Exploitation of methane hydrates in greek eez and their contribution to the reflation of the national economy

Eastern Macedonia & Thrace Institute of
Technology
Dept. of Petroleum & Natural Gas Engineering
M.Sc. in Oil & Gas Technology
Course Assignment for Energy Policy - Geostrategy
"Exploitation of methane hydrates in Greek
EEZ and their contribution to the reflation of the
national economy"
Team Members:
F. Zachopoulos, E. Michailidi
Kavala, December 2014

ABSTRACT
The current assignment is written for the postgraduate course “Energy
Policy/Geostrategy”. It discusses and analyzes the topic of methane hydrates and
their contribution to the reflation in the Greek economy. Methane hydrates are
methane molecules trapped within a crystal structure of water. Large deposits of
methane hydrates have been discovered the last years and are considered to be a
significant source of energy. In Greece, amounts of methane hydrates have be
discovered in the area of Crete.
As first step, the methane hydrates are examined from the chemical aspect. The
third chapter examines the conditions of the formation as well as their deposits. In
the fourth chapter the technologies of the exploration and exploitation of methane
deposits are briefly presented. Chapter five discusses the estimations of methane
hydrate deposits in the Greek EEZ. Finally, an estimation of the potential
contribution, as it eventuates from the estimated deposits, is conducted in the sixth
chapter, entitled “Methane hydrate deposits’ contribution to the reflation of the
national economy”. The topic is examined from both geopolitical and economical
aspect.
SUBJECT AREA: Energy Policy - Geostrategy
KEYWORDS: methane hydrates, hydrate formation, hydrate deposits, hydrate
technologies, Greek hydrate deposits

Table of Contents
Chapter 1: Introduction...............................................................................................6
Chapter 2: Methane Hydrates Chemistry....................................................................6
Chapter 3: Methane Hydrates Formation & Deposits.................................................8
Chapter 4: Exploration & Exploitation Technologies ................................................9
Chapter 5: Estimation of Hydrate Deposits in Greek EEZ.......................................11
Chapter 6: The Contribution of Methane Hydrates to the Reflation of the Greek
Economy ...................................................................................................................12
References.................................................................................................................13

List of Figures
Figure 1: Methane Hydrate burning............................................................................6
Figure 2: Methane Molecule - Methane Hydrate Structures ......................................7
Figure 3: Mining methane hydrates from the land semi-permafrost and the
sediments of offshore coast edge (Courtesy of Bundesanstalt für Geowissenschaften
und Rohstoffe). ...........................................................................................................8
Figure 4: Global known methane hydrate deposits distribution [6, 7]
. .......................8
Figure 5: Various methods for the detection of gas hydrates under sea, including the
reflection seismic, submarine detection seismograph, submarine detection resistor,
ground heat measurement, sampling and analysis of marine sediments, etc.[9]
..........9
Figure 6: Three principal energy-recovery methods from hydrates: depressurization,
thermal simulation, and inhibitor injection...............................................................10
Figure 7: Hydrate thicknesses in the Mediterranean Sea, Praeg et. al., 2007, Red line
denotes Greece’s EEZ...............................................................................................11

ENERGY POLICY - GEOSTRATEGY DEPARTMENT OF PETROLEUM AND NATURAL GAS TECHNOLOGY
F. Zachopoulos, E. Michailidi - 6 - 2014
Chapter 1: Introduction
Methane hydrates are known since 1930s. In
low temperature conditions, gas lines and
valves would freeze. However, it was observed
that freezing took place at temperatures above
the freezing point of water. A normal water ice
definitely couldn’t block the lines and the
valves in those conditions. Finally, it was found
by researchers, that the deposit consisted of
methane and water.[1]
Methane hydrates are considered to be a
propitious energy source. Thus, through the last
decade, the researchers have been focused at
methane hydrate deposits exploration. It is
estimated that all conventional natural gas deposits are just the one tenth of the
calculated reserves of methane hydrates. Especially countries like Taiwan, Japan
and South Korea, which are highly depended on the import of huge quantities of gas
and oil, have shown interest in methane hydrate technology development. As a
matter of fact, they are interested in exploiting methane hydrates, which exist in
their own territorial waters.[1]
Chapter 2: Methane Hydrates Chemistry
Small nonpolar molecules in conjunction with water at ambient temperatures
(typically <100o
F) and moderate pressures (typically > 180 psia) can produce a
water crystal form, a clathrate hydrate. The generation of hydrates can be appeared
in all oil and gas processes such as exploration, production, transportation and
processing.[2]
The nominal methane clathrate hydrate composition is (CH4)4(H2O)23. The observed
density is around 0.9 g/cm3
.[3]
Figure 1: Methane Hydrate burning

At the appropriate combinations of temperature, pressure, and low-molecular-
weight gases, water molecules arrange themselves into coplanar 5- or 6-membered
rings, which then form three-dimensional (3D) polyhedra around the gases (Figure
1).
Figure 2: Methane Molecule - Methane Hydrate Structures
Methane hydrates formation, in comparison with water ice formation, happens at a
higher temperature. The gas composition and the dissolved salt content in the liquid
water phase are factors which affect the pressure and temperature values in the
equilibrium. Despite the fact that the salt is not involves in the methane hydrate
crystal structure, it has a control over the chemical activity of the water from which
the hydrate forms.[3-5]

Chapter 3: Methane Hydrates Formation & Deposits
When organic matter is buried in geological structures, such as the ocean bottom, it
is decomposed and forms methane. Under certain conditions of pressure and
temperature (over 4 o
C), the methane is dissolved in the water which exists into the
reservoir rock and forms methane hydrates. However, the mass transfer limitations
are responsible for the very slow rate of hydrates formation. The total methane
hydrates deposits are estimated around 2.1 x 1016
SCM (Standard Cubic Meters). In
the northern latitude permafrost, the estimated amount of methane hydrates is about
7.4 x 1014
SCM.
Figure 3: Mining methane hydrates from the land semi-permafrost and the sediments of offshore coast
edge (Courtesy of Bundesanstalt für Geowissenschaften und Rohstoffe).
Figure 4: Global known methane hydrate deposits distribution [6, 7]
.

Chapter 4: Exploration & Exploitation Technologies
Due to the fact that methane hydrates are dispersed in ocean sediments, it is
required that advanced engineering techniques should be applied, in order to
achieve economic energy recovery. The following aspects are of critical
importance[8]
:
 Detection
 Distribution
 Sediment Properties
 Hydrate Controls
A variety of geophysical methods as well as geothermal measurements, are being
used for the detection and estimation of the depth of gas hydrate deposits. These
methods include reflection seismic, ocean bottom seismometer, submarine ground
resistance etc. Thereby, the analysis of underlying characteristics of seabed, the
seabed sediments analysis and the identification of gas hydrate occurrence can be
executed[9]
.
Figure 5: Various methods for the detection of gas hydrates under sea, including the reflection seismic,
submarine detection seismograph, submarine detection resistor, ground heat measurement, sampling and
analysis of marine sediments, etc.[9]

In permafrost regions with high hydrate concentrations (e.g., 30 vol% in the 1998
Mallik 2L-38 well in Canada[10]
), pilot drilling, characterization and production
testing have begun. Through these exploration and production tests, a better
understanding on how to approach the ocean resources is expected to be achieved. It
is indicated that production is feasible only at rates greater than 0.5 × 106
SCM/d.[11]
There are three principal energy-recovery methods, as shown schematically
in Fig.3:
 Depressurization
 Thermal stimulation
 Inhibitor injection
Figure 6: Three principal energy-recovery methods from hydrates: depressurization, thermal simulation,
and inhibitor injection.
Depressurization is applied to permafrost hydrate deposits which are directly in
contact with gas reservoirs and are considered to be the most productive. It is based
on the principal that free-gas production causes hydrate dissociation by decreasing
reservoir pressures below the hydrate stability pressure and the heat unleashed from
the earth, allows hydrate decomposition. Messoyakha, a reservoir in Siberian
permafrost was productive for almost a decade[12]
.
Despite the fact that the depressurization is less expensive than thermal stimulation
and inhibitor injection, economic estimates indicate that the application of

depressurization technique alone is not feasible. Hence, depressurization along with
thermal/inhibitor injection is required.
Chapter 5: Estimation of Hydrate Deposits in Greek EEZ
Taking into consideration the fact that the length of the region that hydrates exist is
approximately 1000 km and the width is around 200 km, they are covered by
hydrate deposits is about 200,000 km2
. Taking into account the Fig.x the estimated
thickness of hydrate deposits is about 150 m. Hence, the volume of methane
hydrates plus the existing mud is 30,000 km3
or 30 trillion cubic meters. This is the
volume of the hydrate plus the mud. The volume of the pure hydrate is 1.1% of the
total volume, 0.3 trillion m3
. This is equal to 50.1 trillion m3
of natural gas.[13]
Figure 7: Hydrate thicknesses in the Mediterranean Sea, Praeg et. al., 2007, Red line denotes Greece’s
EEZ
The above estimations are based on studies and surveys conducted from
GEOAZUR Institute France, University of Bremen and the Research Institute
University of Barcelona.
In the worst case scenario, which is 20 trillion cubic meters, and if we make the
assumption that only 10% of it can be exploited, the Greece’s needs for energy can

be catered for 400 years. Therefore, it is obvious that the estimated reserves are a
great opportunity and can contribute to the reflation of the national economy.[14]
Chapter 6: The Contribution of Methane Hydrates to the Reflation
of the Greek Economy
The exploitation of the methane hydrates deposits is considered to me a matter of
vital importance for the Greek economy. Hence, serious actions should be taken, as
soon as possible, from the Greek state in order to initiate the necessary operations.
However, according to the current legislation the exploitation of the unconventional
hydrocarbon deposits is not anticipated. Thus, an amendment is required. Of course,
the first step, in order to proceed with the operations, is the declaration of the Greek
EEZ.
According to the International Monetary Fund, the price of natural gas is estimated
to be 9.9 $ in Europe in 2020[15]
. 1000 ft3
is equal to 1 mmbtu. Therefore, 1801.048
ft3
(50.1 m3
) × $ 9.9/ 1000 ft3
= 17.830 trillion $. It is estimated that the lifetime of
the reserve will be 100 years and the taxation will be 0% for the first 33 years, 10%
for the next 33 and 20% for the final 33 years. Moreover, it is apparent that at least
6 pipelines from Crete to Europe need to be constructed. Thus, along with the
economic benefits, Greece will gain huge geopolitical power since it will be an
energy hub.

References
1. W. Ocean, Marine Resources – Opportunities and Risks In.T.
Schröder(Editor), Vol.3, Maribus gGmbH, Pickhuben 2, D-20457 Hamburg,
Germany, p. 96.
2. PetroWiki, Hydrates, 15/12/2014; http://petrowiki.org/Hydrates.
3. M. D. Max, Natural Gas Hydrate in Oceanic and Permafrost Environments,
Kluwer Academic, 2003, p. 62.
4. Y. F. Makogon, Hydrates of Hydrocarbons, Oklahoma: PennWell Books,
Tulsa, 1997.
5. E. D. Sloan, Clathrate Hydrates of Natural Gases, 2nd-ed., New York City:
Marcel Dekker, New York, 1998.
6. C. o. C. Academies, Energy from gas hydrates: assessing the opportunities
and challenges for Canada, 17/12/2014;
http://www.scienceadvice.ca/uploads/eng/assessments%20and%20publicatio
ns%20and%20news%20releases/hydrates/(2008-11-
05)%20report%20on%20gh.pdf.
7. K. A. Kvenvolden, Gaia's breath - Global methane exhalations, Marine and
Petroleum Geology, vol.22, no.4 SPEC. ISS., 2005, pp. 579-590.
8. E. D. Sloan, Future of Gas Hydrate Research, 1999, p. 247.
9. S. C. Chen, Gas hydrate mining techniques, 2007, p. 26-31.
10. S. R. Dallimore, T. Uchida, and T.S. Uchida, Scientific Results from
JAPEX/JNOC/GSC Mallik 2L-38 Gas Hydrate Research Well, In.M.
Delta(Editor), Northwest Territories, Canada, 1999, p. 11.
11. J. J. Drenth, and W.J.A.M. Swinkels, A Thermal Reservoir Simulation
Model of Natural Gasn Hydrate Production, Symposium of Japan Natl. Oil
Corp, Chiba City, Japan, 1998, p. 187.
12. Y. F. Makogon, Natural Gas Hydrates: The State of Study in the USSR and
Perspectives for Its Use, 1988.
13. Ν. Λσγερός, Α. Φώζκολος, Υπολογιζμός όγκοσ σδριηών ζηην ελληνική
ΑΟΖ και γεωοικονομική ζημαζία, 17/12/2014;
http://www.lygeros.org/articles?n=10105&l=gr.
14. Η. Κονοθάγος, Ν. Λσγερός, Α. Φώζκολος, Μέλλον, σδρίηες και Ελλάδα,
17/12/2014; http://www.lygeros.org/articles?n=11772&l=gr.

15. Knoema, Natural Gas Prices: Long Term Forecast to 2020 | Data and Charts,
17/12/2014; http://knoema.com/ncszerf/natural-gas-prices-long-term-
forecast-to-2020-data-and-charts.

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