Handelsstrategien Mit Partiellem Zugang Zu Derivatemärkten

Arten von Finanzmärkten und ihre Rollen Ein Finanzmarkt ist ein breiter Begriff, der jeden Markt, wo Käufer und Verkäufer am Handel von Vermögenswerten wie Aktien, Anleihen, Währungen und Derivate teilnehmen beschreiben. Die Finanzmärkte werden typischerweise durch transparente Preisgestaltung, grundsätzliche Handelsregelungen, Kosten und Gebühren sowie Marktkräfte bestimmt, die die Preise der Wertpapiere bestimmen, die der Handel treibt. Finanzmärkte finden sich in fast allen Nationen der Welt. Einige sind sehr klein, mit nur wenigen Teilnehmern, während andere - wie die New York Stock Exchange (NYSE) und die Devisenmärkte - Trade Billionen von Dollar täglich. Investoren haben Zugang zu einer Vielzahl von Finanzmärkten und Börsen, die eine breite Palette von Finanzprodukten repräsentieren. Einige dieser Märkte waren für private Investoren immer offen, andere blieben bis zum Ende des zwanzigsten Jahrhunderts die exklusive Domäne der großen internationalen Banken und Finanzprofis. Kapitalmärkte Ein Kapitalmarkt ist einer, in dem Einzelpersonen und Institutionen finanzielle Sicherheiten handeln. Organisationen und Institutionen im öffentlichen und privaten Sektor verkaufen oft auch Wertpapiere an den Kapitalmärkten, um Mittel zu beschaffen. So besteht dieser Markt sowohl aus dem Primärmarkt als auch aus dem Sekundärmarkt. Jede Regierung oder Körperschaft benötigt Kapital (Mittel), um ihre Geschäftstätigkeiten zu finanzieren und ihre eigenen langfristigen Investitionen zu tätigen. Um dies zu tun, ein Unternehmen erhöht Geld durch den Verkauf von Wertpapieren - Aktien und Anleihen in den Firmennamen. Diese werden an den Kapitalmärkten gekauft und verkauft. Aktienmärkte Die Aktienmärkte ermöglichen Anlegern den Kauf und Verkauf von Aktien öffentlich gehandelter Unternehmen. Sie sind einer der wichtigsten Bereiche der Marktwirtschaft, da sie Unternehmen den Zugang zu Kapital und Investoren mit einem Slice of Ownership in das Unternehmen und das Potenzial der Gewinne auf der Grundlage der Unternehmen zukünftige Performance. Dieser Markt kann in zwei Hauptbereiche aufgeteilt werden: den Primärmarkt und den Sekundärmarkt. Der primäre Markt ist, wo neue Ausgaben zuerst angeboten werden, mit jedem nachfolgenden Handel geht auf dem sekundären Markt. Anleihemärkte Eine Anleihe ist eine Schuldinvestition, bei der ein Anleger Geld an eine natürliche oder juristische Person leiht, die die Mittel für einen bestimmten Zeitraum zu einem festen Zinssatz leiht. Anleihen werden von Unternehmen, Kommunen, Staaten und US-amerikanischen und ausländischen Regierungen eingesetzt, um eine Vielzahl von Projekten und Aktivitäten zu finanzieren. Anleihen können von Anlegern auf den Kreditmärkten weltweit gekauft und verkauft werden. Dieser Markt wird alternativ auch als Schuld-, Kredit - oder Rentenmarkt bezeichnet. Es ist viel größer nominal, dass die Welten Börsen. Die wichtigsten Kategorien von Anleihen sind Unternehmensanleihen, Kommunalanleihen und US-Staatsanleihen, Anleihen und Schuldverschreibungen, die gemeinsam als einfache Treasuries bezeichnet werden. (Mehr dazu unter Bond Basics Tuto rial.) Geldmarkt Der Geldmarkt ist ein Segment des Finanzmarktes, in dem Finanzinstrumente mit hoher Liquidität und sehr kurzen Laufzeiten gehandelt werden. Der Geldmarkt wird von den Teilnehmern als Mittel zur Kreditaufnahme und Kreditvergabe kurzfristig genutzt, von mehreren Tagen bis knapp unter einem Jahr. Die Geldmarktpapiere bestehen aus verkäuflichen Einlagenzertifikaten (CDs), Bankakzeptoren, US-Schatzanweisungen, Commercial Paper, städtischen Schuldscheinen, Eurodollar, Bundesfonds und Pensionsgeschäften (Repos). Geldmarktanlagen werden wegen ihrer kurzen Laufzeiten auch als Geldanlagen bezeichnet. Der Geldmarkt wird von einer breiten Palette von Teilnehmern genutzt, von einem Unternehmen, das Geld durch den Verkauf von Commercial Paper auf den Markt zu einem Investor kauft CDs als einen sicheren Ort, um Geld Geld auf kurze Sicht. Der Geldmarkt wird in der Regel als ein sicherer Ort, um Geld aufgrund der hoch liquiden Charakter der Wertpapiere und kurze Laufzeiten. Weil sie äußerst konservativ sind, bieten Geldmarktpapiere deutlich niedrigere Renditen als die meisten anderen Wertpapiere. Allerdings bestehen Risiken auf dem Geldmarkt, auf die ein Anleger achten muss, einschließlich des Ausfallrisikos bei Wertpapieren wie Commercial Paper. (Um mehr zu erfahren, lesen Sie unsere Money M arket Tutorial.) Bargeld oder Spot-Markt Investitionen in den Cash-oder Spot-Markt ist sehr anspruchsvoll, mit Möglichkeiten für große Verluste und große Gewinne. Im Kassamarkt werden die Waren gegen Bargeld verkauft und sofort ausgeliefert. Gleichzeitig sind die auf dem Spotmarkt gekauften und verkauften Verträge sofort wirksam. Die Preise werden in bar am Ort zu aktuellen Marktpreisen abgewickelt. Dies unterscheidet sich deutlich von anderen Märkten, in denen die Geschäfte zu Terminpreisen ermittelt werden. Der Kassamarkt ist komplex und zart, und in der Regel nicht geeignet für unerfahrene Händler. Die Kassenmärkte werden meist von so genannten institutionellen Marktteilnehmern wie Hedgefonds, Kommanditgesellschaften und Kapitalanlegern dominiert. Die Natur der gehandelten Produkte erfordert Zugang zu weitreichenden, detaillierten Informationen und einem hohen Maß an makroökonomischer Analyse und Handelskompetenz. Derivatmärkte Das Derivat wird aus einem Grund so genannt: Sein Wert wird aus dem zugrunde liegenden Vermögenswert oder Vermögenswert abgeleitet. Ein Derivat ist ein Vertrag, aber in diesem Fall wird der Vertragspreis durch den Marktpreis des Kernvermögens bestimmt. Wenn das kompliziert klingt, ist es, weil es ist. Der Derivatemarkt fügt noch eine weitere Komplexität hinzu und ist daher nicht ideal für unerfahrene Händler, die spekulieren wollen. Sie kann jedoch als Teil eines Risikomanagementprogramms sehr effektiv eingesetzt werden. (Um die Derivate zu kennen, lesen Sie die Barnyard-Grundlagen Derivate.) Beispiele für gemeinsame Derivate sind vorwärts. Futures Werden. Swaps und Contracts-for-Differences (CFDs). Diese Instrumente sind nicht nur komplex, sondern auch die Strategien der Marktteilnehmer. Darüber hinaus stehen viele Derivate, strukturierte Produkte und besicherte Verpflichtungen zur Verfügung, vor allem im Freiverkehrsmarkt, die professionelle Anleger, Institutionen und Hedgefondsmanager in unterschiedlichem Maße nutzen, aber bei Privatinvestitionen eine unbedeutende Rolle spielen . Forex und der Interbankmarkt Der Interbankmarkt ist das Finanzsystem und der Handel von Währungen zwischen Banken und Finanzinstituten, ohne Privatanleger und kleinere Handelspartner. Während einige Interbank-Handel von Banken im Auftrag von großen Kunden durchgeführt wird, erfolgt die meisten Interbank-Handel von den Banken eigenen Konten. Der Forex-Markt ist, wo die Währungen gehandelt werden. Der Devisenmarkt ist der größte, liquideste Markt der Welt mit einem durchschnittlich gehandelten Wert von über 1,9 Billionen pro Tag und umfasst alle Währungen der Welt. Der Forex ist der größte Markt in der Welt in Bezug auf die gesamte Cash-Wert gehandelt, und jede Person, Firma oder Land können in diesem Markt teilnehmen. Es gibt keinen zentralen Marktplatz für Devisenhandel wird über den Ladentisch geführt. Der Devisenmarkt ist 24 Stunden am Tag, fünf Tage die Woche geöffnet und die Währungen werden weltweit unter den großen Finanzplätzen von London, New York, Tokio, Zrich, Frankfurt, Hongkong, Singapur, Paris und Sydney gehandelt. Bis vor kurzem war Forex-Handel auf dem Devisenmarkt weitgehend die Domäne der großen Finanzinstitute, Konzerne, Zentralbanken. Hedgefonds und außerordentlich wohlhabende Personen. Die Entstehung des Internet hat sich all dies geändert, und jetzt ist es möglich für durchschnittliche Anleger zu kaufen und zu verkaufen Währungen leicht mit dem Klicken einer Maus durch Online-Brokerage-Konten. (Für weitere Informationen siehe Foreign Exchange Interbank Market.) Primäre Märkte vs. Sekundärmarkt Ein Primärmarkt gibt neue Wertpapiere an einer Börse aus. Unternehmen, Regierungen und andere Gruppen erhalten Finanzierungen durch Schuldtitel oder Eigenkapitalinstrumente. Primärmärkte, auch als neue Emissionsmärkte bekannt, werden durch Underwriting-Gruppen unterstützt, die aus Investmentbanken bestehen, die eine Anfangspreisreihe für ein bestimmtes Wertpapier festlegen und den Verkauf direkt an Investoren überwachen. Die Primärmärkte sind, wo Investoren ihre erste Wahrscheinlichkeit haben, an einer neuen Sicherheitsausgabe teilzunehmen. Die ausgebende Gesellschaft oder Gruppe erhält Einzahlungen aus der Veräußerung, die dann zur Finanzierung von Geschäften oder zur Ausweitung des Geschäfts genutzt werden. (Für mehr auf dem Primärmarkt siehe unsere IPO Basics Tutorial.) Der sekundäre Markt ist, wo die Anleger kaufen Wertpapiere oder Vermögenswerte von anderen Investoren, anstatt von ausgebenden Unternehmen selbst. Die Securities and Exchange Commission (SEC) registriert Wertpapiere vor ihrer primären Emission, dann beginnen sie den Handel im Sekundärmarkt an der New York Stock Exchange, Nasdaq oder einem anderen Veranstaltungsort, in dem die Wertpapiere für die Notierung und den Handel angenommen wurden. (Um mehr über den Primär - und Sekundärmarkt zu erfahren, lesen Sie Märkte Demystified.) 13 Der Sekundärmarkt ist, wo der Großteil des Börsenhandels jeden Tag stattfindet. Die Primärmärkte sehen eine erhöhte Volatilität gegenüber den Sekundärmärkten, weil es schwierig ist, die Anlegerforderung für eine neue Sicherheit genau zu messen, bis mehrere Tage des Handels eingetreten sind. Im Primärmarkt werden die Preise oft vorher festgelegt, während im Sekundärmarkt nur Grundkräfte wie Angebot und Nachfrage den Preis der Sicherheit bestimmen. Sekundäre Märkte gibt es auch für andere Wertpapiere, z. B. wenn Fonds, Investmentbanken oder Unternehmen wie Fannie Mae Hypotheken von emittierenden Kreditgebern kaufen. In jedem Sekundärmarkthandel gehen die Barmittel an einen Investor und nicht direkt an die zugrunde liegende Gesellschaft über. (Um mehr über primäre und sekundäre Märkte zu erfahren, lesen Sie A Primäre und sekundäre Märkte.) Der OTC-Markt Der Freiverkehrsmarkt (OTC-Markt) ist ein Sekundärmarkt, der auch als Händlermarkt bezeichnet wird. Der Begriff over-the-counter bezieht sich auf Aktien, die nicht an einer Börse wie der Nasdaq, NYSE oder American Stock Exchange (AMEX) handeln. Dies bedeutet in der Regel, dass die Aktie entweder auf dem Over-the-Counter Bulletin Board (OTCBB) oder den rosa Blättern handelt. Keines dieser Netze ist ein Austausch in der Tat, sie beschreiben sich als Anbieter von Preisinformationen für Wertpapiere. OTCBB und Pink Sheet Unternehmen haben weit weniger Vorschriften als diejenigen, die Aktien an einer Börse handeln. Die meisten Wertpapiere, die diese Weise handeln, sind Pennybestände oder sind von den sehr kleinen Firmen. Dritte und Vierte Märkte Sie könnten auch hören, die Ausdrücke dritten und vierten Märkten. Dabei handelt es sich nicht um einzelne Anleger, da es sich um signifikante Aktienvolumen handelt, die pro Handel abgewickelt werden sollen. Diese Märkte befassen sich mit Transaktionen zwischen Broker-Dealern und großen Institutionen über elektronische Freizügigkeitsnetze. Der dritte Markt umfasst OTC-Geschäfte zwischen Maklern und Großhändlern. Der vierte Markt besteht aus Transaktionen, die zwischen großen Institutionen stattfinden. Der Hauptgrund für diese dritten und vierten Markttransaktionen besteht darin, zu vermeiden, diese Aufträge über die Haupttransaktion abzugeben, was den Kurs des Wertpapiers erheblich beeinträchtigen könnte. Da der Zugang zu den dritten und vierten Märkten begrenzt ist, haben ihre Aktivitäten wenig Einfluss auf den durchschnittlichen Investor. 13Finanzinstitute und Finanzmärkte helfen Unternehmen, Geld zu verdienen. Sie können dies tun, indem sie ein Darlehen von einer Bank abnehmen und sie mit Zinsen zurückgeben, Anleihen ausgeben, um Geld von Anlegern zu leihen, die zu einem festen Zinssatz zurückgezahlt werden oder Anlegern einen Teilbesitz an der Gesellschaft und einen Anspruch auf ihr restliches Geld anbieten Fließt in Form von Lager. Industrie Glossar Absorption Absorption ist die Fähigkeit von Flüssigkeiten und Feststoffen, Wasser oder andere Flüssigkeiten, einschließlich unerwünschte Gase, in der Erdgasverarbeitung aufzusaugen. Access Access ist ein System, unter dem die Marktteilnehmer die Kapazitäten in einer Pipeline, einem Netzwerk, einer Gasspeicher oder einer anderen Gasanlage nutzen dürfen. Zugang ist zentral für die Umsetzung der Liberalisierung des Gasmarktes und Kontraste, daher mit dem traditionellen Modell, wo die Eigentümer von Transportsystemen, Läden usw. besitzen alle Gas durch ihre Ausrüstung und fungieren als exklusive Händler für sie. Siehe auch Common Carriage. Beschränkter Zugang . Verhandelter Zugang. Drittanbieterzugriff. Säuregas ist Erdgas, das einen Anteil an Gasen wie Kohlendioxid oder Schwefelwasserstoff enthält, die in Verbindung mit Feuchtigkeit saure Verbindungen bilden. Jährliche Kontraktmenge Die Jährliche Kontraktmenge (ACQ) ist die Menge des Gases, die der Verkäufer liefern muss, und der Käufer muss in einem bestimmten Vertragsjahr einnehmen. Es kann als eine diskrete Zahl oder als ein Vielfaches der täglichen Kontraktmenge ausgedrückt werden. In der Praxis werden viele Verträge in Formulare geschrieben, die es dem Käufer erlauben, erheblich unter dem angegebenen ACQ zu liegen. Siehe auch Abwärtsmengen-Toleranz. Jährliches Lieferprogramm Das jährliche Lieferprogramm (ADP) ist ein Zeitplan für die Lieferung von Gasvolumina zu bestimmten Terminen oder innerhalb bestimmter Zeiträume in einem bevorstehenden Vertragsjahr in einem langfristigen Vertrag. In der Praxis wird dies häufig in Form eines detaillierten Zeitplans erfolgen, der die ersten Monate abdeckt, während die restlichen Jahreszahlen lockerer sind, die dann zu vertraglich festgelegten Zeiten festgesetzt werden. Aquifer Ein Aquifer ist ein Körper aus porösem Gestein, gesättigt mit Wasser. Gas-Felder sind in der Regel von einem Grundwasserleiter, die oft Druck liefert bekannt als Wasser-Antrieb zur Unterstützung der Gasproduktion unterlegen. Eine unterirdische Speicherung von Gas kann erreicht werden, indem Gas nach unten in Aquifere unterhalb undurchlässiger Kappenfelder gepumpt wird, wodurch effektiv ein Gasreservoir gebildet wird. Siehe auch Reservoir. Untergrundspeicher. Arbitrage Arbitrage kauft und verkauft das gleiche Produkt an zwei verschiedenen Standorten oder Märkten, um Preisunterschiede zu nutzen. Assoziiertes Gas-assoziiertes Gas ist Gas, das mit Öl in einem überwiegend Ölfeld koexistiert. Es kann Cap Gas oder Solution Gas sein. Deren Verhalten und Behandlung unterschiedlich sind. Assoziiertes Gas wird normalerweise als Verkäufer-Nominierungsgas verkauft, d. h. der Verkäufer nominiert die verfügbaren Gasmengen. In traditionellen Gasmärkten würde ein solches Gas einen niedrigeren Preis bezeichnen als nicht assoziiertes Gas. Autogeneration Die Autogeneration ist die Erzeugung von Elektrizität durch einen Industriekonzern, der in erster Linie die Bedürfnisse der eigenen Betriebe erfüllt. Siehe auch "Combined Heat and Power". Backhauling Backhauling ist der Transport von Gas scheinbar in umgekehrter Richtung zum Hauptstrom der Pipeline. Dies wird in der Regel durch Swap-Anordnungen und nicht durch physische Bewegungen erreicht. Auch bekannt als Reverse Flow. Ausgleichsvereinbarungen Ausgleichsvereinbarungen werden verwendet, um Verfahren für die Nutzung von Kapazitäten in Pipelines oder Produktion aus einem Gasfeld zu definieren: 1) Pipelines: Ein Abgleich für eine Pipeline ist eine Vereinbarung zwischen einem Pipeline - Besitzer und anderen Nutzern der Pipeline über die Verfahren zu Um sicherzustellen, dass die Gasmengen, die in die Pipeline eingeleitet und aus dieser entfernt werden, über einen bestimmten Zeitraum gleich sind. Pipelines erfordern gewöhnlich eine tägliche Balancierung, aber einige erfordern ein Auswuchten über kürzere Perioden bis zu einer Stunde, insbesondere wenn es eine starke Stromerzeugungslast auf der Pipeline gibt. Andere können längere Zeiträume zulassen, z. B. 3 Tage bis monatlich. Der monatliche Abgleich ist nur dann sinnvoll, wenn die Belastungen der Drittparteien sehr klein sind (ein paar Prozent). 2) Reserven: Eine Bilanzierungsvereinbarung für Reserven ist eine Vereinbarung zwischen den Eigentümern eines Gasfeldes, die ihre Anteile am Gas unabhängig voneinander vermarkten. Da jeder Käufer ein anderes Bedarfsmuster haben kann, sind sich die Eigentümer darüber einig, dass sie die Reserven nicht mit einem Satz zurückziehen werden, der ein Ungleichgewicht im Besitz der verbleibenden Reserven zur Folge hat, bestimmte vereinbarte Toleranzen zu überschreiten. Die Vereinbarung definiert auch die Abhilfemaßnahmen, die getroffen werden sollen, wenn diese Toleranzen überschritten werden sollen. Damit soll gewährleistet werden, dass der Eigentumsanteil der verbleibenden Reserven für alle praktischen Zwecke konstant bleibt. Basislast Basislast ist die Auslieferungsrate (oder - nachfrage), unterhalb derer Sendout (oder Nachfrage) nicht erwartet wird, während eines gegebenen Zeitraums zu fallen. Beach Price Beach-Preis ist ein Begriff, der hauptsächlich in Großbritannien verwendet wird, um den Preis festzulegen, zu dem das Offshore-Gas vom Produzenten am Ausgang der Onshore-Kläranlage übertragen wird, wobei an diesem Punkt die Eigentumsübertragung vor der Weitergabe oder Nutzung erfolgt. Hochofengas Gas produziert als Nebenprodukt aus der Verwendung von Koks in traditionellen Hochöfen. Dieses Gas hatte einen niedrigen Heizwert (etwa ein Viertel bis ein Drittel des Erdgases), wurde aber in den Tagen vor Erdgas in Verbindung mit dem Produktionsgas verwendet. Block Ein Block ist ein geografisches Gebiet, das in einer Konzessionsvereinbarung definiert ist, oftmals mit Exploration, Entwicklung oder Produktion vorangestellt. Oft definiert in Form von Breiten - und Längengrad, kann aber auch durch Bezugnahme auf ein lokales Rastersystem, zum Beispiel im Golf von Mexiko, definiert werden. Blowdown Ein Verfahren zur Herstellung eines Gaskondensat-Reservoirs, bei dem der Reservoir-Druck sinkt, wenn Gas im Laufe der Zeit erzeugt wird, ohne jedes Gas erneut einzuspritzen. Bei dieser Herstellungsweise kann sich Kondensat in dem Reservoir kondensieren, wo seine Rückgewinnung nicht mehr praktisch ist. Boil Off Gas (BOG) Boil off ist ein Begriff, der in LNG-Projekten verwendet wird. Allerdings gut isolierte LNG-Lagertanks sein kann, ist die LNG immer auf ihrem Siedepunkt, und kleine Mengen werden weiterhin zu kochen. Bei Verflüssigungsanlagen ist ein geringer Abgasgehalt erforderlich, um sicherzustellen, dass die Pflanzenfackel betriebsbereit ist. Abkochen, das für diesen Zweck nicht benötigt wird, wird normalerweise in dem pflanzeneigenen Niederdruck-Kraftstoffsystem verwendet. Bei LNG-Tankern, die von Dampfturbinen angetrieben werden, wird das Gas normalerweise als Brennstoff zum Antrieb der Schiffe verwendet. Grenze Preis Der Preis, an dem Gas an der Grenze zwischen zwei Ländern verkauft wird. Typischerweise basiert auf Zoll - oder anderen amtlichen Importexportdaten. Häufig verwendet, vor allem in Europa, als Bezugspunkt in Gas-Verträge. Flaschengas LPG. In der Regel Butan oder Propan in flüssigem Zustand bei mäßigem Druck in Stahlbehältern für den Einsatz in kleinen Wohn-und kommerziellen Anwendungen gespeichert. Bündelung Die Erbringung verschiedener Dienstleistungen, wie Transport, Lagerung etc. in einem Pflichtpaket, das der Käufer insgesamt zu akzeptieren hat, ohne die Möglichkeit zu wählen, welche Elemente er benötigt. Siehe auch Unbundling. Butan Ein Mitglied der Alkankruppe der Kohlenwasserstoffe mit vier Kohlenstoffatomen im Molekül (C4H10, oft abgekürzt mit C4 im nichttechnischen Gebrauch). Butan ist ein farbloses, brennbares Gas bei normaler Temperatur und Druck, wird aber durch Druck zur Lagerung und zum Transport leicht verflüssigt. Es gibt zwei isomere Formen, normal und iso-Butan. Bei atmosphärischem Druck verflüssigt sich Isobutan bei 1200 ° C und normalem Butan bei -100 ° C. Heizwert (CV) Heizwert ist die Wärmemenge, die durch die vollständige Verbrennung eines Brennstoffs erzeugt wird. Dies kann trocken oder gesättigt mit Wasserdampf gemessen werden und netto oder brutto. Siehe auch Brennwert. Netto-Heizwert. Cap 1. Eine Klausel in einem Liefervertrag, bei der der Käufer versichert ist, dass er nicht mehr als einen bestimmten Höchstpreis bezahlen muss. Diese Vertragsart entspricht einer Call-Option. (2) In einem Liefervertrag, bei dem der Käufer in seinem Umfang flexibel ist, kann er das Maximum, auf das er Anspruch hat, entweder über einen Zeitraum (z. B. ein Jahr) oder über die Laufzeit des Vertrages verlangen. Cap Gas Gas gefunden in einer Gas-Cap in Verbindung mit Öl, aber nicht vermischt mit ihm. Kapazitätsgebühr Eine Kapazitätsgebühr ist die Zahlung, die für die Reservierungskapazität in einer Pipeline, einem Gasspeicher oder einem anderen Teil der Infrastruktur geleistet wird. Oft verwendet austauschbar mit Demand Charge. Capacity Trading Der Kauf und Verkauf von erworbenen Rechten, um Gas durch die Pipelines eines Transporters zu bewegen. Kohlenstoff-Sequestrierung und Speicherung Die Abscheidung von Kohlenstoff-Emissionen in die Atmosphäre und ihre Speicherung in Kohlenstoffsenken, die natuerlich natrlich sind, oder kann an Kohlenwasserstofffeldern abgereichert sein. Carbon Trading Ein systematisches Verfahren für den Austausch von Genehmigungen zur Erzeugung von CO2-Emissionen. Siehe EU-EHS. Carry Forward Eine Rückstellung innerhalb eines langfristigen Take - oder Pay-Kontrakts, bei dem ein Käufer, der in einem beliebigen Jahr mehr als seine Jährliche Kontraktmenge einnimmt, unter den im Vertrag festgelegten Bedingungen eine Gegenleistung in späteren Jahren, die ansonsten anfallen könnten, verrechnen kann Irgendeine Form von Sanktion, wie Take oder Pay. Manchmal bekannt als Advance Make Good. Gehäusekopf Petroleum Spirit (CHPS) Ein alternativer Name für Kondensate und besonders für diejenigen, die am oder nahe am Bohrlochkopf fallen. Hauptsächlich in Nordamerika verwendet. Churning Churning ist ein Begriff, der im Gashandel verwendet wird, um anzugeben, wie oft durchschnittlich das Gas zwischen dem Erstverkauf und dem Endverbrauch gehandelt wird. Stadtgas Stadtgas ist ein Begriff, der in einigen Teilen der Welt verwendet wird, zum Beispiel Ägypten, Indien, Japan, Korea, um das Gas zu verteilen, das an Kunden über ein lokales Verteilungssystem nach dem Stadttor verteilt wird. Solche Kunden werden eine Mischung aus Wohn-, Gewerbe - und Industriebetrieben sein, abhängig von bestimmten lokalen Gegebenheiten, werden aber in der Regel Stromerzeuger ausschließen. In der Vergangenheit Stadtgas kann Gas aus Kohle und Öl hergestellt werden, ist aber jetzt überwiegend Erdgas. Siehe auch Stadtgas. Stadttor Der Punkt, an dem ein örtliches Verteilungssystem, das oft auf einer Stadt oder einer Stadt basiert, Gas von einem Übertragungsunternehmen oder - system akzeptiert. Ein Transferpreis an dieser Stelle wird als City Gate Price bezeichnet. Kohlebett Methan (CBM) Kohlebett Methan ist Methan, das aus Kohleflözen gewonnen wird oder aus diesen gewonnen werden kann. Auch bekannt als Coal Seam Gas. CBM wird durch Bohren von Bohrlöchern in geeignete Kohleflöze und anschließendes Reduzieren des Drucks in dem Gestein zurückgewonnen, üblicherweise durch Abpumpen von Wasser, das salzhaltig sein kann und Umweltprobleme zeigt, bis das Methan von der Kohle desorbiert werden kann. CBM, im Gegensatz zu konventionellen Erdgas, ist nicht unter einem Siegel gefangen, sondern ist in der Kohle adsorbiert. Es kann daher in Kohleablagerungen auftreten, die seitlich sehr umfangreich sind. Die Produktionsraten sind typischerweise viel geringer als bei konventionellem Gas. Verarmungsraten sind in der Regel recht langsam und Brunnen können für viele Jahre produzieren. CBM kann auch als Sicherheitsmaßnahme hergestellt werden, bevor Kohle abgebaut wird, um das Auftreten von explosiven Gasgemischen während des Bergbaus zu reduzieren. Siehe Kohlegrube Methan. Kohle Gas Kohle Gas ist Gas durch die destruktive Destillation von bituminösen Kohle hergestellt. Die Hauptkomponenten sind Wasserstoff (mehr als 50), Methan (10 bis 30) Kohlenmonoxid und höhere Kohlenwasserstoffe. Der Wasserdampf im Kohlegas behielt alte Rohrverbindungen dicht, wodurch der Gasverlust minimiert wurde. Wenn Erdgas ohne Abhilfe in dieselben Rohre eingeführt wird, können erhebliche Verluste auftreten. Das Kohlenmonoxid ist natürlich giftig. Das Einatmen von Kohlegas war ein bevorzugter Weg, Selbstmord in Städten mit Kohlegasverteilung zu begehen. Kohlebergwerk Methan (CMM) Methan aus Kohlegruben gewonnen, entweder während der aktiven oder nach der Aufgabe, die in der lokalen Stromerzeugung oder Wärmeerzeugung verwendet werden können. Es ist selten in ausreichender Menge verfügbar, um die Verarbeitung der Pipeline-Qualität für die Lieferung in ein Pipeline-System zu rechtfertigen. Siehe Kohlebett Methan. Koksofengas Koksofengas wird als Nebenprodukt der Verkokung von Kohle produziert und war zu einem Zeitpunkt ein Hauptbestandteil von Manufactured Gas. Kombinierte Kreisgasturbine Eine kombinierte Kreisgasturbine (CCGT) ist eine Art Stromerzeugungsanlage, bei der die Wärme, die durch die Verbrennung der Gase erzeugt wird, zweimal verwendet wird. Zuerst wird das Gas verbrannt, um eine Gasturbine anzutreiben. Dann gehen die heißen Abgase durch einen Wärmetauscher, um Dampf für eine sekundäre Dampfturbineneinheit anzuheben. Kombinierte Kreislaufanlagen haben einen thermischen Wirkungsgrad von etwa 50 größer als eine normale einfache oder offene Turbine. Kraft-Wärme-Kopplung (KWK) Die Kraft-Wärme-Kopplung (KWK) ist die Verwendung eines einzigen vereinheitlichten Systems, um sowohl den Wärme - als auch den Leistungsbedarf eines Projekts zu liefern. Die Leistung wird durch Gasturbinen oder eine andere Antriebsmaschine erzeugt. Die Abwärme wird für andere Anforderungen als die Stromerzeugung genutzt. Auch bekannt als KWK und Gesamtenergie. Commodity Charge Tariff Begriff für eine Gebühr für jede Einheit des Gases tatsächlich genommen oder transportiert gemacht. Kann in volumetrischen oder Wärmeeinheiten sein. Unterscheiden Sie von Standing Charge und Demand Charge. Common Carriage Common Carriage ist ein Begriff häufig verwendet austauschbar mit Open Access und Third Party Access, aber das ist in der Tat spezifischer. In einem gemeinsamen Wagensystem erhalten alle Bewerber für Kapazitäten (z. B. in einer Pipeline oder einem Laden) gleichberechtigten Zugang. Wenn das Gesamtvolumen die verfügbare Kapazität übersteigt, wird die Nutzung aller Parteien pro rata verringert: die Kapazität wird unter den Benutzern rationiert. Unter Open Access, wenn die Antragsteller mehr Kapazitäten suchen als verfügbar ist, wird die Kapazität auf der Grundlage der ersten Come-first-first-Basis oder eines Pay-to-book-Systems verteilt, so dass die Kapazitäten für den Kauf und Verkauf von Räumen in einem Gebäude vergeben und gehandelt werden können . Ein Pipeline - oder Ladenbesitzer, der auch gewisse Kapazitäten für sich nutzen möchte, muss unter Open Access dies über einen armelangigen Partner tun, dessen Handelsbeziehungen mit dem Kapazitätsanbieter transparent mit denen anderer Nutzer übereinstimmen. Open Access ist auf US Interstate Pipelines erforderlich, wo es als Contract Carriage bekannt ist. In Europa wird der Begriff Open Access manchmal auch als Third Party Access genutzt, um das Recht Dritter auf die Nutzung der Pipeline oder der Ausrüstung eines anderen Unternehmens zu definieren. In seiner allgemeinen Form umfasst es Open Access, Common Carriage, verhandelten Zugang und regulierten Zugang. Ein Aspekt des Drittanbieterzugangs ist, dass er selbst keine Lösung für das Problem der Diskriminierung zwischen den Parteien, die die Einrichtungen nutzen, impliziert. Siehe auch Limited Access. Komprimiertes Erdgas (CNG) CNG ist Erdgas, das in Gasflaschen komprimiert wird, hauptsächlich verwendet als Alternative für flüssige Brennstoffe in Straßenfahrzeugen. CNG bleibt ein Gas, unabhängig von der Menge des Drucks. Nicht zu verwechseln mit Liquefied Petroleum Gas. Verdichterstation Gas verliert Druck, während es lange Strecken durch Rohrleitungen fährt. Um einen gleichmäßigen Durchfluss und einen angemessenen Druck am Abzugspunkt zu gewährleisten, muss er an Kompressorstationen, die typischerweise alle 60 km bis 100 km an Landsendeleitungen liegen, neu komprimiert werden. Offshore und in abgelegenen Gebieten kann es günstig und bevorzugt sein, höhere Drücke zu halten und größere Abstände zwischen den Kompressorstationen zu ermöglichen. Auf großen Rohrleitungen werden Kompressoren normalerweise durch Gasturbinen angetrieben. Kleinere Pipelines können Dieselmotoren verwenden. Konzession Eine Lizenz, die entweder von einer Regierung oder einer staatlichen Ölgesellschaft vergeben wird. Es definiert einen Bereich, der oft als Block bezeichnet wird. Die einem Unternehmen oder einer Unternehmensgruppe für die Exploration, Produktion oder den Transport von Öl und Gas unter bestimmten Bedingungen und für einen bestimmten Zeitraum gewährt werden. Konzessionsgebiete werden häufig zunächst für die Exploration vergeben. Wenn dies erfolgreich ist, wird innerhalb des Explorationsblocks ein kleinerer Bereich als Produktionsblock definiert. Kann auch auf Genehmigungen für den Bau von Pipelines, Kraftwerken usw. angewendet werden. Kondensat Kondensat ist eine Erdgasflüssigkeit mit niedrigem Dampfdruck, hergestellt aus einem Reservoir mit hohem Druck und Temperatur. Kondensat wird sich natürlich in einer Pipeline oder Trennanlage durch den normalen Kondensationsprozess trennen. Kann sich auf jede Mischung von relativ leichten Kohlenwasserstoffen beziehen, die bei normaler Temperatur und Druck flüssig bleiben. Es wird etwas Propan und Butan darin gelöst sein. Im Gegensatz zu Rohöl. Es enthält wenig oder keines der schweren Kohlenwasserstoffe, die schweres Heizöl bilden. Es gibt drei Hauptquellen von Kondensat: a) Die flüssigen Kohlenwasserstoffe, die aus einem Gaskondensatbehälter hergestellt werden. Diese können von einem lichtstabilisierten Rohöl nur wenig unterscheidbar sein. B) Die flüssigen Kohlenwasserstoffe, die an der Oberfläche aus nicht assoziiertem Gas gewonnen werden. C) Die flüssigen Kohlenwasserstoffe, die bei der Behandlung von Rohgas abgetrennt werden. Dieses Kondensat besteht typischerweise aus C5 bis C8. Brennwertkessel Bei einem Brennwertkessel handelt es sich um eine Warmwassererwärmungsvorrichtung, die für erhöhte Effizienz ausgelegt ist, indem Rauchgase verwendet werden, die ansonsten in der Atmosphäre entlüftet werden, um Wasser im Kessel vorzuwärmen. Anschlussgebühr Manchmal wird er als Synonym für Standing Charge verwendet, aber korrekter definiert als ein vom Kunden zu zahlender Betrag in einer Pauschale oder in Raten für eine Verbindung zum Lieferantensystem. Auftragnehmer Ein Begriff mit einer bestimmten Bedeutung in einer Produktionsfreigabevereinbarung. Der Auftragnehmer ist das Unternehmen (in der Regel ein produzierendes Unternehmen), das sich verpflichtet, für die Gastregierung zu erforschen und für eine bestimmte Menge des erzeugten Gases oder Öls zu produzieren. Konvergenz Ein lose definierter Begriff, der sich auf die zunehmende Nutzung von Erdgas bei der Stromerzeugung bezieht. Wenn die Erzeugung ganz oder überwiegend von Erdgas abhängig ist, konvergieren die Interessen des Gasversorgers und des Stromgenerators, und es besteht die Möglichkeit, das Gas zwischen Erzeugung und direkter Versorgung je nach dem Preis, der für jede Steckdose zur Verfügung steht, zu wechseln. Preise konvergieren, wenn es keinen Vorteil beim Umschalten gibt. Kosten-Gas-Kosten-Gas ist das Gas, das ein Auftragnehmer im Rahmen einer Produktions-Sharing-Vereinbarung zur Deckung der Kosten für seine Operationen im Rahmen des Vertrages erwirbt. Normalerweise arbeitet der Auftragnehmer auf eigenes Risiko und, wenn keine Kohlenwasserstoffe entdeckt werden, sind die Kosten vollständig für seine Rechnung. Siehe auch Profit Gas. Kritischer Druck Der minimale Druck, der auf ein Gas angewendet werden muss, bevor es verflüssigt werden kann. Kritische Temperatur Die Temperatur, oberhalb derer sich das Gas nicht verflüssigt, unabhängig vom angelegten Druck. Rohöl Eine Mischung von Kohlenwasserstoffen, die als Flüssigkeit in natürlichen unterirdischen Reservoirs vorhanden ist und bei Atmosphärendruck nach Durchlaufen von Trennanlagen flüssig bleibt. Rohöl ist der Rohstoff, der in Benzin, Heizöl, Düsentreibstoff, Propan, Petrochemie und andere Produkte verfeinert wird. Cryogenics Der Prozess der Herstellung, Wartung und Nutzung von sehr niedrigen Temperaturen (unter -46C - 50F). Relevant im LNG-Geschäft. Kissen Gas Kissen Gas ist Gas in einem Gasspeicher links, um den Druck zur Herstellung von gespeicherten Gas, aber die selbst bleibt unproduziert. Sie liegt typischerweise in der Größenordnung von 50 des gesamten gespeicherten Volumens für einen Aquifer und verarmte Felder, aber weniger für andere Lagerungsarten. Wenn das Geschäft anfänglich hergestellt wird, kann Kissengas, sofern es nicht produzierte Reserven sind, die in einem teilweise erschöpften Gebiet zurückgelassen werden, ein großer Teil der Kapitalkosten sein. Kissen Gas kann schließlich verwendet werden, wenn das Geschäft stillgelegt wird. Auch als Basisgas bekannt. Tägliche durchschnittliche Abgabe Gesamtvolumen des gelieferten Gases während eines Zeitraums, geteilt durch die Gesamtzahl der Tage in dem Zeitraum. Daily Contract Menge (DCQ) Die Menge des Gases, die ein Käufer nominell zum Kauf verpflichtet und ein Verkäufer verpflichtet sich, in einem definierten Zeitraum von 24 Stunden zu liefern. Obwohl in vielen Verträgen, in der Praxis dieser Ausdruck ist von wenig Bedeutung für sich. Sie kann als Mittel zum Ausdruck der jährlichen Kontraktmenge dienen, wenn diese als Anzahl von Tagen multipliziert mit dem DCQ ausgedrückt wird. Sie kann auch den Satz festlegen, zu dem der Verkäufer in der Lage sein muß, Gas zu liefern. Siehe auch: Tagesrate. Daily Delivery Rate Die Daily Delivery Rate (DDR) ist die Rate, zu der die Verkäufer Einrichtungen in der Lage sein müssen, Gas zu liefern, ausgedrückt als ein Volumen von Gas pro Tag oder als ein Vielfaches der Daily Contract Menge. Auch als die maximale tägliche Menge bekannt. Daily Peak Daily Peak is the maximum volume of gas which can or must be deliveredrequired on any one day during a given period (usually one year). Dedication Contract A Dedication Contract is the correct term for a Depletion Contract . under which the entire production from a gas field is bought and sold. Degree Day A degree day is a measure of average temperature over a day, and is usually related to a temperature threshold. For instance, an actual average temperature of 5C on a day is 2 degree days warmer than an expected average temperature of 3C. Can also be used to measure cumulative cold weather over a period. Thus if the Seasonal Normal temperature for a month is 18C and the average actual temperature through the month is expected to be 8C, the month will be 10 x 30 300 degree days colder than normal. Delivered A term used mainly in LNG shipping contracts for an arrangement under which the seller is responsible for arranging and paying for the shipping of the gas, and title passes at the port of delivery. Generally, the sellers risks are greater in a delivered transaction because the buyer only pays for the landed qualityquantity, and the Boil Off Gas is the sellers responsibility. The seller is responsible for clearance through customs and payment of all duties unless the contract provides otherwise. An alternative name for a Delivered contract is Ex Ship . Very similar to Delivered is Cost, Insurance and Freight (CIF). This is an arrangement under which the Seller arranges and pays for shipping and insurance, as for a Delivered contract, but risk and title are transferred from the seller to the buyer in a manner defined in the agreement (e. g. on shipment or on delivery of the bill of lading to the buyer). CIF and Delivered are frequently, but erroneously, treated as if they were identical because the costs to the seller are the same. Under a CIF contract, however, the seller can avoid being in possession of the cargo within the jurisdiction of the buyer countrys government. This may be important for fiscal or legal reasons. The third arrangement frequently met in the shipping of LNG is Free on Board, (FOB), which is used to denote deliveries where the buyer arranges for the shipping and there is a delivery and change of title at the time the cargo is loaded into the ship at the loading port. Demand Charge A monthly or annual fee paid by a Buyer for a nominated, reserved peak or for the actual peak volume of gas taken in an hour or day in a given period. Thus a typical expression might be Dollars per thousand cubic feet of peak hourly capacity per month. Often used interchangeably with Capacity Charge although it can be argued that in strict logic Demand Charge should apply to a gas sale and Capacity Charge to a transportation arrangement. Depletion Contract A depletion contract is a production sales contract in which the sale volumes are essentially governed by the performance characteristics of the particular gas field. A build-up pattern, an expected Plateau and a method for determining decline volumes will be defined initially, but may be amended as the production capabilities of the field are better understood through operating experience. The buyer thus assumes a large share of the production risks. See also Dedication Contract and Supply Contract. Depletion Drive Reservoir A gas Reservoir from which gas is recovered by expansion as the gas pressure falls with the production of gas originally in place. The reservoir can therefore be treated as if it were a closed tank. Recovery factors of up to 90 of the gas in place can be achieved. In such reservoirs there is no Water Drive. Deregulation Deregulation is the reduction in the role of regulatory bodies usually associated with an increase in open competition, and achieved by the simplification of the regulatory framework. Deregulation should not be confused with Liberalisation which may require the introduction of transparent regulatory processes. Derivatives Derivatives are financial instruments ultimately based on trading a physical commodity, including gas and other forms of energy. See also Futures . Swaps. Dew Point The temperatures below which either hydrocarbons (hydrocarbon dew point) or water (water dew point) will start to condense out of a given gas stream. Condensation reduces the accuracy of metering and creates the nuisance of liquid slugs in pipelines, which will need to be cleared out periodically by passing a Pig though the pipeline. In addition, water may react with carbon dioxide or hydrogen sulphide in the gas stream to form acids, and with methane itself, under appropriate conditions, to form Hydrates . Therefore, at the Treatment stage, water is normally removed from the gas stream to reduce the Dew Point to somewhere around -10C at standard pipeline pressures. Distribution The final phase in the transportation of gas (and electricity) and its sale to end consumers through medium-sized pipelines and small diameter low pressure Reticulation grids. Diurnal Storage Literally, daily storage. The short-term or peak storage of gas in pipelines or gas holders, to meet local, within-day fluctuations in demand, as opposed to seasonal storage. Diversity Factor The ratio of the sum of the individual maximum demands of several consumers or loads, to their simultaneous maximum demand. Usually less than 1 to reflect that not all customers are expected to take their maximum demands simultaneously. See also Load Factor. Downstream Those activities in the gas chain closest to final customers. See Upstream. Downward Quantity Tolerance (DQT) The Downward Quantity Tolerance (DQT) is the amount by which a buyer may fall short of its full Annual Contract Quantity in a Take or Pay gas sales contract without incurring sanctions. If there is no provision requiring the buyer to take supplementary volumes in subsequent years to make good for the deficiency, the Annual Contract Quantity becomes in effect the ACQ minus the DQT. See also Make Good and Make Up. Dry Gas An alternative name for Lean Gas . It does not mean free of water, though in some cases it may be. Dry Gas Field A reservoir which will yield drylean gas and very small quantities of Condensate typically less than 10 barrels per million cubic feet. This is equivalent to 350 barrelsMMcm or 60 cubic metres oilMMcm gas assuming 0.159 barrelscubic metre. Dry Hole . A borehole that cannot produce commercial volumes of oil or gas. Conventionally the term Well is restricted to a borehole that can produce oil or gas. EFET The European Federation of Energy Traders. A pressure group of European energy trading companies dedicated to stimulating and promoting energy trading. Efficiency Efficiency, or Heat Efficiency, is the ratio of energy output to energy input in a process. One of the most frequently encountered uses of this ratio in the gas industry is in the use of gas for power generation, where the electricity send out is expressed as a percentage of the gas consumed, measured on the basis of a common unit e. g. kWh. Care needs to be taken to distinguish between net and gross efficiency. See also Gross Calorific Value . Net Calorific Value. End user The consumer of gas, in the residential, commercial or industrial sector. The final player in the gas chain. Entry-Exit An Entry-Exit System is one where a gas shipper is charged an entry price for putting gas into a transmission or distribution network at a defined entry point, and an exit price for removing the gas at a defined exit point. The prices can reflect congestion at entry and exit points, but are the same for any user. The system may be contrasted with point to point systems, where transportation charges depend on the actual or theoretical distance travelled by each consignment of gas. Entry-Exit is strongly favoured by the EU as a means of promoting gas liberalisation. ERGEG The European Regulators Group for Electricity and Gas. ERGEG is the European Commissions formal advisory group of energy regulators. ERGEG was established by the European Commission, in November 2003, to assist the Commission in creating a single-EU market for electricity and gas. ERGEGs members are the heads of the national energy regulatory authorities in the EU Member States. Ethane Ethane (C2H6, often abbreviated to C2 in non technical usage) is one of the main constituent elements of natural gas along with methane. Boils at -84.4C. At normal temperatures it is a dry, colourless and odourless gas. A feedstock for ethylene production. Ethylene Also known as Ethene. A colourless gas (C2H4) produced by cracking Hydrocarbons such as Ethane or naphtha and used as a feedstock for petrochemicals, such as fibres and many plastics. Boils at -103.7C. EU ETS The European Union Emission Trading System. The largest multi-national, emissions trading scheme in the world, and a major pillar of EU climate policy. Excess Gas Excess Gas is either: a) Gas taken at a rate in excess of the Daily Delivery Rate at a premium price or b) Gas taken in excess of the Annual Contract Quantity . Depending on the terms of the contract and the status of deliveries such gas may qualify as Carry Forward . Make Good or Make Up gas. Federal Energy Regulatory Commission (FERC) A US federal government agency whose responsibilities include regulating the interstate gas industry. Has no jurisdiction over gas pipeline and supply where the trade is entirely within individual states. Feedstock Hydrocarbons used as raw material in an industrial process, not as a fuel. The principal uses of natural gas as a feedstock are in the manufacture of ammonia and ammonia-based fertilisers and methanol. A potential major market is the use of gas to make synthetic oil products such as motor gasoline and middle distillates (see Gas to Liquid ). May also be used to denote the feedstock used to produce electricity, but statistical summaries of gas consumption normally distinguish this use from chemical feedstock uses. See also Middle Distillate Synthesis. Field Appraisal The process of quantifying reserve levels and production potential of a newly discovered petroleum (oil andor gas) reservoir, usually by drilling one or more delineation or appraisal wells. Firm Gas Gas which a supplier commits to supply to a purchaser under terms defined in the contract, without interruption. See also: Interruptible Gas. Fischer-Tropsch Process A chemical process to convert Synthesis Gas to paraffins by polymerization. Originally developed in the early 20th Century to make gasoline from coal. Recent research has identified catalysts which greatly increase the efficiency of the process by creating very long waxy products, which can then be turned into very high quality liquid fuels by conventional cracking. See Middle Distillate Synthesis. Flammability Limits The minimum and maximum percentages of gas in air within which the gas will ignite. For natural gas these limits lie approximately between 5 and 15. Flaring The process of burning unwanted natural gas or oil. In the case of gas, usually occurs when it is associated with oil and cannot be economically exploited or re-injected. Now less prevalent, as governments seek to profit from the increased value of gas and reduce the advert environmental impact of burning hudrocarbons. Floating LNG Floating LNG (FLNG) is the use of purpose built or converted ships to enable regasification of LNG (and liquefaction) to be carried out offshore. FLNG has the advantage that LNG production and importation can start more quickly than could happen onshore, where lead times are often lengthened by the local approval process. It also enables the processes to move location to satisfy short term demand. Force Majeure A contractual term used to define circumstances in which a party to a contract is not obliged to carry out its obligations because of major events outside its control. Force Majeure can mean very different things, depending upon the law under which the contract is written and the provisions of the clause, which can vary widely. Examples of force majeure could be war, extreme weather, industrial action. Forward Trading Buying and selling gas (and other commodities) to be delivered at a later date, not under a long term contract. See Futures . Fuel Cell Equipment used to generate electric energy directly from the reaction of hydrogen and oxygen in the presence of a catalyst, without combustion. Natural gas can be used as a feedstock from which to obtain the hydrogen. Carbon dioxide will then be produced in the reformation process. Fuel Gas Gaseous fuels, in particular low pressure natural gas used to fuel production or treatment facilities. Futures A future is a contract to buy or sell a specified quantity of gas (or any other commodity) for a specified price on a pre-arranged date. The contract is usually of standard form and can itself be traded at an exchange such as NYMEX or the IPE . Gas:Oil Ratio . The gas:oil ratio is the relationship between the volume of gas produced at atmospheric pressure and the volume of oil produced in a given field. This volume will normally vary considerably over the life of the field. May be expressed as a simple volumetric ratio e. g. 500:1 or as cu ftBarrel. See also Solution Gas. Gas and Electricity Markets Authority (GEMA) The body which determines strategy and takes major policy decisions for Great Britains gas and electricity regulation. Day to day management of policy, resources and operational issues is carried out by the Office of Gas and Electricity Markets ( OFGEM ). Gas Cap In a field where oil is saturated with gas, so that it can dissolve no more, some gas will collect at the top of the reservoir, where it is known as cap gas, and forms a gas cap. Cap Gas overlies the oil and thus provides additional pressure for oil production, but will therefore often be produced only after all the oil has been produced and will then be treated as Non Associated Gas . Unlike Solution Gas . it is not commingled with the oil. Gas Condensate Field A field consisting of one or more reservoirs containing a mixture of gases at reservoir temperature and pressure, but which at normal temperature and pressure separates out into natural gas and Condensates . A gas condensate field is richer in liquids than a Dry Gas field but there is no precise point at which one becomes the other. Sometimes a reservoir will be produced primarily to obtain the condensate the gas may be re-injected, used as a secondary product, e. g. for LNG production or, particularly in areas remote from the market, flared. The liquid in a gas condensate field is often more valuable than the gas. See also Gas Cycling . Gas Condensate Ratio The ratio of gas to condensate in a gascondensate reservoir, usually expressed in practice as the ratio of Condensate to gas. Typical units are barrels of condensate per million cubic feet of gas. Gas Cycling or Re-Cycling A process in which produced gas is re-injected into the reservoir after removal of the condensate. This is to maintain the reservoir pressure and prevent Condensate from condensing in the reservoir and then becoming difficult to recover. This contrasts with Blowing Down the gas condensate field. Gas Day A period of 24 hours starting and ending at a stated time (often 0600 hours). Gas Detector An instrument used to detect the presence of various gases, often as a safety precaution to guard against leakage of flammable or toxic gases. Gas Gathering System A gas gathering system is a network of pipelines from a number of fields, collecting gas and bringing it to a central point, often a processing system or the inlet to a major transportation pipeline. Sometimes built where individual fields are not big enough to justify investment in separate pipelines and processing plant. Gas Grid A gas grid or network is a connected set of pipelines for the transmission and distribution of gas in a region or country to industrial, commercial and domestic users. See Reticulation. Gas Holder Over ground structure used to hold gas for within-day Peak Shaving purposes in urban areas. Gas holders are relics of the manufactured gas era and are steadily disappearing, their function being largely usurped by Line Pack. Gas Lift Injection of gas into an oil reservoir in order to mix gas with oil, reduce the fluid density and so assist oil flow. Gas Marketer A company that supplies gas to end users. See also Shippers . and Local Distribution Companies . Marketers are also major users of transportation capacity. Gas Processing The separation of oil and gas, and the removal of impurities and natural gas liquids from natural gas to meet the delivery Specification of a gas transportation pipeline. Gas Supplier A company that sells gas to the end consumer (UK). Gas to Liquid Gas to Liquid GTL processes convert natural gas into Synthetic Gasoline or Middle Distillates . using the Fischer Tropsch synthesis method. Increasingly relevant where gas is found in fields remote from markets such that delivery by pipeline is likely to be uneconomic. Gas Turbine A turbine propelled by the expansion of compressed air, heated by the combustion of a fuel such as natural gas or gas oil. Widely used for power generation. See Combined Cycle Gas Turbine. Gas Well A borehole sunk into the ground with the objective of bringing natural gas to the surface. GNL The French language acronym for LNG . stands for Gaz Natural Liquifi. Greenfield Often used to refer to a planned development which must be built from scratch on a new site, hence green field, without existing infrastructure. Gross Calorific Value (GCV) The heat generated by the complete combustion of a unit volume of gas in oxygen, including the heat which would be recovered by condensing the water vapour formed. The preferred value for expressing gas calorific quality in gas contracts. Also known as Gross Heating Value, Higher Calorific Value (HCV) or Higher Heating Value (HHV). See also Net Calorific Value. Heads of Agreement A non-binding statement of the main elements of a proposed agreement. See Memorandum of Intent (MOI). Heel LNG LNG left in ship and shore storage tanks to maintain their cryogenic temperatures. Henry Hub Henry Hub is the largest centralized point for natural gas spot and futures trading in the United States. The New York Mercantile Exchange (NYMEX) uses Henry Hub as the notional point of delivery for its natural gas futures contract. NYMEX deliveries at Henry Hub are treated in the same way as cash-market transactions. Many natural gas marketers also use Henry Hub as their physical contract delivery point or their price benchmark for spot trades of natural gas. Henry Hub is owned and operated by Sabine Pipe Line, LLC, which is a wholly owned subsidiary of ChevronTexaco. Henry Hub is based on the physical interconnection of nine interstate and four intrastate pipelines in Louisiana. Hexane A colourless gas (C9H14) naturally occurring in gas fields and normally left as part of the Condensate stream after separation. Boils at -69C. High Sulphur Fuel Oil (HSFO) The bottom of the oil barrel. The lowest priced oil product now, for environmental reasons, often banned or only allowed to be used where rigorous control of emissions is practiced. In some countries with developing gas-to-oil competition it may represent the marker for power station fuel. Hourly Peak The maximum volume of gas delivered or demanded in any one hour during a given period (usually 24 hours). Hub A term, met most frequently in the U. S. but also now used in Europe, for a geographical point at which several pipelines meet, storage is often available, and opportunities for gas trading can be exploited. There are many hubs in the U. S. of which the most important is Henry Hub . In Europe the largest hub is the National Balancing Point in the UK. Hydrates Ice-like solids in which methane molecules are held within the molecular spaces of the water molecule. Can form in pipelines and wells under certain conditions of near freezing temperatures and high pressures. Their formation is averted by ensuring that water vapour levels in the gas are kept below specified levels. See also Treatment . Dew Point . Hydrates are found naturally beneath the ocean at depths greater than 300m in many areas, where they are estimated to have locked up many trillions of cubic metres of methane. There is speculation that these hydrates may provide a commercial resource in the future. Hydrates have also been proposed as a means of transporting natural gas by sea, possibly competing with LNG. Hydrocarbon An organic compound containing only the elements hydrogen and carbon. Hydrocarbons exist as solids, liquids and gases. Impurities At the wellhead, natural gas will probably contain methane and various heavier fractions. It may also contain a number of non-hydrocarbons, some or all of which will need to be removed. There may also be substances introduced into the well as a result of drilling operations, such as inhibitors, mud etc. The principal harmful impurities in the gas itself are likely to be carbon dioxide and sulphur compounds, notably hydrogen sulphide, which can create corrosion in the pipelines in the presence of water and can seriously damage chemical plant units built of aluminium. Hydrogen Sulphide is also extremely toxic. Excessive water vapour can lead to the formation of acids and Hydrates . Some impurities, such as sulphur or helium, can be recovered economically as by-products if in sufficient concentration in the gas. Other impurities, such as inert gases and nitrogen cause no directly harmful effects but dilute the Calorific Value of the gas and mean that pipeline capacity is being wasted. Whether or not they should be removed is simply a question of economics. See also Treatment . Natural Gas Liquids . Condensates. Independent Power Plant (IPP) An IPP is an electric power generation plant owned and operated independently of the major national or regional entity, producing electricity for an industrial complex andor for sale to the electricity grid. Inert Gas: A chemically inert gas, resistant to chemical reactions with other substances. Integrated Gasification Combined Cycle (IGCC) A means of generating electricity from coal and other low grade hydrocarbons by gasifying them at the electricity generation site thereby gaining some of the efficiency of Combined Cycle Gas Turbine generation. While the chemical amp engineering principles are well understood it has yet to be demonstrated as a commercial proposition. International Energy Agency A Paris-based organisation which co-ordinates the energy policies of its member countries. The IEA also compiles detailed energy statistics and country reports, including countries outside the organisation itself. An autonomous wing of the Organisation for Economic Co-operation and Development (OECD). International Gas Union The International Gas Union (IGU) was founded in 1931. A worldwide non-profit organisation of national gas industry associations whose objective is to promote the technical and economic progress of the gas industry. Organises the triennial World Gas Conference. International Petroleum Exchange The IPEis an energy futures and options exchange based in London. Gasoil futures have been traded since 1981, Brent crude futures from 1988, and natural gas futures since 1997. Absorbed into ICE, the InterContinental Exchange in 2005. See also New York Mercantile Exchange. Interruptible Gas Gas made available under agreements permitting the supplier to terminate, or interrupt deliveries, usually for a limited number of days in a specific period. Usually sold at a reduced price and used to boost salestransportation in slack seasons (normally the summer). Important in load balancing because (by reducing gas demand) it is an alternative to using stored gas. The converse of Interruptible Gas is Firm Gas. Into Plant Price (IPP) The price charged for gas at its entry to the plant. Joint And Several A contract term relating to responsibilities under a contract, usually for payment, often misunderstood. Where, for example, there are several buyers in one contract, a joint responsibility does not mean an equal or pro rata responsibility. It means that if one buyer defaults on its liabilities the other buyers will be liable to make good that default. Where responsibilities are several, each party is responsible only for its own default. Kyoto Japanese city which was the location for an international agreement on the need to reduce the level of emissions of greenhouse gases into the Earths atmosphere. Lean Gas Lean gas is gas high in methane content (typically 95 or more) and with few higher fractions. Hence of relatively low Calorific Value . Also known as Dry gas. The converse of Rich Gas. Liberalisation A term often confused with Deregulation but often meaning quite the reverse. Liberalisation is the process of freeing a market from what are perceived as undue monopolistic forces, to achieve which a high degree of regulation may be required, at least in early years. Limited Access Limited Access refers to a gas distribution system in which the host pipeline owner moves its own merchant gas under different rules to those applying to outsiders contracting for spare capacity. The system applies to local distribution companies and intrastate pipelines in the US and is analogous to but not identical with Negotiated Access . See also Common Carriage. Limited Liability A provision in very large gas contracts under which limits are set to the amounts payable by a defaulting party in a contract. Line Pack Line pack is a procedure for allowing more gas to enter a pipeline than is being withdrawn, thus increasing the pressure, packing more gas into the system, and effectively creating storage. The packed gas can subsequently be withdrawn when needed. A useful method of meeting short term (hourly or diurnal) peak demand requirements. In some areas, where there is a particularly high peak demand, a series of additional pipeline loops may be laid near the entry to a network to provide additional line pack. Such systems are effectively a modern version of the traditional Gas Holder. Liquid Market A trading market characterised by the ability to buy and sell with relative ease, usually because there are many buyers and sellers. Liquefied Petroleum Gas Liquefied Petroleum Gas (LPG) is Propane . Butane . or propane-butane mixtures which have been liquefied through pressure, mild refrigeration, or a combination of both. Usually a derivative of refinery operations but often stripped out of natural gas streams, if rich enough. Conventionally sold in steel containers as Bottle Gas . Not to be confused with LNG. LNG (Liquefied Natural Gas) LNG is Natural Gas which has been cooled to a temperature, around the boiling point of methane (-162C), at which it liquefies, thus reducing its volume by a factor of around 600. The exact boiling of any gas mixture and the reduction in volume will depend on its composition. The process of Liquefaction is carried out in a liquefaction plant. Mostly these are very large scale plants built for projects transporting gas by sea, but in many countries small LNG plants have been built to liquefy gas during the seasons of low demand to provide Peak Shaving when required. LNG Plants consist of one or more LNG Trains, each of which is an independent gas liquefaction unit. It is more cost effective to add a train to an existing LNG plant, than to build a new LNG plant, because infrastructure built for early trains, such as ship terminals and other utilities, may be capable of being used or expanded for new LNG trains. The term Train is sometimes extended loosely to embrace the relevant shipping, storage and other facilities required to bring the resultant LNG to market. Liquefied gas is transported and stored as a boiling liquid under slight positive pressure until required for use, when it is warmed and allowed to re-gasify. In the case of Peak Shaving, the gas will normally be regasified at the plant itself or possibly transported for short distances by road, but large scale transportation is by sea, in specially designed insulated LNG vessels and delivered to LNG terminals, which have the requisite facilities for storage and regasification - the process by which LNG is warmed, usually through a heat exchanger, in order to become once more gaseous before emission into the Gas Grid. Load Duration Curve A visual and statistical expression of a number of (daily) demands over a long period, most often a year. Demands are normally ordered with the highest to the left and the lowest to the right, so that the horizontal scale bears no relation to calendar timing. Can be used, among other things, to measure volumes of demand (or supply) above a given threshold. The area beneath the curve and between horizontal thresholds represents the volume required to supply a particular market segment. The approach is used in both electricity and gas industries. Load Factor A measure of utilization for plant, or of the relationship between average and peak demand or supply, as determined by the formula: Average x 100 Peak. For supply and demand calculations average and peak most often refer to daily demand within a year, but any other periods are possible. The resulting figure is usually expressed as a percentage but, where the period covered is a year, the percentage is sometimes multiplied by 8760, so that the load factor is expressed as a number of hours. Thus a 50 Load Factor can also be expressed as 4380 hours. See also Swing. Local Distribution Company (LDC) A company that distributes natural gas primarily to small, residential and industrial end-users. Looping Increasing the capacity of a pipeline system, by adding parallel piping along part or whole of the route. Does not apply to the addition of compression facilities. Low Sulphur Fuel Oil (LSFO) Fuel oil with a low sulphur content. Usually less dense than High Sulphur Fuel Oil . In new markets with gas-to-oil competition this often represents the marker fuel for large segments of the industrial market. Madrid Forum The Madrid Fotum, otherwise known as the European Gas Regulatory Forum, set up to discuss issues regarding the creation of a true internal European gas market. The participants include national regulatory authorities, Member State governments, the European Commission, transmission system operators, gas suppliers and traders, consumers, network users, and gas exchanges. Make Good Make Good Gas is gas which a buyer must take in a later year because it has failed to take its full Annual Contract Quantity obligation in an earlier year, but has not used its full Downward Quantity Tolerance . It must nevertheless take excess gas in subsequent years to make good its deficiency, before it is entitled to claim any Make Up Gas to which it is entitled through shortfalls greater than the Downward Quantity Tolerance. Make Up Make Up Gas is gas for which a buyer has paid under Take or Pay obligations but not taken, and may have rights to receive in subsequent years for no further charge or at reduced prices after it has taken gas in excess of an agreed threshold volume. This is commonly the Annual Contract Quantity but may, for example, be ACQ minus Downward Quantity Tolerance . Make up gas should not be confused with Make Good Gas. Memorandum of Intent (MOI) Also known as Confirmation of Intent and Letter of Intent. A half way house to the signing of a full contract. Its legal status is rather unclear and its value lies largely in how it is viewed by the parties concerned. It will normally be a fairly brief document setting out the principal framework of the contract and specifying a date by which it is expected that a full contract will be completed. An MOI will often have a relatively brief validity, but in some cases they have served to govern active operations over a period of years. Also known as a Memorandum of Understanding (MoU) and Heads of Agreement (HoA). Merchant Pipeline A pipeline system which itself buys and sells part or all of the gas it transports, in contrast to a pipeline which simply carries gas on behalf of others. See also Open Access . Negotiated Access . Common Carriage. Meter Measuring devise, usually located at a point where ownership is transferred, for example at the entry to a customers premises, city gate, national border or gas processing plant. Note that to determine the energy content of the gas it will be necessary to monitor the composition amp hence calorific value of the gas. This is done at high pressure meter stations but not normally downstream of a city gate. Depending on the size of flow, meters may be: Flow meters, measuring gas throughput using a rotor which is made to revolve by the gas flowing through them Ultrasound meters, more sophisticated, based on the principle that sound waves travel faster with than against the flow. By measuring the difference in travelling time between the two sets of measurements the gas flow rate can be measured to an accuracy of more than 0.5 Orifice plate meters, older, and less accurate than other meters. Calculate flow rates by measuring the drop in pressure over a pierced obstructing plate placed in the pipeline. See also Telemetry. Methane A colourless, odourless flammable gas, lighter than air under normal conditions (CH4, often abbreviated to C1 in non technical usage). Methane is the first member in the alkane (paraffin) series and is the chief constituent of Natural Gas . At atmospheric pressure, it liquefies at -162C. Methanol Methyl alcohol, produced from natural gas via Synthesis Gas . Used as a chemical in the resin and paint industry and in the manufacture of Methyl Tertiary Butyl Ether, (MTBE) and acetic acid, but also of interest as a possible total or partial substitute for motor gasoline in cars. Very toxic. Middle Distillate Synthesis (MDS) A chemical process using the Fischer-Tropsch synthesis method for making synthetic middle distillates (principally naphtha, kerosene and gas oil) from natural gas. Midstream Those activities in the gas chain concerned with moving gas between the source and local distribution. See Upstream. National Balancing Point (NBP) The NBP is an imaginary (notional, or virtual) point at which all gas that has paid the entry charge to enter the UK National Transmission System is deemed to be located. The point at which most UK gas trading takes place, and the largest gas hub in Europe. See Entry Exit. Natural Gas Natural gas (NG) is a mixture of generally gaseous hydrocarbons occurring naturally in underground structures. Natural gas consists mainly of Methane and variable proportions of Ethane . Propane and Butane . There will usually be some condensate andor oil associated with the gas. More specifically, the term is also used to mean treated natural gas which is supplied to industrial, commercial and domestic users and meeting a specified quality. Natural Gas Act (NGA) Seminal example of deregulation liberalisation in the USA. Natural Gas Liquids (NGLs) Heavier hydrocarbons found in natural gas production streams and extracted for disposal separately. Within defined limits ethane, propane and butane may be left in the gas to enrich the Calorific Value . Whether to extract them or not is largely a commercial decision. Heavier fractions which are liquids at normal temperatures and pressures will be removed. The terms Natural Gas Liquids and Condensates are in practice used virtually interchangeably. Rather confusingly, there is no agreement on whether the term NGLs includes or excludes LPGs and both usages are current. Natural Gasoline Butanes and heavier fractions extracted from rich natural gas which, after stabilisation (removal of the lighter fractions) may be blended into motor gasoline. Negotiated Access Negotiated Access is a restricted form of Third Party Access, which excludes the requirement for the access terms to be transparent or applied equally to all applicants. It has been proposed in the European Union as a compromise by opponents of Open Access. Sometimes abbreviated to nTPA. Broadly defines access by one party to another partys facilities through negotiation, the result of which is, by implication, confidential, and not necessarily consistent with negotiations between the facility owner and other parties. See also Access . and Limited Access. Net Calorific Value, (NCV) The heat generated by the complete combustion of a unit volume of gas in oxygen, excluding the heat which would be recovered by condensing the water vapour formed. Net Calorific Value is usually seen as a measure of the effective heat produced rather than the total heat in the gas. Also known as Lower Calorific Value or Lower Heating Value. For natural gas, typically 10 lower than the GHV or HHV. See also Gross Calorific Value. Netback The price or value of a gas, at e. g. the border or the wellhead, calculated by deducting the costs associated with getting it from that point to the eventual point of sale from its competitive value at that point of sale. Used to estimate the comparative value of selling gas to various markets, and the worth of producing gas at all. Network Code A detailed contractual regime governing access to a gas grid. Network Codes exist or are being developed in several countries, especially in Europe. In North America the rules of the system are referred to as The Tariff. In particular, the contractual regime for the gas grid in Great Britain operated by National Grid. It is continually amended through rules approved by the GB energy regulator, ( Ofgem ). See also Tariff and Rates. New York Mercantile Exchange (Nymex) The worlds largest physical commodity futures exchange. Has existed for 130 years and pioneered the development of energy futures and options contracts in the 1970s. Nitrogen Oxides Oxides of Nitrogen (NOx) resulting from the combustion of fuels, causing atmospheric pollution in the form of smog. Non Associated Gas Non-Associated is gas found in a reservoir which contains no crude oil, and can therefore be produced in patterns best suited to its own operational and market requirements. See also Associated Gas. Odorants Strong smelling chemicals injected into natural gas, which otherwise is odourless, in order to make its presence more easily detectable. See Mercaptans. Odorisation The process of giving odourless natural gas a smell for safety reasons by injecting small quantities of organic sulphur compounds, such as Mercaptans . typically at the rate of 30 ppm. Usually carried out at the city gate or at the exit from the high pressure transmission system. OFGEM Office of Gas and Electricity Markets, (OFGEM) The regulator for the gas and electricity industries in Great Britain. Governed by the Gas and Electricity Markets Authority . Its powers are provided by the Gas Act 1986, the Electricity Act 1989 and the Utilities Act 2000. Successor organisation to OFGAS and OFFER, the former separate Gas and Electricity Regulators. Offtake Point The point in a gas system where gas is taken by supply pipe to a consumer. Oil Gasification The conversion of oil or naphtha into gas to be used as a fuel. See also Manufactured Gas. On the day Commodity Market (OCM) System of within-day gas trading introduced into Great Britain in 1999. A screen-based system designed to allow shippers, traders and the system operator (then Transco, now National Grid) to resolve within-day demand and supply imbalances in an orderly fashion. Open Access A system offering all applicants access to specified infrastructure. See Common Carriage. Open Cycle Gas Turbine (OCGT) A gas turbine, often derived from aero-engines, used for peak generation of electricity. Also used in conjunction with a steam turbine in a combined cycle power plant. When only the gas turbine is used it may be termed single cycle. Open Season A procedure for demonstrating to a regulator that capacity is offered on a transparent basis. It is used principally where pipelines are required by regulation to offer only transportation services, for example in North America and the Southern Cone of South America. It is also being used elsewhere as a means of gathering information about potential interest in a pipeline. LNG, storage etc project to help the sponsors decide how and when to size the project. Off-Peak The period during a day, week, month or year when the load being delivered by a gas system is not at its maximum volume. Over the Counter Trading (OTC) Trading that takes place outside a formal Exchange. Peak Day The day in the year on which the demand for gas is highest. In temperate areas this is normally a cold day in mid winter. In warmer areas it may occur midsummer, when there is a high air conditioning load met either directly by gas or by gas-fired power. A crucial indicator in planning and sizing gas infrastructure. Peak Hour The hour in the day in which demand for gas is highest. Chiefly relevant to distribution systems. Is normally around the midday or evening meal time Peak Load The maximum load produced or consumed by a unit in a stated period of time. In some tariff systems it is an important component of the tariff design, since it defines the capacity that is booked in the gas delivery system and must be paid whether or not used. Peak Shaving Peak shaving is a means of reducing the Peak Load on the gas transportation and supply system by supplying some gas from sources at or close to the point of ultimate consumption, thus improving the average Load Factor . Peak shaving may be daily or seasonal and will be handled in a variety of ways: - Underground storage . peak shaving LNG plants, Line Pack . Gas Holders . propane-air plant and, occasionally, special peak shaving supply contracts. A non-storage alternative to peak shaving is to interrupt I nterruptible Gas supplies. Permeability A measure of the ease with which liquids or gas flow through a reservoir rock. Compare this with Porosity . Gas will flow more easily than oil, and so can be recovered from rocks with lower permeability. Permeability is measured in Darcies. Gas reservoirs may have permeabilities of only a few millidarcies. Petrochemical An intermediate chemical derived from petroleum, hydrocarbon liquids, or natural gas, such as ethylene, propylene, benzene, toluene, and xylene. Pig Equipment used to clean or flush out liquids and other accumulated and unwanted items from the inside of an oil or gas pipeline. It is inserted into the pipeline and carried along by the flow of oil or gas. An intelligent pig includes measuring and sensing equipment which can be used to inspect a pipeline internally, which is useful after it has been buried underground Pipeline A tube for the transportation of crude oil or natural gas between two points, either offshore or onshore. Pipeline Capacity The amount of oil or gas that can be passed through a pipeline over a given period of time. Plateau In long term gas contracts the period of years for which the Annual Contract Quantity remains flat. The Plateau will normally be preceded by a build up period, during which the volumes increase and, in the case of a Depletion Contract will be followed by a period of decline until further production is no longer economic. Porosity The proportion of a rock volume (expressed as a percentage) that is occupied by the voids between mineral grains. Used to help estimate the volume of hydrocarbons in a field. Compare this with P ermeability . Power Purchase Agreement (PPA) A contract between a power station and the electricity purchasing organisation for the sale of electricity. Primary Energy The gross amount of energy used, measured in the quantities of the original fuel produced (e. g. crude oil) before conversion to other forms (e. g. refined petroleum products or electricity). Thus hydroelectric power and nuclear power are Primary, but power from generating stations consuming fossil fuels is not. Production Sharing Agreement (PSA) An agreement between an international producing company and a host government or state oil company under which the international company acts as risk-taking contractor investing in exploration andor production facilities in return for the right to export or sell a quantity of gas or oil that may be produced from the Concession or Block . Sometimes known as a Production Sharing Contract. The terms are interchangeable and the use of one or the other depends on the country. Profit Gas Frequently used to signify the gas received by a Contractor in a Production Sharing Agreement to provide the profit in the operation. Normally the Contractor will receive Cost Gas to cover its costs and, after other minor provisions, the remaining gas will be split with the host government in agreed proportions. In some countries profit gas is also subject to income tax, in other jurisdictions the State Oil Company is assumed to pay the income tax liability of the contractor. The proportion of profit gas is adjusted depending on local practice. May be used to signify the totality of gas remaining after Cost Gas, Royalty and similar items, including therefore both the Governments and the Contractors shares. Project Financing A method of financing in which the lender makes loans directly to a project and may claim repayment only out of that project. In theory, the lender has no recourse to the project sponsors other assets (non-recourse financing) but in practice this is rare. More commonly the extent of the sponsors liability is strictly defined (limited recourse financing). Propane A member of the alkane (paraffin) group of hydrocarbons with three carbon atoms in its molecule ( C3H8, often abbreviated to C3 in non technical usage). A frequent component of natural gas, also sold as a form of Bottled Gas . Liquefies at -42C. Proven Reserves Those quantities of petroleum which, by analysis of geological and engineering data, can be estimated with reasonable certainty to be commercially recoverable, from a given date forward, from known reservoirs and under current economic conditions, operating methods, and government regulations. Proven (proved) reserves can be categorised as developed or undeveloped. Where probabilistic methods have been used to estimate reserves, proven reserves are those with a better than 90 chance of being economically recoverable. Sometimes abbreviated as P90. Reserves with a greater than 50 chance but less than 90 chance are defined as Probable, or P50. Reserves with a greater than 10 chance but less than 50 chance are Possible or P10. Reserves may be classified as proved, if facilities to process and transport them to market are operational at the time of the estimate or there is a reasonable expectation that such facilities will be installed. Reasonable expectation is usually taken to mean that a developer has taken the decision to build the necessary facilities and the development plan has been approved by the relevant authorities. Thus large resources, such as those known to exist in North Alaska, are not classified as proven because there is no route to market. Different countries have adopted many different definitions of reserves, but gas contracts often refer to the Society of Petroleum Engineers (SPE) definitions. These and similar definitions from the World Petroleum Council were harmonised in 1997. Public Service Obligation A Public Service Obligation (PSO) is a requirement imposed by government on a company or companies to provide services which might not otherwise be profitable but are judged to be in the public interest. These could, for instance, include supplying gas to small or poor consumers, ensuring that appliances and other infrastructure is operating efficiently and safely, and ensuring that there are sufficient back-up gas supplies to cover emergency interruptions in supply. Public Utility Commission (PUC) State commissions in the USA responsible for regulating gas, and other utilities that operate within the boundaries of the state. See Regulation. Ramping Rate The rate at which the level of production can be increased after a partial or complete interruption. Rates North American term for the charges for the use of pipeline and storage capacity, referred to in other parts of the English-speaking world as Tariff. The North American definition of Tariff is more nearly equivalent to Network Code. Raw Natural Gas Natural gas still containing impurities and unwanted substances, such as water, nitrogen, carbon dioxide, hydrogen sulphide gas and helium. See also Impurities . Behandlung. Recovery Factor The percentage of gas or oil in place in the reservoir which can be economically recovered. Gas Recovery factors may be around 60-70 in reservoirs with water drive from an Aquifer and up to 90 in Depletion Drive Reservoirs. Regasification The reconversion of LNG into gas suitable for pipeline transportation. See LNG. Regulated Access Access to infrastructure under terms and conditions set by or agreed with a Regulator . Such access will usually be open to all qualifying customers. See Common Carriage. Regulator (1) A mechanical device for controlling the pressure of gas within acceptable limits. Typically installed when has enters a low pressure distribution system for final use by small customers. (2) The person or body appointed to oversee the operation of the regulated parts of a gas industry. See Regulation. Regulation Regulation is a substitute for free market operation typically, in the gas industry, where all or part of the operations are carried out by institutional or natural monopolies. Provides a temporary or permanent counterweight to the economic power of the monopoly. Often exercised politically by government departments, but in many countries independent regulation is thought preferable. In any case the rules governing regulation will normally have been laid down explicitly by government legislation. Regulation can be economic restricting the revenue and profits of operators - or legal policing legislation. Regulators are normally closely involved in the setting up of liberalised market systems, when they may use their central position to interpret and rule on the applicability of legislation either ex-ante or ex-post. See Common Carriage. Renewable Energy An energy form, the supply of which is partly or wholly regenerated in the course of the annual solar cycle. Thus solar and wind energy, hydropower and fuels of vegetable origin are regarded as renewable mineral fuels and nuclear power are not. Reservoir A reservoir is an accumulation of oil andor gas in a permeable and porous rock such as sandstone. A petroleum reservoir normally contains three fluids (oil, gas and water), which separate into distinct sections, owing to their varying specific gravities. Gas occupies the upper part of the reservoir as it is the lightest, oil the middle section, while water occupies the lower section. See also Permeability . Porosity . Gas Cap . Aquifer . Solution Gas . Proven Reserves. Reticulation A reticulation network is a small diameter, low pressure gas system serving residential and commercial customers. (From the Latin word reta, meaning net). See also Distribution. Retrograde Condensate A gas condensate which, in the reservoir, is close to the Dew Point of the fluid. A small reduction in pressure, by production of the field, leads to the condensation of higher hydrocarbons in the reservoir, causing a lower Recovery Factor . Royalty A tax on production volumes, often paid in kind, which is levied as a percentage of production. It is therefore not related to the profitability of the production project, merely to the volume of gas (or oil) produced. R:P Ratio The Reserves: Production Ratio is the number of years that current reserves would last at current production levels. Thus reserves of 100 divided by consumption of 20year gives an R:P ratio of 5, and implies a life of 5 years for the reserve. RPI-X A regulatory formula by which a regulated monopoly is allowed to increase its prices each year by the retail price index (RPI) minus a defined amount or percentage x (x is a variable). Gives consumers falling real prices and forces the utility to reduce costs if it is to maintain its level of profitability. Sales Gas Raw gas, after processing to remove LPG, condensate and carbon dioxide. Sales gas usually consists mainly of methane and ethane and is odorised. See Odorisation. Salt Cavity Storage The storage of gas in caverns leached out in gas-tight salt strata. Such caverns may be generated during the recovery of salt for commercial purposes, or may be purpose-built for gas storage. Scrubbing The process of purifying a gas or liquid by washing it with suitable chemicals in a contact vessel. Seal The layer of rock overlying a gas field which prevents the gas escaping from the reservoir. It is therefore of low Permeability . Salt and fine clays can provide good seal. Seasonal Normal The average (or normal) result for the time of year. Thus Seasonal Normal Temperature (SNT) is the average temperature on a calendar day, where the average has been measured over a suitably long period. Likewise Seasonal Normal Demand, Seasonal Normal Weather. SNT is an important factor in developing forecasts of gas usage. See Weather Correction. Seasonal storage Storage designed to be filled at times of low (season) demand and emptied at times of high demand, over months rather than days. Security of Supply Security of supply is a term with several meanings including: the provision of adequate infrastructure to cope with annual and peak demand the provision of sufficient gas to meet annual and peak demand ensuring that a country or area does not rely exclusively on one, or very few sources of supply. Seismic Survey A technique for establishing the presence of underground geological strata using sound waves. There are two main techniques - reflection or refraction. In the oil and gas industry by far the most common is reflection. In a reflection survey sound waves are sent into the ground and the echoes from boundaries between rock with different properties of density and sound velocity are recorded. The sound waves recorded at the surface can then be used to create maps of the rock layers in the subsurface to reduce the risk of drilling dry holes. A reflection seismic survey may be either 2D, in which the reflections are recorded along a line or 3D, in which the lines are very closely spaced to deliver a three dimensional view of the subsurface. A refraction seismic survey is a different technology in which the sound waves are refracted along rock boundaries rather than reflected from them. Send-Out The quantity of gas delivered by a plant or system during a specified period of time. Shipper A party negotiating for the transport of gas on its own behalf or as an agent for another. In liberalised markets shippers may not be allowed to operate transportation systems. Slug Catcher Plant installed in a gas pipeline system or gas processing plant to catch slugs of liquid. Usually this takes the form of a long section of pipe, inside which the pressure is allowed to drop by a controlled amount. See also Pig. Solution Gas Solution Gas, unlike Cap Gas is Associated Gas dissolved in oil. Produced inevitably with the oil and separated from it at the well-head. Solution Gas production is thus a function of oil production and of the GasOil Ratio . which changes over the life of the field. It is therefore an unreliable gas supply and difficult to market, unless the buyer or seller have large alternative sources. Has in the past largely been flared or vented but this is becoming less acceptable, largely for environmental reasons, although is still not uncommon in remoter areas. Separation is often carried out in two or three stages to maintain the gas pressure for pipelining as far as possible. Gas from the final stage separator is at low pressure and is normally used in the field or on the platform during production. The gas may be re-injected into the reservoir if it will not break through into the oil wells. Sour Gas Gas containing a high level of Carbon Dioxide or Hydrogen Sulphide, which are corrosive in the presence of water. They may therefore require drying or removal to preserve the pipeline. The converse of Sweet Gas. Spark Spread The spark spread represents the difference between the cost of fuel and the price of electric power produced. A positive spread indicates that the price of the power is higher than that of the fuel, and the spread is profitable. The spread can be calculated for any input fuel, such as natural gas, coal, or heating oil. Specification The technical description of the allowable limits of the chemical composition of gas which may be admitted into a pipeline or process. Specific Gravity The ratio of the density of gas to that of air, or the ratio of the density of a liquid to that of water, in both cases at the same temperature and pressure. Spot Trading A loose term covering the buying and selling of gas other than under a long term contract. Generally in trading parlance spot delivery means immediate delivery. Standing Charge Tariff term for a fixed charge, typically per quarter or per year, irrespective of the amount of gas actually taken. Synonymous with Connection Charge but to be distinguished from Demand Charge. Storage For natural gas storage facilities fall into several categories. Seasonal storage comprises depleted gas fields Aquifers S alt Cavity Storage mined caverns and disused mines. Peak storage includes Gas Holders . Line Pack . lengths of pipeline buried specifically for storage use, and LNG storage used either for base-load or peak-shaving duties, depending on the market. Increasingly used in liberalised markets to enable gas to be trade at any time of the year for reasons not related to peak demand. See also Peak Shaving . Straddle Plant A gas processing plant that straddles a gas transportation pipeline to remove NGLs from the gas stream. Because it is often more economic to transport Rich Gas a straddle plant is required to process the plant to final sales specification. The alternative location of a gas processing plant is close to the producing field. NGLs are then transported as liquids away from the field area either by separate pipeline or other means. Supply Contract A contract under which the seller undertakes to supply gas in guaranteed volumes over a fixed period of time. A Supply Contract is therefore in sharp contrast to a Depletion Contract as the seller assumes the volume risks. Whilst certain fields may be envisaged in the contract, the seller will normally have the right to substitute other suitable gas if necessary. Swaps (1) Arrangements under which gas destined for a market is delivered elsewhere, and substitute gas is supplied to the final market. For instance, Nigerian LNG contracted to Italy is delivered to France, and other gas contracted to France is delivered to Italy. (2) In trading, the exchange of a fixed price for a floating price for a future delivery. Sweet Gas Gas containing little or no Carbon Dioxide or Hydrogen Sulphide. Converse of Sour Gas. Swing The inverse of Load Factor . defined as: Peak volume transported (sold) Average volume transported (sold) Expressed as a percentage. Thus a load factor of 60 is a swing of 167. Often used to describe the flexibility of supplies over a year. Synthesis Gas Also known as Syngas, Synthesis Gas is a mixture of carbon monoxide and hydrogen produced from methane or other hydrocarbons and steam and used to produce various chemicals, notably methanol. It is also the basis for the Fischer Tropsch process. See also: Middle Distillate Synthesis. Synthetic Gasoline Motor gasoline produced from coal (by the Fischer Tropsch process) or from natural gas (by the Fischer Tropsch process or via methanol). See also Middle Distillate Synthesis. Take or Pay Take or Pay (TOP) is a common provision in gas contracts under which, if the Buyers annual purchased volume is less than the Annual Contract Quantity minus any shortfall in the Sellers deliveries, minus any Downward Quantity Tolerance . the Buyer pays for such a shortfall as if the gas had been received. The Buyer may have the right in subsequent years to take the gas paid for but not received, either free or for an amount to reflect changes in indexed prices. See also Make Up Gas. Tariff A schedule of rates or charges offered by a common carrier or utility. Tariffs are commonly available for all parts of the gas industry where third party access is enforced or offered, for example for gas transmission in pipelines, for the use of gas stores, for gas sales to residential customers. Telemetry A technique used in the gas industry for recording information at a distance from the Meter or other recording device, typically by radio transmission of the data. Temperature Demand Analysis The statistical analysis of the causal relationships between weather (and other) factors and the demand for gas. An essential prelude to forecasting demand. See Seasonal Normal and Weather Correction. Temperature Correction The process of adjusting actual gas usage to what it would have been at Seasonal Normal Temperatures, to allow comparisons to be made between results for different time periods, typically years. See weather correction. Title Transfer Title transfer is the transfer of which ownership of gas from the seller to the buyer. Typically this may occur somewhere between the well head and entry into the transmission system, at national border crossings, at the City Gate etc. In the world of traded gas, possible points of transfer become more numerous. A special case is the transfer of LNG at some specified point on the high seas. See Delivered. Trading Volume The number of contracts that change hands during a specified period of time. See also Churning. Transit The transportation of gas through a country or gas system en route to the final customer. For example, Russian gas may transit through Ukraine en route to customers in western Europe. Transmission The transportation of large quantities of gas at high pressures, often through national or regional transmission systems. The gas is then transferred into local distribution systems for supply to customers at lower pressures. Transmission Company The company responsible for operating a transportation system. In liberalised markets there is increasing pressure for such companies to be restricted to offering capacity in pipelines for sale, and to be barred from selling gas itself. The companies are also commonly known as Transmission System Operators (TSOs) a title which reinforces their restricted role. See Unbundling. Transmission Pipeline A network of pipelines moving natural gas from a gas processing plant via compressor stations, to storage centres or distribution points. Transparency A general term meaning open publication of information. In the gas industry it is generally used in relation to costs, prices and capacity, where information has traditionally been considered commercially confidential. Costs and prices generally reflect a number of elements, such as production, transportation, storage, service. Transparency generally involves separating out or U nbundling these elements, usually as a result of regulatory requirements. A further step towards transparency involves the publication of the methodology used to calculate the different elements of costs and prices. Transporter A gas pipeline company transporting gas belonging to other companies. Also the operator of LNG vessels. See Transmission Company. Trap A configuration of reservoir and seal rocks that can confine gas (or oil) which are lighter than water normally contained in the reservoir rock. Structural traps are formed by a closed structure of R eservoir rock overlain by a sealing formation (the Seal ). May also be formed by stratigraphic changes within a reservoir rock in which case it is known as a stratigraphic trap. Treatment Any gas purification process, but most generally applied to the treatment of gas immediately after production, to bring it to acceptable standard for the market in question andor to extract valuable components for separate sale. This may involve the removal of LPGs and will certainly involve stripping out Condensates . Carbon Dioxide and Hydrogen Sulphide and other sulphur compounds (see also Acid Gas ) mercury and excessive water which may be in the raw gas. Other impurities are occasionally encountered. Whether other inert gases such as nitrogen, helium etc are extracted will be a matter for economic evaluation. UKCS United Kingdom Continental Shelf. Unbundling Unbundling is a term with several meanings for the gas industry but more accurately, and originally, it was used to denote the separation of different services and the charges associated with them. Originally used in the US in restructuring the telephone industry. it was adopted in the gas industry to denote the separation of gas sales from transportation and storage services. This is still the most usual meaning of the term, particularly in North America, where large customers are now free to purchase gas and services separately. However the European Commission uses the term Unbundling to mean the financial disaggregation of different functions within integrated companies, such as transmission and marketing. Where companies perform multiple functions, the Commission has sought to require separate accounting for the functions. Its aim is therefore much more related towards Transparency and eliminating the potential for anti-competitive cross subsidisation activities. Underground Storage The storage of gas, for strategic or peak shaving reasons, in underground reservoirs. Depleted gas fields are often suitable. Other possibilities include depleted oil fields, Aquifers and Salt Cavity Storage . In the context of LNG, underground storage refers to normal LNG storage tanks which are, however, buried to provide greater safety in the event of leakages. Unitisation Agreement When a gas field extends over two or more production licences or leases with different ownership, most countries require that the field owners unitise their holdings i. e. decide how the reserves and production of the total field will be shared between the licensees, thus enabling the efficient depletion of the reserves. The Unitisation Agreement normally provides for the appointment of a field operator, a method of determining the reserves underlying each licence or lease and the frequency of reserve re-determination. Upstream Upstream, Midstream and Downstream are imprecisely defined terms used to separate activities along the gas and oil chain into homogenous groups. Upstream typically refers to exploration, development amp production of oil amp gas. Sometimes also defined to embrace Midstream, which typically covers transmission (as opposed to distribution) LNG shipping etc. Downstream typically refers to activities associated with delivery to final consumers, such as distribution systems and connections to customer premises. Water Drive In a porous rock, as gas is withdrawn from the reservoir, water expands into the region formerly occupied by the gas as pressure is released. This often has the result of trapping volumes of gas so that they cannot be produced, thus reducing the recovery of gas. Not a problem with a D epletion Drive Reservoir . See Aquifer. Water Gauge A measure often used to express the pressure of gas in distribution systems, using water instead of mercury. The gauge records how far up a gradated tube gas will lift a column of water. Distribution systems normally operate at about 300mm (12 inches) water gauge (i. e. 300mm above atmospheric pressure). For comparison, atmospheric pressure is a little above 10 metres of water. Wayleave The strip of land around a gas pipeline or other utility to which the utility has legal right of access for building and maintenance. Weather correction A procedure for estimating what customer demand would have been in S easonal Normal weather conditions. Thus in a cold year seasonal normal demand will be lower than actual demand and vice versa. Well A hole drilled into the ground, mostly by rotary rigs, in which a drill bit, which actually cuts the rock, is turned on the end of a drill string, made up of lengths of hollow steel pipe which are added to the string as the bit drills deeper into the ground. Wells have various descriptions depending on the stage of the production process at which they are drilled. Exploration wells are drilled to discover if gas (or oil) can be found Evaluation or appraisal wells are drilled to obtain more information about a previous discovery Development wells are drilled to produce gas from a field which is being developed, and are called Producing wells when the field enters commercial production. Wheeling Physically redirecting gas from one pipeline system to another at a Hub as opposed to changing the title by swap arrangements. Wobbe Index Occasionally referred to as the Wobbe number. A measure of the rate at which gas will deliver heat on combustion and hence of the compatibility of a gas with gas burning equipment. Working Gas In a gas store, the total volume of gas present less C ushion Gas . In other words the gas available for normal working. Hence working gas capacity - the total capacity of a storage facility minus cushion gas. GLOSSARY OF UNITS Absolute Pressure The sum of Atmospheric Pressure and Gauge Pressure i. e. pressure by reference to a vacuum Atmosphere: A measure of pressure, now largely superseded by the Bar to which it is nearly identical. Originally equal to 760 mmHg it has now been redefined as 101,325 pascals and consequently 1 atmosphere 1.01325 bars. Atmospheric Pressure The pressure of the weight of air and water vapour on the surface of the earth. Bar The most used unit for expressing gas pressure. It is equal to 100,000 pascals (Nm2), which is the official SI unit. 1 Bar is approximately atmospheric pressure. bbl A US barrel, 1 barrel 0.159 cubic metres 42 U. S. gallons (approx35 imperial gallons). The abbreviation is also sometimes written as B or b. bblday Barrels per day. Usually used to quantify a refiners output capacity or an oilfields rate of flow. Bcm Billion cubic metres (i. e milliard or 109 cubic metres). Billion In the US 109. Although elsewhere billion often signifies 1012, the Natural Gas industry has generally adopted the US usag e. Boe Barrels of oil equivalent - a frequently used number to quantify general energy requirements for practical purposes. One boe is usually taken as representing 5.8 MMBtu gross. British thermal unit A unit of heat still widely used in the gas industry, notably in North America and in LNG. Originally defined as the amount of heat required to raise the temperature of one lb of water from 60 to 61 Fahrenheit, it is now defined in relationship to a fixed number of Joules (1055.056 to three decimal points). The most common multiple is one million Btu, normally abbreviated to MMBtu and U. S. dollarsMMBtu is perhaps the most frequently used unit for comparing gas prices on a common basis. See also Therm. Cal Calorie. Formerly the SI unit of energy, now no longer part of the system but still extensively used in Europe. The calorie was nominally the amount of heat required to raise 1 gram of water by 1C at 1 standard atmosphere and starting from 14.5C, but is now defined arbitrarily as: 4.1868 J. The most common multiple used is the Megacalorie (Mcal). Cf Cubic feet. Measure of gas volume, referring to the amount of gas needed to fill a volume of one cubic foot at 14.73 pounds per square inch absolute pressure and 600F. cm Cubic metres. Note however that cm is also the official abbreviation for centimetre. Deca Therm Also deka therm. A term sometimes used in the U. S. in lieu of one million Btu. Gauge Pressure The amount of pressure shown by a gauge, i. e. the amount by which the pressure exceeds atmospheric pressure. See also Absolute Pressure. GJ GigaJoule. One GigaJoule is approximately equal to 9.478 MMBtu. One million Btu equals 1.055 GJ. GWh GigaWatts per hour. J Joule - The unit of energy in the SI system and the unit approved by the International Gas Union for the expression of heat in the gas industry. Its definition is one Newton metre. In practice the industry has been reluctant to embrace the Joule for commercial purposes and it is only current in Australia and New Zealand. For practical purposes the multiples most in use are the MegaJoule (MJ) and the GigaJoule (GJ), although Petajoule ( PJ ) is also seen. For quick calculations 1 GigaJoule is very close in value to 1 MMBtu. Kelvin Measurement of temperature equivalent to 1273.16 of the interval between absolute zero and the triple point of water. The official unit of the SI system. The Kelvin is identical to 1 degree Celsius, which is the term most often used in practice, but the scale is different (0C273.16 K). Note incidentally that the Kelvin is itself the unit of measurement and references to 1 degree Kelvin are incorrect. kW KiloWatt One thousand Watts. kWh KiloWatt hour - Together with its multiples, rapidly becoming the most used unit for energy in gas, although its use is not strictly in accordance with the SI system or with IGU preferences. Since 1 Joule 1 Watt per second, the conversion factor 1 kWh 3.6 MJ is exact. Long ton 2240 lb. The most usual form of non-metric ton. Mcf Thousand cubic feet. Mcm Thousand cubic metres. Milliard Synonymous with US billion - 109. MM Widely used in the gas industry to mean a million (106), although this usage is incorrect, according to the SI convention. Similarly M is often used to represent a thousand (103). When the lower case letters m and mm are used, these usually denote a thousand and a million respectively. In everything else M is correctly used to mean Million as in MWh. MMbbl Million barrels. MMcf Million cubic feet. MMcm Million cubic metres. MMscm Million standard cubic metres. Mtoe Million tonnes of oil equivalent. Mtpa Million tonnes per annum, a widely used unit of volume in the LNG industry. MW MegaWatt - one million Watts. ncm Normal Cubic Metre - A cubic metre measured at 0 C and 1013 mbar dry. The most used metric unit for measuring the volume of gas. It differs from the Standard cubic metre ( scm ) in the temperature at which the measurement is made. The Normal cubic metre thus contains about 5 more heat content than the Standard cubic metre. PJ PetaJoule - Standard unit in the Australian gas industry, equivalent to 1 million (106) GJ and therefore roughly equal to 1 million MMBtu . It is therefore close to 1 Bcf or some 30 million cubic metres. ppm Parts per million. Pressure The force exerted by one body on another, measured as force over area e. g. newtons per square metre. Psi Pounds per Square Inch common USEnglish unit of pressure, 14.5psi 1 bar. scf Standard cubic foot - The conditions for measuring the scf are in fact very close to, but not identical with, those for the standard cubic metre ( scm ). Despite its name, there is no single accepted standard for the standard cubic foot but the one most used is 60F and 30 in Hg, dry. scm Standard Cubic Metre - A cubic metre measured at 15C and 1013.25 mbar, dry. The unit of volume recommended by the IGU but not in normal use. See also ncm. Short ton 2000 lb. Used in the US. SI Multiples The SI system uses the following prefixes for multiples of the base units: 103 kilo (k), 106 mega (M), 109 giga (G), 1012 tera (T), 1015 peta (P), 1018exa (E). tce Ton of coal equivalent - Like the barrel of oil equivalent ( boe ) a measure of general energy requirement but now largely supplanted by the boe. Generally taken to have a value of approximately 27 MMBtu. Tcf Trillion (1012) cubic feet. Tcm Trillion (1012) cubic metres. Therm 100,000 British Thermal Units is still occasionally used as a unit for pricing gas, particularly in the UK. Thermie A term virtually identical to 1 Megacalorie but having 15C as its base, used primarily in Spain. toe Tonnes of oil equivalent - A metric measure used to quantify general energy requirements for practical purposes, an alternative to the barrel of oil equivalent. usually taken as representing 10,000 kilocalories net. Ton (t) A term covering a variety of measures: The metric tonne (1000 kg) The long ton (2240 lbs) The short ton (2000 lbs). The metric tonne is the one increasingly used. W Watt - The basic unit of electrical power, defined as one joule per second. Water Drive In a porous rock, as gas is withdrawn from the reservoir, water expands into the region formerly occupied by the gas as pressure is released. This often has the result of trapping gas so that it cannot be produced, thus reducing recovery from the reservoir. Water drive is not a problem with a D epletion Drive Reservoir . See also Reservoir. Water Gauge A measure often used to express the pressure of gas in distribution systems, using water instead of mercury. Distribution systems normally operate at about 300mm (12 inches) water gauge (i. e. 300mm above atmospheric pressure). For comparison, atmospheric pressure is a little above 10metres of water. See also Gauge Pressure.