What is Custody transfer?

“Custody transfer” refers to measurement applications where a product is exchanging ownership. In other words, someone is selling, and someone else is buying, quantities of fluid as part of a business transaction.

It is not difficult to understand why accuracy is important in such applications, as both parties have a vested interest in a fair exchange. Government institutions also have a stake in accurate metering, as taxes are typically levied on the sale of commodity fluids such as natural gas.


While its true that it is the point of sale for a product, it must be noted that custody transfer or LACT units are also an accounting system which both the buyer and seller must approve that they operate correctly.

As indicated above the governments are interested in the case they are going to be paid taxes or dues on the products, as well as the seller who does not want to see any product not being invoiced nor the buyer who does not want to be overcharged for the material bought.

So the big issue with LACT units is How it will be made precise enough to satisfy all the involved parties, the number of times that the unit needs to be calibrate to satisfy the users and finally that the unit be simple enough that any operator can use it.