CO2 Geological Storage:Lesson Learned from In Salah (Algeria)

Iain Wright (CO2 Project Manager, BP Group Technology)

SBSTA Meeting Bonn May 20th 2006

Agenda

• CCS Benefits• CCS Challenges• The In Salah Project (Algeria)

– How In Salah is addressing the challenges

• Summary

Technology Options for Stabilization

The Stabilisation Wedge

Emission trajectory to achieve 500ppm

Emission trajectory BAU

1 GtC Slices of the Stabilisation Wedge

CCS 2006: Key Challenges

1. Reducing the Costs– Mainly Capture, Capital Cost and Efficiency– Target: $20-30/t CO2

2. Is it Legal?• Long-term Storage Integrity• Legal & Regulatory Frameworks

3. Can you get Paid? • Policy Frameworks• Market Eligibility (CDM,ETS)

4. Public Acceptance

} In Salah CO2Joint Industry Project (JIP)}

Three Projects at In Salah

• In Salah Project(s) Overview– In Salah Gas Development (1bcf/d $2,000 million)– In Salah CO2 Storage (1mmtpa $ 100 million)– In Salah CO2 Assurance R&D (CSLF & EU $ 30 million)

–In Salah Gas Development

•(1bcf/d $2,000 million)

In Salah Gas Project

Krechba

Teg

Reg

Garet elBefinat Hassi MoumeneIn Salah

Gour Mahmoud

Proposed ISG PipelineREB

Hassi BirRekaiz

Hassi Messaoud

Hassi R’Mel

Tiguentourine (BP)

02151093

Algiers

Tangiers

Lisbon

Cordoba

Cartagena

M O R O C C O

ALGER I A

S P A I N

L I B Y A

MAURITANIA M A L I

SkikdaTunis

N I G E R

In Salah Gas Project

Krechba

Tegentour

Reg

Garet elBefinat

HassiMoumene

HassiR’Mel

In SalahGourMahmoud

48” 455km

38” 60km

24” 13km24” 62km

Krechba

Tegentour

Reg

Garet elBefinat

HassiMoumene

HassiR’Mel

In SalahGourMahmoud

48” 455km

38” 60km

24” 13km24” 62km

5-10% CO2

<0.3% CO2

In Salah Gas Processing Plant

Import Gas Pipeline from Teguentour and Reg

Export Gas Pipeline to Hassi R’Mel &

Europe (1 BCF/d)

CO2 Storage Pipeline to Krechba

–In Salah CO2 Storage •1mmtpa $100 million

In Salah: 25-Year CO2 Profile

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

Year

Tonn

es

Venting - Without CO2 Re-Injection

Venting - Storage Tanks

Flaring - Process

Fugitives - Process

Combustion - Emergency Power

Combustion - Compression

Combustion - Power Generation

Combustion - Process Heat

• Only the separated (yellow) CO2 will be stored –the combustion CO2 (blue) will be vented

In Salah CO2 Storage

• Industrial Scale Demonstration of CO2 Geological Storage (Conventional Capture)

• Started Storage in August 2004• 1mmtpa CO2 Stored (17mm tonnes lifetime)• $100mm Incremental Cost ($6/tCO2)

– No Commercial Benefit

• Test-bed for CO2 Monitoring Technologies

In Salah CO2 Storage Operation

G a s

W a t e r

C a r b o n i f e r o u s R e s e r v o i r ~ 2 0 m e t r e s t h i c k

C a r b o n i f e r o u s M u d s t o n e s ~ 9 5 0 m e t r e s t h i c k

C r e t a c e o u s S a n d s t o n e s & M u d s t o n e s ~ 9 0 0 m e t r e s t h i c k ( R e g i o n a l A q u i f e r ) 4 G a s

P r o d u c t i o n W e l l s

3 C O 2I n j e c t i o n

W e l l s

P r o c e s s i n g F a c i l i t i e s

A m in e C O 2 R e m o v a l

T h e C O 2 S t o r a g e S c h e m e a t K r e c h b a

G a s

W a t e r

C a r b o n i f e r o u s R e s e r v o i r ~ 2 0 m e t r e s t h i c k

C a r b o n i f e r o u s M u d s t o n e s ~ 9 5 0 m e t r e s t h i c k

C r e t a c e o u s S a n d s t o n e s & M u d s t o n e s ~ 9 0 0 m e t r e s t h i c k ( R e g i o n a l A q u i f e r ) 4 G a s

P r o d u c t i o n W e l l s

3 C O 2I n j e c t i o n

W e l l s

P r o c e s s i n g F a c i l i t i e s

A m in e C O 2 R e m o v a l

T h e C O 2 S t o r a g e S c h e m e a t K r e c h b a

G a s

W a t e r

C a r b o n i f e r o u s R e s e r v o i r ~ 2 0 m e t r e s t h i c k

C a r b o n i f e r o u s M u d s t o n e s ~ 9 5 0 m e t r e s t h i c k

C r e t a c e o u s S a n d s t o n e s & M u d s t o n e s ~ 9 0 0 m e t r e s t h i c k ( R e g i o n a l A q u i f e r ) 4 G a s

P r o d u c t i o n W e l l s

3 C O 2I n j e c t i o n

W e l l s

P r o c e s s i n g F a c i l i t i e s

A m in e C O 2 R e m o v a l

G a s

W a t e r

C a r b o n i f e r o u s R e s e r v o i r ~ 2 0 m e t r e s t h i c k

C a r b o n i f e r o u s M u d s t o n e s ~ 9 5 0 m e t r e s t h i c k

C r e t a c e o u s S a n d s t o n e s & M u d s t o n e s ~ 9 0 0 m e t r e s t h i c k ( R e g i o n a l A q u i f e r ) 4 G a s

P r o d u c t i o n W e l l s

3 C O 2I n j e c t i o n

W e l l s

P r o c e s s i n g F a c i l i t i e s

A m in e C O 2 R e m o v a l

G a s

W a t e r

C a r b o n i f e r o u s R e s e r v o i r ~ 2 0 m e t r e s t h i c k

C a r b o n i f e r o u s M u d s t o n e s ~ 9 5 0 m e t r e s t h i c k

C r e t a c e o u s S a n d s t o n e s & M u d s t o n e s ~ 9 0 0 m e t r e s t h i c k ( R e g i o n a l A q u i f e r ) 4 G a s

P r o d u c t i o n W e l l s

3 C O 2I n j e c t i o n

W e l l s

P r o c e s s i n g F a c i l i t i e s

A m in e C O 2 R e m o v a l

T h e C O 2 S t o r a g e S c h e m e a t K r e c h b a

Krechba Field

Kb-CB

Kb-CA

Spheroid: Clarke 1880Projection: UTM Zone 31NDatum: N Sahara 1959

First Gas Development Well LocationsProduction Well

0 5000Meters

Kb-7

Kb-10

Kb-CC

Kb-6

Kb-CE

Kb-501

Kb-1

Kb-503Kb-502

Kb-5

Kb-9z

Kb-8Kb-4

Kb-2

Gas-Water Contact

1330 metres below Mean Sea Level~1800 metres below Ground Level

Full Gas Column

420000 430000

3210000

3220000

3230000

Kb-503

Kb-501

Kb-11

Kb-14

Kb-12

Kb-13

Kb-502

Injectors

Producers

Reservoir Surface

CO2 Storage Infrastructure

50mmscf/d CO2

(1mmtpa)CompressionTransportation InjectionStorage

Krechba 501

Pilot hole plus 1250 metres of horizontal section

Power Plant with CCS

–In Salah CO2 Assurance• R&D (CSLF $30 million)

Joint Industry R&D Project

Objectives (2004-09)

1. Provide assurance that secure geological storage of CO2 can be cost-effectively verified and that long-term assurance can be provided by short-term monitoring.

2. Demonstrate to stakeholders that industrial-scale geological storage of CO2 is a viable GHG mitigation option.

3. Set precedents for the regulation and verification of the geological storage of CO2, allowing eligibility for GHG credits

Why Monitoring?

• Need more cost-effective tools to demonstrate long-term storage integrity

• Oil & Gas Industry already has most of the tools required, but has never had a commercial reason to develop them

• Mother Nature made all geological formations different– Monitoring technology that works in one location may not

work in another– Need to develop a pool of knowledge – Need to set standards for site certification

In Salah Monitoring: Status

Programme recommended- awaiting info on access to suspended wells

Microseismic

Part of geochemistry studies ongoing in Norway Specialist CO2 modelling

Studies ongoing in NorwayRock-fluid/Pressure Interactions

Ongoing by JVInjection monitoring

Analyses incorporated in Shared Earth ModelFormation water chem.

Sampling programme ongoingWellhead CO2 Monitoring

Reviewed and Not RecommendedFlow meter surveysFlow meter surveys

Building new model in EclipseDynamic modelling

Initial modelling suggests no response4D Electrical/EM

Due to commence 1Q2006Tracers

Modelling completed – marginal response4D Gravity

Programme recommended – KEY TECHNOLOGY4D Seismic/VSP

StatusTechnology

Seismic Array Location

Kb-CB

Kb-CA

Spheroid: Clarke 1880Projection: UTM Zone 31NDatum: N Sahara 1959

First Gas Development Well LocationsProduction Well

0 5000Meters

Kb-7

Kb-10

Kb-CC

Kb-6

Kb-CE

Kb-501

Kb-1

Kb-503Kb-502

Kb-5

Kb-9z

Kb-8Kb-4

Kb-2

Gas-Water Contact

1330 metres below Mean Sea Level~1800 metres below Ground Level

Full Gas Column

420000 430000

3210000

3220000

3230000

Kb-503

Kb-501

Kb-11

Kb-14

Kb-12

Kb-13

Kb-502Pre-cursor 3D

In Salah CO2 Summary

• Industrial Scale Demonstration of CO2 Geological Storage (Conventional Capture)

• Excellent Analogue for other Countries:– China, Europe, North America

• Started Storage in August 2004• 1mmtpa CO2 Stored (17mm tonnes lifetime)• $100mm Incremental Cost for Storage ($6/tCO2)

– No commercial benefit

• Test-bed for CO2 Monitoring Technologies– $30mm Research Project