Regasification Code Quality of the LNG delivered and the gas redelivered QUALITY THE OF THE LNG DELIVERED AND THE GAS REDELIVERED 1) QUALITY OF THE LNG DELIVERED ................................................................................................... 1 1.1) 1.2) 1.3) 2) QUALITY AND PRESSURE OF THE GAS INSERTED INTO THE NETWORK.............................. 3 2.1) 2.2) 2.3) 3) DETERMINING THE QUALITY OF THE LNG UNLOADED ............................................................................ 1 QUALITY SPECIFICATIONS AT THE DELIVERY POINT ............................................................................... 1 MIXING OF THE LNG IN THE TANKS ........................................................................................................ 2 OVERVIEW .............................................................................................................................................. 3 ANALYSIS METHODS ............................................................................................................................... 5 QUALITY SPECIFICATIONS AT THE NETWORK INSERTION POINT .............................................................. 6 CHECKS OF THE PROCESS TO DETERMINE THE QUALITY OF THE LNG DELIVERED ..... 6 4) CHECKS OF THE PROCESS TO DETERMINE THE QUALITY OF THE GAS INSERTED INTO THE NETWORK................................................................................................................................................... 7 4.1) 4.2) 1) CHECKING OF INSTRUMENTS ................................................................................................................... 7 AUTOMATIC CHECKS ON THE CONSISTENCY OF THE DATA PROCESSED BY THE SVC ............................... 7 QUALITY OF THE LNG DELIVERED The qualitative characteristics of the LNG delivered by the User shall be identified by means of analysis carried out at the Panigaglia Terminal using the methods, procedures and instruments for measuring quality in use at the Terminal itself. The qualitative characteristics of the LNG delivered to the Delivery Point must comply with the quality specifications described below. 1.1) Determining the quality of the LNG unloaded The LNG quality is determined at the Terminal using its own instruments. The procedure is based on determining the average composition of the LNG, obtained by means of: a) LNG sampling; b) Gas chromatographic analysis; c) Calculations based on the average composition of each LNG component (gross heating value, molar volume, molecular weight). 1.2) Quality specifications at the Delivery Point The LNG delivered by the User to the Panigaglia Terminal must meet the following specifications: Gross heating value components Component Methane Ethane Propane Iso-butane Normal butane Acceptance values Unit of measurement (*) (*) (*) (*) (*) 12 - 1 Regasification Code Hexanes and higher Nitrogen Oxygen Carbon dioxide Quality of the LNG delivered and the gas redelivered (*) (*) ≤ 0.6 ≤3 %mol %mol (*) Acceptance values for these components are inherently limited by the acceptability range of the Wobbe index Trace compounds Parameters Hydrogen sulphide Mercaptan sulphur Total sulphur Acceptance values Unit of measurement ≤ 6.6 ≤ 15.5 ≤ 150 Mg/Sm3 Mg/Sm3 Mg/Sm3 Physical properties Properties Hydrogen sulphide (H2S) Mercaptan sulphur Total sulphur Gross Heating Value Wobbe Index Adjustment of the Wobbe Index(1) LNG Density Acceptance values Unit of measurement 6 mg/Sm3 15 mg/Sm3 150 mg/Sm3 38.18 43.18 MJ/Sm3 47.31 52.13 MJ/Sm3 52.13 53.17 MJ/Sm3 MJ/Sm3 MJ/Sm3 MJ/Sm3 430 470 kg/m3 kg/m3 (1) Interval of use of the adjustment systems present at the Terminal Please refer to the specific procedure published on the GNL Italia website for the management of situations where quality data for the LNG delivered by the User is unavailable. 1.3) Mixing of the LNG in the tanks The Parties agree that, in view of the technical problems resulting from mixing volumes of LNG with different density values in the same storage tank at the terminal, in accordance with Notice No. 616026 of the Ministry of Industry, Commerce and Handicraft of 11 February 1975, in the event that volumes of LNG are delivered to the Operator at the Delivery Point with a density that differs by more than ±25 kg/Sm3 from the density of the Liquefied Natural Gas present in the Terminal's storage tanks at the time of unloading, the Operator shall have the right to delay the unloading of such LNG volumes at the Terminal, except as laid down in the chapter entitled "Receiving, storage and regasification of LNG" of this document. 12 - 2 Regasification Code Quality of the LNG delivered and the gas redelivered Where this decision is made, the Operator shall notify the User of the estimated delay that will be incurred at least 24 hours prior to the arrival date of the Carrier. 2) QUALITY AND PRESSURE OF THE GAS INSERTED INTO THE NETWORK The qualitative characteristics of the gas inserted into the Snam Rete Gas network are the result of analysis carried out at the Panigaglia Terminal using the methods, procedures and instruments for measuring quality in use at the Terminal itself. The regasified LNG inserted into the network by GNL Italia shall meet the quality and pressure specifications for gas entering the Snam Rete Gas network - as specified in the Network Code - provided that the LNG delivered by the User complies with the specifications at the Delivery Point, as described above. In its capacity as owner of the transportation capacity of the Entry Point to the National Network interconnected with the Terminal in accordance with Article 8 (1) of Resolution No. 137/02, GNL Italia shall comply with the quality specifications laid down in the Network Code in accordance with the provisions of Article 8 (1) Annex A of Resolution No. 185/05, which prohibits the insertion into the national network of gas that does not conform with specifications or which, although in compliance with specifications, contains elements that are not normally present in natural gas in quantities that could harm Users, in order to redeliver the gas to the User at the Redelivery Point. However, should any of the aforementioned scenarios occur, GNL Italia, in accordance with article 19 (1) of Annex A of Resolution No. 185/05, is required to provide prompt written notice to Snam Rete Gas and the User(s) concerned. 2.1) Overview Checks with regard to gas quality are performed in the manner and frequency indicated below. The quality of the natural gas inserted into the network at the redelivery flange at the Panigaglia Terminal is continuously monitored by two "singlestream" gas chromatographs connected to the SVC (Supervisory Computer System) of the measurement system, as well as a third gas chromatograph with similar functionality that works with the other two using a "2 out of 3" logic, interrupting the supply where two instruments out of three report a specific exception (in relation to the Wobbe Index value) with regard to the gas composition. The three gas chromatographs referred to above are installed in a special pressurized gas-quality control area along with other "multi-stream" gas chromatographs which are generally dedicated to the analysis of other gas flows from the process, but which can analyse the composition of the final gas in the event that the instruments specifically intended for that purpose are all simultaneously unavailable. One characteristic of regasified natural gas is that it is virtually free of sulphur compounds. This is the result of a combination of the following factors: 1) the process for liquefying natural gas is always preceded by a phase of processing the gas supply designed to remove all the components of the mixture which may 12 - 3 Regasification Code Quality of the LNG delivered and the gas redelivered solidify at typical liquefaction cryogenic temperatures (-162°C) from the natural gas current (in particular H2O (dehydration) and CO2 (decarbonation)), or at least reduce the concentration to a level that does not result in precipitation phenomena or problems of fouling and clogging in subsequent processes. Among these compounds are branched and cyclic hydrocarbons and, if present in the gas field, hydrogen sulphide and other sulphur compounds; 2) the regasification process has no possible source that could introduce sulphur compounds. With regard to the water and hydrocarbon dew points, the liquefied natural gas unloaded at the Panigaglia Terminal is well below the network limit as a result of the treatment carried out at the ports of loading, briefly outlined in point 1). The sulphur compounds and water and hydrocarbon dew points are determined discontinuously, according to the procedures and frequency set forth below. The quality shall be determined on the basis of the chemical and physical characteristics described below. Molar composition Chemical composition in %mol Methane (C1) Ethane (C2) Propane (C3) Iso-butane (i-C4) n-Butane (n-C4) Iso-pentane (i-C5) n-Pentane (n-C5) Hexanes and higher (C6 +) Nitrogen (N2) Carbon Dioxide (CO2) Helium (He) Oxygen (O2) Sulphur compounds in mg/Sm3. The values of the following compounds are determined: Hydrogen Sulphide Mercaptan sulphur Total sulphur (H2S) (S-RSH) (S TOT) Temperature The temperature of the LNG delivered, expressed in degrees Celsius. Relative density The relative density of the gas-air ratio is defined in relation to the densities of gas and air at reference conditions (Rhos air = 1.22541 kg/Sm3). 12 - 4 Regasification Code Quality of the LNG delivered and the gas redelivered Density Density (Rhos), expressed in Kg/Sm3, is calculated on the basis of chemical composition in accordance with standard ISO 6976. Determination of the Gross Heating Value The Gross Heating Value (GHV), expressed in KJ/Sm3 is calculated on the basis of chemical composition in accordance with standard ISO 6976 (in its most recent version), considering the ideal values of the components recorded in the same standard (reference conditions: m3 15°C, combustion 15°C). Wobbe Index The Wobbe Index (WI) is expressed in KJ/Sm3 and is calculated using the following formula: WI = GHV/rd. Water dew point The dew point of water at delivery pressures of 70 bars, expressed in °C. Hydrocarbon dew point The dew point of hydrocarbons in a pressure range of 1-70 bars, expressed in °C. 2.2) Analysis methods The chemical and physical characteristics set out in section 2.1.1 are determined continuously by means of the appropriate measurement equipment installed in the measurement station, or discontinuously with the extraction of gas in a cylinder that is subsequently analysed in the laboratory. Continuous The Operator and Snam Rete Gas shall agree in advance on the type of equipment to be used for continuous analysis, the accessories required for its operation and the action plans for the maintenance thereof. The gas sample to be analysed is extracted by means of probe installed at a representative point along the delivered gas pipeline, in the middle of the pipeline or at a point equal to at least one third of the diameter of the higher or lower pipeline. Discontinuous Instantaneous sampling is performed on the basis of an agreed frequency, in accordance with standard ISO 10715/97 or GPA 2166. A report is created when the sample is taken and the laboratory results are indicated in the Certificate of Quality. Analysis of Hydrogen Sulphide The Panigaglia Terminal has a H2S analysis tool that continuously monitors the final gas. Sulphur compounds (total sulphur and mercaptan sulphur) The sulphur compounds, referred to in paragraph 2.1.1 above shall be determined discontinuously by laboratory analysis, according to the ASTM D5504 method or another methodology agreed between the Parties or between the Network Manager and the Operator. 12 - 5 Regasification Code Quality of the LNG delivered and the gas redelivered This determination shall be made each time the continuous analysis produced by the H2S analyser gives concentration values that are greater than 1 mg/Sm3, or at least once a year. 2.3) Quality specifications at the network insertion Point The regasified LNG inserted into the network by the Operator meets the quality specifications for the insertion of gas into the National Network, as specified in the Network Code. Gross heating value components: Component Acceptance values Unit of measurement (*) (*) (*) (*) (*) (*) (*) ≤ 0.6 ≤3 %mol %mol Methane Ethane Propane Iso-butane Normal butane Hexanes and higher Nitrogen Oxygen Carbon dioxide (*) Acceptance values for these components are inherently limited by the acceptability range of the Wobbe index Trace compounds Parameters Acceptance values Unit of measurement ≤ 6.6 ≤ 15.5 ≤ 150 Mg/Sm3 Mg/Sm3 Mg/Sm3 Hydrogen sulphide Mercaptan sulphur Total sulphur Physical properties Properties Acceptance values 34.95 ÷ 45.28 47.31 52.33 0.5548 ÷ 0.8 ≤ -5 Unit of measurement Hydrocarbon dew point ≤0 °C Max temperature Min temperature < 50 >3 °C °C Gross Heating Value Wobbe Index Relative density Water dew point 3) MJ/Sm3 MJ/Sm3 Kg/Sm3 °C Conditions At a relative pressure of 7000 kPa In the pressure range of 100 ÷ 7000 KPa rel. CHECKS OF THE PROCESS TO DETERMINE THE QUALITY OF THE LNG DELIVERED 12 - 6 Regasification Code Quality of the LNG delivered and the gas redelivered Every 3 days, GNL Italia usually verifies the calibration of the gas chromatographs that analyse the quality of the LNG unloaded from the LNG carriers. Where the User requests further checks of the entire system to determine the quality parameters of the LNG delivered, GNL Italia shall facilitate such requests for additional testing. 4) CHECKS OF THE PROCESS TO DETERMINE THE QUALITY OF THE GAS INSERTED INTO THE NETWORK 4.1) Checking of instruments All of the measurement equipment shall be subjected to calibration and periodic checks to ensure that correct measurements are taken within the maximum expected accuracy limits. Where, during the execution of such checks and calibrations, an error is identified that exceeds the allowed limits, the appropriate action required to eliminate such an error shall be taken. In the event that it is not possible to restore the correct functionality of the equipment, it shall be replaced. The results of the monitoring and calibration checks are reported by means of specific reports which are dated and signed by the tester and representatives of Snam Rete Gas and the Operator. Regular calibration is also performed on any equipment that is temporarily out of service. The instruments and sample cylinders used for calibration are certified by SIT (Italian Calibration Service) accredited laboratories. 4.2) Automatic checks on the consistency of the data processed by the SVC The variable data measured by field instruments and the processed data are continuously checked by the SVC (Supervisory Computer System). The SVC compares the density values produced by the two gas chromatographs, and compares them to the data obtained by the reference densimeter. If the difference between the densities produced by the two gas chromatographs and between these values and that of the reference hydrometer exceeds acceptable limits, an asterisk is added next to the density value "Gas Quality Daily Report" for which the exception was identified. In the event that such limits are exceeded - with regard to pressure, temperature and flow rate values - the SVC signals an exception that is reported by the printer alarm. If the exception does not affect the volume from being determined, the amount shall not be indicated on the daily report; an asterisk shall be printed next to the parameter where the limit has been exceeded. 12 - 7