fuel gas efficiency bmp - introduction and overview (module 00).pdf

7/28/2019 Fuel Gas Efficiency BMP - Introduction and Overview (Module 00).pdf

1/9

Disclaimer

This publication was prepared for the Canadian Association of Petroleum Producers, the GasProcessing Association Canada, the Alberta Department of Energy, the Alberta EnergyResources and Conservation Board, Small Explorers and Producers Association of Canada andNatural Resources Canada. by CETAC-West. While it is believed that the information containedherein is reliable under the conditions and subject to the limitations set out, CETAC-West and thefunding organizations do not guarantee its accuracy. The use of this report or any informationcontained will be at the users sole risk, regardless of any fault or negligence of CETAC-West orthe sponsors.

Acknowledgements

This Fuel Gas Efficiency Best Management Practice Series was developed by CETAC WESTwith contributions from:

Accurata Inc.

Clearstone Engineering Ltd.

RCL Environmental

REM Technology Inc.

Sensor Environmental Services Ltd.

Sirius Products Inc.

Sulphur Experts Inc.

Amine Experts Inc.

Tartan Engineering

CETAC-WEST is a private sector, not-for-profit corporation with a mandate to encourageadvancements in environmental and economic performance in Western Canada. The corporationhas formed linkages between technology producers, industry experts, and industry associates tofacilitate this process. Since 2000, CETAC-WEST has sponsored a highly successful eco-efficiency program aimed at reducing energy consumption in the Upstream Oil and Gas Industry.Head Office#420, 715 - 5th Ave SW

Calgary, AlbertaCanada T2P2X6Tel: (403) 777-9595Fax: (403) [email protected]


2/9

Table of Contents

1. Background 1

2. Who Developed the BMPs? 1

3. Why Were the BMPs Created? 2

4. How to Use the BMPs 4

5. Available Training and Resources 5

6. How to Measure Success 5

7. Appendix A 7

Efficiency Committee Membership


3/9

- 1 -

1. Best Management Practices (BMP) Background

Does your company know the dollar value of how much fuel gas it uses inupstream processing? This question will become increasingly critical as thecosts relating to the production of natural gas will continue to increase and

greater focus is placed on industry to employ environmentally sound practices inall aspects of its operations.

Total fuel gas consumption, which may be defined as the part of the producednatural gas consumed by operations in the production, transportation andprocessing of natural gas from the wellhead to the sales line, is increasing. Evena moderate reduction in fuel gas consumption could translate in savings ofmillions of dollars. The amount of total fuel gas consumption in 2006 from theUpstream Oil and Gas Industry (oil and gas batteries, gas gathering systems andgas processing plants excluding bitumen batteries and straddle plants) wasmore than 10.5 billion cubic metres. A ten percent reduction in fuel gas

consumption could result in an estimated savings of more than $300 million peryear at $7.5/GJ (or enough to heat more than 300,000 homes) and a reductionin greenhouse gas emissions of over 2.1 million tonnes of CO2 equivalent peryear.

Reducing fuel consumption at a facility reduces operating costs, air emissionsand makes a facility more competitive so it can operate for a longer period oftime. More efficient use of energy resources will extend both the life of thefacilities and the oil and gas industry in Alberta.

Currently, fuel gas optimization by industry is not a regulatory or legislative

requirement. While there is a strong interest by regulators in Alberta in improvingefficiencies, doing so without additional regulation is the preferred approach,provided it is successful. These BMPs are a first step to assist industry inidentifying and implementing opportunities for greater fuel gas efficiencies. Thesuccess of this initiative will determine whether industry can proactively usethese BMPs to improve efficiencies or whether regulatory initiatives arenecessary.

2. Who Developed the BMPs?

In order to further examine this issue and explore ways, other than by regulation,

to encourage industry to become more efficient in fuel gas usage, agovernment/industry working committee was established in April 2006. Thecommittee included industry representatives from the Canadian Association ofPetroleum Producers (CAPP), the Small Explorers and Producers Association ofCanada, the Gas Producing Association Canada, several other large industryplayers and government representatives from the Department of Energy (DoE),the Energy Resources Conservation Board and Natural Resources Canada.


4/9

- 2 -

3. Why were the BMPs Created?

The Terms of Reference mission statement is to set direction and provide

leadership to improve the upstream industrys petroleum energy efficiency perunit of production and reduction of fuel gas use in oil and gas production, pipelineand gas processing facilities regulated by the EUB. (now the ERCB)

Generally, there has been an increase in the amount of fuel gas use in theupstream sector. The following chart shows total fuel use in the upstream sector:

Source: ERCB

Of this fuel gas approximately 43 percent of the fuel gas consumption can beattributed to gas processing plants, 35 percent to gas gathering systems and 22

percent to gas and oil batteries.

Source: ERCB


5/9

- 3 -

While information is available on how to efficiently run and maintain equipment inupstream gas processing, this information is not always available from a singlesource. Making such information more accessible would facilitate industrysefforts to maximize the effectiveness of their operations.

To this end, the committees first action was to support the development of aBMP which identifies fuel gas efficiency opportunities. The BMP will assistindustry in identifying opportunities to reduce fuel gas usage in upstream gasprocessing, often with minimal or no capital investment; providing information toindustry on how equipment should be operated for maximum efficiency; andreducing fugitive emissions, thereby contributing to the reduction of greenhousegases.

4. How to Use the BMPs

To effectively use these BMPs a company needs the support of seniorexecutives who can track and reward the business units for improvingefficiencies and reducing costs. This is critical to ensure improvements inefficiencies become a lasting success for the companies. These improvementsneed to become part of the companys operating policy; this will be facilitated ifthere are individuals who are truly committed to improving efficiencies andsuccesses are advertised, shared and promoted across the company.

The type of equipment being operated by the company and how much fuel beingconsumed are two factors which will help determine how the BMPs will be used.Before implementing changes, a company should examine which modules will be

applicable to their facilities. In Alberta, fuel gas measurement is required whensite fuel gas use becomes significant (greater than 500 m3/d). For the purpose ofthe BMPs, it is recommended that, as a minimum, companies should carefullyexamine opportunities for improvement in fuel gas efficiencies when site useexceeds this number. Furthermore, companies should be aware of whichequipment accounts for larger fuel use and the reasons behind why energyconsumption on a site is increasing or decreasing.


6/9

- 4 -

At the front of each BMP module is a flow chart which identifies three potentiallocations for the processing equipment: in the field; at a sweet gas plant or; at asour gas plant. The following example is from Module 6 Fired Heaters

FIELD

5.Che

mica

lInjec

tionPu

mps

1.Gathe

ringSy

stem

s

6.Fire

dHe

aters

4.Flaring

3.Pneum

aticInstrum

ents

2.Pum

pjacks

7.Engines

10.Desicc

antD

ehydrators

8.Com

pressio

n

9.Glyc

olDehydrators

11.FuelG

asMeasurement

SOUR GAS PLANTS

17.Acid

Gas

Injection

15.Sulphur

Recovery

14.Amine

13.Refrigeration

12.Fraction

ation

5.Che

mica

lInje

ctionPu

mps

6.Fire

dHe

aters

4.Flaring

3.Pneum

aticInstrum

ents

7.Engines

10.Desicc

antD

ehydrators

8.Com

pressio

n

9.Glyc

olDe

hydrators

11.FuelG

asMeasurement

16.Tail

Gas

Incin

eration

SWEET GAS PLANTS

13.Refrig

eration

12.Fracti

onation

5.Che

micalIn

jection

Pum

ps

6.FiredH

eaters

4.Flaring

3.Pneuma

ticInstrum

ents

7.Engine

s

10.Desicc

antD

ehydrators

8.Com

pre

ssion

9.Glycol

Dehydrators

11.FuelG

asMeasurement

16.TailGa

sIncineration

Different modules will provide the most appropriate information depending on thelocation of the equipment. For each module the flow chart highlights where itbest fits amongst the three locations.

Each BMP module:

identifies the typical impediments to achieving high levels of operatingefficiency with respect to fuel gas consumption;

presents strategies for achieving cost effective improvements throughinspection, maintenance, operating practices and the replacement ofunderperforming components; and

identifies technical considerations and limitations.


7/9

- 5 -

5. Available Training and Resources

Many industries have started to change how they operate their business toinclude more efficient and environmentally friendly practices. This reflectsincreasing demands from the public who are becoming more educated and

aware of the potential impact of fossil fuel development on the land, air, waterand other resources. There is also increased pressure for industry to reduce thelevels of greenhouse gases (GHG) emitted during processing, with financialincentives for reductions in GHG emissions and increasing penalties for thosewho fail to comply.

To respond to this increased need for information, some companies, especiallythe larger ones, have in-house resources available to assist with staff trainingand to identify opportunities for greater efficiencies. In addition, there are anumber of external resources available for training to help staff develop andincorporate efficient practices into their business practices. There are also

companies who can provide a range of services including undertaking on-siteenergy efficiency audits, establishing benchmarking of equipment as well asproviding more energy efficient equipment.

6. How to Measure Success

What you do not measure, you cannot control.- Tom Peters

A first step is to determine the amount of fuel gas being used by your company inupstream processing. Some companies already track this information but it isnt

always at a sufficiently detailed level. More importantly, attaching a dollar valueto the fuel gas used provides tangible support as to the size of the prize. Havingsuch information will also assist in determining where the process would mostgreatly benefit from application of the BMPs. Benchmarking can be completedinternally; there are also resources available externally who can undertake anefficiency audit of the process.

Once benchmarks have been established, data needs to be collected on anongoing basis to determine the effectiveness of the BMP and areas whereapplication was effective as well as areas for enhancement or improvement. Anumber of steps can be taken to improve efficiency with minimal associated cost

or time. A decrease in overall fuel gas usage or a better ratio between amount offuel gas used and amount of gas processed will be a sign of success.

Industry is starting to voluntarily identify opportunities to operate in a moreefficient, environmentally responsible manner. This makes economic sense butcan also contribute to a more positive image of industry by landowners and otherstakeholders. If industry can demonstrate that it can successfully manage orreduced fuel gas use by undertaking voluntary measures, there will be less


8/9

- 6 -

incentive for government to mandate such reductions through regulations orlegislation which can be more costly and time consuming for industry.

The Fuel Gas Committee is continuing its work on how to facilitate identifyingappropriate benchmarks and tracking changes in fuel gas use. Additional

information will be added to this module as it becomes available.


9/9

- 7 -

Appendix AFuel Gas Efficiency Committee Membership

2007/08

The attached list identifies committee members who contributed towards thedevelopment of the Fuel Gas Efficiencies Best Management Practices manual.Members no longer participating on the committee by March 31, 2008 have beenidentified in italics.

Alberta Department of EnergyAlberta Energy Resources Conservation Board

AltaGas Ltd.BP Canada

Canadian Association of Petroleum ProducersConocoPhillips

Dillon Consulting

Gas Processing Association CanadaHusky Oil Operations Ltd.

Natural Resources CanadaSmall Explorers and Producers Association of Canada

Suncor EnergyVantage Engineering Inc.

Gas Processing Association of Canada

fuel gas efficiency bmp - introduction and overview (module 00).pdf

Documents