Iranian Energy Economics

Designing Model of Associated Petroleum Gas Pricing with Emphasis on sale of Gas to NGL Units: Case Study of Feed Pricing of NGL-3200

Document Type : Research Paper

Authors

Ali Taherifard 1
Roholla Mahdavi 2
Hamed sahebhonar 3
Mohamad Ali Khakpour 4
Java keypour 5

1 Faculty Member of Imam Sadeq and Senior Expert of Sobhan Institution for Energy Studies

2 Ph.D of Oil and Gas Economic and Senior Expert of Sobhan Institution for Energy Studies

3 PhD Candidate of Economic and Senior Expert of Sobhan Institution for Energy Studies

4 MSc Student of Technology Management from Islamic Azad University

5 Senior Expert of Energy Diplomacy Institution

https://doi.org/10.22054/jiee.2017.7314
Abstract
The survey of Associated Petroleum Gas (APG) flaring illustrate that about 40 million cubic meter of APG have flared in oil operating regions at 1395 year. High volume of Associated Petroleum Gas (APG) flaring and problem of Notional Iranian Oil Company (NIOC) for execution of APG gathering plans has led to do policies such as auction of APG and transfer of NGL units to private sector by this company. Requisite for implementation of this policies that means present private sector in APG gathering plans is creation of given set up and framework in relations between NIOC and private sector. One of the cases that has important role in APG plans, is determined APG Pricing Model. So in this paper, meanwhile explained gas pricing models, a model was suggested for APG pricing. The main results of this study is pricing model for APG assuming sale to NGL unit such as NGL-3200 in which this model is based on fundamental principles such as type of use APG, gas quality, environmental issues, thermal value of gas and liquid content. Moreover, employing this model for feed pricing of NGL-3200 unit shows that minimum and maximum of APG price for this unit 5 and 8.2 cent per cubic meters Respectively. Also, sensitivity analysis presents that change of utilization rate, price of product from APG processing and capital cost can be effective on APG price

Keywords

Associated Petroleum Gas
APG pricing
NGL-3200
Iranian Energy Economics
Volume 5, Issue 20 - Serial Number 4
Autumn 2016
Pages 187-225

  • Receive Date 18 January 2017
  • Accept Date 13 March 2017
  • First Publish Date 13 March 2017
  • Publish Date 22 September 2016

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