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To: Edmond Katonica who wrote (506)2/27/2001 7:16:08 PM
From: Aggie  Respond to of 23153
 
Hi Edmond,

I'm not a gas marketer, but I think the way it's usually done is to calculate the BTU content of the gas when it's ready to go into the export line. All sales agreements differ, of course. Impurities such as Carbon dioxide and hydrogen sulfide, especially if the percentages are significant (and they can be)tend to sap the BTU content but also impose additional development costs for surface treatment facilities, expensive/exotic material costs for pipework and tubulars, etc. Chrome and nickel are highly resistant to both corrosive gases and low budget proposals.

Your "half that" is not a bad rule of thumb. Sulfur, unless you are close to market, is generally more a nuisiance (sp?) than it's worth. Tenghiz has tons and tons of it sitting waiting for transport (last I heard).

Good Luck,

Aggie