KBR to construct shale gas processing facility in Canada

Abstract The newly passed Finance Act 2020 (FA2020) in Nigeria is reviewed especially as it relates to the oil and gas industry. The review is partly executed by modeling the specific provisions of the Act that impact gas utilization projects. The effect of the provisions on investor returns as well as the extent to which government objectives are met is ascertained – the government objectives being to prevent tax leakage via excessive financing costs, as well as encourage gas development and utilization. A qualitative assessment of the FA2020 is first conducted to examine its provisions applicable to the oil and gas sector. Furthermore, a spreadsheet Discounted Cash Flow (DCF) economic model of a gas central processing facility is built. A hypothetical $800Million (CapEx), 300mmscfd gas processing facility, which is 70% debt financed is modeled by incorporating the provisions of the FA2020. The metrics of the project (both investor and government) are then compared under the scenarios of with and without the FA2020. Key results indicate that the economic returns to investor in the gas processing facility are still largely preserved at a healthy level, even as government take improves by $102Million due to the FA2020. Specifically, without the FA2020, investor returns an IRR of 21.11% while due to the FA2020, investor IRR declines to 19.79%. Sensitivity analysis serves to illustrate one of the aims of the FA2020, which is to prevent tax loss from high cost of financing. Lengthening the tenor of loans reduces the fraction of the financing costs that is tax deductible. The modeling result shows that, ceteris paribus, for one (1) year increase in loan tenor, the amount of financing cost that is tax deductible reduces by 5%. Another important outcome is that for every $1 of government receipts preserved/enhanced by the FA, the investor NPV declines by 38cents This impact assessment of the FA2020 on gas utilization projects is conducted against the backdrop of several government pronouncements and policy positions to encourage domestic gas development. Financing plays an important role in delivering gas projects, consequently the evaluation of the impact of the FA2020 becomes imperative. This is to allow an examination of the effect of the Act on the ability to meet the strategic objective of powering the economy via gas while fulfilling Nigeria’s climate change commitments by deeper adoption of gas as a transition fuel.

Download Full-text

Corrections and Additions to “Shale Gas Processing Integrated with Ethylene Production: Novel Process Designs, Exergy Analysis, and Techno-Economic Analysis”

Industrial & Engineering Chemistry Research ◽

10.1021/acs.iecr.5b00946 ◽

2015 ◽

Vol 54 (13) ◽

pp. 3536-3539 ◽

Cited By ~ 2

Author(s):

Chang He ◽

Fengqi You

Keyword(s):

Economic Analysis ◽

Shale Gas ◽

Ethylene Production ◽

Exergy Analysis ◽

Gas Processing

Download Full-text

A new superstructure optimization paradigm for process synthesis with product distribution optimization: Application to an integrated shale gas processing and chemical manufacturing process

AIChE Journal ◽

10.1002/aic.15882 ◽

2017 ◽

Vol 64 (1) ◽

pp. 123-143 ◽

Cited By ~ 30

Author(s):

Jian Gong ◽

Fengqi You

Keyword(s):

Shale Gas ◽

Manufacturing Process ◽

Product Distribution ◽

Process Synthesis ◽

Gas Processing ◽

Chemical Manufacturing

Download Full-text

Effect of sulphur species on the hydrocarbon biodegradation of oil sludge generated by a gas processing facility

International Journal of Environmental Science and Technology ◽

10.1007/s13762-013-0183-6 ◽

2013 ◽

Vol 10 (3) ◽

pp. 551-558 ◽

Cited By ~ 2

Author(s):

J. Reyes-Avila ◽

T. Roldán-Carrillo ◽

G. Castorena-Cortés ◽

I. Zapata-Peñasco ◽

P. Olguín-Lora

Keyword(s):

Oil Sludge ◽

Hydrocarbon Biodegradation ◽

Gas Processing ◽

Processing Facility ◽

Sulphur Species

Download Full-text

Long-term immunity alterations in the employees of the high hydrogen sulfide content gas condensate processing facility

10.47183/mes.2021.041 ◽

2021 ◽

Author(s):

OV Boiko ◽

YuI Dotsenko

Keyword(s):

Hydrogen Sulfide ◽

Immune System ◽

Immune Status ◽

Phagocytic Index ◽

High Hydrogen ◽

Gas Processing ◽

Processing Facility ◽

Condensate Processing ◽

Sulfide Content ◽

Hydrogen Sulfide Content

The current measures for protection of the gas processing plant employees cannot fully prevent the impact of pollutants. Evaluation of the immune system is one of the methods for monitoring of the employees' health, and testing the system of measures used to improve the working conditions. The study was aimed to identify alterations in the immune status of the employees at the gas processing and high hydrogen sulfide content condensate processing facility depending on their working experience. The working environment and the employees' immune system were evaluated by standard methods. Pollutants were detected with the Bruel & Kjaer 1302 Multi-Gas Monitor, and the Tsvet-550 gas chromatographer. A total of 160 employees and 81 controls (blood donors of the regional blood transfusion station) were surveyed. The immune system was evaluated using the System 9000 Plus hematological analyser, Cyto FLEX LX flow cytometer, UNICO 2100UV specrophotometer, and KFK-3-03-ZОМЗ photometer. It was concluded that the existing complex of occupational and industrial hazards affects the immune status of the main production unit employees, which is reflected in the decreased CD20 levels and increased CD8 levels along with the constant levels of CD4. Correlations were revealed between the immuniglobuline level alterations, decrease in the phagocytic index and phagocytic number, as well in lysozyme activity, and the working experience. Pollutant exposure results in altered immunity of the employees, which could be considered the adaptation mechanism.

Download Full-text

The Use of Air Sparging in the Remediation of a Production Gas Processing Facility

10.2118/26000-ms ◽

1993 ◽

Cited By ~ 2

Author(s):

Y.J. Beausoleil ◽

J.S. Huber ◽

G.W. Barker ◽

S.N. Neumann

Keyword(s):

Air Sparging ◽

Gas Processing ◽

Processing Facility

Download Full-text

Designing the world's largest semi-submersible central processing facility

The APPEA Journal ◽

10.1071/aj11099 ◽

2012 ◽

Vol 52 (2) ◽

pp. 685

Author(s):

Claude Cahuzac

Keyword(s):

Weather Conditions ◽

Processing Unit ◽

Gas Field ◽

North West ◽

Central Processing ◽

Gas Processing ◽

Design Considerations ◽

Processing Facility ◽

Production Wells ◽

Sheer Size

What are the key design considerations driving the successful delivery of the world’s largest semi-submersible Central Processing Facility (CPF), to be installed at the Ichthys gas field in the Browse Basin, 200 km offshore North West Australia? Extreme cyclonic weather conditions, separating condensate from the gas stream, accommodating 150 personnel, and the sheer size of the gas processing unit at 110,000 tonnes, have created unprecedented challenges for the Ichthys design team. This extended abstract explores the design and planned construction of this massive piece of equipment. The CPF, measuring 110 m x 110 m, will be anchored to the seabed in about 250 m of water using 28 mooring chains. During the 40-year life of the project, the unit will collect gas from a network of up to 50 subsea production wells drilled into reservoirs 4,000–4,500 m beneath the seabed. From the CPF, condensate will be sent to a Floating Production Storage Offtake (FPSO) vessel moored nearby. The gas will be compressed and sent by an 885-km subsea pipeline to Darwin for processing into LNG, LPG and residual condensate. INPEX with its Ichthys joint venturer, Total, will be shipping 8.4 million tonnes of LNG and 1.6 million tonnes of LPG a year, as well as 100,000 barrels of condensate a day at peak. Successful delivery of the Ichthys Project will ensure INPEX achieves its goal of becoming the operator of a major LNG facility, while helping reach its target of producing 800,000 boe/d by 2020.

Download Full-text