Critical applicationsin oil & gas
Gas supply & demand
• Gas supplies remote from demand: new pipelines and LNG plants needed
• Japan and Korea far away from gas pipelines relying on additional LNG supplies
• Gas consumption will reach 5 Trillion cubic meters in 2030 from 2.8 in 2006 (+100%)
• In 2030 the world generated power from natural gas will increase to 33% from current 27%
750 774
1%
2%
North America
135 124
4% 3%
South America
463 716
-1%
1%
Europe
162 71
3% 3%
Africa
292 251
3%3%
Middle East
Billion (cubic meters)
North AmericaProduction
Consumption
AAGR ‘06-’10 %
360 406
1%5%
Asia Pacific
162 142
4%1%
Caspian region
598 405
2%2%
FSU
Source: BP, EIA
Severe service applications in oil & gas
• Oil & gas production
• Gas processing plants
• LNG liquefaction plants
• Gas transportation & storage
• Petroleum transportation & storage
• Ethylene plants
• Refineries
• Ammonia plants
Focus on LNG Production
• Liquefied Natural Gas is the most economic way of transporting Natural Gas
• Gas is cooled to -161 ºC (-260 ºF) and remains liquid
• Liquefaction reduces gas volume by a factor of 610 for transportation by LNG tankers
• Average production (size) of an LNG liquefaction plant is 5 million metric tons per year (enough to supply power to the city of New York for 1 year)
• CAPEX of $120 bn in the next seven years for about 24 new LNG liquefaction plants
• IMI Severe Service valves installed on 110+ MTpA of LNG - 2/3rds of world capacity
The LNG liquefaction process
• Works exactly like a $2-$2.5 billion refrigerator
• The principle is exactly the same:
– Has a compressor (more than one, in reality, moved by gas turbines)
– A heat exchanger
– Has an expansion valve where the refrigerant produces the cold needed to liquefy the gas
Compressor anti-surge valve
• Reduced flow demand
• Reversal Flow at outlet
• Flows forward again
• Cycle repeats
• Disrupted operations ($$)
• Damage to compressors seals (> $50,000)
• Damage bearings, impellers, shaft (> $300,000)
• Loss of Production (~$1.5M per day)
• Repair, maintenance, personnel safety
• Catastrophic failure of compressor (~$2-3M)
GasTurbine Compressor
Anti-surgeValve
A
BWhy surge happens What are the consequences
Requirements for anti-surge service
Requirement Impact
Recycled gas velocity control AVOID NOISE and VIBRATION
Prevent surge AVOID CASTROPHIC DAMAGE
Recycle operation SAFETY; MAXIMIZE EFFICIENCY
Continue operation AVOID LOSS OF PRODUCTION
Focus on wellhead chokes
Wellhead chokes principle:
• Drilling a production well into an underground reservoir is like sticking a pin into a balloon
• To use the gas you have to control the energy of the “explosion”
• Gas pressure can be as high as 15,000 psia
• Reservoir pressure provides the force needed to drive the gas to the plant
Responding to market demands
• The new oil & gas field developments are mostly offshore deepwater, high pressure & high sand content
• Increasing awareness of safety issues– Excessive noise
– Integrity of pressure boundary
– Resistance to impact of extraordinary force
– Severe mechanical vibration
– Emission of noxious fluids
• Increasing effort to extend well production– Wider range of operating conditions
– Change over from oil - gas production
• Increasing need for reliable, automatic control– Remote & un-manned sites
Example of competitor’s damaged choke trim
Chokes: Cost of failure
• Initial investment for a conventional choke = $20,000
• 5 replacements annually = $306,100
– Replacements = 5 x $20,000 = $100,000
– Lost production = 5 x 1.5 hours x 458 bph x $60/barrel = $206,100
• This is for one choke only!
Severe service choke solutions
• DRAG technology applied to wellhead chokes– Ideally suited to velocity control requirements
– DRAG trim velocity <¼ that of conventional chokes
– x2 reduction in velocity = x8 reduction in erosion rate
• CCI established as a market leader for severe service chokes
CCI choke valve … …disk stack design… …velocity control principle
Case study: Provide stable and reliable operation
Plant Offshore platform, North Sea
Application Wellhead production choke
ProblemsFrequent maintenance & repair required (changed every five days!)
Symptoms1. Rapid erosion & failure of choke trim
2. Loss of pressure control function
Consequences Lost production & high maintenance costs
Solution Replaced existing competitor chokes with CCI DRAG® trim
In summary
• Buoyant end markets
– Strong demand
– Significant oil & gas investment
• Strong market position
• Targeting the most critical applications