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SPE DISTINGUISHED LECTURER SERIESis funded principally
through a grant of the
SPE FOUNDATIONThe Society gratefully acknowledges
those companies that support the programby allowing their professionals
to participate as Lecturers.
And special thanks to The American Institute of Mining, Metallurgical,and Petroleum Engineers (AIME) for their contribution to the program.
Transforming Stranded Gas Resources
into Profitable Assets Enabling technologies and the status of their
commercialization
By Joe T. VergheseABB Lummus Global Inc.
DC
DC
DC
Gas Field
Power Station
Market 1AC
Market 2AC
Market 3AC
© SPE 2004-05 (3)
Overview� Stranded Gas – The Geography and Key Drivers� Principal Technology Options
� NGLs Extraction� Pipelines� Baseload and Mid-Scale LNG� GTL� CNG� Gas to Wire
� Challenges to Offshore Deployment� Technology Maturity & Delivery to Commercialization� Conclusions
© SPE 2004-05 (4)
80
90
100
110
120
‘90 ‘93 ‘96 ‘99
Coal
Oil
Gas
‘02
The Energy Mix
The Energy Mix is getting lighter
Index
Index
Gas now 25% of Gas now 25% of Primary Energy Primary Energy ConsumptionConsumption
Nuclear8%
Coal25%
Hydro3%
Oil39%
Natural Gas25%
© SPE 2004-05 (5)
Import MarketsImport MarketsStranded GasStranded Gas
Stranded Gas and Target Markets
© SPE 2004-05 (6)
Associated gas flared from mature oil production operations
Gas Produced from existing crude oil production operations but quantities sub-
economic for transport to market
Remote from markets and pipeline infra-structure
Stranded Gas – The ComponentsNon-
Associated Gas Prospects
Associated Gas Produced
Associated Gas Produced
Flared GasFlared Gas
© SPE 2004-05 (7)
Non-Associated Gas Reserves –Barriers to Monetization
Stranded Gas Resource
Lack of Pipeline Infra-
structure
Substantial Contaminants
CO2/H2S
Political Risks to
Development
Geographic Constraints
© SPE 2004-05 (8)
� Sub-Economicproduction volumes
� High Capex for gas capture/export
� Production rateswings
Associated Gas – Barriers to Monetization
© SPE 2004-05 (9)
Gas Value Chain
OPTIONS� Removal/Stabilization of Condensates� Dewpointing/Conditioning of Gas� Removal of Acid Gas & other
contaminants (N2, Hg, etc)� NGL Extraction/ Fractionation
Treating&
ProcessingProduction
& Gathering
� Baseload LNG� Mid-Scale or Niche LNG
� HVDC - Light� GTL� CNG� Hydrates
Gas to Chemicals� MeOH� DME� NH3
Alternative Transportation
Modes
Pipelines
LNG
© SPE 2004-05 (10)
The LPG FPSO Concept
Condensate Stabilisation
ProductSplitter
Export Gascompression
LPG Extraction Flare
Flowlines
Inlet Gascompression
Ancillary Process/ Process Support
UtilitiesPower Generation
Manifolds
NGL EXTRACTION OFFSHORE• Extract Value from:
• Flared Gas• Reinjected Gas
PRODUCTS• NGLs (Propane and Butane)• Mixed LPG• Condensates
© SPE 2004-05 (11)
Pathways to Gas Utilization
CNGCNGPipelinesPipelines
Compressed Gas
Transport
LNGLNG
Liquefaction
MethanolMethanolDMEDMEGTLGTL
ChemicalConversion
© SPE 2004-05 (12)
Stranded Gas – Reserves & Technology Equation
1000
700
5003.34.6
6.6
0.3 50
FIELDRESERVES
TCF
PRODUCTIONRATE
MMscfd
20 YEAR FIELD LIFE
Niche LNG
GTLCNG
DMEMethanol
LNG
© SPE 2004-05 (13)
Gas Transportation Options
GasGasConversionConversion
LNGLNG
OnshoreOnshorePipelinePipeline
OffshoreOffshorePipelinePipeline
1000 2000 3000 4000 5000 6000 7000 8000Distance to eventual markets,Distance to eventual markets, kmskms
CNGCNG
0
© SPE 2004-05 (14)
Phillips Optimized Cascade LNG Process
Gas Conditioning
Gas Conditioning
Propane Refrigeration
System
Propane Refrigeration
SystemEthylene
Refrigeration System
Ethylene Refrigeration
SystemMethane
CompressorMethane
CompressorVapour
RecoveryVapour
Recovery
Fuel Gas DistributionFuel Gas Fuel Gas
DistributionDistribution
LiquefactionLiquefaction
NGL Storage and
Shipment
NGL Storage and
Shipment
NGL Stabilization
NGL Stabilization
LNG Storage and Loading
LNG Storage and Loading
Marine FacilitiesMarine
Facilities
LNG to shipLNG to ship
ShipShipVapoursVapours
Plant fuelPlant fuelFEEDFEEDGASGAS
Reproduced with ConocoPhillips’ Permission
© SPE 2004-05 (15)
Mini/Mid-Scale LNG Technologies
c
c
BAHX
Inlet Gas Stream AfterTreating and Dehydration Expander
Expander Outlet Separator
LNG Production Flash
Propane RefrigerantTo/From
Booster Compressor
Recycle Compressor
Recy
cle S
tream
LNG-Pro SchemeU.S. Patent 5,755,114
This scheme is the intellectualproperty of the Randall Division of
ABB Lummus Global Inc.
BAHX
Methane RecycleCompressor
Nitrogen RecycleCompressor
Methane Expander
Nitrogen Expander
Liquid Expander
U.S.Patent 6,412,302
Methane Expansion + Propane Refrigeration
Dual Expansion Methane / Nitrogen
Propane Pre-Cooled Dual Expansion Methane / Nitrogen
U.S.Patent 6,412,302
BAHXTreated Inlet Gas
Methane RecycleCompressor
Nitrogen RecycleCompressor
HL Chiller
Methane Expander
Nitrogen Expander
Liquid Expander
LL Chiller
© SPE 2004-05 (16)
Dual Expansion Methane / Nitrogen
Methane RecycleCompressor
Nitrogen RecycleCompressor
Methane Expander
Nitrogen Expander
Liquid Expander
BAHX
US Patent 6,412,302
Mini/Mid-Scale LNG Technologies
Suitable for offshore deployment
© SPE 2004-05 (17)
Gas to Liquids Value Chain
GTL CORE PROCESSGTL CORE PROCESS
Asso
ciated
Ga
s
OilProduction
Conditioning
Stranded Gas
Storage/Export
or
Reforming FTConversion Hydrocracking Syncrude
Fractionation
CH4 + H20 = CO+3H22CH4 + O2 = 2CO + 4H2CH4 + 202 = CO2 + 2H20CH4 + CO2 = 2CO + 2H2
CH4 + H20 = CO+3H22CH4 + O2 = 2CO + 4H2CH4 + 202 = CO2 + 2H20CH4 + CO2 = 2CO + 2H2
n CO + 2nH2 = [-CH2-] n +H2On CO + (2n+1) H2 = CnH2n+2+nH20n CO + 2nH2 = [-CH2-] n +H2On CO + (2n+1) H2 = CnH2n+2+nH20
© SPE 2004-05 (18)
Installation
Operator
Age (years)
Capacity
(bpd)
Plant Scale
Sasol 1, Sasolberg (South Africa)
Sasol
47
5,000
Commercial
Sasol II and III, Sasolberg
Sasol
22/20
150,000
(total)
Commercial
Moss Gas, Mossel Bay, South Africa
Mossgas 11 22,700 Commercial
Shell, Bintulu (Sarawak), Malaysia
Shell
9
12,500
Commercial
Rentech
Fuel Processes Development Company
2
275*
Commercial
Baton Rouge
ExxonMobil
9
200
Demonstration
Cherry Point
BP (Arco)
1999-2000
70**
Demonstration
Ponca City
ConocoPhillips Started up
2003
400
Demonstration
Nikiski
BP Started up
2003
300
Demonstration
* Plant decommissioned/redeployed. ** Plant decommissioned/redeployed to Tulsa (DOE’s Ultra-Clean Fuels Project)
Fischer Tropsch Plants
© SPE 2004-05 (19)
$/bpd
1993 1996 19970
10,00020,00030,00040,00050,00060,00070,000
1998
CAPEX TRENDSCAPEX TRENDS
Licensor 1Expectation
Licensor 2Expectation
Installed PlantReference
Licensor 3Expectation
Capex Trends For Fischer Tropsch GTL Technology
2000
Conventional Refinery
Benchmark
Licensor 3Expectation (70,000 BPD)
2002
© SPE 2004-05 (20)
GTL Integrated Oilfield Architecture
Reservoir Wells/Trees
Manifolds & Flowlines
FPSO Oil/Gas
ProcessingOil Export
Risers
GTL FPSOSyncrude or
Product Export
5 km
GTL FPSO
OIL FPSO
© SPE 2004-05 (21)
Natural Gas Reforming Technologies
Effluent Gas
Convective Heat
Recovery
Steam
Fuel
CatalystTubes
Hydrocarbon Feed
FiredHeater
StackBurners
Typical Steam Methane Reforming
Burner
Oxygen
RefractoryLinedVessel
Effluent Gas
HydrocarbonFeed
Typical Partial Oxidation
Typical Gas Heated Reforming / O2 Reforming
Effluentfrom
SecondaryReforming
Natural Gas
Oxygen
RefractoryLinedVessel CatalystCatalyst
Effluent Gas
Burner
Oxygen or Enriched Air
RefractoryLinedVessel
HydrocarbonFeedand Steam
Typical Autothermal Reforming
© SPE 2004-05 (22)
Reforming Technologies Suitable for Offshore Application
Effluent Gas
Convective Heat
Recovery
Steam
Fuel
CatalystTubes
Hydrocarbon Feed
FiredHeater
StackBurners
Typical Steam Methane Reforming
Burner
Oxygen
RefractoryLinedVessel
Effluent Gas
HydrocarbonFeed
Typical Partial Oxidation
Typical Gas Heated Reforming / O2 Reforming
Effluentfrom
SecondaryReforming
Natural Gas
Oxygen
RefractoryLinedVessel CatalystCatalyst
Effluent Gas
Burner
Oxygen or Enriched Air
RefractoryLinedVessel
HydrocarbonFeedand Steam
Typical Autothermal Reforming
© SPE 2004-05 (23)
Critical Offshore Issues
• Layout Intensification• Exothermic Heat
Hazards• Liquids/Gaseous
Emissions• Catalyst
Handling Process Performance
Safety & Environmental
Construction/ Logistics • Significant Point
Loads• Fabrication Yard
Capabilities• Process Piping and
Instrumentation Complexity
• System Performance under motion
• Transient Operations
• Feedstock Variability
• Advanced ProcessControl
© SPE 2004-05 (24)
Layout Intensification FPSO vs Onshore
625 m
320 m
65 m
65 m
415 m415 m
FPSO FPSO -- ULCCULCC
GTL Onshore LayoutGTL Onshore Layout
Basis: Notional 20,000 BPD Facility
Comparison of Onshore & FPSO Deck Layout
© SPE 2004-05 (25)
Vessel Motion Impact:
Floater Based GTL Process SchemesOffshore Design Issues
� Flexing of Vessel Deck and Stresses on Equipment/Piping Systems
� Large Number and Complexity of Equipment in Intensified Layout� High Equipment Weight, Weight Distribution and Point Loads
Pitch Yaw RollHeave
� Process System Performance
Other Issues:
© SPE 2004-05 (26)
Comm
ercia
lizati
on Tr
ajecto
ry
Time
Pilot PlantOnshore
Demonstration Unit
GTL Commercialization
Onshore Commercial Scale
20-80,000 BPD
Offshore Commercial Scale 15-30,000 BPD
(Benign Environment)
Onshore Commercial Scale 80-150,000 BPD
Offshore Commercial Scale 15-30,000 BPD
(Severe Environment)Project Learnings
Technology Development
© SPE 2004-05 (27)
� Gas Transport in CNG Carriers� Concepts offered by:
� Coselle – Cran and Stenning, Calgary� Votrans – Enersea Transport, Houston� GTM – Transcanada Pipelines, Calgary
� CNG Containment Pressure Range:� 1500 – 3500 psig
� Target Market Opportunities:� Gas Volume Rates of 200 - 500 MMScfd� Distances of 500 – 3000 kms
� Modest Infrastructure at Production and Market Delivery Point
� Not commercialized to date
Marine Transportation of CNG
CNG Fleet Size & Vessel Capacity =
ƒ (Gas Rate, Distance to Market)
Gas Field
Onshore Reception Facilities
10 –30 kms
500 – 3000 kms
CNG Unloading
CNG Loading
© SPE 2004-05 (28)
Gas (Energy) Transportation by HVDC
DC
DC
DC AC
AC
AC Market 3
Market 2
Market 1
Gas FieldGas Field Power StationPower Station
•• 0 500 1000 1500
SCALE
Converter StationConverter Station
•
(kilometres)
© SPE 2004-05 (29)
DME
Direct Methane Oxidation to DistillatesR an
d DPi
lot S
cale
Plan
tsCo
mmer
cial
Scale
Unit
s
Commercial ViabilityCommercial Viability
LNGShell ‘MDS’Sasol ‘Synthol’Rentech
Tech
nolog
y Matu
rity D
omain
s
Ionic Transport (Ceramic) Membranes
Methanol
Fisch
erFis
cher
Trop
sch
Trop
sch
BPExxon AGC-21SyntroleumConocoPhillips
CNG
Hydrates
Technology Delivery to Commercialization
© SPE 2004-05 (30)
Conclusions
TechnologyTechnology
PortfolioPortfolio
Exploitation of Stranded Gas
Stranded Gas
ResourcesGas
Markets
PipelinesGas by WireLNGGTLCNGHydrates
Delivered $/MMBTU