Definition - What does Gas Conversion mean?
Gas Conversion is the process of converting gas units into tradable units when natural gas is being sold to gas consumers in the market. The units which are tradable for natural gas are British Thermal Units or (BTU) or MMBTU. However, when natural gas is produced at the operators end, the units of natural gas are in Standard Cubic Feet (Scf). These units need to be converted to BTU before sales. For this purpose, natural gas units are converted with the help of natural gas converters.
Petropedia explains Gas Conversion
A Gas Converter converts volume of gas 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 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 ($/BTU). For large industrial and commercial users, the pricing of gas is specified as Dollars per Million British Thermal Units ($/MMBtu) or Dollars per Thousand British Thermal Units ($/MBtu).
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 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.