Definition - What does Gas Converter mean?
Gas Converter is a natural gas unit conversion tool through which natural gas can be expressed in various desired units. Each oil and gas marketing organization has its own Gas Converter tool which makes use of globally standardized formulae for unit conversion of natural gas. A Gas Converter helps in quick and correct conversions of natural gas in the desired units.
Petropedia explains Gas Converter
A Gas Converter is used during the natural gas trading process between two entities for converting gas into desired units for trade.
A Gas Converter converts volume of gas needed into the calorific value it will produce. The volume of natural gas used by commercial users is specified in Million Standard Cubic Meter Per Day (mmscmd) or Million Cubic Feet Per Day (mmcfd). Generally the price of Natural Gas depends on its enthalpy or in simple terms the heat energy produced by burning one unit of natural gas. This heat energy is measured in terms of calorific value of gas. The unit of measuring calorific value is BTU (British Thermal Units) or Kcal (Kilocalories). The price of gas is usually specified in Dollars per British Thermal Units ($/BTU). For large industrial and commercial users, pricing of gas is specified as Dollars per Million British Thermal Units ($/MMBtu) or Dollars per Thousand British Thermal Units ($/MBtu) since they have large demand of natural gas.
In order for a commercial user to make payments to a gas marketing organization, the volume of natural gas (mmscmd) is converted into the British Thermal Units (energy produced) by burning the purchased volume of natural gas which can be done easily by using Gas Converters by both marketing as well as commercial enterprise. Thus, in brief, a Gas Converter will help in converting different units of measurement of natural gas for pricing ease.
Conversion is based on
- 1 MMBtu = 1000 cubic feet
- 1 BOE = 5800 cubic feet, where BOE refers to Barrels of Oil Equivalent