1 / 17

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. Identify Excessive Leakage Characteristics. Estimate Potential Pressure Reduction.

wylie
Download Presentation

Part 2: Is Recovery Profitable?

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Part 2: Is Recovery Profitable? • Savings associated with pressure reduction • Costs of manual and automated regulation • Economics of options • Discussion Questions

  2. 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

  3. 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

  4. 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

  5. Pressure ReductionUsing Manual Adjustment

  6. Pressure ReductionUsing Automatic Adjustment

  7. 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

  8. 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

  9. 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.

  10. 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

  11. 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

  12. Is Recovery Profitable with Manual Adjustment? • Manual DR adjustment, annual to quarterly

  13. Compare the Cost of Pressure Reduction Options Based on GRI-93/0039 and “Methods and Benefits for Automation of DRs

  14. Example: Automation Capital Costs

  15. 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

  16. Automated DR adjustment Is Recovery Profitable with Automated Adjustment?

  17. 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?

More Related