Pipeline System Automation and Control
5 Liquid Pipeline Management System
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This chapter discusses several applications unique to common carriers of liquid products — batch scheduling systems with nomination management, batch tracking and liquid volume accounting systems. The transportation of liquid petroleum products starts with a request for product movement, usually in the form of a nomination, by shippers to the pipeline company. The pipeline company schedules and allocates the nominated volumes and then monitors the product movements when they are injected into the pipelines. After the products are delivered to the nominated delivery locations, the volumes are measured and accounted for billing to the shippers.
Common carriers publish tariffs that are dictated by FERC 68 in North America. Tariffs cover the transportation rates and rules including nominations and minimum batch size requirements. For common carrier pipelines, the nomination is a way for a shipper to reserve space in the pipeline to transport petroleum products from an origin to delivery locations via the pipeline system. Shippers are obliged to submit their initial nominations and the subsequent changes according to a certain set of rules in order to ensure that the nominations are accepted and their changes can be properly facilitated.
The tariff requires that all shippers submit to the pipeline company their intended shipping volumes and other relevant information on a certain date before the cycle lifting date. This initial nomination data permits the pipeline company to develop a plan to handle all shippers' transportation requirements. After initial nominations have been made, shippers are allowed to change their nominations until a specified date without incurring additional charges.