Sunteți pe pagina 1din 12

SPE 84250

Options for Exploiting Stranded Gas – An Overview of Issues,


Opportunities & Solutions
Joe T Verghese SPE, ABB Lummus Global Inc.

Copyright 2003, Society of Petroleum Engineers Inc.


infrastructure. This renders the gas too expensive to
This paper was prepared for presentation at the SPE Annual Technical Conference and commercialize through traditional monetizing channels.
Exhibition held in Denver, Colorado, U.S.A., 5 – 8 October 2003.

This paper was selected for presentation by an SPE Program Committee following review of
information contained in an abstract submitted by the author(s). Contents of the paper, as
The pressure to bring reserves of stranded gas to the market is
presented, have not been reviewed by the Society of Petroleum Engineers and are subject to mounting. There are several reasons for this. Energy demand
correction by the author(s). The material, as presented, does not necessarily reflect any
position of the Society of Petroleum Engineers, its officers, or members. Papers presented at in the next two decades is expected to increase by 50% or
SPE meetings are subject to publication review by Editorial Committees of the Society of
Petroleum Engineers. Electronic reproduction, distribution, or storage of any part of this paper
more driven by the engine of economic growth. In parallel,
for commercial purposes without the written consent of the Society of Petroleum Engineers is the global demand for clean energy (natural gas and
prohibited. Permission to reproduce in print is restricted to an abstract of not more than 300
words; illustrations may not be copied. The abstract must contain conspicuous renewables) is anticipated to grow faster than the overall
acknowledgment of where and by whom the paper was presented. Write Librarian, SPE, P.O.
Box 833836, Richardson, TX 75083-3836, U.S.A., fax 01-972-952-9435.
demand for fossil fuels (including coal and oil). Gas
represents a less carbon-intensive fuel than coal or oil with
less sulfur dioxides, nitrogen oxides, particulate matter and
Abstract carbon dioxide emissions.
A significant proportion of the growth gas reserves seen in As a result, the energy mix is getting lighter with gas now
recent years is stranded gas, that is gas which is remote from accounting for 25% of the primary energy consumption. (Fig.
markets and often in hostile environments. 1). Natural gas has been steadily winning market share from
coal, and is currently overtaking coal in usage worldwide.1.
Simultaneously, there is a decisive trend in the utilization of
gas relative to other fossil fuels. Natural gas has been steadily Hence, the environmental factor is a key driver galvanizing the
winning market share from coal, and is currently overtaking search for reliable technologies that will enhance market share
coal in usage worldwide. for gas through the greater exploitation of stranded gas.
Several E and P provinces, such as West Africa, have relied on
The above trends have spawned the development and gas flaring as a concomitant to oil production operations. Oil
commercialization of a range of technologies that are directed companies focus on environmentally sound policies and state
at monetizing stranded gas reserves. These technologies offer legislative pressures have stimulated the commercialization of
the promise of economically linking these remote gas assets to technologies that will (a) monetize these gas assets, (b)
profitable markets. eliminate or at least minimize gas flaring and (c) leverage oil
developments with integrated solutions for associated gas.
This paper will overview optional routes available for stranded
gas utilization and its transportation to viable markets, and It is the objective of this paper to overview the issues and
comment on the maturity and commercialization status of the opportunities for the exploitation of stranded gas, and to
underlying technologies. highlight the technology solutions available to leverage these
reserves to markets.
It is hoped that this analysis will provide some insight into the
potential these available/emerging technologies (for example, The Opportunity
niche LNG, GTL, CNG) can offer in providing robust
solutions to the economic exploitation of stranded gas. Non-Associated Gas. Stranded gas, which can prospectively
be brought to market, can be either associated or non-
Introduction associated gas. Non-associated gas often remains unexploited
or stranded even when reserves are substantial. There can be
The last twenty years has seen a phenomenal growth in gas several reasons for this:
reserves, with proved reserves doubling to over 5000 TCF. A
significant proportion of the addition to the reserves is • The absence of pipeline infrastructure to
stranded gas. Stranded gas represents the gas inventory from transport the gas to viable markets. The
fields remote from markets and conventional transmission economics of pipelines is dependent on pipeline
2 SPE 84250

distances necessary to deliver gas to markets that Developments predicated on continuous flaring soon
can offer attractive and stable price regimes. gave way to projects which incorporated gas
conservation. The most popular form of this was the
• Non-associated gas reserves can also remain re-injection of produced gas. This was widely used
unexploited due to the presence of substantial for FPSO related developments (especially for short
contaminants e.g. CO2 & H2S, which require the life, marginal fields) where re-injection appeared an
gas to be subject to extensive treating. attractive option since it eliminated the need for an
export pipeline, and offered the advantage of
• Gas reserves can be located in an area of high maintaining reservoir pressure. However in the GoM
political or geographic risk, and therefore and several other regulatory regimes, there are
suitable guarantees and/or tax incentives are restrictions on when produced gas can be injected,
needed to promote the development. and often the Operator is required to table a firm plan
and commitment to the future exploitation of this
Associated Gas. Gas which is co-produced with crude oil can gas.2. In recent examples of deepwater reservoirs in
remain unexploited for the following reasons: West Africa, the prolonged re-injection of gas was
demonstrated to actually degrade oil recovery. In
• The production rates can often be sub-economic for addition, the drilling and completion of injection
transport of gas by pipeline to the market. wells, the subsurface equipment, and the topside
equipment necessary to clean and compress the gas to
• In case of offshore fields, the incremental capital cost relatively high pressure (3,000 to 5,000 psi) lead to a
for gas capture, treatment and export can outweigh substantial degree of sunk cost with no value added.
potential revenue benefits. For a recent large West African deepwater FPSO
development the gas injection systems were
• Gas production rates can vary with crude production, estimated at 12% of the overall topsides cost.
and hence gas supplies from this source can often be
regarded as too volatile to fulfill the requirements of NGL/LPG Extraction. Looking for opportunities to extract
supply contracts/ downstream users. value from the gas has led to consideration of schemes for
stripping out high value NGLs/LPGs prior to re-injecting the
Stranded gas represents a formidable resource. While gas. In addition to value realization from the NGL/LPG
estimates from experts vary, some estimates suggest that as products, the applied process also results in shrinkage in the
much as 4,000 TCF or more could be stranded in fields around volumes of the gas left to be re-injected.
the world.
ChevronTexaco has adopted this philosophy of extracting
The major locations of stranded gas are dispersed worldwide value from flared associated gas at its Escravos field
(Fig. 2). This figure also shows target market locations. It is operations. ChevronTexaco embarked on a series of projects
clear that delivering gas to these markets will rely on a variety aimed at NGL/LPG recovery at Escravos, and now has
of technologies, and transportation options. Volume, distance advanced plans for the creation of a GTL complex, which will
to markets, cost of wellhead gas production, and last but not monetize some 300 MMScfd of previously, flared gas.
least geographic and environmental constraints will determine
the optimum mode of gas/energy delivery to the The potential of applying this processing concept has been
destination markets. further developed for offshore application, with ship owners
now offering to lease FPSOs equipped with NGL/LPG
Gas Utilization Options extraction systems. (Fig. 3).3.

Stranded gas has historically been handled in one of two ways: Gas Value Chain. The options and opportunities for the
exploitation of stranded gas are summarized (Fig. 4). Stranded
• Non-associated stranded gas has been left in place gas whether associated or non-associated will require a
undeveloped until technological innovation has gathering system followed by some level of treatment. The
rendered possible the economical delivery feasible to treatment complexity can vary significantly, to optionally
the markets. A good example of this is the Tangguh include:
LNG project in Indonesia. Although substantial gas
deposits were appraised in the former Irian Jaya area • Removal of condensates only
in the 1960s, it was only several decades later that • Dewpointing/conditioning of gas
technology and markets have combined to yield the • Treatment of gas to remove acid gas and other
commercial exploitation of this gas. contaminants (Nitrogen, Mercury etc)
• NGLs extraction
• Associated gas, or gas co-produced with crude in
stranded locations (both onshore and offshore) has The level of treatment is a function of gas utilization or
tended to be flared. Examples of such installations transportation applied downstream. Figure 4 summarizes
can be found in most oil producing provinces.
SPE 84250 3

several alternative transportation or export modes for gas and the first version, hydrate is produced by mixing gas and water
these will be reviewed next. under hydrate forming conditions, and thereafter hydrates in a
granular powder form (after cooling to –30°C to –45°C) are
Pipelines. Pipeline transportation of gas still remains a then transported at atmospheric pressure in conventional ships
significant mechanism for gas delivery to the markets. It is equipped with insulation. The Norwegian technology in
recognized that 22% of gas produced crosses an international essence envisages the transportation of hydrates in a slurry
boundary. Much of this is made possible by the dramatic with crude oil.
growth in regional pipeline systems. In the two year period
1998-2000, almost 55,000 km of new gas lines were laid, Studies carried out by both groups of researchers suggest that
connecting major gas resources to target markets.4. Significant these schemes, if commercialized, can provide tangible cost
trunk line systems have been developed and are proposed in savings over comparable transport via LNG or GTL for
the CIS, and in North Africa/Middle East. The technology for transport over distances of 3000 km. The schemes are more
pipeline systems is evolving both with respect to pipeline appropriate for relatively smaller stranded gas volumes
material/grade, installation techniques and the functional (200MMScfd was used as basis for one of the studies).
sophistication of the SCADA, surveillance, and automation
systems being applied to long distance trunk lines. This Principal Gas To Liquids Technologies
cumulatively has the impact of delivering stranded gas to
potential markets with an acceptable rate of return on the LNG and GTL. Gas to Liquids technology offers the promise
investment, yet ensuring an equitable price for the gas at of delinking the source of gas from its eventual markets. Two
the wellhead. generic technology routes are evident. The liquefaction of gas
to LNG and its shipment to remote markets is now considered
HVDC Light. Gas-to-wire projects, under which remotely a mature route. Attracting critical interest today are the gas
located gas is used to generate electricity, then converted to conversion (now commonly referred to as GTL) technologies.
high voltage direct-current for long distance transmission to This suite of technologies, all of which involve chemical
the market, is increasingly being proposed as a viable transformation, convert gas to either synthetic fuels (syncrude,
alternative to LNG. Developments in AC to DC conversion kerosene, diesel, etc) or chemicals (e.g. methanol). Their
equipment technology are radically altering economics, with principal attraction, in contrast with LNG, is the utilization of
proponents suggesting that gas-to-wire projects transmitting conventional infrastructure in product transportation and
the equivalent of 1,000 MMScfd gas can be made to be storage for entry into mature commodity markets. These
economically attractive over a distance of 3,000 km.5. Algeria technologies can be applied to a lower threshold of gas field
is poised to implement a long distance gas-to-wire scheme size and production rates than LNG, since they do not incur
from Skikda to Northern Italy. The scheme is due for start-up the dominant fixed investments in shipment and terminalling
in 2008. infrastructure in the way LNG does. These shipment and
terminalling costs, and the need for fixed long term contracts
CNG. EnerSea Transport, Cran & Stenning and others have to underpin an LNG development, have required producers to
been conducting industry studies on the bulk transportation of seek economies of scale, thus making the LNG technology
natural gas. The concept envisages the shipment of route relatively less attractive for stranded gas assets.
compressed natural gas in pipe systems integrated into a
floating unit. Cran & Stenning propose a tightly coiled pipe Fisher Tropsch Process. Fischer Tropsch chemistry, first
concept, christened ‘Coselle’.6. The line pipe diameter is 6 developed in 1923, was initially commercialized in Germany
inches, and each Coselle unit is typically 50ft diameter and during World War II, and thereafter in South Africa in the
11ft high. The Coselle method of gas transport will have a 1950s. Sasol’s technology, initially premised on coal derived
typical storage capacity of 330 MMScf. It is claimed that synthesis gas over 40 years ago, was applied to natural gas
CNG transport in this manner will consume only 5% of the feed, in the Mossgas plant, a 23,000 bpd facility located at
cargo (for compression and for ship operation). This Mossel Bay in South Africa.
compares with approximately 14% for LNG and 35% for The composite technology (Fig. 5) which takes natural gas to
GTL. LNG ships are however more efficient for carrying gas liquid fuels consists of two steps:
since liquefaction reduces gas volume by a factor of 600,
compared with 250-300 for compressed natural gas. It is • Synthesis Gas Production - Natural gas is reformed
understood that both Cran & Stenning and EnerSea with some combination of steam, air or oxygen to
(VOTRANS concept) have obtained “class approval in produce a gas mixture predominantly consisting of
principal” from the American Bureau of Shipping for its carbon monoxide and hydrogen.
concept. This form of gas transport can apply to stranded gas
projects with production rates ranging from 150 to 700 • Fischer Tropsch Synthesis - Synthesis gas from the
MMScfd and over distances of 3,000 km. above is catalytically converted into liquid fuel/wax
spectrum of hydrocarbons, typically employing iron
Hydrate Transport. Research and Development have been or cobalt based catalyst.
underway both in British Gas and in the Norwegian University
of Science and Technology, on the transport of gas in the form The above represents the principal steps in a chemistry chain
of hydrates.7. Two forms of hydrate transport are proposed. In that is at the heart of the modern processes. These processes
4 SPE 84250

are being progressively refined to bring down costs and process improvements are gradually bringing down methanol
enhance commerciality to try to reach a point of parity with production costs to a point where methanol may soon be
netbacks applicable to equivalent products from a large competitive as fuel for gas turbine based power plants. This
conventional refinery. could, in the long run, open up significant markets for fuel
grade methanol in certain parts of the world.
There are several technology players offering Fischer Tropsch
processes on the basis of pilot plant work. The current Di-Methyl Ether (DME). DME is a new potential energy
inventory of Gas to Liquids (GTL) plants is summarized carrier in the future global energy market. Experimental
(Table 1). studies have illustrated that DME has very favourable
characteristics as an alternative to conventional diesel fuel. As
In addition, Sasol has announced intentions to execute two an automotive fuel, DME exhibits exceptional characteristics
projects of approximately 34,000 bpd capacity in Nigeria and in terms of low Nox, no smoke, no particulate emissions from
Qatar. The former project will be executed under the Sasol- combustion, low noise levels, etc. The total world production
ChevronTexaco joint venture, while the latter project will be capacity for DME is approximately 600 MT per day. This is
developed with Qatar Petroleum. almost exclusively manufactured by the dehydration of
methanol. Haldor Topsoe has demonstrated, in a 50 kg per
Other companies with similar intentions for plants in the day pilot plant, an integrated process for the direct production
capacity range of 60,000 to 110,000 bpd category include: of DME from synthesis gas. The overall main reaction for this
process is as follows:
• ExxonMobil
• Shell (multiple proposals) 2CO + 4H2 → CH3OCH3 + H2O
• Conoco
• Marathon Despite its obvious qualities as a low emission fuel, the real
challenge is establishing a market (and by implication,
Methanol. An alternative route to gas utilization is the distribution infrastructure) sizeable enough to achieve price
production of methanol. The composite technology which economies of scale. It is therefore market restrained, and will
takes natural gas to methanol consists of the following: require several years to generate the volumes necessary to
justify the size of production facilities, which could have any
− Purification of natural gas feed significant impact on stranded gas utilization.
− Synthesis gas production
− Syngas compression Liquid Natural Gas (LNG). LNG is a mature technology for
− Methanol synthesis monetizing remote gas. The LNG market began to develop in
− Distillation of crude methanol the mid 1960s with the initiation of the LNG trade from
Sonatrach’s Arzew facility. The Phillips LNG plant at Kenai,
The cost breakdown of a typical methanol plant is illustrated Alaska with a capacity of 1.1 million tonnes per annum
This figure highlights the dominant contribution of the
(Fig. 6). (MTPA) heralded a new era of trade with the Far East.9.
synthesis gas production step.8.
LNG has traditionally found its niche in applications where
The natural gas is reformed to synthesis gas, via the suite of distance to markets has rendered pipeline transportation
equations noted below: uneconomic (Fig. 8). A further advantage over pipeline
transportation is that LNG provides a highly concentrated
CH4 + H2O = CO + 3H2 form of energy, which can be delivered to the end customer
CO + H2O = CO2 + H2 without crossing national boundaries and incurring tariffs.

The above reforming step is accomplished utilizing a range of LNG facilities are cost intensive, with current economics
natural gas reforming technologies, which include the dictating a minimum train size of 2.5 to 3.5 MTPA. This in
following (Fig. 7): turn suggests the need for proven resources of circa 4 TCF for
stranded gas to support a 20-year sales contract.
• Steam Methane Reforming (SMR)
• SMR Combined with Oxygen Secondary In technology terms, there are two principal players, who are
Reforming (SMR/O2R) noted below with their flagship offerings.
• Gas Heated Reforming (GHR) Combined with
Oxygen Secondary Reforming • Air Products and Chemicals, Inc - Propane Pre-
cooled Multi-component Refrigerant Liquefaction
• Autothermal Reforming (ATR)
Process (MCR)
• Thermal Partial Oxidation (POX)
• ConocoPhillips - Optimized Cascade Process
There is a relatively modest outlook for growth in chemical
Air Products MCR Technology and its proprietary Main
methanol demand. The current limited use of methanol as fuel
Cryogenic Heat Exchanger (MCHE - spiral wound aluminum
restricts its potential, in the short term, to act as an energy
tube bundles within an aluminum pressure shell) has been the
carrier for large volumes of stranded gas. However, ongoing
SPE 84250 5

process of choice in the majority of base load LNG plants processing thereafter to a diverse range of petrochemical
(circa 90%). The Phillips Optimized Cascade Process (Fig. 9) products which include acetic acid, formaldehyde, MTBE, etc.
is, however, the selected process route for the Atlantic LNG As noted earlier, the synthesis gas preparation section of the
plant in Trinidad. methanol process contributes some 60% of the total cost of the
facilities (see Figure 6). Several technology players including
Niche LNG. The emphasis hitherto has been on technological ICI Katalco, Haldor Topsoe, etc., have focused on this
innovation driving down the full chain cost of supply for base synthesis gas generation step to enhance process performance
load LNG. Recent interest has focused on niche LNG and efficiency, and to reduce costs. Thus, the synthesis gas
technology i.e. LNG technology that would be applicable to technologies are still seeing some radical breakthrough
stranded gas opportunities where gas volume production is developments, e.g. the Gas Heated Reformer (GHR), Compact
relatively low (50 to 250 MMScfd), characteristic of the Reformers, etc., which directionally both reduce cost and are
smaller non-associated gas plays, or associated gas from crude more compact.
oil production.10.
Fischer Tropsch. The Fischer Tropsch conversion processes
These gas resources could be onshore or offshore, so process have seen application on coal feeds for several decades. On
versatility and flexibility against a varying quality of feedstock natural gas feeds, the Mossgas facilities employing Sasol
are key requirements of such processes. Technology have been in operation for some 11 years, and
Shell’s Bintulu Plant has been in operation since 1993. These
A recent example of technology suitable for such mid-scale projects, whilst successful technically, have not proven to be
applications are the turbo-expander based processes, where-in commercial investments when judged against the prevailing
the refrigeration duty is essentially provided by two crude oil and refinery derived product prices. This has been
independent closed compression-expansion circuits. These due principally to the high cost of these early gas conversion
two circuits use methane (or the gas to be liquefied) and units. The Shell Bintulu unit (inclusive of extensive offsites
nitrogen respectively (Fig. 10). This process can optionally and infrastructure associated with production of a range of
employ pre-cooling, using propane for a medium size LNG speciality products) is reported to have cost US$50,000+ per
production of 0.5 million mta (which equates to a feedstock of unit of capacity (barrels per day).11. A large conventional
75 MMScfd), 263 MMScfd of methane rich gas and 172 refinery on an equivalent basis, has unit capacity costs in the
MMScfd of nitrogen are required to circulate. order of US$15,000/bpsd (Fig. 12).

The process is very suitable for production of LNG on an However, on the strength of technology developments
FPSO. Principal advantages are: undertaken, current claims/expectations by principal
technology players appear to converge to US$20,000/bpsd (for
• Process Simplicity a unit of 70,000 bpsd capacity).
• Reduced Plot Area
• Modularization R&D. From a technology maturity standpoint, it is clear that
• No Refrigerant Inventory operationally proven technology exists for synthesis
• No Motion Impact gas/Fischer Tropsch, but technology development is still
• Safe and Reliable Operations required to optimize technology configurations that will yield
cost profiles similar to that of a conventional refinery, (against
Maturity of Technology. The relative maturity of which the gas conversion product spectrum will be price
technologies reviewed in the foregoing is illustrated (Fig. 11). benchmarked). In this direction, a couple of long range
technology developments are significant in rendering a
This illustration identifies LNG and methanol to be at a mature breakthrough in the synthesis gas reforming process which
commercialized stage. The maximum LNG single train contributes (as noted earlier), to the bulk of the costs.
capacity now stands at 4.7 MTPA (as currently configured for
the Ras Laffan LNG plant). This is equivalent to a feed gas These long-range technology programs include Catalytica’s
rate of circa 770MMscfd per train. Over the past 20 years, Direct Methanol Oxidation (DMO) and Air Products and
there have been impressive technology advances in LNG plant Chemicals Ionic Transport Membrane (non-porous ceramic
configuration, resulting in some 50% reduction in the cost of membrane) technology programs. These programs target
liquefaction units compared to the cost of units in the breakthrough cost reduction on the reformer step to synthesis
1960s/early 1970s. These cost reductions coupled with the gas, and if successful could deliver the parity sought with
scale-up in capacities of baseload LNG units have contributed conventional refinery technology. However, these are long-
to a delivered LNG cost of approximately range programs. The ITM development, for example, is
US$3.00 - $4.50/ MMBTU. phased over an eight-year period.

Methanol. Similarly, methanol is also a mature technology Application Envelopes – GTL, LNG & Niche LNG. As
with current production capacities per annum in the region of noted earlier, the LNG pricing at point of delivery is
30 million metric tones (aggregate name-plate capacity dependent upon achieving economies of scale, in addition to
worldwide is 36 million metric tones). The methanol progressive reduction in the cost of the facilities. The LNG
principally is produced to chemical grade, for secondary supply chain consists of the gas production facilities, gas pre-
6 SPE 84250

treatment, liquefaction, product loading, LNG carriers and Challenges of Offshore Deployment
importation terminals. This chain requires very substantial
investment, and a modern baseload LNG plant typically incurs Floating GTL/LNG. It should be noted that GTL and LNG
an investment in the order of US$5 billion. technologies have seen commercial application only as
onshore plants. Although several studies have been reported
In view of the fixed cost incurred in the LNG supply chain, a in literature in the last 20 years on the deployment of methanol
key market characteristic of LNG development projects has on barges and other Floating Production Systems, prevailing
been its linkage with secure, long-term offtake destinations. economics have prevented any scheme from coming to
These arrangements are underpinned with sale and purchase fruition. Likewise, more recent studies have been carried out
contracts for 20 - 25 years prior to the launch of an LNG on Fischer Tropsch synthesis offshore.
project. Indeed, the financing of such projects has been
dependent upon these contractual structures. In the LNG area, Shell has announced the details of the
concept development for a 4-6 MTPA LNG facility.12.
Monetizing large reserves of stranded gas, such as Sakhalin Although this technology is a candidate for prospective Shell
(N.E. Russia) will require the application of current generation ventures, no firm commitments have been put in place on
LNG technology with cost reduction maximized through this technology.
economics of scale. The solution for stranded gas at lower
reserve strength will be one of the following options Remote offshore stranded gas assets could, in theory, be better
highlighted earlier. exploited via the application of FPSO based GTL
(or LNG) facilities.
• Niche LNG
• Fischer Tropsch GTL In order to achieve a successful transition of GTL to FPSO
• Methanol applications, a number of issues have to be addressed:

The dramatic rise in the volumes traded in the LNG spot Technology Challenges and Refinement. There are two
market (this now constitutes circa 5% of the overall LNG categories of technology risk in the context of deployment of
trade) is a positive development in encouraging the application these processes offshore. The first category relates to the level
of niche LNG processes. of residual development still necessary to achieve confidence
in the viability of the processes. The second category relates
These processes, which can be applied to a lower threshold of to the unique problems that stem from offshore deployment,
stranded gas reserves, offer a modularity of capacity, and a the ‘marinization’ of these processes, and the significant
low risk profile, which can be attractive to Operators wishing ‘intensification’ of systems on an FPSO compared to a land
to monetize these smaller gas assets. Moreover, the based installation (Fig. 13).
marketability of the smaller LNG parcels via the spot trades is
another clear advantage. The deployment of equipment systems offshore and their
‘marinization’ poses several challenges. These arise from the
The Fischer Tropsch GTL is also of obvious interest for the fact that the current level of process systems on FPSOs consist
smaller stranded gas reserves, but even today this process principally of unit operations, such as:
represents a very substantial investment profile, and elevated
technology risk. Economics of FT GTL are also significantly • Crude Oil Separation
influenced by the considerations such as the pricing of the feed • Gas Dehydration
gas, the prevailing crude price and whether any premium • Associated Gas Compression
pricing can be achieved on the GTL product slate. • Oily Water Clean-up
• Water Injection
The methanol route has less problems with technology risk • Process Support Utilities
since it is mature technology. Here the concerns are the
relatively small annual growth in methanol demand (typically The GTL flow scheme introduces a major set of new unit
<1000 mta per the Methanol Institute’s projections). operations to a prospective FPSO (Table 2):
A 3000 mta methanol plant utilizes only 100 MMScfd of gas
as feedstock, and hence monetization of stranded gas via this It can be seen from Table 2 that there is a step change in the
route has obvious limitations both from a market and level of complexity from hitherto conventional FPSO systems.
investment standpoint. The following challenges need to be addressed in any
successful migration of this technology to offshore.
The volatility of methanol gas prices, and the influence of
recent environmental legislation concerning derivative Systems Simplification. A critical review of the individual
products such as MTBE are likely to have an adverse impact equipment and systems must be completed to see whether the
on growth potential for methanol. size of the units can be reduced. The use of structured
packings, in towers, and the splitting of towers into two
shorter vessels in series are possible approaches to a solution.
SPE 84250 7

Marinization. Several issues of ‘marinization’ have to be accelerated corrosion, particularly at


systematically addressed. For gas conversion processes the higher temperatures.
impact of salt carrying air on reactor systems and metallurgy
(especially under high temperature conditions) has to be • For enriched air and oxidant environments (as
carefully evaluated. applicable to the natural gas reforming step),
hazards of such enriched oxygen environments in
The impact of motions on the mechanical design and the proximity of hydrocarbons on a Floating
performance of rotating equipment (e.g. large frame sizes of Production System.
gas turbines and compressors), reactors, etc, is a further issue
that requires in-depth evaluation. Such evaluation • High-pressure steam and potential for auto-
supplemented by testing, and equipment derating where ignition of leaked hydrocarbons.
appropriate is necessary to ensure the reliability of such
processes located on floating production units. • Hot vapour disposal on system blowdown, and
the necessity for remote flare.
Process Control. The level of sophistication of process
control and process surveillance needs to be considerably • Jet leaks of high temperature/high pressure
enhanced relative to the simpler more conventional operations, fluids, and potential ignition.
which apply to FPSOs today. In part this is due to the relative
complexities of the gas conversion technologies. • Mitigation of potential hazards arising from
intensification of layout on the FPSO, and
A further compounding issue is the high temperatures achieving the best balance between the need for
associated with the gas conversion processes (1000º C) and the modularization and segregation of equipment
low temperatures associated with the LNG processes (- systems for safety and maintainability.
162ºC). The presence of these extreme temperature fluids
requires closer surveillance both in normal operations and in It is clear from the above analysis that any offshore
transient operations featured at start-ups, shut downs and deployment of GTL technology must await resolution of a
emergency events. number of technical feasibility issues. Project implementation
and feedback from the large number of GTL plants currently
Coupling with E&P Operations. The deployment of these queued for execution is an essential pre-requisite to
processes on FPSOs must recognize the issues relative to an determination of the technical and commercial feasibility of
offshore E&P environment, thus the systems will need to be migrating this technology offshore.
robustly designed to handle higher frequency of shut downs
and start-ups, and must have the flexibility to respond to Conclusions
changes in fluid rates and compositions.
The following are the principal observations and conclusions
Constructability. One of the merits of the FPSO deployment from this paper.
is the ability for the topsides integration to be carried out in
shipyards. This offers a significant potential for • Stranded gas represents a vast resource, and an
modularization of the equipment/systems. There are a number important opportunity in an energy environment that
of systems and equipment, which have individual weights in increasingly favors gas utilization. Stranded gas
excess of 200 tonnes, or have excessive footprints and heights. assets are geographically widely dispersed and range
The integration of such equipment and systems into the FPSO from small to medium inventories of associated gas,
without infringing intrinsic safety is a key challenge in setting to major non-associated gas fields remote
out constructability philosophies. from markets.
Safety and Environmental Impact. The safety and
• Environmental and energy conservation pressures,
environmental impact issues are of paramount importance in and the desire to realize value from oil and gas
the consideration of gas conversion processes offshore. Some
operations, have been key drivers in the application
of the key areas, which need to be systematically analyzed, are
of technologies such as LPG/NGLs extraction from
itemized below: flared or re-injected gas. Innovative FPSO based
solutions are now offered which will enable
• High reactor temperatures (circa 1000º C), and exploitation of offshore and near-shore stranded
exothermic reaction hazards. gas opportunities.
• Flame impingement in Autothermal Reactors • Pipeline transport facilitated by technological
(arising from flame instability due to motions). developments in grade of pipe, installation
techniques, and SCADA continue to provide a key
• Metallurgy and corrosion issues, including the route for monetizing gas reserves where large
impact of salt and sea spray ingress, leading to stranded gas reserves are delivered to
inter-regional markets.
8 SPE 84250

• Two gas (or energy) transportation options that are 9. Brown R.L. and Clary R.: “World Economic Growth
poised for imminent breakthrough are CNG transport Pushing LNG Use,” Oil & Gas Journal, June 2nd 1997
by ship (for example Coselle, VOTRANS concepts),
10. Foglietta J. and Mowrey E.R.: “New Process Technologies
and gas-by-wire (HVDC Light). CNG transport by
for LNG and NGL Production,” Gas Processors
ship has gained certifying authority approvals in Association Europe - Annual Conference, September 2002
principal. Technology breakthrough in AC/DC
converter technology and cable design has 11. Jacometti J.: “Gas to Liquid (GTL) Technology,” 7th
significantly enhanced gas-by-wire economics. Ascope Conference & Exhibition, Kuala Lumper,
November 5th-8th 2001
• The transport of gas as hydrates, and DME are
embryonic technologies. Whilst they hold potential, 12. Ryan R., Bowkley C. and Baruch P.: “LNG’s Evolution -
Technology, Commercial developments,” Oil & Gas
they are solutions for the medium term. DME is
Journal, July 16th 2001.
moving through its pilot phase, but is market
constrained, and dependent on build-up of fuel
distribution infrastructure.

• Base load LNG solutions can, and are being applied


to large stranded gas fields (for example, Sakhalin).
Niche LNG processes or technologies which are
optimized for mid-scale LNG applications are an area
of keen interest since they well match the flexibility
and modularity required for stranded associated gas
and the smaller non-associated gas plays.

• Fischer Tropsch GTL has been proposed for stranded


gas opportunities worldwide (for example, Nigeria,
Qatar, Iran, Indonesia). Though Operators are
prepared to up-scale facilities to capacity levels of
70,000 bpsd and more, the underlying technology
risk, and uncertainty in project economics continue to
delay sanction on the majority of these development
proposals. The experience and feedback from a GTL
plant employing current generation technology are
now necessary to calibrate industry views on
commerciality, investment parameters, and
process performance.

References

1. “Gas Keeps on Growing,” BP Frontiers, September 2001

2. Furlow W.: “Stranded Gas: Positioned between growing


demand, high infra-structure costs,” Offshore, August 2000

3. Tørnkvist A.H. and Andersen T.H.: “Leased LPG FPSO,”


Abuja Conference, November 5th 2002

4. Mohitpour M., Glover A. and Treganenko.: “Technology


Advances Key Worldwide Gas Pipeline Development,” Oil
& Gas Journal, November 26th 2001

5. Quinlan M.: “Reserves Growth Accelerates,” Petroleum


Economist, May 2003

6. Cottrill A.: “Coiled to Spring on Stranded gas,” Offshore


Engineer, October 1st 2000

7. Thackeray F.: “Gas Hydrates in the Wings,” Petroleum


Review, May 2000

8. Mansfield K.: “Compact Technology in Methanol


Production,” IBC Conference on Remote Gas Utilization,
December 3rd 1997
SPE 84250 9

Fig. 1 – The Energy Mix Fig. 4 – Gas Value Chain

ƒ HVDC - Light
Alternative
ƒ Gas to Liquids
Transportation
ƒ Gas to Chemicals
Means
ƒ MeOH
Hydro
Gas Nuclear
3% ƒ NH3
8%
120 ƒ DME
ƒ CNG
Coal ƒ Hydrates
Oil
25% 39%
110
Oil
Index

Treating
100 Production Gathering LNG
& Processing
Natural Gas
25%
ƒ LNG Production
Gas now 25% of ƒ LNG Storage
Primary Energy ƒ LNG Terminals
Coal ƒ Wellheads ƒ Production Flowlines ƒ Inlet Gas Reception
90 Consumption ƒ Wellhead Sep Units ƒ Flow Assurance ƒ Condensate Stabilization
ƒ Dehydration, Treating ƒ Compression Stations and Upgrade
& Gas Conditioning ƒ Pumping Stations ƒ Gas Dehydration Pipelines
ƒ Condensate Handling ƒ Slug Catchers ƒ Acid & Sour Gas Removal
80 ƒ Gas Reinjection ƒ Sulfur Removal
ƒ Offshore Pipelines
‘90 ‘93 ‘96 ‘99 ‘02 ƒ EOR ƒ Nitrogen Rejection
ƒ Onshore Pipelines
ƒ HC Dew Point Control
ƒ Compression Stations
ƒ LPG/NGL Recovery
ƒ Automation
ƒ NGL Fractionation
ƒ SCADA
ƒ Product Treating
ƒ Product Storage/Export ƒ Delivery/Receiving St.

Fig. 2 – Stranded Gas and Target Markets Fig. 5 – Gas to Liquids Value Chain

GTL CORE PROCESS

FT Syncrude
Conditioning Reforming Hydrocracking
Conversion Fractionation
Associated
Gas

Storage/
Export
Oil
Production

CH + H 0 = CO+3H
or CH4 4+ H202 = CO+3H2 2
2CH + O = 2CO + 4H n CO + 2nH = [-CH -] n +H2O
2CH4 4+ O2 2= 2CO + 4H2 2 n CO + 2nH2 2= [-CH2-]2 n +H2O
CH + 20 = CO + 2H 0 n CO + (2n+1) H = CnH2n+2+nH20
CH4 4+ 202 2= CO2 2+ 2H202 n CO + (2n+1) H2 2= CnH2n+ 2+nH2 0
Stranded CH4 + CO2 = 2CO + 2H2
CH4 + CO2 = 2CO + 2H2
Gas
Import Markets
Stranded Gas

Fig. 3 – The LPG FPSO Concept Fig . 6 – Methanol Plant Cost Breakdown

Synthesis Gas Production


51%

Stabilisation Import
compression

LPG Gas Treatment / Distillation


Purification 13%
Product Export 7%
Splitter compression
Synthesis Gas
Compression Methanol
22% Synthesis
7%
10 SPE 84250

Fig . 7 – Natural Gas Reforming Technologies Fig. 10 – Mid-Scale LNG Technologies

Typical Steam Typical Partial Oxidation Methane Expansion + Propane Refrigeration


Oxygen
LNG-Pro Scheme
Fuel Methane Reforming (U.S. Pat 5,755,114)
Hydrocarbon Recycle Compressor Propane Refrigerant

Convective Feed To/From

Catalyst Heat LNG Production Flash

Tubes Recovery
Burners Dual Expansion Methane / Nitrogen

Recycle Stream
Stack c

Refractory Burner BAHX


Lined
Vessel ABB Patent Pending
Booster Compressor c

Fired Effluent Gas


Inlet Gas Stream After
Treating and Dehydration
Methane Expander
Expander
Heater
Steam Effluent Gas This scheme is the intellectual
property of the Randall Division of
ABB Lummus Global Inc.
Methane Recycle
Compressor Propane Pre-Cooled
Hydrocarbon Feed
Dual Expansion Methane / Nitrogen
Expander Outlet Separator

Liquid Expander

BAHX

Typical Autothermal Reforming Typical Gas Heated Reforming / O2 Reforming


ABB Patent Pending
Oxygen or Enriched Air Oxygen Methane Recycle
Compressor

Nitrogen Expander

Natural Gas Methane Expander

Hydrocarbon Nitrogen Recycle


Compressor

Feed
and Steam Burner Liquid Expander

Refractory Treated Inlet Gas


BAHX
Lined
Catalyst
Refractory Vessel Catalyst
Lined
Vessel Effluent HL Chiller LL Chiller

from
Secondary Nitrogen Expander

Effluent Gas Reforming Nitrogen Recycle


Compressor

Fig. 8 – Gas Transportation Options Fig. 11 – Technology Delivery to Commercialization

Other
Otherdeterminants
determinants
-- Terrain
Terrain
-- Water
Waterdepth
depth
Commercial
Scale Units LNG

Fischer Tropsch
-- Cross
CrossBorder
Border Shell ‘MDS’
Transits
Transits Sasol ‘Synthol’
Methanol
Gas Rentech
Technology Maturity Domains

Conversion
BP
Exxon AGC-21
Pilot Scale Plants

Syntroleum
LNG
ConocoPhillips

CNG Di-methyl Ether (DME)

CNG
Hydrates

Onshore
R and D

Pipeline
Direct Methane Oxidation to Distillates (Catalytica)
Offshore
Ionic Transport (Ceramic) Membranes
Pipeline

1000 2000 3000 4000 5000 6000 7000 8000 Commercial Viability
Distance to eventual markets, kms

Fig. 9 – Phillips’ Optimized Cascade LNG Process Fig. 12 – Capex Trends for Fischer Tropsch GTL
Technology

Fuel
Fuel Gas
Gas Plant fuel
Distribution
Distribution
FEED ONSHORE (REPORTED) CAPEX TRENDS
GAS

Propane
Propane Ethylene
Ethylene Ship Vapours
Gas
Gas Methane
Methane Vapour
Vapour
Refrigeration
Refrigeration Refrigeration
Refrigeration Installed Plant Licensor 1 Licensor 2 Licensor 3 Licensor 3
Conditioning
Conditioning Compressor
Compressor Recovery
Recovery Reference Expectation Expectation Expectation Expectation (70,000 BPD)
System
System System
System

70,000

LNG
LNG Storage
Storage Marine
Marine 60,000
Liquefaction
Liquefaction and
and Loading
Loading Facilities
Facilities 50,000

40,000 Conventional
$/bpd

Refinery
NGL 30,000 Benchmark
NGL
Stabilization
Stabilization LNG to ship
20,000
NGL
NGL Storage
Storage
and 10,000
and
Shipment
Shipment 0
1993 1996 1997 1998 2000 2002
SPE 84250 11

Fig. 13 – Layout Intensification FPSO vs


Onshore

Comparison of Onshore & FPSO Deck Layout

65 m
FPSO - ULCC

415 m
320 m

GTL Onshore Layout

Basis: Notional 20,000 BPD Facility

625 m

Table 1 - Commercial Scale Fischer Tropsch Plants

Installation Operator Age Capacity F-T Reactor Configuration


(years) (bpd)

Sasol 1, Sasolberg Sasol 47 5,000 Initially tubular fixed bed reactors. Additional slurry
(South Africa) bed reactor added in 1993. Iron catalyst. Plant
feed is coal.

Sasol II and III, Sasol 22/20 150,000 Initially, circulating fluidized bed, now being
Sasolberg (total) changed to Advanced Synthol fixed fluidized bed.
(Iron catalyst). Coal feed.

Moss Gas, Mossel Mossgas 11 22,700 Synthol circulating fluidized bed reactor (iron
Bay, South Africa catalyst). Natural gas feed.

Shell, Bintulu Shell 9 12,500 SMDS process, fixed bed tubular reactor (with high
(Sarawak), alpha cobalt catalyst). Natural gas feed.
Malaysia

Rentech Fuel Processes 2 275* Slurry bed reactor (iron catalyst). Land fill gas feed
Development initially.
Company

Baton Rouge ExxonMobil 9 200 AGC-21 Cobalt based. Natural Gas

Cherry Point BP (Arco) 1999-2000 70** Syntroleum FT, Cobalt based Catalyst. Natural Gas
Feed.

Ponca City ConocoPhillips Start-up 400 Reactor Configuration Not Available. Natural Gas
expected Feed.
2003

Nikiski BP Start-up 300 Fluidized Bed with Cobalt based Catalyst. Natural
expected Gas Feed.
2003
* Plant decommissioned/redeployed.
** Plant decommissioning/redeployed to Tulsa (DOE’s Ultra-Clean Fuels Project)
12 SPE 84250

Table 2 - Unit Operations And Equipment/Systems Type

LNG GAS CONVERSION

Acid gas absorber and regenerator columns Acid gas absorber and regenerator columns (potentially up to 40
(potentially up to 40 metres high) metres high)

Molecular sieve dehydration units and mercury Reactors


removal systems - GHR/secondary or ATR reforming
- Methanol synthesis or
- Fischer Tropsch synthesis

Large turbine driven (LM2500, 6000, etc) refrigerant Waste heat recovery units (including steam boilers and BFW
compressors preparation)

Cryogenic heat exchangers

- Plate fin heat exchangers in cold boxes, circa 10 - Air/enriched air compressors
15 metres tall Synthesis gas compressor

- Alternatively spiral wound heat exchangers (MCHE), Large, complex heat exchangers
potentially 55 metres tall (unit weight circa 250 MT)
For methanol, methanol topping and refining columns
Distillation columns (demethanizer, de-ethanizer, For Fischer Tropsch, wax separation and product distillation
debutanizer, etc)

Cryogenic product storage For Fischer Tropsch possible hydro-cracking/summarization


reactor units

Cryogenic loading arms Air Separation Unit

S-ar putea să vă placă și