Assignment #1

Topic:
Introduction to Gas Engineering
SUBMITTED TO:
Dr. Saleem Iqbal

SUBMITTED BY:
Bilal Anayat
UW-14-Che-Bsc-51

DEPARTMENT OF CHEMICAL ENGINEERING

WAH ENGINEERING COLLEGE
UNIVERSITY OF WAH
Assignment #01 Gas Purification

Introduction to Gas Engineering

Natural gas engineering is the application of Petroleum Engineering know-how to the

development of natural gas resources. Natural gas has becoming an increasingly significant
source of energy to people all over the world. Not only does the world have huge resources of
natural gas but it also offers lower greenhouse gas emissions than other hydrocarbons. Australia
has significant resources of both conventional and unconventional natural gas.

Purification of Natural Gas

Overview of Industry Structure:

The structure of the natural gas industry has changed dramatically since the mid-1980’s. In the
past, the structure of the natural gas industry was simple, with limited flexibility and few options
for natural gas delivery. Exploration and production companies explored and drilled for natural
gas, selling their product at the wellhead to large transportation pipelines. These pipelines
transported the natural gas, selling it to local distribution utilities, who in turn distributed and
sold that gas to its customers. The prices for which producers could sell natural gas to
transportation pipelines was federally regulated, as was the price at which pipelines could sell to
local distribution companies. State regulation monitored the price at which local distribution
companies could sell natural gas to their customers.
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Getting Natural Gas to Market:

Thus, the structure of the natural gas industry prior to deregulation and pipeline unbundling was
very straightforward. However, with regulation of wellhead prices, as well as assured
monopolies for large transportation pipelines and distribution companies, there was little
competition in the marketplace, and incentives to improve service and innovate were few.
Regulation of the industry also led to natural gas shortages in the 1970s, and surpluses in the
1980s.
The natural gas industry today has changed dramatically and is much more open to competition
and choice. One of the primary differences in the current structure of the market is the existence
of natural gas marketers. Marketers serve to facilitate the movement of natural gas from the
producer to the end user. Essentially, marketers can serve as a middle-man between any two
parties.

Industry Makeup:
Now that the basic structure of the natural gas industry has been discussed, it is possible to
examine the business characteristics and relevant statistics of each industry segment.
An excellent source for statistics and information on the natural gas industry and its various
sectors is the Energy Information Administration (EIA). The EIA was created in 1977 as the
statistical arm of the Department of Energy, charged with developing energy data and analyses
that help to enhance the understanding of the energy industry. Below are some statistics (based
on EIA data for the year 2007) on the makeup of the natural gas industry.
Producers:
There are over 6,300 producers of natural gas in the United States. These companies range from
large integrated producers with worldwide operations and interests in all segments of the oil and
gas industry, to small one or two-person operations that may only have partial interest in a single
well. The largest integrated production companies are termed ‘Majors’, of which there are 21
active in the United States.
Processing:
There are over 530 natural gas processing plants in the United States, which were responsible for
processing almost 15 trillion cubic feet of natural gas and extracting over 630 million barrels of
natural gas liquids in 2006.
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Pipelines:
There are about 160 pipeline companies in the United States, operating over 300,000 miles of
pipe. Of this, 180,000 miles consist of interstate pipelines. This pipeline capacity is capable of
transporting over 148 Billion cubic feet (Bcf) of gas per day from producing regions to
consuming regions.
Storage:
There are about 123 natural gas storage operators in the United States, which control
approximately 400 underground storage facilities. These facilities have a storage capacity of
4,059 Bcf of natural gas, and an average daily deliverability of 85 Bcf per day. The EIA
maintains a weekly storage survey, monitoring the injection and withdrawal of stored natural
gas.
Marketing:
The status of the natural gas marketing segment of the industry is constantly changing, as
companies enter and exit from the industry quite frequently. As of 2000, there were over 260
companies involved in the marketing of natural gas. In this same year, about 80 percent of all the
natural gas supplied and consumed in North America passed through the hands of natural gas
marketers.
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Local Distribution Companies:

There are about 1,200 natural gas distribution companies in the U.S., with ownership of over 1.2
million miles of distribution pipe.

Natural Gas Market Overview:

The nature of the natural gas market is like other competitive commodity markets: prices reflect
the ability of supply to meet demand at any one time. The economics of producing natural gas
are relatively straightforward. Like any other commodity, the price of natural gas is largely a
function of demand and the supply of the product.
When demand for gas is rising, and prices rise accordingly, producers will respond by increasing
their exploration and production capabilities. Therefore, production will over time tend to increase to
match the stronger demand. However, unlike many products, where production can be increased and
sustained in a matter of hours or days, increases in natural gas production involve much longer lead
times.

Gas Purification (Sweetening of Gas)

Processing Natural Gas:

Natural gas, as it is used by consumers, is much different from the natural gas that is brought
from underground up to the wellhead. Although the processing of natural gas is in many respects
less complicated than the processing and refining of crude oil, it is equally as necessary before its
use by end users.
The natural gas used by consumers is composed almost entirely of methane. However, natural gas
found at the wellhead, although still composed primarily of methane, is by no means as pure. Raw
natural gas comes from three types of wells: oil wells, gas wells, and condensate
wells. Natural gas that comes from oil wells is typically termed ‘associated gas’. This gas can
exist separate from oil in the formation (free gas) or dissolved in the crude oil (dissolved gas).
Natural gas from gas and condensate wells, in which there is little or no crude oil, is termed
‘non-associated gas’. Whatever the source of the natural gas, once separated from crude oil (if
present) it commonly exists in mixtures with other hydrocarbons; principally ethane, propane,
butane, and pentanes. In addition, raw natural gas contains water vapor, hydrogen sulfide (H2S),
carbon dioxide, helium, nitrogen, and other compounds.
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Block flow diagram of processing of natural gas.

Oil and Condensate Removal:

The actual process used to separate oil from natural gas, as well as the equipment that is used,
can vary widely. The most basic type of separator is known as a conventional separator. It
consists of a simple closed tank, where the force of gravity serves to separate the heavier liquids
like oil, and the lighter gases, like natural gas.
In certain instances, however, specialized equipment is necessary to separate oil and natural gas. An
example of this type of equipment is the Low-Temperature Separator (LTX). This is most often used
for wells producing high pressure gas along with light crude oil or condensate. These separators use
pressure differentials to cool the wet natural gas and separate the oil and condensate. Wet gas enters
the separator, being cooled slightly by a heat exchanger. The gas then travels through a high-pressure
liquid ‘knockout’, which serves to remove any liquids into a low-temperature separator. The gas then
flows into this low-temperature separator through a choke mechanism, which expands the gas as it
enters the separator. This rapid expansion of the gas allows for the lowering of the temperature in the
separator.
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Water Removal:
Most of the liquid, free water associated with extracted natural gas is removed by simple
separation methods at or near the wellhead. However, the removal of the water vapor that exists
in solution in natural gas requires a more complex treatment. This treatment consists of
‘dehydrating’ the natural gas, which usually involves one of two processes: either absorption, or
adsorption. Absorption occurs when the water vapor is taken out by a dehydrating agent.
Adsorption occurs when the water vapor is condensed and collected on the surface.

Separation of Natural Gas Liquids:

Natural gas coming directly from a well contains many natural gas liquids that are commonly
removed. In most instances, natural gas liquids (NGLs) have a higher value as separate product.
There are two basic steps to the treatment of natural gas liquids in the natural gas stream. First,
the liquids must be extracted from the natural gas. Second, these natural gas liquids must be
separated themselves, down to their base components.

NGL Extraction
The Absorption Method
As the natural gas is passed through an absorption tower, it is brought into contact with the
absorption oil which soaks up a high proportion of the NGLs. The ‘rich’ absorption oil, now
containing NGLs, exits the absorption tower through the bottom. It is now a mixture of
absorption oil, propane, butanes, pentanes, and other heavier hydrocarbons. The rich oil is fed
into lean oil stills, where the mixture is heated to a temperature above the boiling point of the
NGLs, but below that of the oil. This process allows for the recovery of around 75 percent of
butanes, and 85 – 90 percent of pentanes and heavier molecules from the natural gas stream.
Sulfur and Carbon Dioxide Removal:
In addition to water, oil, and NGL removal, one of the most important parts of gas processing
involves the removal of sulfur and carbon dioxide. Natural gas from some wells contains
significant amounts of sulfur and carbon dioxide. This natural gas, because of the rotten smell
provided by its sulfur content, is commonly called ‘sour gas’. Sour gas is undesirable because the
sulfur compounds it contains can be extremely harmful, even lethal, to breathe. Sour gas can also
be extremely corrosive.
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References:
1. Standard Handbook of Petroleum and Natural Gas Engineering 3rd Edition by William
Lyons Gary Plisga, BSMichael Lorenz
2. https://www.nap.edu/read/2349/chapter/4#16
3. https://science.howstuffworks.com/environmental/energy/natural-gas-drilling.htm