NATURAL GAS LIQUID SAMPLING - Appastorage

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NATURAL GAS LIQUID SAMPLINGLEVERAGING 60 YEARS OF EXPERIENCE IN TEXASKenneth O. Thompson, Mustang SamplingAppalachian Storage Hub ConferenceSouth Pointe, PennsylvaniaJune 5-6, 2019Copyright 2019 Mustang Sampling, LLC. All Rights Reserved. CONFIDENTIAL and PROPRIETARY to Mustang Sampling.

Outline Introduction to Mustang Sampling Global Energy & North America Natural Gas Landscape Determination and Product Analysis Composition of Natural Gas Mixtures Composition of Natural Gas Liquid Mixtures Standards for NGL Closing CommentsCopyright 2019 Mustang Sampling, LLC. All Rights Reserved. CONFIDENTIAL and PROPRIETARY to Mustang Sampling.

Outline Introduction to Mustang Sampling Global Energy & North America Natural Gas Landscape Determination and Product Analysis Composition of Natural Gas Mixtures Composition of Natural Gas Liquid Mixtures Standards for NGL Closing CommentsCopyright 2019 Mustang Sampling, LLC. All Rights Reserved. CONFIDENTIAL and PROPRIETARY to Mustang Sampling.

Mustang Sampling – Who We Are Mustang Sampling is dedicated to providingAnalytically Accurate solutions, products,systems, and services to all areas of the naturalgas industry Complete fiscal metering systems Orifice, Ultrasonic, Coriolis, Turbine Meters Sampling systems for natural gas, liquids, and LNG Energy measurement systems Design, Civil, Construction, Commissioning, Sales,and Maintenance support Product Development Sampling products developed primarily fromnecessity Virtually all products address specific customer needCopyright 2019 Mustang Sampling, LLC. All Rights Reserved. CONFIDENTIAL and PROPRIETARY to Mustang Sampling.

Mustang Sampling Core Business Mustang Sampling is dedicated to providing AnalyticallyAccurate solutions, products, systems, and services to allareas of the natural gas industry Complete fiscal metering systems Orifice, Ultrasonic, Coriolis, Turbine Meters Sampling systems for natural gas, liquids, and LNG Energy measurement systems Design, Civil, Construction, Commissioning, Sales, and MaintenancesupportCopyright 2019 Mustang Sampling, LLC. All Rights Reserved. CONFIDENTIAL and PROPRIETARY to Mustang Sampling.

Mustang Sampling’s Experience Natural Gas Liquid Analysis is Core Competency Early experience developed in Texas in and around Mont Belvieu Enterprise Products ONEOKUsed vaporizing techniques to convert liquids to gasExpanded to heavier liquids than ethane and propaneCreated Intellectual property available globallyAppalachian Storage Hub will be similar to Mont BelvieuCopyright 2019 Mustang Sampling, LLC. All Rights Reserved. CONFIDENTIAL and PROPRIETARY to Mustang Sampling.

Outline Introduction to Mustang Sampling Global Energy & North America Natural Gas Landscape Determination and Product Analysis Composition of Natural Gas Mixtures Composition of Natural Gas Liquid Mixtures Standards for NGL Closing CommentsCopyright 2019 Mustang Sampling, LLC. All Rights Reserved. CONFIDENTIAL and PROPRIETARY to Mustang Sampling.

Global Natural Gas Growth Led by US ShaleKey Features (BP Report) Global natural gas growthwill be led by US Shale Largest single demandgrowth is LNG export Second largest demand iselectricity production Energy consumption willcontinue to grow globallyfor decades (or longer) Competition from Qatar& Australia is urging USconstruction NGL production is linkedto natural gas associateddepositsCopyright 2019 Mustang Sampling, LLC. All Rights Reserved. CONFIDENTIAL and PROPRIETARY to Mustang Sampling.

Wide Distribution of Energy ValuesTypical Shale Gas Heating ValuesShale Features Gas composition is stronglydependent on exact locationand depth May not meetinterchangeabilityrequirements for fuel Liquid content has significantvalue Variations change with timefrom same locationsSource: Ed Bowles, 2011 PGJInterchangeability ReportCopyright 2019 Mustang Sampling, LLC. All Rights Reserved. CONFIDENTIAL and PROPRIETARY to Mustang Sampling.9

Ethane Production Forecast & FundamentalsU.S.A. by RegionKey Features & Fundamentals (US DOE Report) NGL production is linked to natural gas asassociated deposits along with otherheavier alkanes (propane, butane, .) Ethane is used almost exclusively toproduce ethylene, which is used in thepetrochemical industry to produce plastics Ethane transportation requires dedicatedpipelines and is difficult to move otherwise Supply and demand must be closelymatched (due to last two bullet points), solarge supplies of domestic NGL’s dictatelocal storage be made available Petrochemical industry flourishes as supplygrowsCopyright 2019 Mustang Sampling, LLC. All Rights Reserved. CONFIDENTIAL and PROPRIETARY to Mustang Sampling.10

NGL Production ForecastProduction by TypeKey Features NGL production hascontinued to increase withnatural gas production foralmost ten years Ethane represents about40% of the total NGL marketby volume Associated liquids oftendictate drilling, financialdynamicsCopyright 2019 Mustang Sampling, LLC. All Rights Reserved. CONFIDENTIAL and PROPRIETARY to Mustang Sampling.

Mont Belvieu, TX Storage HubKey Features Associated with NGL Map is approximately 10 square miles Facility has roots more than 60 years old Enterprise, ONEOK, Lone Star NGL, & TargaResources have major facilities Area includes Natural Gas ProcessingPlants, Fractionation Plants, NGL Pipelines,NGL Storage, Import & Export Facilities, Rail& Truck Facilities Facility is located within 30 miles ofHouston, Texas (4.7M people) Facility is often confused with Strategic OilReserve due to its size and locationCopyright 2019 Mustang Sampling, LLC. All Rights Reserved. CONFIDENTIAL and PROPRIETARY to Mustang Sampling.12

Potential & Existing Ethane Impact inAppalachian ValleyCopyright 2019 Mustang Sampling, LLC. All Rights Reserved. CONFIDENTIAL and PROPRIETARY to Mustang Sampling.13

Outline Introduction to Mustang Sampling Global Energy & North America Natural Gas Landscape Determination and Product Analysis Composition of Natural Gas Mixtures Composition of Natural Gas Liquid Mixtures Standards for NGL Closing CommentsCopyright 2019 Mustang Sampling, LLC. All Rights Reserved. CONFIDENTIAL and PROPRIETARY to Mustang Sampling.

What is Natural Gas?And Why is the Composition Important?Natural gas is a naturally occurring hydrocarbon gas mixture consisting primarily of methane, butcommonly including varying amounts of other higher alkanes, and sometimes a small percentage ofcarbon dioxide, nitrogen, hydrogen sulfide, or helium (Petro-wiki) Natural gas is not all the same. Natural gas components vary with location, depth, and time. The behavior of natural gas depends on the composition and conditions of the gas. The value of individual components within natural gas are different, so more valuablecomponents are often stripped from the mixture to sell separately (e.g. propane) The energy value of natural gas depends on the composition of the gas. Generally, highermethane values equate to lower energy values. Monetization of natural gas requires full knowledge of the composition. Natural gas composition measurement is required for safety and compliance.Copyright 2019 Mustang Sampling, LLC. All Rights Reserved. CONFIDENTIAL and PROPRIETARY to Mustang Sampling.15

Fundamentals of SamplingAnalytically Accurate Methods & Processes for GasFundamentals of SamplingSampling allows the user to understand the content of their vessel or pipelineAnalytically Accurate sampling requires all of the following:Tapping sample from reservoir contained in vessel or pipelineExtraction of a representative sample from a vessel or pipelineTransportation of sample to sample conditioning systemAdjustment of sample pressure and temperatureTransformation to gas phase of sample if neededDelivery of sample to analyzerCopyright 2019 Mustang Sampling, LLC. All Rights Reserved. CONFIDENTIAL and PROPRIETARY to Mustang Sampling. Mustang Sampling 2016

Sampling & Analysis of Natural GasAnalytically Accurate Methods & ProcessesCopyright 2019 Mustang Sampling, LLC. All Rights Reserved. CONFIDENTIAL and PROPRIETARY to Mustang Sampling.17

Sampling & Analysis of Natural Gas LiquidAnalytically Accurate Methods & ProcessesCopyright 2019 Mustang Sampling, LLC. All Rights Reserved. CONFIDENTIAL and PROPRIETARY to Mustang Sampling.18

Phase Curve ElementsPure Substance vs. MixtureCopyright 2019 Mustang Sampling, LLC. All Rights Reserved. CONFIDENTIAL and PROPRIETARY to Mustang Sampling.19

Phase Curve – Dry GasPhase Curve withMustang HeatedRegulator at 80 FSample pointCritical rbon H18Molar 850.008090.005360.004050.00135Copyright 2019 Mustang Sampling, LLC. All Rights Reserved. CONFIDENTIAL and PROPRIETARY to Mustang Sampling.CH495.1223%No. Name123456789101112MethaneEthaneCarbon -Hexanen-Pentanen-Heptanen-OctaneFormulaMolar 8850.008090.005360.004050.0013520

Phase Curve – Wet GasPhase Curve withVaporizer andMustang HeatedJoule-ThomsonRegulator at 140 FCH475.2789%Sample pointCritical pointMustangSamplingPointCopyright 2019 Mustang Sampling, LLC. All Rights Reserved. CONFIDENTIAL and PROPRIETARY to Mustang Sampling.No. bon 0C5H12C5H12C6H14C7H16C8H1821Molar 0.3540.005360.08340.0429

Phase Curve – Natural Gas LiquidsPhase Curve withVaporizer andMustang HeatedJoule-ThomsonRegulator at 300 FCH424.4747%Sample pointCritical pointMustangSamplingPointCopyright 2019 Mustang Sampling, LLC. All Rights Reserved. CONFIDENTIAL and PROPRIETARY to Mustang Sampling.No. IsobutaneCarbon DioxideNitrogenWaterFormulaMolar 36733.92523.22242.04880.06520.024122

NGL Sample Conditioning Vaporization is necessary for heavy orliquid samples Boiling point determines requirement Line between liquid and vapor not clear Required temperature may exceedlimits of equipment in some cases Sample points may not be ideal Sample point often inside two phaseenvelope Liquid volume fractions fluctuate widelynear critical pointsCopyright 2019 Mustang Sampling, LLC. All Rights Reserved. CONFIDENTIAL and PROPRIETARY to Mustang Sampling.23

Mustang Vaporizer – MV The Mustang Vaporizer (MV) flashvaporizes liquid samples for introductioninto gas analysis systems. Liquid samplesare maintained near line conditions untilreaching a flash chamber within thevaporizer, preventing pre-vaporization.The energy for vaporization is providedby an electric cartridge heater withsufficiently large surface area tomaintain a stable gas temperaturethroughout the process.Copyright 2019 Mustang Sampling, LLC. All Rights Reserved. CONFIDENTIAL and PROPRIETARY to Mustang Sampling. Thermal cutoff Versatile conduitconnections Integral heater andcontroller Integral flowrestrictor on inlet24

Mustang Vacuum Jacketed Tubing –VJT This highly efficient design of theMustang Vacuum Jacketed tubing utilizesmultilayered material within a vacuumsealed space for efficient insulation ofthe inner liquid transfer line.Non-conductive spacers are utilized forthe inner line which reduces heattransfer. This flexible stainless steeltubing is custom-designed to meetindividual project needs for inner pipesize and overall length. Flow and variousapplication requirements are consideredwith each engineered unit for continuityof quality.Copyright 2019 Mustang Sampling, LLC. All Rights Reserved. CONFIDENTIAL and PROPRIETARY to Mustang Sampling. Multi-layeredinsulation Non-conductivespacers Flexible stainlesssteel tubing Patented gas-lineprobe adapter forconnecting vacuumjacketed tubing25

Mustang Certiprobe ThreadedSample ExtractorThe threaded Mustang Certiprobe is theinitial access point for a sampling systemwithin a natural gas, natural gas liquid,chemical process, or biogas pipeline orvessel. The Certiprobe is available in avariety of lengths, materials, and pressureratings to accommodate a wide range ofapplications in threaded configurations.The Certiprobe sample extractor designincludes Nondestructive Examination (NDE)of Positive Material Identification (PMI) andDye Penetrant Inspection (DPI) for all welds.Stress analysis is performed, using pipelineconditions, prior to pipeline installation.Copyright 2019 Mustang Sampling, LLC. All Rights Reserved. CONFIDENTIAL and PROPRIETARY to Mustang Sampling. Customer-specifiedmetallurgy & rating Includes NDE, DyePenetrant (PT), Hydrotest, and PMI(if requested) Threaded design Large bore diameter Designed for highvelocity gas stream26

Mustang NGL Sample ConditioningSystem – MNGL SINGLE TEMPERATURE CONTROLLERItem NumberDescription1Stainless Steel Insulated Enclosure2Mustang Vaporizer3Sample Inlet (from process)4Sample Outlet (to analyzer(s))5Single or Multi-Stage Mustang Heated Regulator6Power Switch7PID Temperature ControllerCopyright 2019 Mustang Sampling, LLC. All Rights Reserved. CONFIDENTIAL and PROPRIETARY to Mustang Sampling.27

Mustang NGL Sample ConditioningSystem – MNGL DUAL TEMPERATURE CONTROLLERItem NumberDescription1Manual Liquid Pressure Regulator2Single Path Mustang Vaporizer3Power Switch4RS-485 Communications5Dual PID Temperature Controller6Stainless Steel Insulated Enclosure7Sample Outlet8Single or Multi-Stage Mustang Heated Regulator9Heated Liquid Block10DrainCopyright 2019 Mustang Sampling, LLC. All Rights Reserved. CONFIDENTIAL and PROPRIETARY to Mustang Sampling.28

Mustang NGL Sample ConditioningSystem – MNGL 1DUAL TEMPERATURE CONTROLLERwith FILTRATION & SHUT DOWN#Description#Description1Stainless Steel InsulatedEnclosure10Sample Outlet (to analyzer)11Power Source Switch12Dual PID TemperatureController710682Sample Inlet (from process)3Particulate Filter4Filter Drain to Speed Loop13Communications Port5Coalescing Filter14Armored Flow Meter26Manual Liquid Regulator15Liquid Drain37Shut-off Valve16Thermal Shut-off Valve8Single Path Mustang Vaporizer17Relief Valve9Single or Multi-stage MustangHeated Regulator91751116144121513Copyright 2019 Mustang Sampling, LLC. All Rights Reserved. CONFIDENTIAL and PROPRIETARY to Mustang Sampling.29

Outline Introduction to Mustang Sampling Global Energy & North America Natural Gas Landscape Determination and Product Analysis Composition of Natural Gas Mixtures Composition of Natural Gas Liquid Mixtures Standards for NGL Closing CommentsCopyright 2019 Mustang Sampling, LLC. All Rights Reserved. CONFIDENTIAL and PROPRIETARY to Mustang Sampling.

NGL Specification (Y-Grade)Copyright 2019 Mustang Sampling, LLC. All Rights Reserved. CONFIDENTIAL and PROPRIETARY to Mustang Sampling.31

Standards for NGL MeasurementCombination of API, GPA, & ASTM StandardsCopyright 2019 Mustang Sampling, LLC. All Rights Reserved. CONFIDENTIAL and PROPRIETARY to Mustang Sampling.32

Outline Introduction to Mustang Sampling Global Energy & North America Natural Gas Landscape Determination and Product Analysis Composition of Natural Gas Mixtures Composition of Natural Gas Liquid Mixtures Standards for NGL Closing CommentsCopyright 2019 Mustang Sampling, LLC. All Rights Reserved. CONFIDENTIAL and PROPRIETARY to Mustang Sampling.

THANK YOU.Copyright 2019 Mustang Sampling, LLC. All Rights Reserved. CONFIDENTIAL and PROPRIETARY to Mustang Sampling.

Mont Belvieu, TX Storage Hub Key Features Associated with NGL Map is approximately 10 square miles Facility has roots more than 60 years old Enterprise, ONEOK, Lone Star NGL, & Targa Resources have major facilities Area includes Natural Gas Processing Plants, Fractionation Plants, NGL Pipelines,

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