2

PLANNING THE
SYSTEM
T

he gas conditioning and processing equipment is only a part of the entire system.
The total system may look very much like that shown in Figure 2.1. For
convenience, we divide each system into
modules. A dehydration unit, for example, would be a module; as would a fractionation tower with its
auxiliary equipment. The choice of module is govemed by convenience, both for
calculation and deci- sion purpses.
Unfortunately, one can do a sound job of designing, specifying and
operating each modular unit and yet end up with a poor system. The reason ... each
module has varying characteristics under varying loads that may result in a type of
interna! incompatibility. One modular unit may require a certain incoming analysis
to produce the output desired. If a previous unit <loes not maintain this, the subject
unit may not prove satisfactory. The fault might not le so much with that unit but
with total system design ( even though the unit is usually blamed).
Most of the errors observed in system design are "errors of omission."
Those facets of the problem receiving thoughtful, formal consideration usually are
handled satisfactorily. It is the things we fail to consider properly that usually are
at the root of most problems. One such omission is to concentrate on the detailed
design of each module without proper consideration of the total system within
which it resides. Another is failure to properly recognize the degree of uncertainty
in the input
,___
Gas
Processing

C02 and/or Sulfur

Compression

Compr
ession
(optional)

Production
Separation

1------1~

Compres
sion

NG
Ls

(optional)
Gas Sales

or Reinjection

Stabilization and Dehydration

Crude
Oil/Condensate

Oil

Water

NGL Sales

d
e

Condensat
e
S
a
l
e
s

O
i
l
/

C
r
u

. -1.i--

Figure 2.1

CHAPTER 2

ProducedWater
Treating

Water to disposal
(s_e_a_or_r_ei--'nj'-e_ct_io--'n) ...

Schematic View of a Typical lntegrated Production Facility

23

PLANNING THE SYSTEM

and output specifications of the system. Yet another is to ignore the change in the module inputs over
the life of the facility.
The process of simulation is nothing more than perfarming (in advance) those calculations
which characterize system behavior. The most routine form of simulation simply involves solving the
equations which (hopefully) describe the operation of concem. Although we currently do much of this
on a computer, nothing is added to the result unless greater true precision is obtained. We may simply
obtain more numbers in a given period of time. This in itself is good far more altematives may be
considered. But ... we must remember that better design is not an automatic result of the simulation
exercise.
Total simulation must formally recognize the uncertainty (risk) of the numbers used. Using an
average or most probable analysis is not an answer. These are only two points on the likely distribution curve (mean and mode respectively). Total simulation must include these concems so that the system may possess necessary flexibility (over its life) with mnimum use of arbitrary safety factors.
Obviously, good samples are necessary. Appendix A considers sampling procedures necessary
to obtain reliable data.

THE BASIC SYSTEM

Figure 2.1 represents a fairly complete processing setup far handling produced fluids. It encompasses almost all systems used. Not all elements shown are currently or potentially present in a
given system. The purpose is to show most of the common altematives. The time lag between original reservoir planning and the ultimate disposition of its "goods" (possibly many years hence) requires
sorne initial concem far ultimate potential.
Each of the squares shown represents a calculation module. Within this module there is a body
of equations and practice which enables one to design it - subject to the imposed constraints. Traditionally, adjectives have been used in front of the word "engineer" to loosely define the modular areas
- chemical, petroleum, mechanical, etc. As the systems have become more complex, calculations
within a module can never realistically exclude the other modules.
Not shown in the modular setup are the pumps, compressors, valves and fittings, and lines necessary to move, control and contain the fluids flowing between modules.
Sorne majar modules shown have a number of sub-modules representing component parts that
involve sorne unique and/or separate engineering concem. Far example, within the gas processing
module the NGL extraction module could be subdivided as shown in Figure 2.2. This figure is far the
very simplest form of refrigeration system consisting of inlet/product exchange, refrigeration, and separation of liquid from vapor.
The fact that all of the operations do not occur at, or in the vioinity of, the actual production
site producing operation <loes not change the basic system or its needs. The very separation of the
functions involved - resulting from organizational and geographical considerations - dictates the
need far an overall planning function. Superimposing this necessary function on top of specific functions ... which have been at least semi-autonomous ... is no easy task. On one hand, the planner does
not always possess the technological expertise to impose realistic constraints on each individual element in the system. On the other hand, the people charged with operating each element resist change
from those practices which have served them well - traditionally. Too often the charge seemingly reduces to, "Reduce cost," when what is meant is, "Increase profit."
f

24
CHAPTER
2

VOLUME 1: THE BASIC PRINCIPLES

24

THE BASIC SVSTEM

.~

,.
lnlet

Heat Exchange

..

By:

Refrigeration

Separation

1. Mechanical Refrigeration
2. Expansion Turbine
3. Valve Expansion

1t

Liquid to Sales
or Fractionation

Gas to Sales
or Other Module

Figure 2.2

Refrigeration-Type

Liquids Recovery

Module

Equally often, too much emphasis is placed on "people" and associated costs, within the same
systern, without adequate concem for the system itself. Profit will result from decreasing cost if all
other factors remain the same. Unfortunately, overemphasis on cost usually changes other factors.
Handling the system as a system - instead of a series of loosely connected individual functions - can
lead to a more rational basis for greater net profit.

Constraintsof the Basic System

The system has severa! basic constraints:
1.

The quantity and analysis of fluids entering

2. The market demand (quantity and price) for the effluent products
3. Legal and quasi-legal conditions imposed - "no-flare" gas orders, proration, contracts and agreements, national and political concems, etc.
4. Physical environmental factors - labor availability and quality, climate, local customs, population density, availability of utilities and services, etc.
5.
6.

Regulatory environmental factors - discharge limitations, ambient air and water

quality standards, noise levels, facility location, appearance, and traffic
The risk tolerance level - technological, political and economic

7. The quantity and quality of available data

The problem of predicting the future is self-evident, The techniques for doing this must be reserved for another time. For our immediate purposes let us assume that a forecast of market and associated factors is available and that we possess sorne realistic measures of the uncertainties involved in
that forecast.
At this point there are an infinite number of systems that could be devised to market the
"stock" available for sale in the reservoir (theoretically). Actually, the choice is limited by a series of
practica! considerations.
The relative importance of each constraint varies with the individual system. No two systems
are exactly alike even though they possess superficial similarity. Many of the errors made are by omission - we foil to recognize the sometimes subtle differences in the constraints.
25
CHAPTER
2

VOLUME 1: THE BASIC PRINCIPLES

25

PLANNING THE SVSTEM

As a practica! matter, the first problem is developing the critical constraints (if any). Marketing is an obvious one but is outside the scope of this discussion. One comment, though, is pertinent
- technological design must not only serve the present market efficiently but possess sufficient flexibility to accommodate a future market at minimum additional cost. For example, many reserves now
exist in areas where there is no significant market for natural gas and natural gas liquids. However,
any system design that is incompatible with future gas processing in these areas - without unnecessary additional cost - is a poor one.
Total reserves might be the paramount constraint. The maximum capital outlay that will yield
a fair profit is fixed at sorne point by this concem. It is then only a matter of finding the best system
at this, or hopefully lower, capital outlay to maximize profit.
An uncertain political climate might offer a similar constraint limit the amount of risk capital

to that which will afford both a realistic payout time (to reduce time risk) and a satisfactory rate of
retum,

These overall economic constraints provide the boundaries for our system "jigsaw puzzle."
One then proceeds to the lower order, but equally important, legal and quasi-legal restrictions familiar
to all. Compressor capacity rather than the reservoir may limit oil production when a "no flare" order
is in effect. Fulfillment of a gas marketing contract may require a production schedule that is "inefficient" from the reservoir viewpoint alone. Many such restrictions are temporary but cause upset in the
system.

THE DECISION MODULES

Severa! of the modules shown in Figure 2.1 are discussed to illustrate the considerations involved.

The ReservoirModule
A reservoir study generally is undertaken for one of two reasons - to establish value or to
forecast performance under various production strategies, including enhanced recovery. The typical report deals in gross numbers not entirely suitable for production/processing planning and design.
Needed is a special report showing greater detail about the character and condition of produced oil
and/or gas.
Based on current samples, compositional balances can be made to forecast changes in gas and
liquid analysis with time. These are very subjective but order of magnitude changes are detectable
with sufficient accuracy to be of value in planning.
-

Geological data are valuable for judgment decisions involving the extrapolation of current data
number of wells, likelihood of solids production from core data, gathering system layout, etc.

On many reservoirs, sorne form of pressure maintenance is used to permit high initial production rates without excess pressure decline. The injection of water and/or gas usually is involved. At
sorne point in time these will begin to "break through" into the production wells. Wellhead pressure
will be different; liquid-gas ratios will change. Production/processing system needs will change accordingly. Is the surface system designed to accommodate only current conditions? If so, sorne major
modifications will be necessary eventually. In an offshore or frontier environment the cost of modification plus the hidden cost of inefficient production practices can seriously compromise future profitability and limit reservoir recovery efficiency.

THE DECISION MODULES

Any forecast of reservoir performance is inexact. But, experience has shown that the formal
use of a proper forecast in planning and design considerations by qualified persons leads to more satisfactory surface systems.

The SeparationModule
With few exceptions, sorne liquid will be obtained even though the fluid in the reservoir is all
(or primarily) vapor, at reservoir conditions. In this instance, a flash calculation must be made at separation conditions to obtainthe quantity and composition of all produced streams.
If the primary production is crude oil or any other liquid stream containing a reasonable percentage of heavy hydrocarbon molecules (larger than octane), this calculation is difficult. Gas specific
gravity alone is inadequate for subsequent liquid recovery computations, less than adequate for even
routine dehydration consideration.
Furthermore, even routine changes in temperature and pressure will affect the performance of
subsequent modules.

Crude Oil/CondensateTreatingModule
This module is required to meet crude oil sales specifications:
BS&W (Basic Sediment and Water)
2. Vapor pressure
3. Salt
4. Sulfur content
l.

The BS&W specification is essentially an entrained water specification. lt limits the amount of
free water carried with the crude. lt often varies from 0.3% to 3.0% by volume with the lower number
applied to light crudes and the higher number to very heavy crudes (< 20 API). This specification is
typically met by gravity separation.. Heat, electricity chemicals, .and mechanical coalescers may be
used to enhance this process generally referred to as "crude oil dehydration." Chapter 11 covers the
principles of this separation.
The vapor pressure specification limits the volatility of the crude oil. If the crude oil is stored
or transported at or near atmospheric pressure this specification will often be equal to or less than
101.3 kPa [14.7 psia] at the system temperature. This specification can be stated in terms of a True
Vapor Pressure (TVP) ora Reid Vapor Pressure (RVP). Chapter 5 presents methods used to meet this
specification.
The specifications for salt and sulfur content are frequently met in the refinery rather than at
the production facility. Salt is removed by mixing the crude with fresh water and removing the resultant brackish water in a crude oil dehydration module. Sulfur compounds may be removed by gas
stripping, chemical conversion or a combination of the two.

ProducedWater TreatingModule
Produced water must be treated in order to meet reinjection or disposal specifications:
1.
2.
3.

Hydrocarbons
Free solids
Dissolved solids e.g., CaC03, NaCl, BaS04, etc.

PLANNING THE SYSTEM

The hydrocarbon specification is particularly important if the produced water is discharged to

the sea. For example, in the North Sea the oil content in the discharged water from an offshore platform is limited to 40 ppm by weight (monthly average). In other areas this specification is more stringent. This specification is typically met by gravity separation, flotation units, centrifugal separation
(hydrocyclones ), or a combination thereof.
Free solids rnay require removal if the produced water is to be reinjected into the reservoir.
Removal methods include gravity separation, filtration and centrifugal separation.
Dissolved solids
must be analyzed to assess their compatibility with connate water in the reinjection zone or with
reinjection water from other sources such as sea water. In this case, specifications can only be established by detailed sampling and testing of the streams involved.
These issues are discussed in "Applied Water Technology," available from John M. Campbell & Company.

Gas Processing Module

Figure 2.3 shows the location of the gas processing module in the overall production system.
Figure 2.4 shows a simple flow diagram for a gas processing plant. This module may be used to condition the gas for sales, to extract and recover NGLs or both. The gas processing module may be further divided into sub-modules which are common to many gas processing facilities.
These are
discussed in further detail as follows.
Sales Gas to Pipeline

C02 for EOR

Gas Lift and
lnjection

GJ

.--_.

~----------,

1--- Ethane

Gas

1
1
1
1

Processing
Module

1
1

1
1
1
1
1
r----- 1
1
1
1
1
1

Compression ,
(optional)

1
1
1
11

n-Butane

,
,

Natural Gasoline
Plan! Condensate

Field Condensate

1
1

NGLs
LPG

Sulfur

Propa~e

1--- i-Butane

_, Field Treating
(optional)

Solution
Gas

1
1
1
1
1
1

1
1
1

,_

Figure 2.3

Location of Gas Processing Module in Overall Production System (adapted with permission from GPA)

THE DECISION
MODULES

.~
Natural Gas Sales

Gas

Produce d
Stream

Conditioning

~
Extraction
NGL

Fuel

"

Recompression ------

_J

,_

Conditioning

1) Dehydration
2) Sweetening

Figure 2.4

NGL Extraction

1) Adsorption (SCU)
2) Absorption (Lean Oil)
3) Condensation
a) Valve
b) Turboexpander
e) Refrigeration

Stabilization

..
Treating

Stabilization

1)
2)
3)
4)

NGL
Sales _

Demethanizer
Oeethanizer
Depropanizer
Debutanizer

or
Condensate

Product Treating

1) Dehydration
2) Sweetening
a) H2S, COS, CS2 RSH
b) C02
.

Simple Flow Diagram for a Typical Gas Processing Plant

Gas Conditioning Module

This module typically exists at the inlet of the gas processing plant. It is generally designed to
remove sorne or all of the following contaminants from the gas.
l. H20
2. Sulfur compounds: H2S, CS2, COS, mercaptans (RSH), etc.
3. C02
4. N2
5. 02
6. Hg
7. Solids - hydrates, asphaltenes, dust, scale, etc.
Removal of water is termed gas dehydration. Several processes are used. The most common
are:

Absorption
Adsorption
Condensation
Other- membranes, CaC12, etc.

In the absorption process, highly concentrated glycol solutions (triethylene glycol, TEG, is the
most common) are used to physically absorb the water from the gas. This process is simple, effective
and is probably the most widely used of the dehydration schemes. Glycol dehydration is discussed in
Chapter 18.

CHAPTER 2

29

PLANNING THE SYSTEM

The adsorption process utilizes a salid desiccant such as silica gel, alumina or molecular sieve
(zeolite) to physically adsorb the water from the gas. It is typically used when very low (< 1 ppm) effluent water contents are required and is discussed in Chapter 19.
The condensation process is actually integrated with the refrigeration module for NGL extraetion. Water condenses as the gas is cooled. In arder to prevent hydrate formation, an inhibitor such as
monoethylene glycol (MEG) or methanol is injected into the gas stream. The principles of inhibition
are covered in Chapter 6.
Membranes utilize a semipermeable polymer which allows certain molecules, e.g. H2S, H20,
C02, to permeate more rapidly than others, e.g. CH4, C2H6, etc. The driving force for penneation is
partial pressure. If the partial pressure of a component in the penneate stream is less than that in the feed stream the component will pass through the membrane. Selectivity depends on the membrane material. Membrane applications to date have been primarily limited to C02 removal, but recent developments have demonstrated membrane technology viable for gas dehydration. This will be discussed in
Chapter 19.
Calcium chloride, CaC12, can also be used to dehydrate natural gas. CaC12 will combine with
water to form a brine which is removed for disposal. Use of this process is typically limited to small
volume, remate applications.
Removal of H2S and C02 from natural gas is covered in "Gas and Liquid Sweetening," Vol. 4
of the Campbell Gas Conditioning and Processing series. Severa! processes are available, many of
them proprietary. In general, these processes can be summarized as follows:
Chemical absorption - amines, potassium carbonate, etc.
Physical absorption - SELEXOL, methanol, etc.
Salid bed - molecular sieve, iron sponge, zinc oxide, etc.
Other - direct conversion, membranes, extractive distillation, etc.
Chemical absorption using an amine based solvent is undoubtedly the most widely used of the
above processes. It is used for both H2S and C02 removal. Physical solvents may be more economical when H2S and C02 concentrations are high. Salid bed processes are usually limited to H2S removal and are competitive when concentrations are less than about 1000 ppm. Direct conversion
processes are applied for H2S removal and convert the H2S directly to elemental sulfur. Membranes
and extractive distillation are applied for C02 removal.
Nitrogen removal from natural gas is achieved by cryogenic fractionation from methane. Operating temperatures vary with pressure but can be as low as -185C [-300F].
Mercury (Hg) removal from natural gas is often necessary when aluminum heat exchangers
and equipment are used in the gas processing module. Mercury removal is typically done by passing
the gas through a bed of sulfur-impregnated activated charcoal or alumina where the mercury reacts to
fonn mercuric sulfide, HgS. Required effluent Hg levels depend on th temperature and pressure of
the NGL extraction process, but for very low temperature processes (<-lOOC [-148F]), 10 ng/Nm3 is
a common standard.

Natural Gas Liquids Extroction Module

Natural Gas Liquids (NGL) consist of hydrocarbon components in a produced gas stream
which can be extracted and sold in their respective market. NGL products and their markets are summarized below:

30

VOLUME 1: THE BASIC PRINCIPLES

THE DECISION MODULES

.~
Ethane (C2). Ethane has virtually one end use - petrochemical feedstock. lt is the lightest NGL
with a normal boiling point (NBP) of - 88C [-127F]. Recovery can only be justified in
those areas where a ready petrochemical market and viable transportation network exist.
Propane (C3). The market for propane is divided between petrochemical feedstock and fuel.
Feedstock use is for light olefin manufacturing ( ethylene, propylene ). Fuel use is primarily
residential and commercial in areas where other fuel sources (natural gas, heating oil, etc.)
are not competitive. lts use as a transportation fuel is small, but growing. Often called
LPG (Liquefied Petroleum Gas), propane is frequently sold as a mixture of propane and
butane. Fuel demand tends to be cyclical, requiring large storage volumes (usually underground salt domes). Refrigerated storage (NBP = - 42C [- 44F]) is also used. For
smaller volumes, above-ground storage under pressure is common.
Butanes (iC4 and nC4). The market for butane is primarily petrochemical feedstock, fuel and gasoline blending. The end use for each isomer differs greatly. Isobutane (iC4) is the more
volatile isomer (NBP = -12C [11 F]) and the most valuable. lts primary use is as a refinery feedstock for the manufacture of high octane blending components for gasoline. Normal butane (nC4) is an important feedstock for the manufacture of monolefins (ethylene,
propylene) and the diolefin, butadiene. lts NBP is - O.SC [31 F]. When normal butane is
used as a fuel it is normally blended with propane but can be used as a pure component.
The largest use for butane is as a gasoline blending component for octane and vapor pressure control. As a result of their important gasoline and feedstock uses, butanes are normally fed to refineries.
Natural Gasoline (iC5+). Natural gasoline refers to the pentanes and heavier components in a gas
stream. lt is sometimes referred to as condensate or naphtha. lt usually consists primarily
of straight and branched chain paraffins. lts most common use is refinery feedstock, although the petrochemical market for natural gasoline is growing.
NGL extraction is typically justified 1) to meet a gas sales specfication requirement such as a
hydrocarbon dewpoint or 2) to upgrade the market value of the produced gas and liquid streams. With
the former, minimal extraction levels are required. Removal of the iC5+ components is usually satisfactory. With the latter, the processor takes advantage of the price differential between a pure NGL
product and its value as a natural gas constituent. An NGL product's value as a natural gas constituent
is termed the shrinkage value. lt represents revenue foregone by the extraction of the NGL from the
gas. This difference may be small, especially on the lighter NGL components, C2 and C3.
Economic justification of an NGL extraction facility requires that the market value of the NGL
product be sufficient to cover all costs associated with its extraction. These costs include:
l.

Shrinkage

2.

Fuel

3. Maintenance and operating

CHAPTER 2

4.

Transportation and fractionation

5.

Storage

6.

Taxes, royalties, etc.

7.

Capital

31

11

PLANNING THE SVSTEM

Commercial NGL extraction processes can be classified as follows:

Absorption - lean oil
Adsorption - short cycle units, hydrocarbon recovery units
Condensation - mechanical refrigeration, turboexpander, valve expansion
The absorption process is frequently referred to as lean oil processing. NGL components are
physically absorbed in a light hydrocarbon distillate stream (lean oil) and subsequently removed and
recovered by stripping or distillation. The absorption process is frequently refrigerated to improve the
efficiency. This was the dominant NGL extraction method up to the early 1970s. It has since been replaced on a widespread basis by the turboexpander process. This process is covered in more detail in Chapter 16.
The adsorption process is typically applied for hydrocarbon dewpoint control in special circumstances where other processes are not applicable or feasible. Recovery is limited to C5+ components
and H20. The simultaneous removal of hydrocarbons and water may be attractive in limited cases.
This process is frequently referred to as a hydrocarbon recovery unit (HRU) or a short cycle unit
(SCU). Additional information on hydrocarbon adsorption may be found in Chapter 19.
Condensation processes are the most widely used processes for the extraction of NGL from
natural gas. Mechanical refrigeration plants utilize a commercial refrigerant such as propane or R-22
to chill the gas. Process temperatures are seldom less than about - 40C [- 40F]. This process is
used both for hydrocarbon dewpoint control and NGL sales. Details of refrigeration are covered in
Chapter 16.
Turboexpanders are widely used for NGL extraction The turboexpander is typically a single
stage radial-inflow turbine. Expansion ratios vary from about 1.5 to 3.5 depending on the process objective. This process is employed for hydrocarbon dewpoint control as well as deep NGL recovery.
Minimum process temperatures vary from O to -120C [32 to -180F]. Turboexpanders are discussed in Chapter 16.
Valve expansion is similar to turboexpansion except that the expansion device is a control
valve rather than a turbine. This process is often referred to as a LTX, LTS or J-T (Joule-Thomson)
process. It is sometimes used for hydrocarbon dewpoint control when high pressure feed gas is available from the reservoir. It can also be used for deep NGL recovery but this application is generally
limited to small facilities. For similar expansion ratios, it is not as efficient as a turboexpander in cooling the gas. Chapter 16 provides a more detailed explanation of this process.

StabilizationModule
Once the NGL has been extracted from the gas, it must be stabilized to meet sales specifications. These specifications can vary significantly depending upan the end markets and transportation
method. In sorne cases, the NGL product is a stabilized condensate consisting only of C5+ having a
vapor pressure less than 100 kPa [14.4 psia]. In other cases .the NGL product is a C4+ mixture which
can be "spiked" into a crude oil stream for sale. In deep NGL recovery plants, the NGL product is
more likely a C2+ or C3+ product which may be transported to a fractionation plant for product separation, sale, and distribution.
The stabilization of the extracted NGL is typically accomplished by distillation. The distillation process may be refluxed or non-refluxed. Distillation is covered in Chapter 17. In sorne cases,
particularly where the NGL product is a C5+ stream with a vapor pressure less than 1 atm, flash stabilization can be used.

32 2
CHAPTER

VOLUME 1: THE BASIC PRINCIPLES

32

THE DECISION MODULES

-~

ProductTreatingModule
NGL must meet certain specifications regarding contaminant levels prior to sale. Contaminants of interest include C02, sulfur compounds, and water. In many cases these contaminants are removed from the gas in the conditioning module upstream of NGL extraction and are therefore not
present in the NGL product. In sorne cases, however, these contaminants will be present in the NGL
and must be removed. The most comrnon applications of product treating involve the removal of
C02 from a C2 or C2+ NGL product
Sulfur compounds from LPG product
A typical C02 specification in ethane is 100 ppm. This is set by the petrochemical buyer. C02
is not easily fractionated from ethane since C02 and ethane form an aezeotrope. The most common
method for removing C02 from ethane is absorption with an amine solution, typically DEA.
Sulfur compounds which may be present in LPG include H2S, COS, CS2, and mercaptans
(RSH). These are typically present in low concentrations, less than 100 ppm, and are often removed
by adsorption on a molecular sieve.

Process Selection and Design Basis

As we have seen, severa} process altematives are available for each module. Ultimately, the
selection of the process depends on factors identified on page 25. Computer-based process simulation
programs are often used to provide preliminary numbers on which the process selection is based. A
critical aspect of this feasibility study is design throughput.
Regardless of the process used, any simulation can proceed only from a knowledge of the
quantity and composition of the entering stream. The problem is to find a size to meet all contractual
requirements without excess capital investment. An oversized system, whose capacity is seldom utilized, results in excess capitalization charges. The problems of the undersized system are obvious.
The real problem - how can one best accommodate the frequency and amplitude of the fluctuations as
they are likely to occur? No mortal can predict exactly when and to what degree a given fluctuation
will occur. But ... with reasonable data, supplemented by reasonable judgment, one can predict the
likely extreme conditions and the possible frequency of the intennediate conditions.
The quantity of throughput is often govemed by the gas sales contract. In addition, individual
wells and groups serving the module will suffer interruption. Two constraints exist, one on each side
of the module, varying independently. Sorne combinations of these will defy prediction. Therefore,
sorne confidence limits must be set up.
,
Availability, the percentage of time that a module or the entire plant will operate
normally, must be established. The required availability will depend on the gas contract and gas buyers.
Sole source, uninterruptible contracts require an availability of near 100%. For gas delivered to a large
gas distribution (reticulation) system with supply substitution, the availability can be less. Line pack also
provides the gas seller sorne flexibility on availability.
Any confidence limit is achieved by built-in flexibility. Once the limits are known, this is a
mere mechanical design problem requiring normal expertise in the area.

33 2
CHAPTER

VOLUME 1: THE BASIC PRINCIPLES

33

PLANNING THE SYSTEM

CONTRACTTERMS
Gas and liquid contracts usually contain the following basic considerations:
Gas:
1. Mnimum, maximum, and nominal delivery pressure.
2. Maximum water content (expressed as a dewpoint at a given pressure or as a concentration).
3. Maximum condensable hydrocarbon content often expressed as a hydrocarbon dewpoint.
4. Mnimum and maximum delivery temperature.
5. Allowable concentration of contaminants such as H2S, carbon disulfide, mercaptans, etc.
6 .. Mnimum and maximum heating value and/or Wobbe number.
7. Cleanliness (allowable solids concentration).
Liquid:
Quality of products expressed as vapor pressure, relative or absolute density, or by standard
l.
designation such as Commercial Propane.
2. Specifications such as color, concentration of contaminants, etc., as determined by standard
tests.
3. Maximum water content.
Liquid products may be classified into two general categories - stock tank fluids from separators and fractionated products. The former is normally sold to a pipeline and is subject to less strin-
gent pipeline specifications such as BS&W, specific gravity, vapor pressure, and presence of "light
ends." It is sometimes referred to as a "slop" product to. distinguish it from those products falling in
the second category. In essence, the composition of this product will be fixed by the equilibrium relationships at the pressure and temperature of the storage tank.
In order to establish common terminology we will discuss sorne of the factors which affect
product specification.

Gas Contracts
Satisfactory gas contracts are a primary requisite of a sound economic venture. The following
provisions are normally found in all gas contracts:
l. Definition of terms

8. Payment

2. Agreement to sell and purchase

9. Force majeure clauses

3. Effective date and term of contract

10. Title warranty of seller

4. Quantity and quality of gas

11. Regulatory body provisions

5.

Delivery point and pressure

12. Indemnity, default, and arbitration

6. Operating stipulations

13. Assignment of interest

7. Priority rights of seller

14. Provisions for cancellation

Most of these items simply clarify the meaning, provide a mechanism for operating within the
contract, or limit liability of the two parties involved. Many of these clauses represent legal verbiage

34 2
CHAPTER

VOLUME 1: THE BASIC PRINCIPLES

34

CONTRACT TERMS

insisted on by the legal profession. The effective date and the tenn of the contract are needed to establish the period involved.
Quantity and quality of gas. These, together with price, are the fundamental factors since they
determine the processing equipment needed by buyer and seller, the total cost, and the revenue.
Historically most gas contracts were depletion contracts. In a depletion contract all of the reserves in a producing horizon(s) within a reservoir or within a geographical area are dedicated to the
buyer. The buyer and the seller then agree to a production rate that satisfies the buyer 's demand requirements yet meets the seller's revenue requirements. The production rate is often set out as the
Daily Contract Quantity (DCQ), the Annual Contract Quantity (ACQ), the Mnimum Annual Quantity
(MAQ), and the Maximum Daily Quantity (MDQ).
Annual Contract Quantity (ACQ). This represents the amount of gas that the seller and
buyer jointly agree will be sold in a contract year. This number can be fixed for a
period of years or it may fluctuate based on an analysis of the reservoir capacity
performed by the seller. If tbe contract allows the ACQ to vary from year to year,
the ACQ will usually be set 1 to 2 years in advance of the contract year. This allows sufficient time to drill new wells or work over existing wells to meet the contract quantity. In many contracts the ACQ increases from year to year in the early
portion of the contract as the field is developed, reaches a platean during the middle of the contract term, then declines from year to year as the reservoir nears depletion.
Daily Contract Quantity (DCQ). This is typically the ACQ divided by 365 and represents
the average daily rate of gas sold throughout the contract year.
Maximum Daily Quantity (MDQ). This represents the maximum daily rate which can be
taken by the buyer. It is usually expressed as a percentage of the DCQ, e.g. 150%,
167%, etc. This rate sets the capacity of the seller's facility. In climates with significant seasonal changes, such as Europe and North America, the MDQ can be
significantly higher than the DCQ. The contract will typically limit the period of
time that the buyer can take gas at the maximum rate. For example, the number of
consecutive days at maximum take might be limited to 30 to 45 and maximum
takes might only be allowed during peak delivery months.
Mnimum Annual Quantity (MAQ). The MAQ represents the mnimum rate for which the
seller will be paid regardless of whether the buyer takes the gas or not.

As mentioned above, such a contract will normally set up a procedure to pay for any gas not
taken annually under the agreement. The above provisions make this a take-or-pay contract. It assures
the seller of a guaranteed mnimum annual revenue, and the buyer has a reliable source of supply. It
furthermore enables both parties to design their necessary facilities with maximum efficiency. The
seller is protected from widely erratic buyer practices, and the buyer, in tum, is assured that the wells
will be operated to assure a steady supply of gas.
In a depletion contract, the buyer will advise the seller of its nomination prior to each contract
day. The nomination is the quantity of gas which the seller must deliver on that day. The seller is typically not paid for excess gas delivered over and above the nominated volume.
Depletion contracts were used in a period of strict regulation of the gas industry and/or monopoly buyers. Today a gas seller is often free to negotiate contracts with many buyers. In addition, in
many countries the gas seller is granted access to existing gas pipeline systems which may be owned

PLANNING THE SYSTEM

by the historical gas buyer. As a result, a gas seller may negotiate a contract with a remote buyer to
deliver a quantity of gas for a specified period of time. This is referred to as a term contract. Under
this arrangement, the seller's gas enters the transportation network at the seller's facilities and equivalent quantity of gas (or energy) is delivered to the remote buyer. The molecules purchased are different than the molecules sold.
In these instances the gas quality provisions, which are discussed below, are not established by
negotiation with the buyer, but by the gas transporter, and a gas transportation agreement is required in
addition to the sales contract.
Quality Provisions.
sales contract:
1.

Any or all of the following quality provisions are normally included in a

Heating Value
This may be expressed as a gross or net heating value per unit weight or volume of gas.
Wbere the gas contains noncombustibles like N2 and C02, the Wobbe number may be
applied in addition to heating value.
The gross heating value is the heat produced on combustion of the gas with the theoretical
amount of air required if the water fonned by combustion is cooled to the reference temperature and then condensed. Net heating value is the comparable quantity when the water
formed remains in the vapor state (the usual way it is done).
The heating value may be expressed in many energy units. The kilojoule (kJ) or British
Thennal Unit (Btu) are used most commonly. The following conversions are convenient.
1 therm = 100 000 Btu = 105.5 MI
1000 Btu/fr' = 37.3 MJ/m3

*Standard conditions: 60F and 14.7 psia, 15C and 101.325 kPa
Typical heating value specifications range from 35-45 MJ/m3 [950-1250 Btu/scf] on a
gross basis. These ranges may be significantly narrower for sorne end users.
Table 2.1 provides heating values for typical natural gas components. The heating value of
a gas mixture may be calculated from the equation:

GHV mix = I,(GHV)(y)

Where:

GHV

heating value of a gas component

mol fr. of component in gas

The Wobbe number is defined as follows:

Wobbe No.=
Where:

GHV
'Y

gross heating value

relative density of the gas

GHV

-Jy

SI
MJ/1113

FPS
Btu/ft3

The Wobbe number is a measure of bumer compatibility. Two gases with the same Wobbe
number will give the same heat release at the bumer tip for the same pressure drop across
the bumer orfice (assuming that the temperature and pressure remain the same). lt is
widely used in Europe where the composition of the gas entering the transmission system
can vary from location to location. lt is not commonly used in North America where the

36

VOLUME 1: THE BASIC PRINCIPLES

CONTRACT TERMS

-~
TABLE 2.1
Heating Values for Typical Natural Gas Components

GHV per Unit Volume of Dry Gas @

Component
Methane
Ethane
Propan e
iso-Butane -~
n-Butane
iso-Pentane
n-Pentane
Hexane
Heptane

15C and 101.325 kPa

37.694 MJ/m3
66.032
93.972
121.426
121.779
149.319
149.654
177.556
205.431

60F and 14.696 psia

1010.0 Btu/fr'
1769.6
2516.1
3251.9
3262.3
4000.9
4008.9
4755.9
5502.5

gas composition (due to the level of gas processing) <loes not vary significantly from supplier to supplier.
2.

Sulfur Content
This limits the amount of sulfur compounds to prevent corrosion, toxicity and odor when
the gas is bumed. A typical specification for H2S is 3-4 ppmv [4-6 mg/m3, 0.25 gr/100
scf]. Total sulfur specifications are considerably higher and vary with the buyer. Typical
values range from 20-40 ppmv. It is usually expressed as equivalent H2S.
The above specifications assume the gas is sold in the residential heating market. Gas sold
to industrial buyers, particularly for power generation, may not require such low sulfur levels. It is not unusual for the allowable H2S concentration to be as high as 50-100 ppm in
these markets.
The specification of the allowable sulfur content in a "sweet" gas is often misunderstood.
This gas is sweet only in the sense that there is no detectable, obnoxious odor on buming
and it is not corrosive if the line is free of liquids. If the line contains liquids like water,
glycol, amine and the like, this "sweet" gas can be corrosive. So ... in wet systems, meeting the specification is no assurance that corrosion or deposition of corrosion products will
not occur.

3. Maximum Temperature
A maximum delivery temperature at the transfer point may be specified. It is often about
49C [120F].
4.

WaterContent(Dewpoint)
This specification will be stated as the mass of water per unit volume of gas or the maximum allowable water dewpoint temperature ata specified pressure. In the U.S. this specification is typically 7 lb H20/MMscf [112 mg/rrr']. This is equivalent to a water dewpoint
of 32F at 1000 psia. In Europe and Canada a typical water specification is 50-60 mg/m3
[3-4 lb/MMscf] which is equivalent to a water dewpoint of about -lC [14F] at 70 barg
[ 1000 psig].

5. Hydrocarbon Dewpoint
Today, most contracts specify that the gas shall be free of liquids, solids, dusts, gums and
gum-forming constituents. Along with this, a specification is included that fixes the
maximum allowable hydrocarbon dewpoint temperature at a given pressure. Hydrocarbon

CHAPTER 2

37

PLANNING THE SYSTEM

dewpoint specifications vary with climate and buyer. In North America and Europe typical
values range from -1 O to OC [ 15 to 32F] at any pressure less than the maximum delivery
pressure. This is essentially a cricondentherm specification. Measurement of the hydrocarbon dewpoint is critica!. Most contracts establish the measurement methodology, usually a
dewscope. Sorne contracts state the allowable hydrocarbon liquid content, e.g. 15 mg/std
1113 [9.3 x 10-7 lbm/scf], ata specified temperature and pressure.
6.

Other
Non-hydrocarbons (N2, He, Ar). Nitrogen is an important non-hydrocarbon component.
Its concentration is usually limited to less than 1-2%. Where produced concentrations are
higher, the seller sometimes negotiates higher N2 allowances. N2 content also affects heating value.
C02. Carbon dioxide is also a non-hydrocarbon
of its corrosive nature in the presence of water.
the C02 specification is often negotiable.

but is often specified separately because

A maximum value of 2% is typical, but

02. Oxygen is seldom present in natural gas; however, most contracts explicitly set out an
oxygen limit due to its corrosivity in a wet environment. Specifications vary, but a typical
value is 0.1 % (molar).
Hg. Mercury was discussed on page 30. Mercury has not been typically addressed in gas
contracts although that is changing. If the gas is being sold to an LNG plant or other low
temperature processing facility, it is the buyer's facilities that are at risk and the buyer usually takes responsibility for Hg removal.
7.

The gas shall be produced in its natural state from wells or allowable processing facilities.
If included, this means that the gas is conditioned 011ly to meet the type of specifications
summarized above; it is not processed to alter substantially the hydrocarbon content,

Delivery point and pressure. The delivery point is usually the valve 011 the meter run containing the buyer's meter. The contract then specifies the operation and testing of this meter run. The required delivery pressure is normally the maximum anticipated line pressure. This varies with the gas
customer requirements. For distribution/reticulation systems it is typically 7000-8000 kPa [1000-1150
psia]. For gas turbine based power plants the delivery pressure is 3500-4100 kPa [500-600 psia].
Priority rights of seller. In contracts between producer and processing plants the seller often is
given the right to any residue gas needed for the development and operation of bis production facilities, not to exceed bis share of any such residue gas. If this quantity is not sufficient, the seller may
furthermore reserve some of bis gas for this purpose, exempt from contract provisions. Unless clarified, this provision may lead to difficulty since plant economics may depend 011 a reasonable residue
gas sale. It is therefore important to stipulate the extent to which the production facility operator may
control the sale of residue gas.
Eve11 where the plant operator feels he can take this gamble, the lending institution will not if
gas revenue is essential in securing the loan. Consequently, the contractshould specify whether or not
such gas use is limited to heater or for drilling purposes, or also may be used in pressure maintenance
or repressuring operations. Probably the best and cleanest contract specifies a certain minimum daily
delivery. The operator may then do anything he pleases with any remaining gas ( other than sell to
someone else).
The seller may introduce air, gas or sorne extraneous substance into the well or formation when
he feels that it is necessary for production. The buyer, of course, may then elect not to take the gas if
such treatment renders it unmarketable, in bis opinion. The seller may also clean out, deepen, or

38

VOLUME 1: THE BASIC PRINCIPLES

CONTRACT TERMS

-~
abandon any well without liability.
abandoned well at salvage value.

In sorne instances the gas buyer has first option to purchase any

General provisions. The force majeure clauses <leal with the failure of either party to live up
to the contract because of circumstances over which they have no control. This includes governmental
rulings, acts of God, strikes, lockouts, riots, floods, storms, fires, explosions, or involuntary destruction
of any sort. In the event of labor trouble, each party operates entirely within his own discretion.
Notice of suspension dueto force majeure must be given in writing .
.,

The contract is normally binding on all heirs and assigns during its term, subject to existing
governmental rules, and provides for the method of cancellation if the terms are not complied with.
These are primarily legal rather than engineering matters.

Standard casinghead contract. Historically this has been a common type of contract used in
the U.S. between plant and lease operators for casinghead gas. It is far from satisfactory, especially to
many lease operators. In fact, many will sign one only as a last resort. Regardless of your position, it
must be conceded that this contract has many drawbacks, because it contains many arbitrary and gen~ral provisions that leave room for different interpretations.
The primary complaint of operators is that the method of payment is complex
inexact tests. Furthermore, the revenue is often negligible. From the plant standpoint,
of the residue gas is not clearly specified. This points up the need for a contract to
possible, for people as a group are suspicious of things they do not understand. It rnust
so that both parties are properly protected.

and depends on
the disposition
be as simple as
also be specific

Because of these difficulties there has been a growing tendency to write specific contracts for
given fields rather than to try to use a general form for all. Sorne clarification results by buying the
gas outright for a fixed surn, this price reflecting average content, quantity, and residue price. Even
though this has sorne drawbacks, it is more palatable to rnany producers, since it elirninates the testing
and is simple. The price paid by the plant is usually 40 to 60% of the residue price and it retains title
to all liquids.
Alternatively, the contract can be a "percent of proceeds" contract. Under this contract, the
seller retains title to the residue gas and recovered liquid strearn, but allocates a percent of the residue
gas and liquids to the gas processor as payrnent for the processing service. Such percentages vary, but
typically the sellers share ranges frorn 60-90% depending on cornpetition and rnarkets.

Liquid Contracts
The liquid produced frorn gas contains rnany different specifications. Liquid produced by simple separation is a mixture whose cornposition is fixed by equilibrium as discussed in Chapter 5. This
is sornetimes called a "slop" cut.
All other liquid products are a result of a fractionation which separates a raw mixture into its
eomponent parts based on vapor pressure and other cornponent physical properties. These are corn. rnonly called natural gas liquids (NGLs) and are produced from what are called NGL plants. If the effluent gas frorn an NGL plant is totally liquefied, it is called liquefied natural gas (LNG). LNG is
sales or pipeline quality gas in a liquid form at approxirnately -162C [-260F] with water content
< 1 pprnw and C02 < 50-100 pprnv.
The amount of processing done at the production site depends on the arnount of fluids, available transportation to market, and local conditions. Offshore, swarnps, jungle or arctic type locations

39 2
CHAPTER

VOLUME 1: THE BASIC PRINCIPLES

39

1 '

PLANNING THE SVSTEM

limit the feasibility of more complicated systems. The accent is on merely doing the least necessary at
the site to transport the production to more favorable surroundings for future processing.
In an NGL installation one or more of the following products may be specified. The definitions are those of the Gas Processors Association. <2 1)
Natural gasoline. This is a mixed product whose basic specification is vapor pressure (as discussed in Chapter 4). As a general rule it must meet all of the following specifications.
Reid vapor pressure
Percentage evaporated at 60C [ 140F]
Percentage evaporated at 135C [275F]
End point
Corrosion
Doctor test
Color
Water content

70-235 kPa [10-34 psia]

25-85%
not less than 90%
not higher than 190C [375F]
not corrosive by specified test
negative
not less than plus 25 (Saybolt)
as specified

Commercial ethane. This primarily is a chemical feed stock for the manufacture of plastics
and associated materials. The specifications vary but are usually rigorous because contaminants may
affect subsequent processing .. Limitations on C02 and C1 are particularly important.
Usually, no more than 60-80% of the ethane may be recovered without adversely reducing the
effluent gas heating value specifications.
Demethanized and mixes. An increasing number of pipelines are purchasing a demethanized
product containing ethane, propane, butane, and natural gasoline. There are no standard specifications
on such mixtures, although the methane content is often limited to 1-3% of the ethane. The purity tests
of natural gasoline usually apply.
The contract usually calls for periodic analysis of the stream. This is then used to divide the
total purchase into natural gasoline, butanes, propane and ethane. The applicable rate for each component times its quantity is then added to establish the total revenue.
Commercial propane. This defines a fluid composed of at least 95% propane and/or propylene,
whose true gauge vapor pressure must not exceed 1.45 MPa(g) [210 psig] at 38C [lOOF], and which
satisfies GPA tests for total sulfur, residue, dryness, and corrosive compounds. Purchasers may offer
about 90% of the resale price. This resale price is not tied to any base and fluctuates widely, depending on season and geographical location.
Commercial butane. A product meeting this designation is composed predominantly of
butanes and/or butylenes and has a true vapor pressure not greater than 480 kPa(g) [70 psig] at 38C
[lOOF]. The temperature at which 95% by volume has evaporated shall not exceed 1.lC [34F]
when corrected to a barometric pressure of 100 kPa. lt must meet the same general tests as propane
for contaminating substances.
Butane-propane mixtures (LPG). The standard definition of this mixture is that it shall not
have a true vapor pressure higher than commercial propane at 38C [lOOF] and shall pass the 95%
boiling point test for butane. lt must further pass all butane purity tests. In most instances it is sold
for domestic heating service or used for secondary recovery of oil. The composition, for heating use,
is varied to assure volatility in the various seasons, but the vapor pressure of the commercial product
seldom exceeds 860 kPa(g) [125 psig] at 38C [lOOF].
f

40 2
CHAPTER

VOLUME 1: THE BASIC PRINCIPLES

40

THE PROJECT PLAN

Propane HD-5. This is a special grade of propane for motor fuel and other use which shall not
have a true vapor pressure of more than 1.38 MPa(g) [200 psig] at 38C [lOOF]. It conforms to ali
other Commercial Propane tests except that it cannot contain over five liquid volume percent propylene
and must contain at least ninety liquid volume percent propane.
It is usually easier to obtain a take-or-pay contract on LPG than commercial propane or butane,
particularly if it may be marketed locally or the plant is near underground storage. Many small plants
are able to find a suitable local outlet. In any event, the price policy is about the same as for propane.
Very large quantities will.iof course, command specialconsideration
contract-wise.
Traditionally, in sorne markets, NGL liquids have been "spiked" back into crude ol to upgrade
crude ol quality and price. An altemate approach is to use crude ol stabilization instead of flash stabilization in separators. It is more efficient in many situations. The stabilizer retains the maximum
amount of NGL components in the crude that the liquid sales contract permits.

THE PROJECTPLAN
The most critical phase of project development occurs at or near the very beginning.
point a series of philosophical guidelines must be applied to ali calculations.

At this

If the input is from a petroleum reservoir, one must recognize that future performance is not
absolutely controllable. The reservoir engineering <loes not dictate how said reservoir will perform in
the future; current analyses and flow conditions will certainly change with time. A whole series of
questions like those following must be answered.
What is the probable forecast of reservoir performance?
timing of fluid analyses, gas-ol ratios, etc.?

What is the trend, magnitude and

What are the magnitude and timing of enhanced recovery techniques?

Based on the above, what modifications of current analytical data are desirable?
Are current data from tests, samples and analyses indicative of at least current reservoir
characteristics? Do such data reflect equilibrium reservoir performance? If production is
to be from more than one zone, have all such zones been tested and sampled?
Is the reservoir likely to produce solids at the flow rates anticipated?
What amount of water must be handled, now and in the future?

If water and/or gas is being injected, when and how will breakthrough occur? Is a gas lift
system anticipated?

What will the impact be on the surface system?

None of the answers to questions like these will be absolute.

likely, probable and possible.

They may be classified as very

Very likely: almost certain to occur; exact timing and magnitude uncertain but suitable estimates are possible. Need to include provisions for this occurrence in initial de-

sign.
Probable: not so certain to occur; odds are 50-50 or slightly better. System should be designed so that it can be modified efficiently to handle this occurrence if it indeed
happens. Sorne additional, initial capital cost is justified to accomplish this.
Possible:

CHAPTER 2

could occur but the likelihood is low. Warrants sorne consideration but no additional capital outlay - may change layout of system to accommodate future modification.

41

PLANNING THE SVSTEM

If the above type of exercise is undertaken by a qualified team of professionals who communicate effectively, the end result will be superior to those systems designed without this analysis.
The same exercise is desirable at the output end of the system - determining what products to
produce. This is a repeat of the above. The product market can be very volatile. Forecasts of prices
and demand can be more inaccurate than reservoir predictions. In the 1970s, for example, one would
seriously have considered recovery of liquid ethane from natural gas. The market and the price for
ethane were excellent and growing. In the early 1980s, ethane recovery did not appear attractive in
sorne areas. The market demand was flat and price was not attractive; it was more profitable to sell
ethane in the natural gas.
There are many cases where natural gas is found in remote areas distant from existing gas mar- '
kets. A common tenn for this gas is 'stranded gas'. Altematives for bringing the gas to market inelude:

Long distance pipeline

LNG
Chemicals (ammonia or methanol)
Gas-to-liquids

If the transportation distance is less than about 1500-2500 km [900-1500 mi] pipeline transportation to the market is generally the most economic altemative, This of course depends on the terrain,
cost of right-of-way, sub-sea water depth, etc. For longer distances, LNG may be the preferred altemative assuming that an LNG buyer (willing to pay an attractive price) can be found. Exporting natural
gas as a chemical product, e.g. methanol or ammonia, is usually not attractive for large volumes of gas
because the increase in supply (to the chemical market) is substantial and can seriously depress chemical prices.
Gas to liquids is a technology which has received considerable attention over the past few
years. Natural gas can be converted to liquid hydrocarbons via reforming and Fischer/Tropsch synthesis. The range of hydrocarbons produced depends on synthesis reactor temperature and residue times.
The major drawback to this option is a poor conversion efficiency of around 60% on an energy basis.
Once the input and output have been analyzed properly, selection of the system to get between
the two can then begin. The first step needed is a conceptual design; what often happens is a mere
feasibility study. The latter, as the word "feasibility" implies, may be nothing more than how to modify a preferred process scheme to address the problem at hand. Licensing is a potential limitation.
Have you ever heard an engineering contractor recommend a process licensed to a competitor? No!
A true conceptual design looks at all processes, selects the best one and then makes a preliminary optimization of the one chosen. A process flow drawing (PFD) is included in the report. This is
then reviewed as a preliminary to preparation of final design specifications.
It is very important in this review to consider the effect of modules on each other. As the input
conditions to the first module vary, so must the output to sorne degree.' The input to the second module vares, and so on down the line. This interdependence of modules can lead to a bad system even
though no technical mistakes were made on the design of individual modules. In the final analysis,
each module must be designed with enough flexibility to remain compatible with the others as system
conditions change.

Failure to do this early planning, as described generally above, is the major cause of poor systems and costs the industry untold millions of dollars in profit. If this phase is done properly, the conversion of ideas into hardware is relatively routine.

42

VOLUME 1: THE BASIC PRINCIPLES

REFERENCES
.i

SUMMARY
The philosophical discussions in these first two chapters have been included to emphasize that
engineering is a philosophical science whose proper application depends to a large degree on human
judgment. Since we can now out-compute our real knowledge, the calculation itself is no longer the
primary challenge.
In spite of this, correct and meaningful calculations are still important. As we discuss the principies, laws, correlations, and equations that have proven useful, please remember: calculations salve
equations and models, but not problems. Only people salve problems.

REFERENCES
2.1

Gas Processors Association (GPA), Tulsa, Oklahoma.

CHAPTER 2

43