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Part 2: Is Recovery Profitable?. Savings associated with pressure reduction Costs of manual and automated regulation Economics of options Discussion Questions. Steps to Identify Opportunities. Identify Excessive Leakage Characteristics. Estimate Potential Pressure Reduction.

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part 2 is recovery profitable
Part 2: Is Recovery Profitable?
  • Savings associated with pressure reduction
  • Costs of manual and automated regulation
  • Economics of options
  • Discussion Questions
steps to identify opportunities
Steps to Identify Opportunities

Identify Excessive Leakage Characteristics

Estimate Potential Pressure Reduction

Estimate Volume of Gas Saved and O&M Savings

Summarize Total Savings

Compare the Cost of Pressure Reduction Options

Conduct Economic Analysis

excessive leakage characteristics
Excessive Leakage Characteristics
  • Determine current operating characteristics of your system
    • Frequency and method of setting pressures
  • Objective is to achieve the right balance between savings and costs
    • Older systems with cast iron lines are more leak-prone and can benefit from continuous pressure adjustment
    • Newer systems with plastic lines are less leak-prone and may be more suitable for manual adjustment
set point demand relationship

IDEAL SET POINT AS A FUNCTION OF AMBIENT AIR TEMPERATURE

Set-Point/Demand Relationship
  • Estimate your system DR set-points characteristics from peak demand and minimum meter calibration condition
estimate volume of gas savings
Estimate Volume of Gas Savings
  • Estimate gas leakage
  • Estimate reduced gas leakage
    • One Partner found leakage rate in their low pressure system to be linearly proportional to system pressure
    • Apply percent pressure reduction to leakage rate to estimate gas savings
maintenance cost reduction
Maintenance Cost Reduction
  • Estimate Maintenance Cost
    • Average of 56 leaks repaired / mile / year
    • Average leak repair cost reported by Gas STAR partners is $1,010 / leak repair (based on data from 19 companies)
    • Average leak repair cost reported by 1995 GRI/GTI study is $1000 / repair (including costs to pinpoint leak and evacuate pipe)
  • Estimate Repair Savings
    • Percent leak reduction is linearly proportional to percent pressure reduction
    • 50% factor applied to relationship between % reduction in leaks and % reduction in system pressure
summarize total savings
Summarize Total Savings

Based on a hypothetical system delivering 1 Bcf/yr through 50 miles of cast iron, 25 miles of protected steel, 25 miles of plastic pipe; 10 district regulators; 10 low pressure points.

compare the cost of pressure reduction options
Compare the Cost of Pressure Reduction Options
  • Increase frequency of manual DR adjustment
    • Primary cost is labor
  • Install automatic control systems
    • Capital costs: system hardware
    • Operating costs: communications and power
manual adjustment costs
Manual Adjustment Costs
  • Total implementation cost
    • Additional set point changes per regulator (3)
    • Number of visits per set point change (4)
    • Hours per visit (0.5)
    • Labor cost ($60/hr)
    • Number of regulators adjusted (10)
  • Manual adjustment cost example
    • Implementation cost = 3 x 4 x 0.5 x $60 x 10
    • Total cost = $3,600/yr
is recovery profitable with manual adjustment
Is Recovery Profitable with Manual Adjustment?
  • Manual DR adjustment, annual to quarterly
compare the cost of pressure reduction options1
Compare the Cost of Pressure Reduction Options

Based on GRI-93/0039 and “Methods and Benefits for Automation of DRs

example automation operating costs
Example: Automation Operating Costs
  • Power Cost
    • DR and LPP power requirements (10 W)
    • Electricity cost ($0.06/kWh)
    • System annual hours of operation (8,760)
    • Number of DRs and LPPs (10 + 10)
    • Example cost = $105/year
  • Communication Cost
    • Number of calls to reset controllers (2 per day)
    • Number of set point adjustments (365 days/year)
    • Cost per call ($0.10/call)
    • Number of DRs and LPPs (10+10)
    • Example cost = $1,460/year
  • Total Operating Cost = $1,565 per year
discussion questions
Discussion Questions
  • To what extent are you implementing this opportunity?
  • Can you suggest other alternatives?
  • What additional information would you need for a better analysis of this opportunity?
  • What are the barriers (technological, economic, lack of information, regulatory, focus, manpower, etc.) that are preventing you from implementing this practice?