Glossary
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Odourising

A process whereby an additive is injected to natural gas to provide a readily perceptible odour at a very low concentration in air as a warning indication of the presence of natural gas. Also called stenching.

Offload (shipping)

Discharge of cargo from a ship.

Off-peak gas

Natural gas supplied during periods of relatively low system demands.

Off-system supply

Natural gas supply purchased from an entity other than the delivering pipeline or local distribution company.

Offtake point

The point in a natural gas distribution system where natural gas is taken by supply pipe to a major customer.

Ofgem

UK regulatory body, formally known as the Office of the Gas and Electricity Markets, that oversees electricity and gas trade, pipelines and the power grid. Located in London. Combines the former Offer and Ofgas regulators.

Oil equivalent gas (OEG)

See Barrel of oil equivalent (boe)

Open-access transportation

Natural gas transportation service available to all shippers. Subject to capacity availability, in a manner that is not unduly discriminatory.

Operating lease

An agreement whereby the lessor conveys the right to use an asset for an agreed period of time to the lessee (in return for a payment or series of payments).

Operational balancing agreements (OBAs)

Agreements between pipelines and parties at delivery or receipt points, whereby the parties agree to specified procedures for balancing discrepancies between the nominated levels of service and the actual quantities.

Operational-flow orders (OFOs)

Orders that are issued by a pipeline to protect the operational integrity of the line.

Outer continental shelf (OCS)

That portion of a continental landmass that constitutes the slope down to the ocean floor. The outer continental shelves are heavily sedimented and are believed to contain a large portion of the earth’s undiscovered gas.

Over the counter (OTC)

Trading that takes place outside a formal exchange. OTC trade in derivatives linked to LNG has been rising, mainly for Hedging purposes.

Own-use exemption

The exemption to applying fair-value accounting, under International Financial Reporting Standards, to contracts that were entered into and continue to be held for the purpose of the receipt or delivery of a non-financial item in accordance with the entity’s expected purchase, sale or usage requirements.