Review

Saturday, October 21, 2017 10:46 AM

Which of these is not one of the 5 moving parts- supply logistics and demand -
logistics has transport processing and storage

Which defines a pipeline interconnect- where two pipes meet

Most simple scheduling transaction process is buy/sell

Entrance of a processing plant is called the inlet

The gas comes out is called the outlet gas comes in the inlet

NGL -

Higher btu is in the inlet

A bunch of supplies to one place is called pooling

Two types of charges:

Activity- Commodity
Rights - Demand

When u put gas in the ground - in accounting you have an asset, liability, OE gas in the
ground is an asset

Lower of cost or market - reduce inv 2 reflect market price

Primary facility used to store gas- underground

Scheduler needs to schedule everything at lowest cost (the most economic way he
can)

Intentional/Unintentional -Storage/Imbalance

What is the main component of gas - methane

Intentional/Unintentional -Storage/Imbalance

What is the main component of gas - methane

Charge for keeping the gas for month to month - in place, demand charge(right to
capacity)

When supply goes down price goes up,

Transport agreement used to shield supplier from customer is called the masking
agreement

When fuel is calculated two types -

One based on distance - mileage
One is called a postage - generic charge based on area

In industry the standard digits is 6 to calculate prices in the gas industry

Inflows - three ways to flow gas

1. Purchase
2. Imbalance
3. Storage

A producer further away from the market place has a tendency to reduce price, based
on additional distance. When ever logistical costs are lower for competitior you need
to recuce

Middle charges- logistical costs

All the components extracted out of storage -anes (not mud)

Storage for profit- abitrage

When you have an imbalance wots the reason behind it - operational variances.

Charge for keeping storage overnight - in place fees

Operational, seasonal, seasonal peaking, peaking, arbitrage

Process is a cost and can produce revenue, its within logistics

Operational, seasonal, seasonal peaking, peaking, arbitrage

Process is a cost and can produce revenue, its within logistics

Most important price to consider- landed price

Pricing gas into ground and going out

In - landed, weighted, index
Coming out, fifo, lifo, fofi, WA