Inequitable Allocation of Natural Gas Liquids: 

 

The Problem..

Liquid

Component

 

 

 

Additional Liquids with New Stream

 

 

m3

Liquids Allocated to New Stream with Standard Method

 

 

     m3

 Liquids     Allocation Difference

 

 

 

m3

%

Propane

159.6

110.4

-49.2

-30.8

Butane

151.8

123.1

-28.7

-18.9

Pentanes+

127.3

120.0

-7.3

-5.7

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Recoup Resources Ltd.

·      Production Accounting (PA) methods used to allocate Natural Gas Liquids (NGL) production from gas processing facilities back to source production streams do not reflect the contribution of the streams correctly.

·      Consider a new rich gas stream coming to an existing facility:  The following is an example of what can occur...

·      The Standard Method greatly "underallocates" all the liquids components in this case.