is a positive displacement rotary design that compresses gas between
intermeshing helical lobes and chambers in the compressor housing. Screw
compressors do not use valves.
Their compression ratio is determined by the wrap angle of the lobes and the
location of the opening edges of the discharge port.

Advantages:- can handle dirt gas, can handle moderate amount of liquid, no pulsating flow

Disadvantages:- low tolerance to change in operating conditions of temperature, pressure

and compression ratio

C. Centrifugal Compressors. Consist of one or more impellers mounted on a shaft that

spins at 2000 to 20,000 rpm. Stationary diffusers and guide vanes connect flow

43 PEE 508 Petroleum Transport And Storage Dr Fozao Lecture Notes

 between impellers. Each stage consists of one rotating impeller and one stationary
diffuser and guide vanes. Fluid is accelerated radially by impeller then decelerated in
stator.
I. Conversion of kinetic energy to “head”
II. Compression ratio 1.2- 1.5 per stage

Figure 5.2 – Centrifugal compressor

Centrifugal compressor range from 1000 hp to more than 20,000 hp and have a high ratio of
horsepower per unit space or weight.
Advantages:- high horsepower per weight and area, easily mounted for remote operation,
skid mounted, low initial cost, low maintenance and operational cost, high availability
factor, large capacity
Disadvantages:- lower compressor efficiency, limited flexibility for capacity.

Multistage Centrifugal Compressors

Multistage centrifugal compressors can be arranged in a variety of flowpath configurations
employing from one to ten impellers, depending on the head required for the process duty. When
intercooling is not needed, the arrangement is usually a straight-through (inline) configuration.

44 PEE 508 Petroleum Transport And Storage Dr Fozao Lecture Notes

 Major Components.
Case (Casing or Housing). The case (casing or housing) is the pressure-containing component of
the compressor. The case houses the stationary internal components and the compressor rotor.
Bearings are attached to the case to provide both radial and axial support of the rotor.
The case also contains nozzles with inlet and discharge flange connections to introduce flow
into and extract flow from the compressor. The flange connections must be properly sized to limit
the gas velocity as necessary. The case is manufactured in one of two basic types: horizontally or
vertically split. Construction can be cast (iron or steel), forged, or fabricated by Welding.

5.1.4 Specification
In order to specify a compressor, it is necessary to:
- Determine the type
- Number of stages
- Horsepower required
In order to accomplish this, we must know
- Suction pressure
- Required discharged pressure
- Suction temperature
- Gas specific gravity
- Volume to be compressed
Detailed design depends on the type of compressor and the following guidelines can be used
for an approximation;
1. Number of stages: Can be made assuming a maximum compression ratio per stage of 3 to 4
R= (Pd / Ps)1 / N ,

where R = compression ratio, N=number of stages and Pd and Ps are discharged pressure
and suction pressure respectively.
The following approximation of horse power can be made.

The addition of a compression stage requires an additional scrubber, cylinder or case and
more complex controls.
The discharge temperature of any stage of compression can be calculated from:

45 PEE 508 Petroleum Transport And Storage Dr Fozao Lecture Notes

The temperature between stages should be limited to 250 to 275 F to avoid lubricant oil
degradation and damage to packing.

5.2 LNG and Natural Gas Transportation

5.2.1 Introduction
Natural gas to be transported by pipeline must meet certain specification. In addition to
specifications regarding delivery pressure, rate and possibly temperature, other specification
includes:
 Maximum water content
 maximum condensable H-C
 Allowable contaminants such as H2S, CO2,
 Minimum heating value and cleanliness (allowable solid content)

LNG or liquefied natural gas is natural gas that has been temporarily converted into a liquid.
This is done to save space - 610 cubic feet of natural gas can be converted into a single cubic foot
of LNG. This can be done when a refrigeration process is used to condense natural gas into LNG by
cooling it to a temperature of minus 260 oF. This refrigeration process is usually accompanied by
treatments that remove water, carbon dioxide, hydrogen sulfide and other impurities. To
maintain this low temperature during storage and transport, LNG must be placed into cryogenic
tanks - heavily insulated tanks equipped with refrigeration units.
When a shipment of LNG reaches its destination or when LNG is being removed from storage, it
must be regasified. This is done by heating the LNG and allowing it to evaporate back into natural
gas.
Regasification is usually done at a facility where the gas can be placed into storage or
directly into a pipeline for transport.

5.2.2 LNG terminals.

They are basically two types of terminals:
 Liquefaction terminals
 Regasification terminals

Liquefaction terminals generally receive natural gas by pipeline from a well field. Before it is
liquefied, the gas must be cleaned of water, carbon dioxide, hydrogen sulfide and other
impurities that might freeze, become corrosive or interfere with the liquefaction process

46 PEE 508 Petroleum Transport And Storage Dr Fozao Lecture Notes

 (Fig.5.2). Once liquefied, the LNG is sent by pipeline to a LNG carrier ship or into storage to
await transport.

Figure 5.2 – Flow diagram for gas treatment and transportation

Regasification terminals receive natural gas - usually by ship - from other areas. At a regasification
terminal, the LNG might be temporarily stored or sent directly to a regasification plant. Once
regasified, it is sent by pipeline for distribution or placed in temporary storage until it is needed.

Figure 5.3 – LNG terminals

5.2.3 Natural Gas Transport Facilities

Transporting natural gas from wellhead to market involves a series of processes and an array
of physical facilities. Among these are:
1. Gathering Lines: These small-diameter pipelines move natural gas from the wellhead to the
natural gas processing plant or to an interconnection with a larger mainline pipeline.
2. Processing Plant: This operation extracts natural gas liquids and impurities from the natural
gas stream.

47 PEE 508 Petroleum Transport And Storage Dr Fozao Lecture Notes

 3. Mainline Transmission Systems: These wide-diameter, long-distance pipelines transport
natural gas from the producing area to market areas.
4. Market Hubs/Centres – Locations where pipelines intersect and flows are transferred.
5. Underground Storage Facilities – Natural gas is stored in depleted oil and gas reservoirs,
aquifers, and salt caverns for future use.
6. Peak Shaving – System design methodology permitting a natural gas pipeline to meet short-
term surges in customer demands with minimal infrastructure. Peaks can be handled by
using gas from storage or by short-term line-packing.

Figure 5.4 - Natural Gas Transmission Path

5.2.4 Types of Natural Gas Pipelines

Natural gas travels from the wellhead to end consumers through a series of pipelines carry
gas at various pressures. The higher the pressure of gas in a pipeline, the more potentially
dangerous an accident with that pipeline could be. Pipelines are usually buried underground.
Pipeline markers, such as those shown below, do not always sit directly above the pipelines. For
safety before digging, learn whether any pipelines are buried nearby.
The various kinds of pipelines involved in the transportation of the natural gas include the
following:
- Gathering pipelines
- Transmission pipelines
- Distribution pipelines
- Service pipelines
1. The gathering system consists of low pressure, small diameter pipelines that transport raw
natural gas from the wellhead to the processing plant. Should natural gas from a particular
well have high sulfur and carbon dioxide contents (sour gas), a specialized sour gas
gathering pipe must be installed? Sour gas is corrosive, thus its transportation from the
wellhead to the sweetening plant must be done carefully.

48 PEE 508 Petroleum Transport And Storage Dr Fozao Lecture Notes

 2. Transmission pipes can measure anywhere from 6 to 48 inches in diameter. The actual
pipeline consists of a strong carbon steel material, engineered to meet vigorous standards.
The pipe is also covered with a specialized coating to ensure that it does not corrode once
placed in the ground. The purpose of the coating is to protect the pipe from moisture,
which causes corrosion and rusting.
3. Distribution Pipelines - Purpose: Distribution pipelines, also known as "mains," are the
middle step between high pressure transmission lines and low pressure service lines.
Distribution pipelines operate at an intermediate pressure.
Description: Distribution pipelines are small to medium sized pipes (2" to 24" in diameter)
that are regulated and carry odorized gas at varying pressure levels, from as little as 0.3 up
to 200 psi. Distribution pipelines typically operate below their carrying capacity. Distribution
pipelines are made from a variety of materials, including steel, cast iron, plastic, and
occasionally copper.
4. Service Pipelines - Purpose: Service pipelines connect to a meter that delivers natural gas to
individual customers.
Description: Service pipelines are narrow pipes (usually less than 2" diameter) that carry
odorized gas at low pressures, such as 6 psi. Service pipelines are typically made from
plastic, steel, or copper.

5.2.5: Pipeline Inspection and Safety

In order to ensure the efficient and safe operation of the extensive network of natural gas
pipelines, pipeline companies routinely inspect their pipelines for corrosion and defects. This is
done through the use of sophisticated pieces of equipment known as ‘smart pigs.’ Smart pigs are
intelligent robotic devices that are propelled down pipelines to evaluate the interior of the pipe.
Smart pigs can test pipe thickness, and roundness, check for signs of corrosion, detect minute
leaks, and any other defects along the interior of the pipeline that may either impede the flow of
gas, or pose a potential safety risk to the operation of the pipeline. Sending a smart pig down a
pipeline is fittingly known as 'pigging' the pipeline.

5.2.6 Few safety precautions associated with natural gas pipelines:

1. Aerial Patrols - Planes are used to ensure no construction activities are taking place too close to
the route of the pipeline, particularly in residential areas. Unauthorized construction and digging is
the primary threat to pipeline safety.
2. Leak Detection - Natural gas detecting equipment is periodically used by pipeline personnel on
the surface to check for leaks. This is especially important in areas where the natural gas is not
odorized.
3. Pipeline Markers - Signs on the surface above natural gas pipelines indicate the presence of
underground pipelines to the public, to reduce the chance of any interference with the pipeline.

49 PEE 508 Petroleum Transport And Storage Dr Fozao Lecture Notes

4. Gas Sampling - Routine sampling of the natural gas in pipelines ensures its quality, and may also
indicate corrosion of the interior of the pipeline, or the influx of contaminants.
5. Preventative Maintenance - This involves the testing of valves and the removal of surface
impediments to pipeline inspection.
6. Emergency Response - Pipeline companies have extensive emergency response teams that train
for the possibility of a wide range of potential accidents and emergencies.

5.2.7. Compressor Stations

Natural gas is highly pressurized as it travels through an interstate or international pipeline.
To ensure that the natural gas flowing through any one pipeline remains pressurized, compression
of this natural gas is required periodically along the pipe. This is accomplished by compressor
stations, usually placed at 40 to 100 mile intervals along the pipeline. The natural gas enters the
compressor station, where it is compressed by a turbine, motor, or engine.

5.2.8.Metering Stations
In addition to compressing natural gas to reduce its volume and push it through the pipe,
metering stations are placed periodically along interstate or international natural gas pipelines.
These stations allow pipeline companies to monitor the natural gas in their pipes.

5.3.9. Valves
Interstate or international pipelines include a great number of valves along their length.
These valves work like gateways; they are usually open and allow natural gas to flow freely, or they
can be used to stop gas flow along a certain section of pipe.

5.2.10. Control Stations and SCADA (Supervisory Control and Data Acquisition) Systems
To ensure that all customers receive timely delivery of their portion of the gas,
sophisticated control systems monitor the gas as it travels through all sections of what could be a
very lengthy pipeline network. To accomplish the task of monitoring and controlling the natural
gas that is traveling through the pipeline, centralized gas control stations collect, assimilate, and
manage data received from monitoring and compressor stations along the pipe. The information
measured by these field instruments is then gathered in local Remote Terminal Units (RTU) that
transfer the field data to a central location in real time using communication systems, such as
satellite channels, microwave links, or cellular phone connections.

Pipelines are controlled and operated remotely, from what is usually known as The Main Control
Room. In this centre, all the data related to field measurement is consolidated in one central
database. The data is received from multiple RTUs along the pipeline. It is common to find RTUs
installed at every station along the pipeline.

The SCADA System for pipelines: The SCADA (supervisory control and data acquisition) is a type of
industrial control system (ICS). This system at the Main Control Room receives all the field data

50 PEE 508 Petroleum Transport And Storage Dr Fozao Lecture Notes

and presents it to the pipeline operator through a set of screens or Human Machine Interface,
showing the operational conditions of the pipeline. The operator can monitor the hydraulic
conditions of the line, as well as send operational commands (open/close valves, turn on/off
compressors or pumps, change set points, etc.) through the SCADA system to the field.

To optimize and secure the operation of these assets, some pipeline companies are using what is
called Advanced Pipeline Applications, which are software tools installed on top of the SCADA
system, that provide extended functionality to perform leak detection, leak location, batch
tracking (liquid lines), pig tracking, composition tracking, predictive modelling, look ahead
modelling, operator training and more.

51 PEE 508 Petroleum Transport And Storage Dr Fozao Lecture Notes

 CHAPTER 6
STORAGE OF NATURAL GAS

6.1 Storage of Natural Gas in Pressure Tanks

Tanks can be used for storing the liquefied natural gas for several weeks and then they are
refueled again. Storing of gas in liquefied form is an advantageous option, because it is strongly
condensed and occupies volume approximately 660 times less than in gaseous form under the
normal conditions. Nowadays, the LNG becomes more and more popular fuel in areas as:
- gas supplying of small villages and places which cannot be connected to the gas piping,
- satisfying short-term, culminating demands for gas, during 1 to 4 months of the year (i.e. the
winter period),
- supplying of gas consumers temporarily cut off from the gas piping (i.e. due to repairs or
maintenance of the piping),
- supplying final LNG consumers as an alternative for gas delivered by conventional piping.
This is the method of gas delivery diversification which guarantees the energy
independence,
- supplying the LNG car filling stations.
The local LNG supply station consists of the cryogenic tank and the vaporising installation.
The main cost of the local station is a cryogenic tank. The tank is usually built with two walls and
the suitable layers of insulation with the purpose of obtaining the highest level of thermal
insulation efficiency. Inner tank and piping are made of the stainless steel. Therefore, usage of the
cryogenic tank has significant contribution in operating costs.

The second option is a free-style construction, which only fulfils requirements applied to limiting
outline dimensions in road or rail transport. European regulations allow transporting containers
which have transverse dimensions of 2438 mm x 2591 mm, while the tank transported as a
common load can have transverse dimensions 3000 mm x 3000 mm. So, assuming the same length
of a mobile tank, a larger capacity can be obtained. Therefore, construction of a mobile tank gives
an opportunity to use wider range of tank dimensions, what can be used to obtain better
operating parameters. Four design versions of cryogenic tanks were developed. The types include
various tank diameters and operating pressures 7 and 12 bar:

- type I – tank installed in a standard ISO TC 104 container frame (Fig. 1) with the parameters:
outer tank diameter D=2350 mm, length L=5946 mm, volume V=19 m3 and operating pressure
p=7 bar,
- type II – tank constructed as variant I, with decreased dimensions of inner supports for the sake
of assumption, that only empty tank can be transported,
- type III – tank with the outer diameter D=3000 mm and length L=6058 mm, what gives the
volume V=32 m3; operating pressure p=7 bar (Fig. 2),

52 PEE 508 Petroleum Transport And Storage Dr Fozao Lecture Notes

- type IV – tank as in variant III, but operating pressure increased to 12.5 bar (Fig.2).

6.1.1 The design of the tank type I and II

Tank models of variants I and II are shown in Fig. 1 Stainless steel tank 1, in which the
cryogenic fluid is stored, is mounted by means of supports 2 of insulating material in the outer
shielding tank 3, made of carbon steel. In the space between the tanks, there is a multi-layer
insulation material 4 with the radiation shields 5. The air has been removed from the space
between the tanks 6 in order to obtain a medium-level vacuum. The tank with fittings is placed on
external supports 7 in container frame 8. Container frame and the outer tank, together with other
construction elements must have sufficient strength to meet the requirements of road rail and
marine transportation in this case. LNG storage container of type II has a structure similar to the
mobile tank container I.

Fig. 6.1. Model of the LNG tank container for LNG transportation and storage, tank type I
and II : 1 – inner tank,2 – inner supports made of plastic materials, 3 – outer tank, , 4 –
insulation, 5 – radiation shields, 6 – the vacuum, 7 – outer supports, 8 – container frame, 9
– fittings

6.1.2 The design of the mobile tank built for type III and IV
For this comparison, also included a mobile tank with a design similar to the tank container,
but devoid of container frames and mountings. By omitting the limitations of container it was
possible to increase the capacity of the tank. In the design process of the tank, the ability to road
transport was taken into account. View of the mobile tank is shown in Fig. 2.

53 PEE 508 Petroleum Transport And Storage Dr Fozao Lecture Notes

 Fig. 6.2. Model of the mobile LNG, tanktype III and IV: 1 – inner tank, 2 – outer tank, 3 – inner
supports made of plastic materials, 4 – outer supports, 5 – insulation, 6 – radiation shields, 7 –
the vacuum, 8 – fittings

6.1.3 Heat transfer to the tank

Due to the large temperature differences between the medium and the environment, the
heat transfer to the tank may occur in three ways: by conduction, by convection and by
radiation. Using the theory of heat transition can be determined by these methods.

6.2 UNDERGROUND STORAGE OF NATURAL GAS (See materials under chapter 3)

Underground gas storage may be defined as the storage in reservoirs of porous rock at
various depths beneath the surface of the earth of large quantities of natural gas not native to
these reservoirs. Before planning storage-field capacity and deliverability, one must have
knowledge of the market requirements. The influence of the weather on sales of gas for space
heating of buildings is important. When the annual storage volumes and daily delivery rates are
developed for a distribution system, the facilities for storage fields may be designed to meet the
need.

6.2.1 BASIC CHARACTER OF A STORAGE RESERVOIR

A section and a plan view of a reservoir equipped for storage are shown in Figure 4. The
storage container is a porous solid with a cap rock overhead to prevent vertical migration. Water
in the storage zone underlies all or part of the gas filled sane or carbonate. Wells designated I/W,
for "input and withdrawal", are completed in the storage zone. Observation wells are completed in
the water-bearing porous media to permit observation of the pressure and any migrating gas.

54 PEE 508 Petroleum Transport And Storage Dr Fozao Lecture Notes

Depleted gas reservoirs are prime candidates for conversion to storage. The size of the reservoir is
determined by calculation from geological data or from the production and reservoir pressures.
Such calculations are relatively simple for cases with little or no water movement.

The typical injection and withdrawal pattern in storage is shown by Figure 5. A delivery system can
be installed to cover the market demand for the year, and ideally the unused gas in summer is
stored for use in winter. Some flexibility is needed, since variation in weather causes varying
demands. Storage fields and pipelines may require some period of reduced load in summer for
testing.

The storage gas is considered in two parts. The base gas provides for sufficient gas pressure to
produce gas adequately at the end of withdrawal. The gas at pressures above the base pressure is
termed working gas storage gas and makes up the annual turnover of gas. Figure 6 illustrates the
pressure-gas quantity relation, showing base gas and working storage.

The use of pressures above discovery, a delta pressure, gives added usage for a given container
(larger than the discovery gas quantity). This practice has demonstrated large economic benefits to
the storage industry for converted gas reservoirs. In gas storage, pressures in the earth may be up
to 0.7 psi/ft.

6.2.3

6.3 STORAGE OF LIQUEFIED NATURAL GAS

The natural gas produced from a well cannot be used all at once and thus part must be stored for
the future. This is the primary reason for storing LNG. Other reasons may be to:
- To balance flow in pipeline systems
- To maintain contractual balance
- To level production over periods of fluctuating demands due to market speculation.

6.3.1 Types of storage tanks

Basically there are eight types of tanks used to store liquids:
1. Fixed-roof tanks
2. External floating roof tanks
3. Internal floating roof tanks
4. Domed external floating roof tanks
5. Horizontal tanks
6. Pressure tanks
7. Variable vapor space tanks
8. LNG (Liquefied Natural Gas) tanks

55 PEE 508 Petroleum Transport And Storage Dr Fozao Lecture Notes

The first four tank types are cylindrical in shape with the axis oriented perpendicular to the sub
grade. These tanks are almost exclusively above ground.

1. Pressure tanks often are horizontally oriented and spherically shaped to maintain structural
integrity at high pressures. Vapor is displaced by liquid. Loss of vapor occurs only when the
tank's vapor storage capacity is exceeded. They are located above ground. Pressure Tank
Go to Spherical and Cylindrical Pressure Vessels

2. Containment Basin A containment basin of a product should be built around the tanks are
made of brick or concrete and the lining should be impervious to liquid stored to prevent
spills that can cause fire, property damage or contaminate the environment. The minimum
capacity of the basin volume should be equal to the capacity of the largest tank plus 10% of
the sum of the capacities of others. To prevent a spill or other emergency the walls of the
containment basin must be resistant to the product and must be able to withstand
considerable pressure. The drain Valve, which should be incorporated into the outer side of
the containment basin, must be closed to prevent possible contamination to the
environment.
3. Fixed-Roof Tank Of currently used tank designs, the fixed-roof tank is the least expensive to
construct and is generally considered the minimum acceptable equipment for storing
liquids.
A typical fixed-roof tank consists of a cylindrical steel shell with a cone- or dome-shaped
roof that is permanently affixed to the tank shell.
Storage tanks are usually fully welded and designed for both liquid and vapor tight, while
older tanks are often have a riveted or bolted construction and are not vapor tight. A
breather Valve (pressure-vacuum Valve), which is commonly installed on many fixed-roof
tanks, allows the tank to operate at a slight internal pressure or vacuum. This Valve
prevents the release of vapors during only very small changes in temperature, barometric
pressure, or liquid level, the emissions from a fixed-roof tank can be appreciable.

4. External Floating Roof Tank

A typical external floating roof tank consists of an open-topped cylindrical steel shell
equipped with a roof that floats on the surface of the stored liquid, rising and falling with
the liquid level losses occur during tank filling. The floating roof is comprised of a deck,
fittings, and rim seal system. Floating roof decks are constructed of welded steel plates and
are of three general types: pan, pontoon, and double deck. Although numerous pan-type
decks are currently in use, the present trend is toward pontoon and double-deck type
floating roofs. Manufacturers supply various versions of these basic types of floating decks,
which are tailored to emphasize particular features, such as full liquid contact, load-carrying
capacity, roof stability, or pontoon arrangement. The liquid surface is covered by the

56 PEE 508 Petroleum Transport And Storage Dr Fozao Lecture Notes

 floating deck, except in the small annular space between the deck and the shell; the deck
may contact the liquid or float directly above the surface on pontoons. External floating
roof tanks are equipped with a rim seal system, which is attached to the roof perimeter and
contacts the tank wall. The rim seal system slides against the tank wall as the roof is raised
and lowered. The floating deck is also equipped with fittings that penetrate the deck and
serve operational functions. The external floating roof design is such that evaporative
losses from the stored liquid are limited to losses from the rim seal system and deck fittings
(standing storage loss) and any exposed liquid on the tank walls (withdrawal loss).
5. Internal Floating Roof Tank That tanks has both, a permanent fixed roof and a floating roof
inside. There are two basic types of internal floating roof tanks:
tanks in which the fixed roof is supported by vertical columns within the tank and tanks with
a self-supporting fixed roof and no internal support columns.

The fixed roof is not necessarily free of openings but does span the entire open plan
area of the vessel. Fixed roof tanks that have been retrofitted to employ an internal floating
roof are typically of the first type, while external floating roof tanks that have been
converted to an internal floating roof tank typically have a self-supporting roof. Tanks
initially constructed with both a fixed roof and an internal floating roof may be of either
type.

An internal floating roof tank has both a permanently affixed roof and a roof that
floats inside the tank on the liquid surface (contact deck) or is supported on pontoons
several inches above the liquid surface (noncontact deck). or integral units mounted atop
fixed roof tanks.

6. Domed External Floating Roof Tank

Domed external floating roof tanks have the heavier type of deck used in external floating
roof tanks as well as a fixed roof at the top of the shell like internal floating roof tanks.
Domed external floating roof tanks usually result from retrofitting an external floating roof
tank with a fixed roof. . As with the internal floating roof tanks, the function of the fixed
roof is not to act as a vapor barrier, but to block the wind. The type of fixed roof most
commonly used is a self-supporting aluminum dome roof, which is of bolted construction.
Like the internal floating roof tanks, these tanks are freely vented by circulation vents at the
top of the fixed roof. The deck fittings and rim seals, however, are basically identical to
those on external floating roof tanks.

7. Horizontal Tank
Horizontal tanks are constructed for both above-ground and underground service.
Horizontal tanks are usually constructed of steel, steel with a fiberglass overlay, or fiberglass-
reinforced polyester. Horizontal tanks are generally small storage tanks. Horizontal tanks are

57 PEE 508 Petroleum Transport And Storage Dr Fozao Lecture Notes

constructed such that the length of the tank is not greater than six times the diameter to ensure
structural integrity Horizontal tanks are usually equipped with pressure-vacuum vents, gauge
hatches and sample wells, and manholes to provide accessibility to these tanks. In addition,
underground tanks may be cathodically protected to prevent corrosion of the tank shell. Cathodic
protection is accomplished by placing sacrificial anodes in the tank that are connected to an
impressed current system or by using galvanic anodes in the tank. However, internal cathodic
protection is no longer widely used in the petroleum industry, due to corrosion inhibitors that are
now found in most refined petroleum products.

8. Variable Vapor Space

Tank Variable vapor space tanks are equipped with expandable vapor reservoirs to
accommodate vapor volume fluctuations attributable to temperature and barometric pressure
changes. Although variable vapor space tanks are sometimes used independently, they are
normally connected to the vapor spaces of one or more fixed roof tanks. The two most common
types of variable vapor space tanks are lifter roof tanks and flexible diaphragm tanks. Lifter roof
tanks have a telescoping roof that fits loosely around the outside of the main tank wall. The space
between the roof and the wall is closed by either a wet seal, which is a trough filled with liquid, or
a dry seal, which uses a flexible coated fabric. Variable vapor space tanks can be cylindrical or
spherical in shape.

58 PEE 508 Petroleum Transport And Storage Dr Fozao Lecture Notes