Economic Comparison of Alternatives for a Stranded Offshore Gas Reservoir

2021 ◽  
Vol 73 (08) ◽  
pp. 63-64
Author(s):  
Chris Carpenter
Keyword(s):  
Natural Gas ◽  
Economic Feasibility ◽  
Sensitivity Analyses ◽  
Pricing Models ◽  
Gas Reservoirs ◽  
Gas Reservoir ◽  
Pipe Length ◽  
Offshore Technology ◽  
University Of Oklahoma ◽  
Natural Gas Industry

This article, written by JPT Technology Editor Chris Carpenter, contains highlights of paper OTC 30732, “Economic Feasibility Study of Several Usage Alternatives for a Stranded Offshore Gas Reservoir,” by Khoi Viet Trinh, SPE, and Rouzbeh G. Moghanloo, SPE, University of Oklahoma, prepared for the 2020 Offshore Technology Conference, originally scheduled to be held in Houston, 4–7 May. The paper has not been peer reviewed. Copyright 2020 Offshore Technology Conference. Reproduced by permission. This paper compares economics of a floating liquefied natural gas (FLNG) project with those of an onshore LNG plant and gas-to-wire (GTW) processes. Sensitivity analyses and tornado charts are used to evaluate the importance of various uncertain parameters associated with FLNG construction and operation. This study will be helpful for future considerations in using FLNG to convert offshore gas reservoirs previously considered stranded into economically viable resources. The results from this economic model can play a key role in the future of the natural gas industry and energy market in West Africa. Assumptions Before presenting different economic scenarios, the following assumptions must be established: * The pipeline will have the correct diameter, pressure rating, and metallurgy to transport produced gas. Only the pipe length will be considered a variable. * Operating expenses (OPEX) of both onshore LNG and FLNG will be the same. Realistically, however, OPEX of FLNG will be different from that of onshore LNG. * A subsidy from the Nigerian government has been obtained for the onshore LNG plant. * The electricity price is assumed to be $0.25/kWh. * An assumed upstream cost of $2/Mscf to cover onshore LNG gas pretreatment is assumed. * The onshore LNG plant and FLNG will have the same lifespan. However, in reality, availability of FLNG can be lower than that of onshore LNG. Pricing Models FNLG. Because of the relative recency of FNLG, few pricing models have been readily available. For the complete paper, Shell’s Prelude project is the basis for pricing of FLNG. Prelude costs averaged out to approximately $14 billion, which will be used as the cost of the facility for the FLNG scenario in the economic analysis.

scholarly journals Split Sales of Gas

1971 ◽  
Vol 9 (3) ◽  
pp. 496
Author(s):  
Robert C. Muir
Keyword(s):  
Natural Gas ◽  
Gas Reservoir ◽  
Gas Industry ◽  
Natural Gas Industry ◽  
Gas Market

The Natural Gas Industry is highly competitive and once a gas reservoir is discovered the various producers are anxious to enter into Gas Purchase Contracts. The contracts are with different purchasers and on different terms giving rise to split stream deliveries - there would never be any split stream problems if all producers made simultaneous deliveries to one or more purchasers in exactly the same volumes at exactly the same price. This article examines the position of the producers in the gas reservoir in the absence of an agreement and then discusses different contractual methods which the producers may use to resolve the conflict between the Doctrine of Correlative Rights and the Rule of Capture, such as gas market sharing contracts, cash adjustments, gas balancing schemes and deferred production agreements. To further complicate the problems of 'the producer in dealing with split sales of gas, the lessee-producer must keep in mind the interests of the lessor-royalty owner. The article concludes with a consideration of the interest of the royalty owner in the prepayment received by the producer and in the price for which the producer is selling the gas.

Environmental and Economic Significance and Feasibility Analysis of Tight Sand Gas Reservoir in China

2013 ◽  
Vol 734-737 ◽  
pp. 320-325
Author(s):  
Jian Guo Wang ◽  
Long Chen ◽  
Hai Jie Zhang ◽  
Tao Han
Keyword(s):  
Natural Gas ◽  
Rapid Development ◽  
Economic Feasibility ◽  
Coal Bed ◽  
Gas Reservoirs ◽  
Unconventional Gas ◽  
Well Completion ◽  
Economic Significance ◽  
The Rich ◽  
Tight Sand Gas

Currently, with a sharp increase in demand for natural gas and a strict energy supply circumstances, the development of tight sand gas becomes a pressing need for the rapid development of Chinas society and economy. At the end of 2010, the reserves and annual production of tight sand gas in China accounted for 39.2 percent and 24.6 percent of national natural gas, respectively, and the proportions are expected to increase. Compared with other unconventional gas such as shale gas and coal bed methane, the techniques of tight sand gas are relatively mature and development costs of it are relatively low. So tight sand gas should be considered in priority in the exploration and exploitation of unconventional gas in China. The total reserves of tight sand gas in China are 12 trillion cubic meters. Tight sand gas in China possesses the rich reserves and enormous potential to develop, which can ease the current shortage of energy. Besides, China has mastered a series of key techniques such as the well drilling and completion protection supporting technique; well completion and staged fracturing technique of horizontal well, which guarantees the technical feasibility of the development of tight sand gas reservoirs. From the perspective of market, social and environmental meaning, reserves, technique and economic feasibility, this paper presents a systematical analysis about the importance of developing tight sand gas in China.

Current Situation of Tight Sand Gas in China

2011 ◽  
Vol 361-363 ◽  
pp. 85-89
Author(s):  
Shi Zhen Li ◽  
De Wu Qiao
Keyword(s):  
Natural Gas ◽  
Energy Resources ◽  
Huge Amount ◽  
Gas Reservoirs ◽  
Gas Reservoir ◽  
Unconventional Gas ◽  
Unconventional Natural Gas ◽  
The World ◽  
Porosity And Permeability ◽  
Tight Sand Gas

Unconventional natural gas because of a huge amount of resources has been received extensive attention in the world. Based on the present technology in China, tight sand gas as one type of unconventional gas, has become the most realistic energy resources, and has reached a certain development scale. Low porosity and permeability of tight sand gas reservoirs are widely distributed in China's major basins, the proved reserves of tight sand gas reservoirs in the proportion of reserves increases significantly year by year. Tight sand gas exploration in unconventional natural gas is most realistic, the concept of tight sand gas, reservoir characteristics, formation mechanism of unconventional tight sand gas, distribution in China are reviewed in the essay, exploration direction and some suggestions are pointed out at the end.

scholarly journals Accumulation and Distribution of Natural Gas Reservoir in Volcanic Active Area: A Case Study of the Cretaceous Yingcheng Formation in the Dehui Fault Depression, Songliao Basin, NE China

Geofluids ◽  
2021 ◽  
Vol 2021 ◽  
pp. 1-17
Author(s):  
Fancheng Zeng ◽  
Bo Liu ◽  
Changmin Zhang ◽  
Guoyi Zhang ◽  
Jin Gao ◽  
...  
Keyword(s):  
Organic Matter ◽  
Natural Gas ◽  
Volcanic Rocks ◽  
Songliao Basin ◽  
Exploration And Exploitation ◽  
Gas Reservoirs ◽  
Tight Sandstone ◽  
Gas Reservoir ◽  
Yingcheng Formation ◽  
Pore Types

Tight gas sandstone and volcanic gas reservoirs have received global attention in the energy arena for further exploration and exploitation attempts. Considering the Yingcheng Formation of Dehui fault depression in the Songliao Basin as an example, this study focused on the accumulation and distribution of natural gas reservoirs in volcanic area in a fault depression basin. Volcanic activities occurred in the Yingcheng Formation, which is distributed centrally in the northwest of the study area. During the sedimentation of the Yingcheng Formation, fan-delta, lacustrine, and nearshore subaqueous fan facies were deposited. The source rocks of the Yingcheng Formation have high abundance of organic matter mainly in type III at high-overmature stages, indicating favorable conditions for gas production. The porosity of volcanic reservoir is 3.0%-14.8%, the permeability is 0.0004 mD-2.52 mD, and the pore types are mainly secondary dissolved pores and fractures. Besides, the porosity of the tight sandstone reservoir is 0.5%-11.2%, and the permeability is 0.0008 mD-3.17 mD. The pore types are mainly interparticle pores, with a small proportion of intraparticle pores and microfractures. The intrusion of late volcanic magma provided sufficient heat for the thermal maturity progression of organic matter in Yingcheng Formation and promoted the generation of natural gas in large quantities. Volcanic rocks formed at the early and middle stages of volcanic activities occupied the sedimentary space and hindered the development of sedimentary sand bodies to a certain extent. However, volcanic rocks can become the seal to promote the formation of tight sandstone gas traps. Comparing tight sandstone reservoirs with volcanic ones, the latter are less affected by compaction; thus, their petrophysical properties do not vary much with depth, showing more homogeneous characteristics. The pyroclastic rocks influenced by volcanic activity and the secondary pores formed by dissolution in the later stages also provide reservoir space for gas accumulation. Ultimately, the tight sandstone and volcanic rocks in the study area form a complex gas reservoir system, which can become a reference for exploration and exploitation of natural gas in other petroliferous fault depressions that are affected by volcanisms.

The Feasibility Appraisal for CO2 Enhanced Gas Recovery of Tight Gas Reservoir: Case Analysis and Economic Evaluation

2021 ◽  
Author(s):  
Ying Jia ◽  
Yunqing Shi ◽  
Jin Yan
Keyword(s):  
Natural Gas ◽  
Greenhouse Gas Emission ◽  
Co2 Storage ◽  
Tight Gas ◽  
Gas Reservoirs ◽  
Gas Reservoir ◽  
Enhanced Gas Recovery ◽  
Tight Gas Reservoirs ◽  
Gas Recovery ◽  
Tight Gas Reservoir

Abstract Tight gas reservoirs are widely distributed in China, which occupies one-third of the total resources of natural gas. The typical development method is under primary depletion. However, the recovery of tight gas is only around 20%. It is necessary to explore a new technique to improve tight gas recovery. Injecting CO2 into tight gas reservoirs is a novel trial to enhance gas recovery. The objective of this work is to verify and evaluate the effect supercritical CO2 on enhancing gas recovery and analyze the feasibility of CO2 enhance gas recovery of tight gas reservoir. Taken DND tight sandstone gas reservoir in North China as an example, 34 wells of DK13 wellblock were chosen as CO2 Enhanced gas recovery pilot area with 10-year production history. Six injection scenarios were studied. Numerical simulation indicated that the recovery of the gas reservoir of DK13 well area was improved by 8-9.5 percent when CO2 content of producers reaches 10 percent. The annual CO2 Storage would be 62 million cubic meters (110 thousand tons) and the total CO2 storage would be around 800million cubic meters (1.5 million tons). After the environmental parameter evaluation of injectors and producers, the anticorrosion schemes were put forward and the feasibility evaluation and schemes of facilities were presented. The analysis results indicated that DK13 wellblock was suitable for CO2 enhanced gas recovery no matter geologic condition, injection & production technology and facilities. However, under the current economic conditions, DK13 wellblock was not suitable for CO2to enhance gas recovery. However, if gas price rise or low carbon strategy implement, the pilot test could be carried out. In brief, CO2 could be an attractive option to successfully displace natural gas and decrease CO2 emissions, which is a promising technology for reducing greenhouse gas emission and increasing the ultimate gas recovery of tight gas reservoirs. This economic analysis, along with reservoir simulation and laboratory studies that suggest the technical feasibility of CSEGR, demonstrates that CSEGR can be feasible and that a field pilot study of the process should be undertaken to test the concept further.

Finding Fault with the Nexus Pipeline? Agency Capture and the Public Good

2017 ◽  
Vol 1 (1) ◽  
pp. 1-8
Author(s):  
Andrew R. Kear
Keyword(s):  
Natural Gas ◽  
Environmental Impact ◽  
Public Good ◽  
Health And Safety ◽  
Environmental Impact Statement ◽  
Gas Industry ◽  
The Public ◽  
Fracturing Process ◽  
Natural Gas Industry ◽  
Regulatory Commission

Natural gas is an increasingly vital U.S. energy source that is presently being tapped and transported across state and international boundaries. Controversy engulfs natural gas, from the hydraulic fracturing process used to liberate it from massive, gas-laden Appalachian shale deposits, to the permitting and construction of new interstate pipelines bringing it to markets. This case explores the controversy flowing from the proposed 256-mile-long interstate Nexus pipeline transecting northern Ohio, southeastern Michigan and terminating at the Dawn Hub in Ontario, Canada. As the lead agency regulating and permitting interstate pipelines, the Federal Energy Regulatory Commission is also tasked with mitigating environmental risks through the 1969 National Environmental Policy Act's Environmental Impact Statement process. Pipeline opponents assert that a captured federal agency ignores public and scientific input, inadequately addresses public health and safety risks, preempts local control, and wields eminent domain powers at the expense of landowners, cities, and everyone in the pipeline path. Proponents counter that pipelines are the safest means of transporting domestically abundant, cleaner burning, affordable gas to markets that will boost local and regional economies and serve the public good. Debates over what constitutes the public good are only one set in a long list of contentious issues including pipeline safety, proposed routes, property rights, public voice, and questions over the scientific and democratic validity of the Environmental Impact Statement process. The Nexus pipeline provides a sobering example that simple energy policy solutions and compromise are elusive—effectively fueling greater conflict as the natural gas industry booms.

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