1.
Definition of Custody Transfer
Custody transfer refers to the commercial exchange of ownership of a fluid or gas from one party to another.
This process involves the measurement of the product’s quantity and quality to ensure both parties agree on
the terms of the transfer.
• Examples:
o Transferring crude oil from a production facility to a refinery.
o Delivering natural gas through a pipeline to a distribution company.
2. Importance of Custody Transfer Flow Measurement
• Financial Accuracy: Even minor errors can result in significant financial losses.
• Compliance: Adheres to industry standards like API (American Petroleum Institute), ISO
(International Organization for Standardization), and OIML (International Organization of Legal
Metrology).
• Transparency: Ensures fairness and trust between buyers and sellers.
• Operational Integrity: Prevents disputes and legal complications by providing verifiable
measurement data.
3. Key Components of Custody Transfer Systems
• Flow Meters:
o Serve as the primary device for measuring flow rate and total volume.
o Common types include Coriolis, ultrasonic, turbine, and positive displacement meters.
• Flow Computers:
o Process signals from flow meters and temperature, pressure, or density sensors.
o Perform real-time calculations to provide compensated flow rates and totals.
• Secondary Devices:
o Include temperature and pressure sensors for compensating flow measurements based on
operating conditions.
• Data Logging and Reporting Systems:
o Store measurement data and generate transaction reports.
o Ensure auditability and compliance with regulatory requirements.
