Alternative uses to reduce gas flaring - Anders Pederstad (Carbon Limits)

Agenda December 03, 2008 Carbon Limits AS
The use of non-associated gas in open-cycle gas-lift
Example case from Democratic Republic of Congo
Conceptual framework for a new CDM baseline methodology
Key characteristics of the proposed methodology
Conclusions

The use of non-associated gas for gas-lift leads to flaring and substantial GHG emissions December 03, 2008 Carbon Limits AS
Gas-lift is a commonly used artificial-lift method by which high-pressure gas assists in bringing oil to the surface
High-pressure gas can be provided from either associated or non-associated sources
Non-associated gas is often at higher pressure than associated gas and typically require less treatment than associated gas
Where gas has low value, non-associated gas is often the lowest cost of supply of high-pressure gas for gas-lift
When non-associated gas is used as gas-lift gas, there is often higher, absolute volumes of gas flared

Offshore oilfield in DRC utilizing non-associated gas for gas-lift as it represents the lowest cost of supply December 03, 2008 Carbon Limits AS All numbers in MSCF/day Original situation:

Project for optimization of gas utilization on-site developed based on potential CDM benefits: 30,000 tCO2e/month December 03, 2008 Carbon Limits AS All numbers in MSCF/day Pilot CDM project activity:

The characteristics of the DRC project provides the conceptual framework for a new CDM methodology December 03, 2008 Carbon Limits AS
Non-associated gas can be the lowest cost option to provide high-pressure gas for gas-lift of oil wells (i.e. an open-cycle gas-lift system)
Gas from oil wells that is currently flared can be recovered and used to substitute for the non-associated gas, thus reducing flaring of gas
The volume of gas recovered for use for gas-lift serves as a one-to-one proxy for the volume of non-associated gas that would have been used in the baseline to provide the same service
Projects will take place in complex brownfield developments and could require utilization of both new and existing gas infrastructure
A change in the supply to the gas-lift system will by itself not end gas flaring at the field

December 03, 2008 Carbon Limits AS End-use (i.e. gas-lift system) included within project boundary and in the baseline selection

Highlights December 03, 2008 Carbon Limits AS
Substitution of non-associated gas with recovered gas for gas-lift leads to a measurable reduction in flaring and thus GHG emissions in situations with very limited opportunities to market gas
CDM can alter the economic balance in favor of gas from oil wells given that the motivation for using non-associated gas is lower cost (example in DRC has an abatement cost of 2.9 USD/tCO 2e )
Procedure for selection of baseline scenario in NM0277 can be further improved to expand the applicability of AM0009/AM0037 to allow for the recovery of gas-lift gas as well as associated gas

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Alternative uses to reduce gas flaring - Anders Pederstad (Carbon Limits)

by Esther Petrilli-Massey

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Alternative uses to reduce gas flaring - Anders Pederstad (Carbon Limits) Presentation Transcript