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QT is working with Georgia Gas International Corporation (GGIC) to implement a project to reduce leaks throughout its entire North-South Pipeline. The project is based on a developing a 'mass-balance' assessment to determine leaks. The 'mass-balance' approach measures total gas entering the pipeline and subtracts total metered gas leaving the pipeline. The difference is what is leaking from the gas pipeline. If approved, this methodology will be quite different from AM0023, which looks at leak reduction on a leak-by-leak basis rather than a mass-balance basis. While it may sound easier to do a mass-balance approach, the difficulty is that it requires a good deal of accurate data on pressure, volume and temperature at each of the entrance and exit points in the pipeline. Many gas companies do not have this level of available data to establish a firm baseline. QT can help companies determine the level of data available and assess whether a leak-by-leak approach or a mass-balance approach is more appropriate.
Portion of pipeline that needs rehabilitation

The objective of the proposed rehabilitation project for the North - South Gas Pipeline is to (i) inspect the pipeline to identify all weaknesses and defects; (ii) repair the most urgent defects on a priority basis to bring the pipeline back to an acceptable level of technical integrity for the required throughput capacity; (iii) repair and/or replace leaking valves, seal etc. to reduce technical losses and (iv) built capacity within GGIC with an emphasis towards achieving a sustainable capacity for operation and maintenance of the pipeline. It is important to note that this comprehensive approach to measuring leak reductions allows GGIC to utilize any and all technical means to reducing leaks including replacing valves, seals, corroded pipes, etc. As the metering system begins to provide data, the location of the major leaks becomes more apparent making them easier to identify and repair. GGIC will also use more typical methods of detecting leaks in areas identified as places of high leakage.
To implement this effort, QT and its technical partners are working with GGIC to:
1. Ensure metering integrity: In order to utilize a 'mass-balance' approach, GGIC must ensure that all take-off points including points of GGIC internal utilization are metered with highly accurate, tamperproof meters. Meters will record flow, temperature and pressure. This step also requires a complete survey of pipelines and constant patrols to ensure that there are no illegal connections. GGIC will record other measurements such as the monthly average methane concentration of the gas. GGIC will also have to calibrate each meter once every three months (or more frequently if suggested by the manufacturer).
2. The Detailed Database: GGIC will have a year of data from these meters in order to develop a baseline. The data will be kept in an electronic database where they can be easily accessed and reviewed by third party validators.
3. Creating A Baseline: In order to ascertain what the emissions would likely have been in the project years, GGIC will:
| a. |
Determine its leakage rate as a percentage of the total gas entering the system for the year preceding the project. |
| b. |
Determine the year of the previous three with the highest percentage of leak reduction improvement (if there is no year with improvement it will be assumed that there would have been no improvement in the project) |
| c. |
Maintain or increase pressure as a normal business practice in the project years. (Since leaks tend not to decrease in size without intervention, it will be conservatively assumed that the leaks would have stayed the same size) |
| d. |
Measure the total gas entering the system in each project year. |
The baseline calculation for each project year in simple terms will be the baseline leak percentage measured in (a) multiplied by the total gas entering the system measured in (d) then discounted by the greatest leak improvement identified in (b).
4. On-Going Monitoring Plan: The on-going monitoring plan is perhaps the most important part of the Georgia project and carbon trading projects in general. Because the CDM and JI process is so highly regulated, monitoring reports are scrutinized very closely by the independent verifier. Thus all data must be collected and the monitoring plan must be implemented in exact accordance with the methodology, or the verification report might not be issued - and thus the emission credits may not be generated. In the case of the Georgian project, we will be monitoring the gas entering the system each month, the actual leakage of gas in the project year based on the 'mass-balance' calculation, and the concentration of methane in the gas.
5. Training of Staff and Equipment: As part of the Georgia project, QT is working with the World Bank and other partners to train GGIC on data collection, monitoring and database management. GGIC is also getting help with purchasing the right meters and other equipment to correctly implement the methodology.
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