utilisation of high co2- content flare gas for steam and ... · pdf fileutilisation of high...

Utilisation of High CO2- Content Flare Gas for Steam and Electricity GenerationSantiago PástorTechnical ManagerPETROBRAS EcuadorDecember 2008

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Index

1. Palo Azul Power Plant Project

2. B18 Field - CDM PROJECT: Incorporate Additional Gas Supply

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1.- Palo Azul Power Plant Project

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TopicsTopics

1. Location

2. Background

3. Technology and Operation

4. Environmental Issues

5. Location

6. Economic Issues

7. Video

8. Conclusions

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1. 1. LocationLocation

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LocationLocation……

Petrobras operates the Pata and Palo Azul fields in Block 18, located 300 Km. from Quito, the capital of Ecuador.

Concession area: approximately 110,000 hectares.

Location: Northeast section of the Ecuadorian Amazon Region, in the Province of Orellana.

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Panoramic Viewof the Palo Azul CPF

GUYANAS

URUGUAYCHILE

ARGENTINA

COLOMBIA

ECUADOR

VENEZUELA

PERU

BOLIVIAPARAGUAY

BRASIL

LocationLocation……

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2. Background2. Background

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Background Background ……

In 2006, the Central Processing Facilities (CPF) were built with a capacity to process 40,000 BOPD (28° API), 75,000 BWPD and 12 MMSCF with 77% CO2.

A power generation demand of 12 MW, with a 17.38 MW installed capacity, powered by provisional, portable diesel-fuelled reciprocal engines at a high fuel cost. Ecuador imports its diesel.

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GOR wells = 400; 12 MMSCFD/ (77% CO2)

Technological alternatives were analyzed for the use and disposal of the gas from flares for generating electricity and optimizing operating costs.

Background Background ……

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Analyzed alternatives :

Combustible gas in Internal Combustion Engines.

Gas in Gas Turbines.

Flare Gas and/or crude oil in electricity generation with steam cycle.

BackgroundBackground……

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Technical-economic analyses determined that the combined steam cycle system is the best option for achieving:

Reduction of environmental emissions and noise pollutionBetter use of flare gases Minimum gas treatmentSubstantial reduction of operating costs

BackgroundBackground……

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Limited operating window when gas quality decreasesWith full Load: 100% • Maximum gas

utilization: 30%• Requires other fuel

(diesel o crude oil): 70%

More environmental emissions, particularly CO2

Alternative of a dual combustion engine implied:

BackgroundBackground……

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0

10

20

30

40

50

60

70

80

90

100

0 10 20 30 40 50 60 70 80 90 100

0

10

20

30

40

50

60

70

80

90

100

Engine load%

Gasshare %

Dieselshare %

Transfer window

P = 68%Fuel share 40%CRO 60%, GAS 40%No estimate on heat rate.

P = 100%Fuel share 27%CRO 73%, GAS 27%No estimate on heat rate

P = 100%CRO modeCRO 100%, GAS 0%Guaranteed heat rate 8539 kJ/kWhrat 35°C

NOT APPICABLE OPERATING AREA

Fuel SharingAPPICABLE OPERATING AREA

Poor gas operational window: Dual combustion engine

BackgroundBackground……

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PHASE 3

DETAIL OF SELECTED ALTERNATIVE

BASIC PROJECT

PHASE 2

ALTERNATIVE SELECTION

CONCEPTUAL PROJECT

PHASE 1

IDENTIFICATION AND

EVALUATION

PHASE 4

EXECUTION

PROJECT APROVAL

PHASE 5

OPERATION

(1st year)

FRONT END LOADING (FEL)

Requirements for project definition

DSP – DECISION SUPPORT PACKAGE VP – VERIFICATION PACKAGE

DSP 1 DSP 2 DSP 3 VP 1 VP 2

Gate1

Gate2

Gate3

Gate4

Gate5

PLANNING CONTROL

The project was developed using SGPMP-PRODEP (PETROBRAS) methodology

BackgroundBackground……

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APPLIED LAWS AND REGULATIONS:

Ecuadorian Hydrocarbons Law, articles 11 and 24.

Substitute Regulation of the Hydrocarbons Operations Regulation, articles: 11 and 13.

Ecuadorian Water Act, article 82.

General Rules for Applying the Water Act, articles: 13, 14 y 15.

BackgroundBackground……

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Environmental Management Law, articles: 19 and 20.Environmental Regulation for the Electricity Industry, article 10.Electrical Sector Regime Law, articles : 2, 3, 30 and 40.Regulation of Concessions, Permits and Licenses for the Provision of Electrical Power Services, articles: 5, 11, 12 , 54, 55 and 95.

APPLIED LAWS AND REGULATIONS:

BackgroundBackground……

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GOVERNMENTAL APPROVALS:

Authorization to use gas: DNH (National Hydrocarbons Office) resolution #683 of Nov,17th 2006.

Authorization to use crude oil: DNH resolution #74 of8/Feb/2008

BackgroundBackground……

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GOVERNMENTAL APPROVALS:

Authorization to use water: CNRH (National Council of Water Resources) resolution dated 29/Nov/2005.

Environmental License: CONELEC (National Electricity Council) resolution #DE-06-055 of 6/Nov/2006.

Authorization Contract for construction, installation and operation: executed with CONELEC on 9/Nov/2007.

BackgroundBackground……

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3. 3. Technology and Operation

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System : 2 steam 6 MW turbogenerators and 1-5.38 MW motor generator.

12 MW net generation with gas, 17.38 MW installed capacity.

Back up motor generator fuelled by crude oil or diesel for start up and auxiliary system.

Hybrid System using all high CO2-content gas with no prior treatment,depending on required demand.

Technology andOperation

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Boilers with cutting-edge gas-crude oil dual burners.

All available gas calorific energy is used. (470 BTU/CF)

Additional contaminant of gas emissions (CO2, among others) are avoided by not burning fossil fuels, such as crude oil, diesel or bunker.

Technology andOperation

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Power Generation Plant Layout

GAS FWKO + SRU

CRUDE OIL

TO BOILERS

TO MOTORCRUDE OIL TREATMENT

MOTO-GENERATOR

BOILERSSTEAM TURBINES

5.38 MW

6 MW c/u

COOLING TOWER

Technology andOperation

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Water-Steam Cycle (Rankine Cycle)

Technology andOperation

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COOLING TOWER

BOILER

WATER TREATMENTFEEDWATER PUMPS

CONDENSER PUMPS

FLOW PUMPS

WATER REPLACEMENT PUMPS

TURBINE

DEAERATOR25 PSIG

CONDENSER

DRAIN PIT

CLARITY WATER

Generator

DEMINERALISED WATER TANK

PURGE WATER TANK

OSMOSIS FILTERS

STEAM 600 PSIG 750° FSTEAM

200 PSIG

Steam Circuit Layout

TO CPF

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3-D View of Plant

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Panoramic View of Boilers Area

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Boiler Unit

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Crude Oil Generator Unit

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4. 4. EnvironmentalEnvironmental IssuesIssues

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EnvironmentalEnvironmental IssuesIssues……

EMISSIONS OF THE BOILERS vs REQUIREMENTS DINAPAª

1

10

100

1,000

10,000

NOx CO PM SOx CO2

UN

ITS

[mg/

Nm

3] GAS @ 11% O2

OIL @ 11% O2

DINAPA LIMITGAS@11% O2DINAPA LIMIT OIL@11%O2

DINAPA: GOVERNMENT ENVIRONMENTAL OFFICE

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5. 5. EconomicEconomic IssuesIssues

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Project allows the use of 100% of flare gas for the steam cycle as thermal energy.

The achieved results consist of a 90% reduction in equivalent energy expenses, 37% savings (OPEX).

EconomicEconomic IssuesIssues

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Year 2007: Power Generation with Diesel # 2

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

10000

Janu

aryFeb

ruary

March

April

May June July

Augus

tSep

tembe

r

Octobe

rNove

mber

Decembe

r

YEAR 2007

Kw

-hr

Gal

l / d

ay

0

0.05

0.1

0.15

0.2

0.25

0.3

USD

/ Kw

-hr

Energy Kw-hr

Diesel Gall/day

Unit Cost

EconomicEconomic IssuesIssues

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Year 2008: Power Generation with Flare Gas

0

2000

4000

6000

8000

10000

12000

Janu

aryFeb

ruary

March

April

May

June July

Augus

tSep

tembe

r

Octobe

rNove

mber

Decembe

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YEAR 2008

Kw-h

r G

all /

day

and

BOPD

0

0.1

0.2

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0.7

USD

/ Kw

-hr

Energy Kw-hrDiesel and OilUnits Costs

EconomicEconomic IssuesIssues

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6. VIDEO6. VIDEO

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Existing Plant Existing Plant VideoVideo

Video

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7. Conclusions7. Conclusions

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ConclusionsConclusions

Flexible system, poor gas options, poor and rich gas or crude oil blends. Use of flare gas, no prior treatment required, only removal of liquids. Reduction of 60 MTCDE/year.Possibility to use 100% of available gas (12 MMSCFD). Current use is 50%.Flexibility for adapting to future field requirements, depending on oil and formation water production.

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Reduction of emissions compared to those of previous plant

Reduction of noise from 115 to 88dB in turbines area.Immediate effects consisting of a 90% of energy savings and 37% of OPEX, approximately

EQUIP.SO2

(mg/m3)NOx

(mg/m3)CO

(mg/m3)MP

(mg/m3)

Diesel Gen. 301 2,085 142 24

Gas Boiler < 5 17 < 5 < 5

ConclusionsConclusions

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2.2.-- B18 Field B18 Field -- CDM PROJECT: CDM PROJECT: Incorporate Incorporate AdditionalAdditional Gas Gas SupplySupply

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Gas projection indicates continuing decrease in quantity:

- Current 12 MMSCF vs.0.1MMSCF (2022)

• Power demand increasing, expected peak of 23 MW in 2011

• Future flare gas deficit in power demand peak: 3 MMSCFPD

Gas avalability vsPower Demand

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Project Generation Demand

2008

2010

2012

2014

2016

2018

2020

2022

0

5

10

15

20

25

MW

Years

POWER GENERATION DEMAND

POWER GENERATION WITH GAS POWER GENERATION WITH CRUDE OIL POWER DEMAND PROJECTION (MW)

Crude oil required= 1.6 MMBBLs

Crude oil equivalent= 0.3 MMBBLs

Total crude oil= 1.9 MMBBLs

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Gas consumption

2008

2010

2012

2014

2016

2018

2020

2022

0.000.501.00

1.50

2.00

2.50

3.00

3.50

4.00

MM

SCFP

D

Years

GAS CONSUMPTION

AVAILABLE NET GAS

REQUIRED GAS FROM OTHER FIELDS

TOTAL NET GASREQUIRED

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Gas purchase from nearby oil fields.

Near future: Replace crude oil burning with gas burning.

Expected savings aprox. 1.6 million barrels of crude oil in 14 years for the Block 18 oil field.

Project development, currently status at Identification & Evaluation phase.

Objectives…

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Expected total savings of aprox. of 1.3 MMTCDE (not burning crude oil) during 14 years.

Project meets CDM requirements

Bonuses CER´s are expected

Project could be part of the Programatic CDM activities of Petrobras-PESA

Objectives…

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Thank YouThank You