Network Code Gas Quality GAS QUALITY 1) INTRODUCTION .......................................................................................................................................... 2 2) GAS QUALITY PARAMETERS ................................................................................................................. 2 2.1) 2.2) 2.3) 2.4) PARAMETERS FOR CALCULATING ENERGY .............................................................................................. 2 PARAMETERS FOR CONTROLLING NATURAL GAS QUALITY ...................................................................... 2 INFORMATION OBLIGATIONS ................................................................................................................... 3 COMPLIANCE WITH THE QUALITY SPECIFICATION ................................................................................... 3 3) DETERMINATION OF THE PARAMETERS FOR THE CALCULATION OF ENERGY ................ 3 3.1) DELIVERY POINTS ................................................................................................................................... 3 3.1.1) Imports........................................................................................................................................... 4 3.1.2) Regassification plants .................................................................................................................... 4 3.1.3) Storage fields ................................................................................................................................. 4 3.1.4) National production....................................................................................................................... 4 3.2) REDELIVERY POINTS ............................................................................................................................... 4 4) DETERMINING THE PARAMETERS TO CONTROL THE QUALITY OF NATURAL GAS......... 5 4.1) 4.2) 4.3) 4.4) IMPORTS.................................................................................................................................................. 6 REGASSIFICATION PLANTS ...................................................................................................................... 7 STORAGE FIELDS ..................................................................................................................................... 7 NATIONAL PRODUCTION ......................................................................................................................... 8 5) DATA QUALITY VALIDATION ................................................................................................................ 8 5.1) OPERATIONAL AND FISCAL VALUES ........................................................................................................ 9 6) PROCEDURE FOR VALIDATION REQUESTS .................................................................................... 10 11 - 1 Network Code 1) Gas Quality INTRODUCTION The objective is to assure the integrity and safety of the transportation system - e.g. protecting the pipelines from corrosion – as well as the technical compatibility with the utilization of the gas by the Final Customer. Gas flowing in the transportation network must comply with a quality specification indicating the maximum and minimum permitted values for natural gas quality parameters. As a necessary condition to inject gas in the transportation network, the Shipper must comply with this quality specification. There is a single quality specification for the entire Snam Rete Gas pipeline network, thereby allowing the interchangeability of gas flows throughout the pipeline. 2) GAS QUALITY PARAMETERS The parameters characterising the quality of the gas can be divided into chemicalphysical parameters to calculate energy (Gross Calorific Value) and parameters controlling the quality of the natural gas. 2.1) Parameters for calculating energy The main parameter used to calculate energy is the Gross Calorific Value (“PCS”), determined on the basis of the chemical composition of the natural gas pursuant to ISO 6976 standard, taking at least the following elements into consideration: Methane – C1 Ethane – C2 Propane – C3 IsoButane – iC4 NormalButane – nC4 IsoPentane – iC5 NormalPentane – nC5 Hexanes and superior – C6+ Nitrogen – N2 Carbon Dioxide – CO2 2.2) Parameters for controlling natural gas quality In order to assure the safety of the transportation system, and the interchangeability and transportability of the natural gas in the network, the following natural gas quality parameters are monitored: 1. Gross Calorific Value 2. Relative Density 3. Wobbe Index 4. Carbon Dioxide – CO2 5. Oxygen – O2 6. Hydrogen sulphide – H2S 7. Sulphur in mercaptans – SRSH 8. Total Sulphur - STOT 11 - 2 Network Code Gas Quality 9. Water Dew Point 10. Hydrocarbon Dew Point 11. Temperature 2.3) Information obligations Each month Snam Rete Gas publishes on its website the average monthly PCS value of natural gas for each Delivery Point, related to the twelve months prior to the current one as well as, for each Redelivery Point, the relevant AOP and the average monthly PCS value related to the month prior to the current one. 2.4) Compliance with the quality specification Shippers are obliged to inject gas at the Delivery Points of the natural gas pipeline network in compliance with Quality Specifications as stated in Attachment 11/A. In cases of non-compliance with the quality specification, the provisions of the chapter “Parties’ Liabilities” will be applied. 3) DETERMINATION OF THE PARAMETERS FOR THE CALCULATION OF ENERGY The following methods are used to determine the composition of the natural gas to calculate the PCS (and therefore energy): continuous determination through the fixed installation of automatic gas chromatographs; discontinuous determination through gas chromatograph analysis of a gas sample taken in the field (instant sampling) carried out in SINAL or SIT accredited laboratories. The PCS is accurately determined at each Delivery Point of Snam Rete Gas pipeline network, while in the Redelivery Points, in the absence of an accurate determination, the PCS is calculated in correspondence to the measurement points of the Homogeneous Off-take Area identified according to the “Methodology relating to the Homogeneous Off-take Areas” published on the Snam Rete Gas website. 3.1) Delivery Points As part of Resolution n. 185/05 and its subsequent amendments, in each Delivery Point of Snam Rete Gas pipeline network, the PCS is accurately determined through the installation of measurement devices or via instant sampling. When the PCS measuring devices at a Delivery Point are not owned by Snam Rete Gas, the measurement recorded will be used by Snam Rete Gas on the condition that the owner of the measuring device has sent Snam Rete Gas, by 31st October each year, a written communication containing: 11 - 3 Network Code Gas Quality a declaration stating that the suitable checks and periodic calibrations of the devices have been carried out in compliance with current legislation; the documentation proving the reasons for any unavailability of the time measurements relating to the previous thermal year and the state of repair of the measurement devices at 30 September of the previous year. In the absence of written agreements between Snam Rete Gas and the owner of the measurement devices, with which the latter undertakes to fulfil the obligations mentioned above, Snam Rete Gas will equip the Delivery Point with its own measurement devices and will use the measurement value recorded with them. 3.1.1) Imports In each Delivery Point from imports, the PCS is calculated continuously by two gas chromatographs: the PCS daily value is calculated as the average of the analyses run during the day. 3.1.2) Regassification plants In each Delivery Point from regassification plants, the PCS is calculated continuously by two gas chromatographs. The PCS daily value is calculated as the average of the analyses run during the day. 3.1.3) Storage fields In each Delivery Point from storage fields, the PCS is determined continuously by a gas chromatograph: and the PCS daily average value is calculated on the basis of the analyses carried out in the daily off-take/injection period. 3.1.4) National production In each Delivery Point from national production with daily flow rates greater or equal to 100,000 Sm3, the PCS is measured continuously by a gas chromatograph: the PCS daily value is calculated as the average of the analyses run during the day. In each Delivery Point from national production with daily flow rates lower than 100,000 Sm3, the PCS is measured discontinuously on a quarterly basis via gas chromatograph laboratory analysis of a gas sample taken in the field. Should the specification limits be exceeded, the calculations will be carried out each month, starting from the month following the one of excess; if these parameters are within the norm for at least two consecutive recordings, the quarterly frequency will be restored. 3.2) Redelivery points In the Redelivery points, when there is no accurate calculation, the PCS is calculated in correspondence with the measurement points of the Homogeneous Off-take Areas (AOP) identified according to the “Methodology relating to the Homogeneous Off-take Areas” published on Snam Rete Gas' website. 11 - 4 Network Code Gas Quality In each AOP the PCS value is measured continuously via a gas chromatograph. The PCS daily value is calculated as the average of the instruments’ analyses during the day. The PCS value measured as so is associated to all the Redelivery points belonging to the AOP. In the AOPs with a single power point from a network of gas pipelines managed by another transport company or in the AOPs with a single power point other than an import point, characterised by daily gas volumes lower than 100,000 Sm3, the PCS is calculated discontinuously with a gas chromatograph laboratory analysis of a gas sample taken in the field with a quarterly frequency. If the Final Customer wants to install a gas chromatograph directly, the procedures and the requirements indicated in Attachment 11/B should be followed. The Shipper is responsible for guaranteeing compliance by the Final Customer. The request must be sent to Snam Rete Gas by the Shipper or directly by the Final Customer in case the Shipper’s approval is attached. As part of Resolution n. 185/05 and its subsequent amendments, when the PCS measurement devices in correspondence to a Redelivery Point is not owned by Snam Rete Gas, the measurement recorded will be used by Snam Rete Gas on the condition that the owner of the measurement device has sent Snam Rete Gas, by 31st October each year, a written communication containing: a declaration stating that the suitable checks and periodic calibrations of the devices have been carried out in compliance with current legislation; the documentation proving the reasons for any unavailability of the time measurements relating to the previous thermal year and the state of repair of the measurement devices at 30 September of the previous year. In addition the measurement recorded through this device will be used by Snam Rete Gas on the condition that the requirements and procedures described in Attachment 11/B are respected. In the absence of this communication by the owner of the measurement device or in case the requirements and procedures described in Attachment 11/B are not respected, Snam Rete Gas aggregates the Redelivery Point concerned with an AOP, based on the criteria in the “Methodology relating to the Homogeneous Off-take Areas” published on Snam Rete Gas' website. If the procedures and requirements described in Attachment 11/B are not satisfied, the data taken from the gas chromatograph will not be considered for the purposes of energy measurement and validation. 4) DETERMINING THE PARAMETERS TO CONTROL THE QUALITY OF NATURAL GAS 11 - 5 Network Code Gas Quality The parameters to control the gas quality under points 2. to 10. of paragraph 2.2 are determined in accordance with the provisions of Resolution n.185/05 and subsequent amendments, according to the following methods: continuous determination through the fixed installation of automatic gas chromatographs and specific measurement devices; discontinuous determination through an analysis of a gas sample taken in the field (instant sampling) carried out in SINAL or SIT accredited laboratories or via measurements in the field. The gas quality parameters under points from 2. to 4. of paragraph 2.2 (Relative Density, Wobbe Index and CO2) are calculated in compliance with ISO 6976, based on the chemical composition of the natural gas recorded according to the methods described in the previous paragraph “Determination of the parameters for the calculation of energy”. In particular, the gas quality parameters under points 2. to 4. of paragraph 2.2 are determined accurately at each Delivery Point of the Snam Rete Gas pipeline network, while in the Redelivery Points, in the absence of an accurate determination, these parameters are calculated in correspondence to the measurement points of the Homogeneous Off-take Areas identified according to the “Methodology relating to the Homogeneous Off-take Areas” published on the Snam Rete Gas website. The parameters to control the gas quality under points 5. to 10. of paragraph 2.2 are only determined at the Delivery Points of the Snam Rete Gas pipeline network according to the methods reported below. 4.1) Imports In each Delivery Point from imports, the gas quality control parameters under points 5. to 10. of paragraph 2.2 are determined according to the following methods: The oxygen content is monitored discontinuously on a quarterly basis via lab analyses of samples taken in the field. The sulphur compounds content is monitored discontinuously on a monthly basis through lab analyses of samples taken in the field. The water Dew Points are monitored continuously via specific measurement devices. The hydrocarbon Dew Points are monitored discontinuously on a monthly basis, through samples taken in the field. For the quality parameters not measured continuously, should the specification limits be exceeded, the calculations will be carried out each fortnight, starting from the month following the one of excess; in case these parameters are within the norm for at least two consecutive recordings, the ordinary frequency will be restored. 11 - 6 Network Code Gas Quality 4.2) Regassification plants In each Delivery Point from regassification plants, the gas quality control parameters under points 5. to 10. of paragraph 2.2 are determined according to the following methods: The oxygen content is monitored discontinuously on a quarterly basis via lab analyses of samples taken in the field. The measurement of hydrogen sulphide under point 6. of paragraph 2.2 is carried out continuously through specific measurement devices. The monitoring of sulphur compounds, under points 7. and 8. of paragraph 2.2, is carried out discontinuously via lab analyses of a gas sample taken in the field, at least once a year. Each time the analyses produced continuously by the analyzer of hydrogen sulphide give concentration values exceeding 1 mg/Sm3, an additional calculation of the sulphur compounds is carried out. The water and hydrocarbon Dew Points are monitored discontinuously on an annual basis through samples taken in the field. For the quality parameters not measured continuously, should the specification limits be exceeded, the calculations will be carried out each fortnight, starting from the month following the one of excess; in case these parameters are within the norm for at least two consecutive recordings, the ordinary frequency will be restored. 4.3) Storage fields In each Delivery Point from storage fields, the gas quality control parameters under points 5. to 10. of paragraph 2.2 are determined according to the following methods: The oxygen content is monitored discontinuously on a quarterly basis via lab analyses of samples taken in the field. The sulphur compounds content is monitored discontinuously on a monthly basis via lab analyses of samples taken in the field. The water Dew Points are monitored continuously via specific measurement devices. The hydrocarbon Dew Points are monitored discontinuously on a monthly basis through samples taken in the field. For the quality parameters not measured continuously, should the specification limits be exceeded, the calculations will be carried out each fortnight, starting from the month following the one of excess; in case these parameters are within the norm for at least two consecutive recordings, the ordinary frequency will be restored. 11 - 7 Network Code Gas Quality 4.4) National production In each Delivery Point from national production with a daily flow greater or equal to 100,000 Sm3, the gas quality control parameters under points 5. to 10. of paragraph 2.2 are determined according to the following methods: The oxygen content is monitored discontinuously on a quarterly basis via lab analyses of samples taken in the field. The sulphur compounds content is monitored discontinuously on a monthly basis via lab analyses of samples taken in the field, on a monthly basis or on a semi annual basis if the annual average values are stably lower than 20% of the specific limit. The water Dew Points are monitored continuously via specific measurement devices. The hydrocarbon Dew Points are monitored discontinuously through samples taken in the field, on a monthly basis or on a quarterly basis if the annual average values are stably lower than -15°C in the pressure field 100 – 7.000 kPa. For the quality parameters not measured continuously, should the specification limits be exceeded, the calculations will be carried out each fortnight, starting from the month following the one of excess; in case these parameters are within the norm for at least two consecutive recordings, the ordinary frequency will be restored. In each Delivery Point from national production with a daily flow lower to 100,000 Sm3, the gas quality control parameters under points 5. to 10. of paragraph 2.2 are determined according to the following methods: The oxygen content is monitored discontinuously on a quarterly basis via lab analyses of samples taken in the field. The sulphur compounds content is monitored discontinuously on a monthly basis via lab analyses of samples taken in the field, on a quarterly basis or on a semi annual basis if the annual average values are stably lower than 20% of the specific limit. The water and hydrocarbon Dew Points are monitored discontinuously on a monthly basis through samples taken in the field. For the quality parameters measured quarterly, should the specification limits be exceeded, the calculations will be carried out each month, starting from the month following the one of excess; in case these parameters are within the norm for at least two consecutive recordings, the ordinary frequency will be restored. 5) DATA QUALITY VALIDATION 11 - 8 Network Code Gas Quality As part of the provisions of Resolution n. 185/05 and its subsequent amendments, Snam Rete Gas validates the gas quality data used to calculate the energy as reported below: acquisition and examination of the data automatically received by each gas chromatograph and of the data related to the lab chemical analysis on previously taken gas samples; checking and validation of the above data on the basis of: 1) standard message errors recorded directly by gas chromatographs; 2) consistency of the data in the analysis; 3) limit values of concentration taken from historical trends from the field. The identification of erroneous data triggers the production of reports which can be used for diagnostic purposes. The daily measurement of PCS in a measurement point will be considered available by Snam Rete Gas if, for the Gas-day, the hourly measurements related to at least 12 hours, even when not consecutive, are available, considering each hourly measurement as valid if at least half of the measurements recorded in the hour are validated. If at a Delivery Point of the transmission network the daily measurement of the PCS for natural gas is not available, Snam Rete Gas will use the latest valid measurement recorded in the same point. If, at a measurement point of an AOP, the daily measurement of the PCS for natural gas is not available, Snam Rete Gas will use the measurement recorded in the same Gas-day in an alternative AOP, identified pursuant to the “Methodology relating to the Homogeneous Off-take Areas” published on the Snam Rete Gas website. If an alternative AOP cannot be identified, Snam Rete Gas will use a daily PCS equal to the average monthly PCS of the previous month at that same point. Starting from the tenth gas day of the measurement being unavailable at a measurement point of an AOP, Snam Rete Gas will use for the AOP concerned the PCS value measured daily through gas chromatograph laboratory analysis of a gas sample taken in the field. Snam Rete Gas will restore the daily PCS measurement within 15 days starting from the date when the data became unavailable. 5.1) Operational and fiscal values On the basis of the validated data, operational and fiscal gas quality values are calculated and archived in the “Archive of the operational data” and in the “Archive of fiscal values”: the former is made up by operational values which have passed the various checks and automatic system controls, and is therefore suitable for further processing. The latter is made up by fiscal values that have been fully validated. For invoicing purposes, the valid data is that collected, processed and validated by Snam Rete Gas. 11 - 9 Network Code 6) Gas Quality PROCEDURE FOR VALIDATION REQUESTS The Shipper may forward Snam Rete Gas a request to verify the data in question. Such request must include at least the following elements: ID code of the Redelivery Point concerned; the queried data and the related time period; any other technical details supporting the query. Snam Rete Gas, based on the elements reported above and/or other elements deemed necessary, carries out, if this is within its responsibilities under these specifications, the necessary checks and assessments by the technical terms necessary for the execution of these activities. As soon as available, the results of the checks in question are communicated to the requesting party and combined, upon the Shipper's specific request, with the information relating to the adjacent areas. If the verifications are well founded, Snam Rete Gas will provide a new measurement of the quality parameters and issue a new measurement report as well as make the concerning economic adjustment, where applicable, in compliance with the provisions of paragraph 5 of the Chapter 9 “Balancing”. If the verifications prove that the reported data is correct, Snam Rete Gas will charge the requesting party for the costs incurred for the verification in question. 11 10