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“spending hundreds and hundreds and hundreds of billions of dollars every year for oil, much of it from the Middle East, is just about the single stupidest thing that modern society could possibly do. It’s very difficult to think of anything more idiotic than that.”

~ R. James Woolsey, Jr., former Director of the CIA

 
Price of Addiction
###
to Foreign Oil

 

 







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Crude Oil Refineries
www.CrudeOilRefineries.com

Crude Oil RefineriesCrude Oil Storage  and  Refineries


What are crude oil refineries?

Crude oil refineries, or simply refineries, are facilities that process crude oil into refined petroleum products that include; diesel, gasoline and heating oil.

 

U.S. Refineries Operable Capacity
(Atmospheric Crude Oil Distillation Capacity
as of January 1, 2008)

Rank

Company Name

State

Site

Barrels per
Calendar Day

1

EXXONMOBIL REFINING & SUPPLY CO

Texas

BAYTOWN

567,000

2

EXXONMOBIL REFINING & SUPPLY CO

Louisiana

BATON ROUGE

503,000

3

BP PRODUCTS NORTH AMERICA INC

Texas

TEXAS CITY

467,720

4

CITGO PETROLEUM CORP

Louisiana

LAKE CHARLES

429,500

5

BP PRODUCTS NORTH AMERICA INC

Indiana

WHITING

410,000

6

EXXONMOBIL REFINING & SUPPLY CO

Texas

BEAUMONT

348,500

7

SUNOCO INC (R&M)

Pennsylvania

PHILADELPHIA

335,000

8

CHEVRON USA INC

Mississippi

PASCAGOULA

330,000

9

DEER PARK REFINING LTD PARTNERSHIP

Texas

DEER PARK

329,800

10

WRB REFINING LLC

Illinois

WOOD RIVER

306,000

11

PREMCOR REFINING GROUP INC

Texas

PORT ARTHUR

289,000

12

Flint Hills Resources LP

Minnesota

SAINT PAUL

288,150

13

Flint Hills Resources LP

Texas

CORPUS CHRISTI

288,126

14

Motiva Enterprises LLC

Texas

PORT ARTHUR

285,000

15

HOUSTON REFINING LP

Texas

HOUSTON

270,600

16

BP West Coast Products LLC

California

LOS ANGELES

265,000

17

CHEVRON USA INC

California

EL SEGUNDO

260,000

18

MARATHON PETROLEUM CO LLC

Louisiana

GARYVILLE

256,000

19

CONOCOPHILLIPS COMPANY

Louisiana

BELLE CHASSE

247,000

20

CONOCOPHILLIPS COMPANY

Texas

SWEENY

247,000

21

CHEVRON USA INC

California

RICHMOND

242,901

22

CONOCOPHILLIPS COMPANY

Louisiana

WESTLAKE

239,400

23

EXXONMOBIL REFINING & SUPPLY CO

Illinois

JOLIET

238,600

24

CONOCOPHILLIPS COMPANY

New Jersey

LINDEN

238,000

25

Motiva Enterprises LLC

Louisiana

NORCO

236,400

26

Motiva Enterprises LLC

Louisiana

CONVENT

235,000

27

TOTAL PETROCHEMICALS INC

Texas

PORT ARTHUR

232,000

28

MARATHON PETROLEUM CO LLC

Kentucky

CATLETTSBURG

226,000

29

BP West Coast Products LLC

Washington

FERNDALE

225,000

30

FLINT HILLS RESOURCES ALASKA LLC

Alaska

NORTH POLE

210,000

31

MARATHON PETROLEUM CO LLC

Illinois

ROBINSON

204,000

32

VALERO REFINING CO TEXAS LP

Texas

TEXAS CITY

199,500

33

CONOCOPHILLIPS COMPANY

Oklahoma

PONCA CITY

194,000

34

Chalmette Refining LLC

Louisiana

CHALMETTE

192,760

35

VALERO REFINING NEW ORLEANS LLC

Louisiana

NORCO

185,003

36

CONOCOPHILLIPS COMPANY

Pennsylvania

TRAINER

185,000

37

PREMCOR REFINING GROUP INC

Delaware

DELAWARE CITY

182,200

38

PREMCOR REFINING GROUP INC

Tennessee

MEMPHIS

180,000

39

SUNOCO INC

Pennsylvania

MARCUS HOOK

178,000

40

VALERO ENERGY CORPORATION

Texas

SUNRAY

171,000

41

PDV Midwest Refining LLC

Illinois

LEMONT

167,000

42

TESORO REFINING & MARKETING CO

California

MARTINEZ

166,000

43

SUNOCO INC

Ohio

TOLEDO

160,000

44

VALERO REFINING CO NEW JERSEY

New Jersey

PAULSBORO

160,000

45

CITGO REFINING & CHEMICAL INC

Texas

CORPUS CHRISTI

156,000

46

Shell Oil Products US

California

MARTINEZ

155,600

47

EXXONMOBIL REFINING & SUPPLY CO

California

TORRANCE

149,500

48

LIMA REFINING COMPANY

Ohio

LIMA

146,200

49

WRB REFINING LLC

Texas

BORGER

146,000

50

Shell Oil Products US

Washington

ANACORTES

145,000

51

SUNOCO INC

New Jersey

WESTVILLE

145,000

52

VALERO REFINING CO CALIFORNIA

California

BENICIA

144,000

53

VALERO REFINING CO TEXAS LP

Texas

CORPUS CHRISTI

142,000

54

CONOCOPHILLIPS COMPANY

California

WILMINGTON

139,000

55

BP PRODUCTS NORTH AMERICA INC

Ohio

TOLEDO

131,000

56

WESTERN REFINING COMPANY LP

Texas

EL PASO

122,000

57

MURPHY OIL USA INC

Louisiana

MERAUX

120,000

58

Tesoro West Coast

Washington

ANACORTES

120,000

59

COFFEYVILLE RESOURCES RFG & MKTG LLC

Kansas

COFFEYVILLE

115,700

60

FRONTIER EL DORADO REFINING CO

Kansas

EL DORADO

107,500

61

MARATHON PETROLEUM CO LLC

Michigan

DETROIT

102,000

62

CONOCOPHILLIPS COMPANY

Washington

FERNDALE

100,000

63

PASADENA REFINING SYSTEMS INC

Texas

PASADENA

100,000

64

TESORO REFINING & MARKETING CO

California

WILMINGTON

97,000

65

TESORO HAWAII CORP

Hawaii

EWA BEACH

93,500

66

VALERO ENERGY CORPORATION

Texas

THREE RIVERS

93,000

67

VALERO REFINING CO OKLAHOMA

Oklahoma

ARDMORE

87,400

68

SHELL CHEMICAL LP

Alabama

SARALAND

86,000

69

SUNOCO INC

Oklahoma

TULSA

85,000

70

NAVAJO REFINING CO

New Mexico

ARTESIA

84,000

71

VALERO REFINING CO TEXAS LP

Texas

HOUSTON

83,000

72

NCRA

Kansas

MCPHERSON

82,700

73

ULTRAMAR INC

California

WILMINGTON

80,887

74

CHEVRON USA INC

New Jersey

PERTH AMBOY

80,000

75

VALERO REFINING CO LOUISIANA

Louisiana

KROTZ SPRINGS

80,000

76

CALCASIEU REFINING CO

Louisiana

LAKE CHARLES

78,000

77

MARATHON PETROLEUM CO LLC

Ohio

CANTON

78,000

78

CONOCOPHILLIPS COMPANY

California

RODEO

76,000

79

MARATHON PETROLEUM CO LLC

Texas

TEXAS CITY

76,000

80

MARATHON PETROLEUM CO LLC

Minnesota

SAINT PAUL

74,000

81

TESORO ALASKA PETROLEUM CO

Alaska

KENAI

72,000

82

WYNNEWOOD REFINING CO

Oklahoma

WYNNEWOOD

71,700

83

SINCLAIR OIL CORP

Oklahoma

TULSA

70,300

84

LION OIL CO

Arkansas

EL DORADO

70,000

85

ALON USA ENERGY INC

Texas

BIG SPRING

67,000

86

BIG WEST OF CALIFORNIA

California

BAKERSFIELD

66,000

87

SINCLAIR OIL CORP

Wyoming

SINCLAIR

66,000

88

UNITED REFINING CO

Pennsylvania

WARREN

65,000

89

WESTERN REFINING YORKTOWN INC

Virginia

YORKTOWN

63,650

90

SUNCOR ENERGY (USA) INC

Colorado

COMMERCE CITY WEST

62,000

91

EXXONMOBIL REFINING & SUPPLY CO

Montana

BILLINGS

60,000

92

Cenex Harvest States Coop

Montana

LAUREL

59,600

93

CONOCOPHILLIPS COMPANY

Montana

BILLINGS

58,000

94

DELEK REFINING LTD

Texas

TYLER

58,000

95

Tesoro West Coast

North Dakota

MANDAN

58,000

96

Tesoro West Coast

Utah

SALT LAKE CITY

58,000

97

PLACID REFINING CO

Louisiana

PORT ALLEN

56,000

98

SHELL CHEMICAL LP

Louisiana

SAINT ROSE

55,000

99

CHEVRON USA INC

Hawaii

HONOLULU

54,000

100

PARAMOUNT PETROLEUM CORPORATION

California

PARAMOUNT

53,000

101

PETRO STAR INC

Alaska

VALDEZ

48,000

102

FRONTIER REFINING INC

Wyoming

CHEYENNE

47,000

103

CHEVRON USA INC

Utah

SALT LAKE CITY

45,000

104

CONOCOPHILLIPS COMPANY

California

ARROYO GRANDE

44,200

105

CALUMET SHREVEPORT LLC

Louisiana

SHREVEPORT

42,000

106

US OIL & REFINING CO

Washington

TACOMA

37,850

107

EDGINGTON OIL CO INC

California

LONG BEACH

35,000

108

HUNT REFINING CO

Alabama

TUSCALOOSA

34,500

109

MURPHY OIL USA INC

Wisconsin

SUPERIOR

34,300

110

CITGO ASPHALT REFINING CO

New Jersey

PAULSBORO

32,000

111

SUNCOR ENERGY (USA) INC

Colorado

COMMERCE CITY EAST

32,000

112

BIG WEST OIL CO

Utah

NORTH SALT LAKE

29,400

113

CITGO ASPHALT REFINING CO

Georgia

SAVANNAH

28,000

114

KERN OIL & REFINING CO

California

BAKERSFIELD

26,000

115

HOLLY CORP REFINING & MARKETING

Utah

WOODS CROSS

25,050

116

LITTLE AMERICA REFINING CO

Wyoming

EVANSVILLE

24,500

117

COUNTRYMARK COOPERATIVE INC

Indiana

MOUNT VERNON

23,000

118

ERGON REFINING INC

Mississippi

VICKSBURG

23,000

119

WESTERN REFINING SOUTHWEST INC

New Mexico

GALLUP

20,800

120

ERGON WEST VIRGINIA INC

West Virginia

NEWELL

20,000

121

PETRO STAR INC

Alaska

NORTH POLE

17,500

122

WESTERN REFINING SOUTHWEST INC

New Mexico

BLOOMFIELD

16,800

123

CONOCOPHILLIPS ALASKA INC

Alaska

PRUDHOE BAY

15,000

124

SAN JOAQUIN REFINING CO INC

California

BAKERSFIELD

15,000

125

WYOMING REFINING CO

Wyoming

NEW CASTLE

14,000

126

AGE REFINING INC

Texas

SAN ANTONIO

13,500

127

CALUMET LUBRICANTS CO LP

Louisiana

COTTON VALLEY

13,020

128

BP EXPLORATION ALASKA INC

Alaska

PRUDHOE BAY

12,780

129

VENTURA REFINING & TRANSMISSION LLC

Oklahoma

THOMAS

12,000

130

HUNT SOUTHLAND REFINING CO

Mississippi

SANDERSVILLE

11,000

131

Silver Eagle Refining

Utah

WOODS CROSS

10,250

132

AMERICAN REFINING GROUP INC

Pennsylvania

BRADFORD

10,000

133

Greka Energy

California

SANTA MARIA

9,500

134

MONTANA REFINING CO

Montana

GREAT FALLS

9,500

135

LUNDAY THAGARD CO

California

SOUTH GATE

8,500

136

CALUMET LUBRICANTS CO LP

Louisiana

PRINCETON

8,300

137

CROSS OIL REFINING & MARKETING INC

Arkansas

SMACKOVER

7,500

138

VALERO REFINING CO CALIFORNIA

California

WILMINGTON

6,300

139

SOMERSET REFINERY INC

Kentucky

SOMERSET

5,500

140

GOODWAY REFINING LLC

Alabama

ATMORE

4,100

141

Silver Eagle Refining

Wyoming

EVANSTON

3,000

142

TENBY INC

California

OXNARD

2,800

143

FORELAND REFINING CORP

Nevada

ELY

2,000

144

EQUISTAR CHEMICALS LP

Texas

CHANNELVIEW

0

145

EXCEL PARALUBES

Louisiana Gulf Coast

WESTLAKE

0

146

HESS CORPORATION

New Jersey

PORT READING

0

147

PARAMOUNT PETROLEUM CORPORATION

Oregon

PORTLAND

0

148

PELICAN REFINING COMPANY LLC

Louisiana

LAKE CHARLES

0

149

SOUTH HAMPTON RESOURCES INC

Texas

SILSBEE

0

150

Trigeant LTD

Texas

CORPUS CHRISTI

0

 

U.S. Total

17,593,847


What is Gas Processing?

Natural Gas Processing plants separate the various hydrocarbons and natural gas liquids from the pure natural gas (methane or CH4) to produce what is known as 'pipeline quality'  natural gas. Natural gas pipeline companies have requirements on natural gas they buy from producers which is why the natural gas processing plants are located where they are, and why they separate the ethane, propane, butane, and pentanes from the methane.  Natural gas liquids or NGLs include ethane, propane, butane, iso-butane, and natural gasoline.

What is Gas Sweetening?

Sulfur exists in natural gas and is known as hydrogen sulfide (H2S).  Natural gas is usually considered "sour" if hydrogen sulfides content exceeds 5.7 milligrams of H2S per cubic meter of natural gas. The process hydrogen sulfide removal from sour gas is commonly referred to as "gas sweetening."

 



Diagram of the
Gas Sweetening Process

The primary process of gas sweetening is similar to the processes of glycol dehydration and NGL absorption. In this case, however, amine solutions are used to remove the hydrogen sulfide. This process is known simply as the 'amine process', or alternatively as the Girdler process, and is used in 95 percent of U.S. gas sweetening operations. The sour gas is run through a tower, which contains the amine solution. This solution has an affinity for sulfur, and absorbs it much like glycol absorbing water. There are two principle amine solutions used, monoethanolamine (MEA) and diethanolamine (DEA). Either of these compounds, in liquid form, will absorb sulfur compounds from natural gas as it passes through. The effluent gas is virtually free of sulfur compounds, and thus loses its sour gas status. Like the process for NGL extraction and glycol dehydration, the amine solution used can be regenerated (that is, the absorbed sulfur is removed), allowing it to be reused to treat more sour gas.

Although most sour
gas sweetening involves the amine absorption process, it is also possible to use solid desiccants like iron sponges to remove the sulfide and carbon dioxide.

Sulfur can be sold and used if reduced to its elemental form. Elemental sulfur is a bright yellow powder like material, and can often be seen in large piles near gas treatment plants, as is shown. In order to recover elemental sulfur from the gas processing plant, the sulfur containing discharge from a gas sweetening process must be further treated. The process used to recover sulfur is known as the Claus process, and involves using thermal and catalytic reactions to extract the elemental sulfur from the hydrogen sulfide solution. 

Some of the above information from www.NaturalGas.org with our thanks.


What is Glycol Dehydration?

Glycol dehydration is used in the production and processing of natural gas by using a liquid desiccant that removes water from natural gas and natural gas liquids (NGL). 

Various types of glycols are used in this process including;

  • triethylene glycol (TEG)

  • diethylene glycol (DEG)

  • ethylene glycol (MEG)

  • tetraethylene glycol (TREG). 

TEG is the most commonly used glycol in the natural gas industry.


What are gas compressors?

Gas compressors are mechanical device that increase the pressure of a gas by reducing its volume. Gas compressors are responsible for moving the natural gas from the oil or natural gas production well to homes and businesses via natural gas pipelines and gas compression stations.

Gas compression also increases the temperature of the gas during compression.


What is a Heater Treater?

A "Heater Treater" is used in the oil and gas production process and is used to removes water and gas from the produced oil - and to improve its quality for sale into a crude oil pipeline or for other transport. A heater treater typically combines the following components inside the heater treater:  a heater, free-water knockout, and oil and gas separator.

We provide gas gathering, gas compressors, and other E&P services. 

We are presently acquiring "midstream" energy plants and operations such as natural gas and natural gas liquids - along with the plant assets that treat natural gas - are found between exploration and production of oil and natural gas and the delivery to commercial, residential and industrial customers. Midstream energy assets include over 1 million miles of natural gas pipelines and 500 natural gas processing plants.

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What is Gas Gathering?

Gas Gathering are the physical facilities that accumulate and transport natural gas from a well to an acceptance point of a transportation pipeline are called a gas gathering system.

Gas Gathering lines are small-diameter pipelines move natural gas from the wellhead to the natural gas processing plant or to an interconnection with a larger mainline pipeline. Transporting natural gas from the wellhead to the final customer involves several physical transfers of custody and multiple processing steps. A natural gas pipeline system begins at the natural gas producing well or field.  Once the gas leaves the producing well, a gas gathering system directs the flow either to a natural gas processing plant or directly to the mainline transmission grid, depending upon the initial quality of the wellhead product. 

The processing plant produces pipeline-quality natural gas.  This gas is then transported by pipeline to consumers or is put into underground storage for future use.  Storage helps to maintain pipeline system operational integrity and/or to meet customer requirements during peak-usage periods. 

Transporting natural gas from wellhead to market involves a series of processes and an array of physical facilities. Among these are:

  • Gas Processing Plant – This operation extracts natural gas liquids and impurities from the natural gas stream.

  • Mainline Transmission Systems – These wide-diameter, long-distance pipelines transport natural gas from the producing area to market areas.

  • Market Hubs/Centers – Locations where pipelines intersect and flows are transferred. 

  • Underground Storage Facilities – Natural gas is stored in depleted oil and gas reservoirs, aquifers, and salt caverns for future use.

  • 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.  

The Natural Gas Gathering System

A natural gas pipeline system begins at a natural gas producing well or field. In the producing area many of the pipeline systems are primarily involved in "gas gathering" operations. That is, a pipeline is connected to a producing well, converging with pipes from other wells where the natural gas stream may be subjected to an extraction process to remove water and other impurities if needed. Natural gas exiting the production field is usually referred to as "wet" natural gas if it still contain significant amounts of hydrocarbon liquids and contaminants.

Under certain conditions some or all of the natural gas produced at a well may be returned to the reservoir in cycling, repressuring, or conservation operations and/or vented and flared. At this stage it is a mixture of methane and other hydrocarbons, as well as some non-hydrocarbons, existing in the gaseous phase or in a solution with crude oil. The principal hydrocarbons normally contained in the natural gas mixture are methane, ethane, propane, butane, and pentane. Typical non-hydrocarbon gases that may be present in reservoir natural gas are water vapor, carbon dioxide, helium, hydrogen sulfide, and nitrogen.

In proximity to the well are facilities that produce what is referred to as "lease condensate", that is, a mixture consisting primarily of pentanes and heavier hydrocarbons which is recovered as a liquid from natural gas. Other natural gas liquids, such as butane and propane, are recovered at downstream natural gas processing plants or facilities 

Once it leaves the producing area, a pipeline system directs flow either to a natural gas processing plant or directly to the mainline transmission grid. Non-associated natural gas, that is, natural gas that is not in contact with significant quantities of crude oil in the reservoir, is sometimes of pipeline quality after undergoing a decontamination process in the production area, and does not need to flow through a processing plant prior to entering the mainline transmission system.

The Natural Gas Processing Plant

The principal service provided by a natural gas processing plant to the natural gas mainline transmission network is that it produces pipeline quality natural gas. Natural gas mainline transmission systems are designed to operate within certain tolerances. Natural gas entering the system that is not within certain specific gravities, pressures, Btu content range, or water content level will cause operational problems, pipeline deterioration, or even cause pipeline rupture.

Natural gas processing plants are also facilities designed to recover natural gas liquids from a stream of natural gas that may or may not have passed through lease separators and/or field separation facilities. These facilities also control the quality of the natural gas to be marketed. Several types of natural gas processing plants, employing various techniques and technologies to extract contaminants and natural gas liquids, are used to produce pipeline quality "dry" gas. At many processing plants the primary objective is the production of dry gas (demethanizing). Any remaining natural gas liquids extraction stream is directed to a separate plant to undergo what is referred to as a "gas fractionation" process.

But a number of natural gas processing plants do include these gas fractionation plants  where saturated hydrocarbons are removed from natural gas and separated into distinct parts, or "fractions," such as propane, butane, and ethane. Essentially, natural gas is methane, a colorless, odorless, flammable hydrocarbon gas (CH4). Also present in natural gas production, especially that in association with oil production, are a number of petroleum gases. They include (in addition to ethane, propane and butane) ethylene, propylene, butylene, isobutane, and isobutylene. They are derived from crude oil refining or natural gas fractionation and are liquefied through pressurization.

The Transmission Grid and Compressor Stations

The natural gas mainline (transmission line) is a wide-diameter, often-times long-distance, portion of a natural gas pipeline system, excluding laterals, located between the gathering system (production area), natural gas processing plant, other receipt points, and the principal customer service area(s). The lateral, usually of smaller diameter, branches off the mainline natural gas pipeline to connect with or serve a specific customer or group of customers.

A natural gas mainline system will tend to be designed as either a grid or a trunkline system. The latter is usually a long-distance, wide-diameter pipeline system that generally links a major supply source with a market area or with a large pipeline/LDC serving a market area. Trunklines tend to have fewer receipt points (usually at the beginning of its route), fewer delivery points, interconnections with other pipelines, and associated lateral lines.

A grid type transmission system is usually characterized by a large number of laterals or branches from the mainline, which tend to form a network of integrated receipt, delivery and pipeline interconnections that operate in, and serve major market areas. In form, they are similar to a local distribution company (LDC) network configuration, but on a much larger scale.

Between the producing area, or supply source, and the market area, a number of compressor stations are located along the transmission system. These stations contain one or more compressor units whose purpose is to receive the transmission flow (which has decreased in pressure since the previous compressor station) at an intake point, increase the pressure and rate of flow, and thus, maintain the movement of natural gas along the pipeline.

Gas compressors are used on a natural gas mainline transmission system are usually rated at 1,000 horsepower or more and are of the centrifugal (turbine) or reciprocating (piston) type. The larger gas compression stations may have as many as 10-16 units with an overall horsepower rating of from 50,000 to 80,000 HP and a throughput capacity exceeding three billion cubic feet of natural gas per day. Most compressor units operate on natural gas (extracted from the pipeline flow); but in recent years, and mainly for environmental reasons, the use of electricity driven compressor units has been growing.

Many of the larger mainline transmission routes are what is generally referred to as "looped." Looping is when one pipeline is laid parallel to another and is often used as a way to increase capacity along a right-of-way beyond what is possible on one line, or an expansion of an existing pipeline(s).   These lines are connected to move a larger flow along a single segment of the pipeline system. Some very large pipeline systems have 5 or 6 large diameter pipes laid along the same right-of-way. Looped pipes may extend the distance between compressor stations, where they can transfer part of their flow, or the looping may be limited to only a portion of the line between stations. In the latter case, the looping often serves as essentially a storage device, where natural gas can be line-packed as a way to increase deliveries to local customers during certain peak periods.

To address the potential for pipeline rupture, safety cutoff meters are installed along a mainline transmission system route. Devices located at strategic points are designed to detect a drop in pressure that would result from a downstream or upstream pipeline rupture and automatically stop the flow of natural gas beyond its location. Monitoring the pipeline as a whole are apparatus known as SCADA which means Supervisory Control and Data Acquisition.  SCADA systems provide monitoring staff the ability to direct and control pipeline flows, maintaining pipeline integrity and pressures as natural gas is received and delivered along numerous points on the system, including flows into and out of storage facilities.

Natural Gas Market Centers/Hubs

Natural gas market centers and hubs evolved, beginning in the late 1980s, as an outgrowth of natural gas market restructuring and the execution of a number of  Federal Energy Regulatory Commission’s (FERC) Orders culminating in Order 636 issued in 1992. Order 636 mandated that interstate natural gas pipeline companies transform themselves from buyers and sellers of natural gas to strictly natural gas transporters. Market centers and hubs were developed to provide new natural gas shippers with many of the physical capabilities and administrative support services formally handled by the interstate pipeline company as “bundled” sales services.

Two key services offered by market centers/hubs are transportation between and interconnections with other pipelines and the physical coverage of short-term receipt/delivery balancing needs.  Many of these centers also provide unique services that help expedite and improve the natural gas transportation process overall, such as Internet-based access to natural gas trading platforms and capacity release programs. Most also provide title transfer services between parties that buy, sell, or move their natural gas through the center.

As of the end of 2008, there were a total of 33 operational market centers in the United States (24) and Canada (9).

Underground Storage Facilities

At the end of the mainline transmission system, and sometimes at its beginning and in between, underground natural gas storage and LNG (liquefied natural gas) facilities provide for inventory management, supply backup, and the access to natural gas to maintain the balance of the system. There are three principal types of underground storage sites used in the United States today: depleted reservoirs in oil and/or gas fields, aquifers, and salt cavern formations. In one or two cases mine caverns have been used. Two of the most important characteristics of an underground storage reservoir are the capability to hold natural gas for future use, and the rate at which natural gas inventory can be injected and withdrawn (its deliverability rate).

Most underground storage facilities, 327 out of 399 at the beginning of 2008, are depleted reservoirs, which are close to consumption centers and which were relatively easy to convert to storage service. In some areas, however, most notably the Midwestern United States, some natural aquifers have been converted to natural gas storage reservoirs. An aquifer is suitable for natural gas storage if the water-bearing sedimentary rock formation is overlaid with an impermeable cap rock. While the geology of aquifers is similar to that of depleted production fields, their use in natural gas storage usually requires more base (cushion) gas and greater monitoring of withdrawal and injection performance. Deliverability rates may be enhanced by the presence of an active water drive.

During the past 20 years, the number of salt cavern storage sites has grown significantly because of its rapid cycling (inventory turnover) capability coupled with its ability to respond to daily, even hourly, variations in customer needs. The large majority of salt cavern storage facilities have been developed in salt dome formations located in the Gulf Coast States. Salt caverns leached from bedded salt formations in Northeastern, Midwestern, and Western States have also been developed but the number has been limited due to a lack of suitable geology. Cavern construction is more costly than depleted field conversions when measured on the basis of dollars per thousand cubic feet of working gas capacity, but the ability to perform several withdrawal and injection cycles each year reduces the per-unit cost of each thousand cubic feet of natural gas injected and withdrawn.

Peak Shaving

Underground natural gas storage inventories provide suppliers with the means to meet peak customer requirements up to a point. Beyond that point the distribution system still must be capable of meeting customer short-term peaking and volatile swing demands that occur on a daily and even hourly basis. During periods of extreme usage, peaking facilities, as well as other sources of temporary storage, are relied upon to supplement system and underground storage supplies.

Peaking needs are met in several ways. Some underground storage sites are designed to provide peaking service, but most often LNG (liquefied natural gas) in storage and liquefied petroleum gas such as propane are vaporized and injected into the natural gas distribution system supply to meet instant requirements. Short-term linepacking is also used to meet anticipated surge requirements.

The use of peaking facilities, as well as underground storage, is essentially a risk-management calculation, known as peak-shaving. The cost of installing these facilities is such that the incremental cost per unit is expensive. However, the cost of a service interruption, as well as the cost to an industrial customer in lost production, may be much higher. In the case of underground storage, a suitable site may not be locally available. The only other alternative might be to build or reserve the needed additional capacity on the pipeline network. Each alternative entails a cost.

A local natural gas distribution company (LDC) relies on supplemental supply sources (underground storage, LNG, and propane) and uses linepacking to "shave" as much of the difference between the total maximum user requirements (on a peak day or shorter period) and the baseload customer requirements (the normal or average) daily usage. Each unit "shaved" represents less demand charges (for reserving pipeline capacity on the trunklines between supply and market areas) that the LDC must pay. The objective is to maintain sufficient local underground natural gas storage capacity and have in place additional supply sources such as LNG and propane air to meet large shifts in daily demand, thereby minimizing capacity reservation costs on the supplying pipeline.

Prior to FERC Order 636 in 1992, many interstate pipeline companies had a completely integrated supply system that was capable of delivering natural gas from the wellhead to the ultimate retail gas consumer. But, following Order 636, which separated gathering, marketing, and transmission operations, many pipeline companies reorganized and broke up this system into discrete parts and assigned them to affiliated companies. 

The facilities, functions, and services required for gathering, processing, and transportation were placed in affiliated companies or were spun off or sold to other companies. Since most gas prices were no longer regulated, gas gathering service charges became subject to market forces and were a function of buyer/seller negotiation, isolated from the transmission charges imposed by the pipeline transporter.

More about Gas Gathering

The corporate reorganizations brought about under the influence of FERC Order 636 caused a shift in the jurisdictional entities regulating the various facilities and services. The Federal Energy Regulatory Commission (FERC) had once regulated the entire integrated interstate pipeline system, but after the reorganizations, FERC became the regulating entity for only the interstate pipeline transportation and processing facilities and services. The spun-off or affiliated gathering facilities and services generally fell under state jurisdiction or other Federal agencies, such as the Department of the Interior, but in some cases FERC maintained jurisdiction. Especially unclear, and still contested in 2004, is the jurisdictional status of some Gulf of Mexico gathering systems.

These cases involve FERC's reclassification of portions of a pipeline's system operating on the Outer Continental Shelf (OCS) as non-jurisdictional gathering facilities and FERC's determination that a pipeline company can transfer those facilities to its non-jurisdictional gathering affiliate. The key consideration in these, and similar onshore cases, is that FERC retains rate jurisdiction over those reclassified facilities that the pipeline retains and thus may regulate rates charged for transportation on the pipeline's own gathering facilities performed in connection with jurisdictional transportation. Rates on non-jurisdictional facilities are market based and not subject to FERC oversight or review. Consequently, some shippers have raised complaints that rates on non-jurisdictional facilities may exceed a reasonable rate by an undue degree.

As a result of FERC's decision in Order 636 to promote competition by requiring interstate pipelines to "unbundle" their previously bundled sales and transportation into separate services and to transport natural gas for all qualified shippers, some such pipelines have sought to shed OCS facilities that primarily perform a gathering function. Accordingly, those pipelines have asked FERC to reclassify OCS facilities that were previously classified as transportation, and to authorize "spin-downs" of OCS gathering facilities to affiliates.

To differentiate jurisdictional transportation and non-jurisdictional gathering for pipelines, FERC for many years has employed two principal tests. Under the "behind-the-plant" test, facilities upstream of compressors and processing plants (i.e., toward the wellhead where the gas comes out of the ground) were presumptively gathering facilities, while facilities downstream of the plants (i.e., toward the consumer) were presumptively transportation facilities. For gas that requires no processing, FERC employed a "central-point-in-the-field" test, under which lateral lines that collect and transport gas from separate wells that then converge into a single large line were classified as gathering facilities, while facilities downstream of the collection point in a field were classified as transportation. Since 1983, FERC has subsumed those two tests into a "primary function" test that focuses on a number of physical factors (e.g., length, diameter, and configuration of a pipeline) and certain other criteria, to determine whether facilities are primarily devoted to gathering or transportation. Under the primary function measure, no one factor is determinative, nor do all factors apply in every situation.

FERC developed its primary function test in the context of onshore gathering patterns. For natural gas produced on the Outer Continental Shelf (OCS), pipelines generally are configured differently and typically do not gather gas at a local, centralized point within a field as they would onshore to prepare it for traditional transportation. As stated in EP Operating Co. v. FERC (5th Circuit, 1989), "Rather, on the OCS, relatively long lines are constructed to carry the raw gas from offshore platforms where 'only the most rudimentary separation and dehydration operations' are conducted, to the shore or a point closer to shore, where it can be processed into 'pipeline quality' gas." It also notes that pipelines on the OCS must construct large pipes to carry (often over a 100 miles away) the raw gas from offshore rigs to the shore for processing. In response to the practical and physical differences between onshore and offshore pipeline configurations, FERC modified its primary function test for the OCS to allow for the increasing length and diameter of OCS gathering lines, and later announced that it would "presume facilities located in deep water [over 200 feet] are primarily engaged in gathering or production."


What is an Amine Plant?

Amine plants, also known as "Amine Units" are used in "gas sweetening" in the midstream oil and gas sector known as "gas processing." Amine plants provide H2S removal as well as CO2 removal from natural gas and liquid hydrocarbons. The process involves both absorption and chemical reactions. 

We provide amine plant sales and natural gas processing and engineering services.

What is a "Cryogenic Plant"?

A cryogenic plant is another term for a "gas processing plant." Gas processing plants produce natural gas liquids products, including ethane, at very low or "cryogenic" operating temperatures.


What are Gas Compressors?

Gas compressors are mechanical device that increase the pressure of a gas by reducing its volume. Gas compressors are responsible for moving the natural gas from the oil or natural gas production well to homes and businesses via natural gas pipelines and gas compression stations.

Gas compression also increases the temperature of the gas during compression.


What is Gas Liquefaction?

Gas Liquefaction is the process in which natural gas is converted from the gaseous to the liquid phase. At the end of the Gas Liquefaction process, the product is referred to as "Liquefied Natural Gas" or "LNG."  Gas Liquefaction is also called "Natural Gas To Liquids."


More about
Gas Liquefaction or Natural Gas To Liquids

A first-of-its-kind, natural gas-to-liquids or "gas liquefaction" facility was built in the U.S. that produces high-performance, sulfur-free fuel. The gas liquefaction plant produces approximately 70 bbls of ultra clean fuel per day from natural gas.

Gas Liquefaction Plant
A natural gas to liquids, or "gas liquefaction"
ultra clean fuels facility in the U.S.

New technologies in the "natural gas to liquids" industry decreases expenses through increased efficiencies and converts natural gas to ultra clean fuel. These facilities typically consist of three primary components: an autothermal reformer that converts the natural gas into synthesis gas, a mixture of carbon monoxide and hydrogen; a Fischer-Tropsch unit that produces synthetic crude oil from the synthesis gas; and a refining unit that upgrades the synthetic crude to ultra clean fuels. These fuels can be transported through existing pipelines and have already been tested in bus fleets operated by the Washington, DC, Metropolitan Area Transit Authority and the National Park Service in Denali, Alaska.


What is Gas Processing?

Natural Gas Processing plants separate the various hydrocarbons and natural gas liquids from the pure natural gas (methane or CH4) to produce what is known as 'pipeline quality'  natural gas. Natural gas pipeline companies have requirements on natural gas they buy from producers which is why the natural gas processing plants are located where they are, and why they separate the ethane, propane, butane, and pentanes from the methane.  Natural gas liquids or NGLs include ethane, propane, butane, iso-butane, and natural gasoline.


What is Gas Sweetening?

Sulfur exists in natural gas and is known as hydrogen sulfide (H2S).  Natural gas is usually considered "sour" if hydrogen sulfides content exceeds 5.7 milligrams of H2S per cubic meter of natural gas. The process hydrogen sulfide removal from sour gas is commonly referred to as "gas sweetening."

 



Diagram of the Gas Sweetening Process

The primary process for sweetening sour natural gas is quite similar to the processes of glycol dehydration and NGL absorption. In this case, however, amine solutions are used to remove the hydrogen sulfide. This process is known simply as the 'amine process', or alternatively as the Girdler process, and is used in 95 percent of U.S. gas sweetening operations. The sour gas is run through a tower, which contains the amine solution. This solution has an affinity for sulfur, and absorbs it much like glycol absorbing water. There are two principle amine solutions used, monoethanolamine (MEA) and diethanolamine (DEA). Either of these compounds, in liquid form, will absorb sulfur compounds from natural gas as it passes through. The effluent gas is virtually free of sulfur compounds, and thus loses its sour gas status. Like the process for NGL extraction and glycol dehydration, the amine solution used can be regenerated (that is, the absorbed sulfur is removed), allowing it to be reused to treat more sour gas.

Although most sour gas sweetening involves the amine absorption process, it is also possible to use solid desiccants like iron sponges to remove the sulfide and carbon dioxide.

Sulfur can be sold and used if reduced to its elemental form. Elemental sulfur is a bright yellow powder like material, and can often be seen in large piles near gas treatment plants, as is shown. In order to recover elemental sulfur from the gas processing plant, the sulfur containing discharge from a gas sweetening process must be further treated. The process used to recover sulfur is known as the Claus process, and involves using thermal and catalytic reactions to extract the elemental sulfur from the hydrogen sulfide solution. 

Some of the above information from www.NaturalGas.org with our thanks.


What is Glycol Dehydration?

Glycol dehydration is used in the production and processing of natural gas by using a liquid desiccant that removes water from natural gas and natural gas liquids (NGL). 

Various types of glycols are used in this process including;

  • triethylene glycol (TEG)

  • diethylene glycol (DEG)

  • ethylene glycol (MEG)

  • tetraethylene glycol (TREG). 

TEG is the most commonly used glycol in the natural gas industry.


What is H2S Removal?

H2S, or Hydrogen Sulfide, is a hazardous and corrosive element found in oil and natural gas which needs to be removed from the hydrocarbon before the oil or natural gas can be sold.  The hydrogen sulfides are usually removed in a mid-stream gas processing facility by either iron sponges or amine plants.

What is a Heater Treater?

A "Heater Treater" is used in the oil and gas production process and is used to removes water and gas from the produced oil - and to improve its quality for sale into a crude oil pipeline or for other transport. A heater treater typically combines the following components inside the heater treater:  a heater, free-water knockout, and oil and gas separator.

We provide gas gathering, gas compressors, and other E&P services. 

We are presently acquiring "midstream" energy plants and operations such as natural gas and natural gas liquids - along with the plant assets that treat natural gas - are found between exploration and production of oil and natural gas and the delivery to commercial, residential and industrial customers. Midstream energy assets include over 1 million miles of natural gas pipelines and 500 natural gas processing plants.


What is Natural Gas Treating?

As natural gas is produced from either a natural gas well, or from an oilwell which contains "associated gas," the natural gas must be treated or processed before it can be used at a home or business as a fuel.

Natural gas treating or natural gas processing, takes place at gas processing plants to remove the impurities and other hydrocarbons other than the methane itself, or CH4. 

The by-products and impurities of natural gas that must be treated or processed include; ethane, propane, butane, isobutane, pentane, isopentane and higher molecular weight hydrocarbons, as well as H2S or elemental sulfur, carbon dioxide (CO2), water vapor and sometimes helium and nitrogen.


What is "NGL Fractionation"?

NGL, or natural gas liquids fractionation plants purpose is to separate the mixed natural gas liquids stream into separated products. These natural gas liquids that are separated by heat at NGL Fractionation plants include; ethane, propane, normal butane, isobutane and natural gasoline. 


What is
Synthesis Gas?

Synthesis gas, synthetic gas, or syngas, are the names given to gas of different (yet closely similar) to composition that are generated in coal gasification, coal liquefaction, gas liquefaction - also known as natural gas to liquids plants and other types of waste-to-energy facilities. 

* Some of the above information from the Department of Energy website with permission.

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We support the Renewable Energy Institute by donating a portion of our profits to the Renewable Energy Institute in their efforts to reduce fossil fuel use through renewable energy and their goals to end fossil fuel pollution by reducing/eliminating Carbon Emissions, Carbon Dioxide Emissions and Greenhouse Gas Emissions.

The Renewable Energy Institute is "Changing The Way The World Does Energy by Providing Research & Development, Funding and Resources That Creates Sustainable Energy via 'Carbon Free Energy' and 'Pollution Free Power' Through Expanding the use of Renewable Energy Technologies."

 

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"Leading the Renewable Energy Revolution"



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