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Project: FLARING GAS COMMERCIALIZATION PROJECT: AUTOMATED GAS TREATMENT PROJECT PROPOSAL FLARING GAS COMMERCIALIZATION PROJECT: AUTOMATED GAS TREATMENT

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Page 1: PROJECT PROPOSAL - gtl-rus.com

Project: FLARING GAS COMMERCIALIZATION PROJECT: AUTOMATED GAS TREATMENT

P RO JE C T P R OP OS AL

FLARING GAS COMMERCIALIZATION PROJECT: AUTOMATED GAS TREATMENT

Page 2: PROJECT PROPOSAL - gtl-rus.com

Project: FLARING GAS COMMERCIALIZATION PROJECT: AUTOMATED GAS TREATMENT

Table of Contents

1. INTRODUCTION - G2L ENERGY SOLUTIONS ....................................................................... 3

2. FLARING GAS CHALLENGES .................................................................................................... 4

2.1. GOVERNMENT POLICY ........................................................................................................... 5

3. OUR SOLUTION ............................................................................................................................ 5

3.1. PROCESS SCHEMATIC DIAGRAM ....................................................................................... 6

3.2. MAJOR PROCESSES ............................................................................................................... 7

3.2.1. GAS SEPERATION UNIT ..................................................................................................... 8

3.2.2. POWER GENERATION UNIT .............................................................................................. 8

3.2.3. GAS CONDENSATE CONVERTION UNIT ........................................................................ 8

3.2.4. GAS SEPARATION UNIT ..................................................................................................... 8

3.3. LIST OF MAIN PROCESS EQUIPMENT ............................................................................... 8

3.4. PROCESS AUTOMATION SYSTEM .....................................................................................10

3.5. CONTROLS AND INSTRUMENTATION SYSTEMS ...........................................................13

3.6. FACILITY ....................................................................................................................................16

3.7. MAINTENANCE PLANNING AND CONTROL ......................................................................17

3.7.1. PROACTIVE APPROACH ....................................................................................................17

3.7.2. REACTIVE APPROACH .......................................................................................................18

3.7.3. SPARES ..................................................................................................................................19

4. ENVIRONMENTAL BENEFITS ...................................................................................................22

5. PROJECT SCHEDULE ................................................................................................................23

6. COST BENEFIT ANALYSIS ........................................................................................................24

Page 3: PROJECT PROPOSAL - gtl-rus.com

Project: FLARING GAS COMMERCIALIZATION PROJECT: AUTOMATED GAS TREATMENT

1. INTRODUCTION - G2L ENERGY SOLUTIONS

G2L Energy Solutions is a Joint Venture between RUSSELSMITH NIGERIA LIMITED a

leading Integrated Energy Services Company and PUBLIC JOINT STOCK COMPANY “GTL”

(PJSC “GTL”) an Innovative company having serval patents advanced technologies to

producealcohols, alkanes, gasoline, diesel fuel, hydrogen, mineral fertilizers, and other

chemical compounds in a profitable way.

The main mission of this Joint Venture is to provide and install latest technology driven GTL

plants and Gas Turbine Power plants under Nigerian Oil and Gas sector. The major objectives

looking for to achieve are,

Reduction in Flare Gas and the Carbon Footprint of the country.

Production of High-Quality Petroleum Products.

Production of cost Effective and Environment friendly Electric Power.

Development Community and Economy of the Country.

“Reference Patent”

Few of the patent reference are listed below,

2440189 - catalyst and method for producing high-octane gasolines with low content of

benzene and durol

2181622 - plant for homogeneous oxidation of natural gas and method for

homogeneous oxidation of natural gas

2199366 - reactor for homogeneous oxidation of natural gas

2426715 - method and plant for homogenous oxidation of methanic gas

2513917 - device and method for separating gas mixture

2416461 - packed vortex nozzle for heat and mass exchange columns

2487275 - method for compressing gas medium

These solutions will help the Oil & Gas facility Operators to minimize or eliminate the

Government Penalties related to Flaring Gas and add more values to the Organization

Environmental commitmentsand so the Nigerian Government towards Paris Carbon

Emissions Treaty.

Page 4: PROJECT PROPOSAL - gtl-rus.com

Project: FLARING GAS COMMERCIALIZATION PROJECT: AUTOMATED GAS TREATMENT

2. FLARING GAS CHALLENGES

The Nigerian National Petroleum Corporation (NNPC) recently disclosed that Nigeria's proven

gas reserve has gone up (as at 2018) to 190 trillion cubic feet (TCF), with unproven gas

reserves of about 600TCF. This data ranked Nigeria in 9th position globally and 1st position in

Africa under the term of proven natural gas reserves. However, the 2nd African position holder,

Algeria producing almost double than Nigeria.

As per Nigeria National Petroleum Corporation (NNPC) 2019 Annual Statistical Bulletin,

Nigeria flared a total of 244.35 billion cubic Feet of gas in the year 2019 which is 8.53% of

produced gas. By considering the exchange rate of N380 to a USD and the Domestic Supply

Obligation (DSO) price of $1.50 per 1,000 Standard Cubic Feet (SCF) of gas, this results to a

loss of N139.28 billion. As per the World Bank’s Global Gas Flaring Reduction Partnership

report, Nigeria is the 7th highest Gas flaring country in the world.

The gas flaring, practicing mainly for economic reasons as the other methods are costlier than

the immediate elimination of the gas, which is less profitable and potentially hazardous

byproduct of the industry. Gas flaring generates toxic pollutants such as sulfur dioxide into the

atmosphere, which can lead to environmental problems such as acid rain, as well as the

generation of greenhouse gases which contribute to global climate change.

When natural gas burning occurs, the effects raise potential environmental and health

hazards. In addition to the noise and light, flaring emits black carbon, methane, and volatile

organic compounds. Black carbon and methane are both powerful climate forcers and black

carbon andVOCs are dangerous air pollutants.

Researchers says black carbon is second only to carbon dioxide in terms of its impact on

global warming. It does this both by absorbing sunlight thereby warming the atmosphere and

by landing on ice and snow and reducing its ability to reflect light. Additionally, black carbon is

a component of fine particulate matter which has negative effects on human health and

contributes to several critical deceases.

Page 5: PROJECT PROPOSAL - gtl-rus.com

Project: FLARING GAS COMMERCIALIZATION PROJECT: AUTOMATED GAS TREATMENT

2.1. GOVERNMENT POLICY

By understanding that flared gas could be harnessed to stimulate economic growth, drive

investments, and provide jobs in oil producing communities and indeed for Nigerians through

the utilization of widely available innovative technologies, the Federal Executive Council

(Nigeria’s cabinet) has approved the Nigerian Gas Flare Commercialization Program

(“NGFCP”). This program was launched by the Minister of State for Petroleum Resources

(“Minister”) on December 13, 2016.

The Federal Government of Nigeria (FGN) made the policy that, gas flaring is unacceptable

and the FGN has initiated a number of actions to reaffirm its commitment to ending the

practice of gas flaring in our oil fields. Specifically, the FGN has ratified the Paris Climate

Change Agreement, and is a signatory to the Global Gas Flaring Partnership (GGFR)

principles for global flare-out by 2030 whilst committing to a national flare-out target by year

2020.

The NGFCP is designed as the strategy to implement the policy objectives of the FGN for the

elimination of gas flares with potentially enormous multiplier and development outcomes for

Nigeria. The objective of the NGFCP is to eliminate gas flaring through technically and

commercially sustainable gas utilization projects developed by competent third-party investors

who will be invited to participate in a competitive and transparent process. The

commercialization approach has been considered from legal, technical, economic,

commercial, and developmental standpoints. It is a unique and historic opportunity to attract

major investment in economically viable gas flare capture projects whilst permanently

addressing a 60-year environmental problem in Nigeria.

3. OUR SOLUTION

Based on well-known scientific facts, but not using current processing methods, G2L Energy

Solutions,proposing to provide alternative, highly profitable,and environmentally oriented

methodfor synthesizing the necessary chemicalcompounds from natural and

associatedpetroleum gas.

With the help of technology, both low and high pressure flared gases can be without

conventional Heating and Cooling cyclic processes and apart from this the technology have

the capability to handle any volume of gas; from Two to One Thousand Cubic Meters per

Hour.

Page 6: PROJECT PROPOSAL - gtl-rus.com

Project: FLARING GAS COMMERCIALIZATION PROJECT: AUTOMATED GAS TREATMENT

The major advantages are,

Economic efficiency of the processes.

Absence of liquid effluent and harmful emissions which is complying high

environmental standards.

High profitability and the ability to process gas with any composition.

Over 32 types of final products like, Gasoline, Diesel, Alcohols, Alkanes, Mineral

Fertilizers, Hydrogen, Carbo etc.

Complete Automated process

Possibility to build low-capacity processing plants (Modules)

Possibility to increase the production by adding additional modules in respect to oil field

development plan.

Suitable for any difficult climatic or infrastructural conditions.

By considering the market requirements and as part of strategic business plan, we are

planning to develop the Gas to Liquid plant for producing Propane-Butane (Liquid Petroleum

Gas), Gasoline and Diesel. As part of the development plan, we are targeting to complete the

Propane-Butane train and the subsequently the Gasoline train and later the Diesel. This will

help G2L to maintain the easy cash flow.

The annual production volume capacity will be based on the available gas combination and

the volume of supply. The details will be developed in later stages of the project based on the

availability of required data.

3.1. PROCESSSCHEMATIC DIAGRAM

The technology is unique due to its high efficiency, possibility of refining gas containing any

components, including shale gases, with isolating end-product (high-octane petrol, diesel fuel,

methanol, ethanol, and aromatic hydrocarbons), full automation, and high ecological

compatibility, efficiency of process in difficult climate and infrastructural conditions and in low-

output fields.

The schematic diagram below shows the process cycle of the flaring gas before final products.

Due to the modularity of the system, the changes in final products or the volume is very easy

to achieve by adding or bypassing the processes.

Page 7: PROJECT PROPOSAL - gtl-rus.com

Project: FLARING GAS COMMERCIALIZATION PROJECT: AUTOMATED GAS TREATMENT

3.2. MAJOR PROCESSES

There are mainly several processes involved in our proved / patented technology, however the

final scope of products and the engineering shall determine the stages of operations

and so the equipment / processes involved.The parameters mentioned in the process

description shall change in final design based on the Gas feed in parameters.

For the processing of associated petroleum gas, the technology was adopted with the

compression of associated gas, its successive cooling and separation from the evolved

condensate and liquefied gas of the PBT grade (technical propane-butane).

The hermetic pistons compressors without oil supply and equipped with frequency converters

shall be used for gas compression.Processing of gas condensate by catalytic conversion with

compression of newly obtained propane / butane fractions to obtain motor fuel (high-octane

gasoline) is envisaged.

Page 8: PROJECT PROPOSAL - gtl-rus.com

Project: FLARING GAS COMMERCIALIZATION PROJECT: AUTOMATED GAS TREATMENT

The major equipment composition will be as,

3.2.1. GAS SEPERATION UNIT

• Compression and separation of associated gases with their purification from

water.

• Condensation of gas condensate and its supply to the catalytic conversion unit.

• Supply of liquefied propane / butane gas to the warehouse.

• Supply of fuel gas (combustible component - a mixture of methane and ethane,

inert component - carbon dioxide and nitrogen) for supplying electricity

generation.

3.2.2. POWER GENERATION UNIT

3.2.3. GAS CONDENSATE CONVERTION UNIT

This unit is functioning based on the Zeolite-containing Catalysts,

• The unit is designed to reform gas condensate in order to obtain high-octane

motor fuel, gasoline, propane / butane and a mixture of dry gases (C1 + C2 + H2)

as a by-product.

• The unit includes a catalyst regeneration unit, the service life of the catalysts is 3-

4 years.

• Maintenance personnel of the installation - 2 operators per shift.

3.2.4. GAS SEPARATION UNIT

The unit provides compression and separation of gases after the unit for direct

conversion of gas condensate with the supply of uncondensed gases to the burners

of the furnaces and the supply of liquefied propane / butane gas to the warehouse.

3.3. LIST OF MAIN PROCESS EQUIPMENT

Equipment #

Vessel name Properties of

developed vessel Apparatus

qty.

Page 9: PROJECT PROPOSAL - gtl-rus.com

Project: FLARING GAS COMMERCIALIZATION PROJECT: AUTOMATED GAS TREATMENT

Equipment #

Vessel name Properties of

developed vessel Apparatus

qty.

K-1 Condensate deethanizer tower D = 1000mm N=20000mm Sieve trays 36 pcs.

1

K-2 Condensate stabilization tower D =1000mm N=13000mm Sieve trays 24 pcs.

1

C-1 “Initial gas-condensate-water” separator (included in compressor station)

1

C-2 Interstage separator (included in compressor station)

1

Р-1 “Initial gas-condensate-water” separator-saturated EG ”

1

Р-2 “Gas-condensate-water” separator D = 1400 mm Lц = 7000mm

1

С-3 Discharge scrubber 1

D-1 Unstable condensate degasser 1

KO-1 Coalescer 1

E-1 Reflux drum of tower K-2 1

ВХ-1* Air cooler after the 1st stage of compressor KG-1/1 (included in compressor station)

type AVG 1

ВХ-2* Air cooler after the 2nd stage of compressor GK-1/2 (included in compressor station)

Type AVG 1

Tb-1,2 Turbulizer 2

ВХ-3* Air condenser of towerK-2 Type AVG 1

Т-1 “Initial gas-dry gas” recuperator llamellar folding 1

Т-2 Heat exchanger for cooling of regenerated ethylene glycol (EG)

coil 1

Т-3 Preheater of unstable condensate before K-1

lamellar folding 1

Т-4 Heat exchanger for cooling of liquefied gas

lamellar folding 1

Т-5 “Initial gas-cold condensate” heat exchanger

lamellar folding 1

Х-1 Freon cooler of gas Shell-and-tube heat exchanger with steam space

1

И-1 Boiler of tower K-1

Shell-and-tube evaporator with steam space

1

И-2 Boiler of tower K-2

Shell-and-tube evaporator with steam space

1

Н-1** Pump for supply of regenerated ethylene glycol (EG)(dosing)

Supply - 174 l/h Pumping pressure-3.5 MPa (abs.) N = 2.2 kW

2

Н-2** Pump for supply of unstable condensate C-2 (dosing)

Supply – 0.42 m3/h Supply head - 186 m N=1,5 kW

2

Page 10: PROJECT PROPOSAL - gtl-rus.com

Project: FLARING GAS COMMERCIALIZATION PROJECT: AUTOMATED GAS TREATMENT

Equipment #

Vessel name Properties of

developed vessel Apparatus

qty.

Н-3** Pump for supply of unstable condensate from C-1 (dosing)

Supply – 0.074 m3/h Supply pressure - 2.5 MPa (abs.) N= 2.2 kW

2

Н-4**

Reflux pump of tower K-2 (centrifugal with magnetic coupling)

Supply – 6.24 m3/h Supply head - 83 m N=3 kW

2

КГ-1/1,2

Two–stage compressor by “ARIEL” for compressing of the petroleum gas

Capacity - 305 nm3/min (1st stage) 396 nm3/min (2nd stage) Medium – petroleum gas Psuction – 0.32 MPa (g.); Тsuction – 60 оС Psup. – 3 MPa (g.); N=1900 kW

2

E-2 Drum of industrial heat-transfer medium 1

Н-5** Industrial heat-transfer medium feed pump (centrifugal with magnetic coupling)

Supply – 30.2 m3/h Supply head: 73 m N= 15 kW

2

П-1 Industrial heat-transfer medium heater Q=2000 kW 1

ФХУ-1

Refrigeration plant based on MYCOM compressors

Compression-condensation unit N=3300 kW Refrigeration capacity - 2000 kW Refrigerant – Freon R507 Refrigerant boiling temperature – minus 40 °С

1

БР-1 Ethylene glycol (EG) regeneration unit

Evaporator with heat pipe with electric heating N = 80 kW D = 600mm

Evaporation tower D=250 mm

H = 2500 mm, screen packing.

1

* At calculation of air coolers (AC), air design temperature shall be taken equal to 45 °C.

All AC motors are equipped with frequency converters.

** Feed and supplypressure (supply head) are specified as maximum design ones for all

pumps. Motor of pumps H-2, H-4, H-5 are equipped with frequency converters.

3.4. PROCESS AUTOMATION SYSTEM

All process equipment shall be of modular type with maximum ready-to-use that considerably

reduces the volume of construction and installation activities directly on the site.

In the process of developing the concept for the Process Automation System (PAS), the

following fundamental provisions have been considered:

Page 11: PROJECT PROPOSAL - gtl-rus.com

Project: FLARING GAS COMMERCIALIZATION PROJECT: AUTOMATED GAS TREATMENT

• Monitoring and control of gas processing plant shall be performed based on a single

automated operator's workstation (AOW) with monitors.

• Compressor and refrigeration plants are supplied as part of the package with control and

protection systems; therefore, the main production PAS includes only pressure and

temperature control of gas flows at the compressor plants discharge. To protect

compressor in case of process parameter deviation above the alarm limit values, PAS

controller shall form a discrete command to stop the compressor.

• Control and shut-off valves shall have pneumatic actuators, completed with

electropneumatic actuators.

• To improve reliability of control and energy saving, it is proposed to use frequency

converters to change the performance of electric motors of centrifugal pumps, which will

let to desist from the use of control valves, mainly in level adjustment in tanks.

• In the discharge of all pumps, remotely controlled valves shall be installed and,

accordingly, automatic transfer switch (ATS) for back-up pumps in case of failure of main

ones shall be provided.

• Local operating stations (LOS) shall include only buttons "Start/open", "Stop" and

"Stop/close" for local pumps and motor operated valves control.

• Previously, as a mid-level PAS equipment, intrinsically safe signal input/output modules,

series I.S.1, manufactured by Stahl company, have been accepted, together with i/o

modules for conventional signals, series I-8000 manufactured by ICP-DAS company and

redundant controllers UNO of Advantech company. Subsequent to the results of further

development of the technical means structure, it is possible to select equipment of other

manufacturers with technical parameters not worse than the ones of the mentioned

devices.

Production base for manufacturing of SAW boards and control cabinets shall enable carrying

out a full range of works covering testing, configuration, and adjustment of upper and middle

level subsystems, including their integrated checkout. This allows settling questions of design

and manufacturing of process control points (PCP) in the shortest possible time and with the

best quality, with subsequent delivery of the equipment to the Customer’s site.

Page 12: PROJECT PROPOSAL - gtl-rus.com

Project: FLARING GAS COMMERCIALIZATION PROJECT: AUTOMATED GAS TREATMENT

Ref. No. Stages of design works Brief Description

1 Development of technical specifications for PAS

The main document, based on which automation systems (full life cycle) are created, objectives are set and the main requirements to PAS (DCS-Distributed Control System and ESDS- Emergency Shut-Down System) are established.

2

Development of the detailed documentation for the Distributed Control System (RSU)

The detailed documentation is necessary for manufacture of DCS, its

reference to the facility and determination of the main requirements to

the project construction parts.

DCS shall be included PAS and designed for plant process control,

including functions of the process interlocks, protections, automatic

regulation and control, collection and processing of information,

provision of the operating personnel with the information and

automated control instruments, as well as information backup

concerning processes and actions of the operating personnel.

DCS will be implemented on Simatic PCS7 software and hardware

facilities manufactured by Siemens. DCS consists of:

1. 1. Control cabinets (CC) with Simatic S7-400 programmable logic

controllers (PLC); 2. Process interface units (PIU) with Simatic DP

input-output system based on ET 200M stations;

3. Automatic work stations and servers with Simatic HMI human-

computer interface system, as well as communication equipment,

power supply units, uninterrupted power supply sources, microclimate

control system. 4. Operating personnel’s panel.

3

Development of the design documentation for theEmergency Shut-Down System (ESDS)

The detailed documentation is necessary for manufacture of ESDS, its

reference to the facility and determination of the main requirements to

the project construction parts. ESDS shall be included to PAS and

shall be designed for provision of safe processes: the system analyzes

the condition of the facility, controls the process parameters, and, if

emergency risks are discovered, transfers the facility into safe

condition.

TheEmergency Shut-Down System will be based on Siemens software

and hardware facilities. The Simatic S7-400H redundant control

system consists of:

1. Control cabinet of the Emergency Shut-Down System (CC of ESDS)

with Simatic S7-400Hredundant programmable logic controller;

2. Process interface units (PIU) with Simatic DP input-output system

based on ET 200M stations with PofiBus DP medium-redundancy

communication line;

3. Immediate and emergency shut-down panel.

4

Development of the design documentation for the automatic fire alarm system and voice-based fire alarm system

The automatic fire alarm system will be implemented on Orion integrated protection system produced by NVP (Scientific and Introduction Enterprise “Bolid” CJSC). The system includes the following:

1. Fire alarm control panels;

2. Automatic and manual fire detectors;

3. Light, sound andsound-and-light alarms;

Page 13: PROJECT PROPOSAL - gtl-rus.com

Project: FLARING GAS COMMERCIALIZATION PROJECT: AUTOMATED GAS TREATMENT

Ref. No. Stages of design works Brief Description

4. Redundant power supply sources;

5. Cable products.

5

Development of the detailed documentation for the smoke detection control system and the smoke warning over public address system

The smoke detection control system(SDCS) shall be designed to

control the surrounding atmosphere against leakages and discharges

of vapours and gases. SDCSwill be implemented based on specialized

air pollution sensors and will be connected to ESDS.

6

Development of the detailed documentation for the power supply and electric lighting systems

The power supply and electric lighting system shall include the following:

1. Power supply cabinets with protective devices;

2. Working lighting cabinets with protective devices;

3. Emergency lighting cabinets with protective devices;

4. Security lighting cabinets;

5. Cable products.

7

Development of the detailed documentation for the lightning protection and grounding

The lightning protection and grounding system shall stipulate for:

1. Interception rods;

2. Grounding loop of the plant.

8 Development of the detailed documentation for the engineering safety

The engineering and technical safety shall be inclusive of as follows:

1. Installation of the main fencing along the plant perimeter;

2. Installation of the gates and wickets in the main fencing;

3. Strengthening of the top of the main fencing (anti-climb protection);

4. Strengthening of the lower part of the main fencing (anti-digging protection).

3.5. CONTROLS AND INSTRUMENTATION SYSTEMS

• The equipment shall include local instruments, initial converters (preferable with a

liquid-crystal display), shut-off and control power-driven valves.

• The local instruments shall indicate information for start-up work, at that the

information is not transferred to the process control room.

• The equipment operation shall be controlled from the process control room.

• To perform the measurement, automatic control, signaling and emergency protection

functions, electrical instruments and automated facilities shall be applied.

• The preferable explosion protection type shall be spark-safe circuit “i”, group II,

category 1 as per GOST 30852.0-2002 (MEK (International Electric and Technical

Commission) 60079-0:1998).

• The initial converters of the process parameters shall have a unified analogous and

digital output signal of direct current of 4-20 mА based on HART protocol.

• All temperature converters shall be installed into the equipment operating under

pressure, in protective shells, and shall have a mobile fastening flow nipple.

Page 14: PROJECT PROPOSAL - gtl-rus.com

Project: FLARING GAS COMMERCIALIZATION PROJECT: AUTOMATED GAS TREATMENT

• The basic reduced measuring error of the parameter measuring sensors may not

exceed ± 0.5%, in case when the alarm system is actuated – not exceeding ± 1.0%,

of the thermometers and pressure gauges – not exceeding ±1.5 %.

• List of recommended control and measuring equipment and automation facilities is

indicated in Table below,

• Control valves of the regulation loops shall be equipped with diaphragm actuators

(DA) and intellectual electropneumatic actuators. Input and output signals of the

electropneumatic actuator shall be 4-20 mА, explosion protection type – spark-safe

circuit “i”.

• Local control of the power-operated valves designed for emergency shut-off of the

equipment is not required.

• Shut-off pneumatic-drive valves shall be equipped with solenoid-operated valves

(explosion protection type “d”) with control voltage of direct current and terminal

switches (explosion protection type “d”).

• Quick measurement of the flow consumption (number of flows) shall be provided.

• For remote measurement of gas consumption, vortex flow meters shall be applied.

• For remote measurement of liquid consumption, mass-rate flow meters shall be

applied.

• Gas consumption shall be measured in standard m3/h, liquid consumption – in kg/h.

• Liquid level in the vessels shall be controlled by radar level gauges installed, when

applicable, in the bridles, and bypass level detectors.

• Cable inlets in the control and measuring instruments (CAMI) and terminal boxes

shall be blast-tight (explosion protection type “d”), with double sealing of the armored

cable along the outside and inside diameters (without armor) and equipped with “ring”

for the armor grounding.

• Impulse lines to CAMI, drains and vents for sample lines and CAMI (if necessary)

shall be made of stainless-steel pipes O12x1.5, compression fittings with double

sealing of the “cutting ring” type.

• Pneumatic supply lines of shutoff and control valves (SACV) shall be made of

stainless-steel pipes O12x1.5 and O6x1. Provision shall be made for a single input of

the compressed air to the unit with exterior thread G 1/2" (within the boundaries of

the unit, a connector with interior thread G 1/2" will be installed).

• Measurement, alarm, control circuits shall be made of control armored or, if

necessary, screened cable. Maximum number of cores — 37. Cable shall be of “fr”

(flame-retardant) modification.

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Project: FLARING GAS COMMERCIALIZATION PROJECT: AUTOMATED GAS TREATMENT

• The instruments with current digital output signal (HART protocol) shall be connected

by an armored “twisted pair” cable with the common screening of “fr” modification.

• Provision shall be made for separate wiring (in separate cables and junction boxes)

of the circuits with voltage of up to 42 V, with voltage circuits exceeding 42 V.

• Cables with copper cores of cross section not less than 1.0 mm2 shall be used.

No Description Recommended

1. Temperature (local measurement)

WIKA,

Moscow

2. Temperature (remote measurement) SKB Termopribor,

Korolev

Temperature (remote measurement) of the pump bearings

PG Metran,

Chelyabinsk

3. Pressure (local measurement) WIKA,

Moscow

4. Pressure, pressure drop (remote measurement) PG Metran,

Chelyabinsk

5. Level (local measurement – level detectors) + level (alarm system)

NTPPK "Plazvak", Moscow

6. Level (alarm system) pumps Valcom,

St. Petersburg

7. Level (remote measurement) EmersonProcessManagement,

Moscow

8. Gas consumption measurement (vortex)

EmersonProcessManagement,

Moscow

9. Liquid consumption measurement (mass)

EmersonProcessManagement,

Moscow

10. Electricallyheated instrument boxes with an eyeglass

Rizur NPO (Scientific and Production Association)

Ryazan

11. Impulse lines to control and measuring instruments (CAMI), SACV feed line, CAMI drain and vent lines, fittings and valves.

DK-LOK branch

(supplier of NTA-Prom LLC, Moscow

12. Terminal boxes KORTEM GORELTEX,

St. Petersburg

Page 16: PROJECT PROPOSAL - gtl-rus.com

Project: FLARING GAS COMMERCIALIZATION PROJECT: AUTOMATED GAS TREATMENT

No Description Recommended

13. Ignition system I C P,

Moscow

14. Cable products PODOLSKKABEL,

Podolsk

3.6. FACILITY

• Flare system – can be used available on-site

• Common control room for conducting of process, offloading of gas condensate, PBF;

dispatcher's office — 200 m2

• Administration building — 200 m2, (at the rate of operational staff 25-35 persons),

including:

o Dressing and shower rooms – 50 m2

o Work-rooms– 50 m2

o Laboratory– 30 m2

o Food unit– 30 m2

o Control room, ventilation room – 30 m2

• 3.6. Check passage, guard-house– 30 m2

• Stable condensate tank battery – tanks of 3х200 m3

• Stable condensate pump station — 2 pumps with capacity of 20 m3/h

• Truck terminals of stable condensate – 2 (perhaps, with pumps)

• PBT (propane-butane technical) depot — 10 horizontal tanks per 200 m3each

• PBT pump station

• 2 PBT truck terminals — 2

• Firewater storage tanks (functionally in coincidence with storage of process water

after purification) — 2 underground tanks per 1000 m3 each, or 1000 plus 3000 for

the redundancy of process water.

• Fire pump house (200 ... 500 m3 / h) with networks, without burying is acceptable.

• Interconnections

• Disposal facilities

• Chemical store with ethylene glycol discharge and storage area (in drums of 200 l)

• Instrumentation air compressor unit

• Construction part of associated gas processing unit

• Electrical power supply, transformer substation, independent power generating unit

based on gas generators, total power of 6 MW.

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Project: FLARING GAS COMMERCIALIZATION PROJECT: AUTOMATED GAS TREATMENT

• Lighting of all the area

• Unit fencing, on-site roads, site improvement (with parking area)

• Potable water supply– imported water

• Process water supply– purified rainwater (it is possible to collect 5-10 thousand cubic

meters of water from rainfall); perhaps, an artesian well.

3.7. MAINTENANCE PLANNING AND CONTROL

Maintenance Planning is the activity to identify and address any possible issues in advance

which will help the Maintenance Engineers to complete the works quickly and effectively.

There are multiple types of maintenance practicing generally in the Oil & Gas industry, which

helps to increase the uptime of the facility and majorly they are coming under following

approaches,

3.7.1. PROACTIVEAPPROACH

Proactive approach works to prevent any reactive maintenance activities by avoiding

surprised shutdowns or breakdowns of the equipment and the processes. Some of

the major maintenance activities shall be considered under the proactive approaches

are,

Preventive Maintenance

Preventive maintenance (PM) is the regular and routine maintenance of

equipment and assets to keep them running and prevent any costly unplanned

downtime from unexpected equipment failure.A good preventive maintenance

plan also involves keeping records of past inspections and the servicing of

equipment.

Predictive Maintenance

Is a proactive maintenance strategy, that uses past inspections and servicing

data from the Preventive maintenance to estimate when the equipment might fail

so that the maintenance work can be scheduled before it occurs.

Condition Based Maintenance

Condition based maintenance performs based on the real time performance and

conditions through the data from sensors and other methods of alarms.

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Scheduled Maintenance

Is a scheduled activity on any Equipment or Systems for adjustments,

modifications, replacements of any parts, required as per the OEM requirements

which should be performed on a periodic basis to prevent failure of systems or

equipment or the processes.

Planned Maintenance

Preventive and Scheduled maintenance are a form of Planned maintenance.

However, it starts from identifying from the identification of Resources, Materials,

Tools, and Tasks necessary to work on each maintenance activities. Planned

maintenance have a big role in Proactive Maintenance approaches, as it controls

most of the tabletop activities like, Inspections of data, part ordering, prioritization

etc.

Routine Maintenance

Routine maintenance mainly carried out by the operators / technicians of

operations who doesn’t required any specialized trainings, skills, or equipment to

carried out the tasks. The main activities may be, cleaning, lubricating / greasing,

regular checks of operating parameters and reporting them. The reports or data

generating from Routine maintenance shall be helpful for develop a Planned

Maintenance activity.

3.7.2. REACTIVEAPPROACH

Emergency Maintenance

Corrective Maintenance

All the maintenance plan and schedules shall be generated by considering following

main points,

WHAT

This defines what work needs to be done, what materials, tools, equipment, and

documentation will be required. Most of the time the engineers facing issues due to

lack of the above details. Clear definition on what the work is allows the planner to

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identify what specific materials will be and may be required to do the work. It also

allows the planner to identify if the task can be completed with basic hand tools or if

specialty tools may be required. Lastly, the planner can identify and provide any

drawings, specifications or other documentation that may be helpful to the craft.

WHY

Defines the reason behind the activity, which provide the context to the maintenance

engineer doing the work, so they understand why they are doing this maintenance

activity.

HOW

This defines HOW the work should be completed. This activity shall be well

documented to help the long-term reliability of the plant. The documentation will help

the individuals to address any startup failures after maintenance activities. This will

also help the organization to use the documentation as a knowledge transfer tool.

PLAN-DO-CHECK-ACT (PDCA)

This process will help the planner to update the planning documentation and to

improve job in future. This will also help the engineers to ensure the safe, effective,

and quality completion of work

Further to this, the following steps shall also use to develop the different Maintenance

Planning and Control process,

Problem Identification

Plan The Task

Schedule The Task

Allocation Of Task

Ensure The Effective Execution of Work

Analyze The Problem

3.7.3. SPARES

We have planned and designed to ensure the in-plant availability of standard spare

parts in addition to the recommended spare parts of the OEM equipment. Some of

the identified key spare parts are listed below,

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Pumps

For all pumps – 1 set of bearings and gland sealing for each pump.

For all electric motors – 1 set of bearings (driven and non-driven) and gland

sealing, if the bearings are lubricated with oil – for each motor.

For plunger pumps– 1 set for each pump: plungers, glands, suction and outlet

valves, pulse dampers.

Connecting drive sleeves for the pumps.

Changeable elements of inlet filters.

Air Fin Coolers

One (1) set of the belts for each of the air fin coolers

Pulleys for the electric engines and shaftsoftheair-fincoolers

Shaftsfor the air fin coolers

1 set of bearings for the shaftsoftheair-fincoolers

Bladesfortheair-fincoolers

Electric engine of the air-fincoolers.

Pneumatic cylinders of the shutters control linkage

Controller of the pneumatic cylinder of the shutters control linkage

Temperature-regulated chamber of the controller of the pneumatic cylinder of the

shutters control linkage

Connecting drive sleeves

Gaskets

1 set of gaskets for each of the heat exchangers

1 set of gaskets for the cooler (chiller)

Gaskets 1", 2", 3", 4", 5", 6", 8", 10", 12", 16" in accordance with the parameters

of the planned GPP (Gas Processing Plant).

Shut-Off and Control Valves

Gland sealing of the shut-off and control valves

Glycol Regeneration Unit

One set of removable elements of fine filters

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Project: FLARING GAS COMMERCIALIZATION PROJECT: AUTOMATED GAS TREATMENT

One set of packing for evaporation tower

Freon Cooling Installation

1 set of bearings for each of the electric engines of the compressors and gland

sealing if the bearings are lubricated with oil

1 set of bearings for each of the compressors

Gland sealing of the compressors

Potentiometer (transmission of the feedback (signals) for identification of the

position of the control valve)

Coalescing filters

Removable elements of the filters of the compressor lubricating system

Absorbing filters

Repair kit of the back pressure valve

Electric safety devices of the control panel

Connecting sleeves of the compressors and electric engine

Temperature, pressure and level detectors

For all pumps – 1 set of bearings and gland sealing for each pump

Connecting drive sleeves for the pumps.

Coalescers

Per one (1) set of coalescing elements.

Separators, dividers

Per one (1) set of separating and dividing elements.

Oil Heater

Removable filter elements on fuel gas

Spare parts for burner and ignition devices

Flowmeters

Spare parts for flowmeters

Towers

Per one (1) set of sieve trays for K-1 and K-2 towers.

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4. ENVIRONMENTAL BENEFITS

The proposed technology doesn’t have any hazardous substances / wastes during any stage

of process from beginning to the end.

PROCESS WASTES

The technology doesn’t produce any industrial wastes during the process. The

Catalyst used in production have a service life of 3-4 years. However, the used

Catalysts can be disposed of as ordinary waste or resold since it can be used as a

raw material for road construction.

While using our technology, there is an economically effective transformation of the

thermal energy of dry fuel gas (methane and ethane) into electrical energy without

unnecessary stages of fuel gas preparation. That is, there is no stage for cleaning C1

+ C2 from inert gases CO2 and N2, which means there are no losses during gas

separation (while inert gases serve as a working fluid in gas piston electric

generators).

AIR POLLUTION

With the help of minimized flaring, we shall reduce the Thermal Radiation and Noise

level in the environment which benefit the Eco system and Atmosphere and so the

nearby vegetation and quality of water. The technology will also help to improve the

Air quality of nearby areas by reducing the hazardous gases / materials and increase

in Oxygen level.

This will help the nearby communities to improve their health-related issue like, High

blood pressure, Hearing loss, Respiratory issues, Eye site etc.

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5. PROJECT SCHEDULE

ACTIVITIES ACTIVITIES IN MONTHS

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18

Elaboration of preliminary technical solutions after the detailed study of Available Gas

Development of engineering design documentation

Development of detail design, including:

Preparation of assembly and process flow diagrams, equipment layout

Development of engineereing documentation for plants- manufacturers of packaged and non-standard equipment based on the previously

developed project Steel structures details, as per the detail design

Procurement of standard equipment and

components, in accordance with schedules of purchased items of detail designs.

Manufacture of non-standard equipment and

assemblies

Manufacturing and delivery of steel structures, pipelines and valves in accordance with detailed design specifications for pipelines beyond the

assemblies.

Development of PAS project and procurement of

instrumentation and PAS components.

Author supervision of the equipment fabrication and assembly, construction facility.

QA/QC and Performance check of constructed Equipment.

Shipment of Equipment and installation works

Start-up and commissioning of instrumentation and PAS equipment.

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COST BENEFIT ANALYSIS

Crude Oil Production bbl/Day 10,000

Gas Flaring/ Day 5,000,000

Gas Flaring Penality (in USD) '000 scf $2.00

Discount Rate 7.0%

Base Year 2022

0 1 2 3 4 5 6 7 8 9 10

Discount Factor 1.0000 0.9346 0.8734 0.8163 0.7629 0.7130 0.6663 0.6227 0.5820 0.5439 0.5083

Fiscal year 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032

Costs -$3,650,000 -$3,411,215 $0 $0 $0 $0 $0 $0 $0 $0 $0

Benefits $0 $1,705,607 $3,188,051 $2,979,487 $2,784,568 $2,602,400 $2,432,149 $2,273,037 $2,124,333 $1,985,358 $1,855,475

Net -$3,650,000 -$1,705,607 $3,188,051 $2,979,487 $2,784,568 $2,602,400 $2,432,149 $2,273,037 $2,124,333 $1,985,358 $1,855,475

Cumulative -$3,650,000 -$5,355,607 -$2,167,556 $811,931 $3,596,499 $6,198,898 $8,631,047 $10,904,084 $13,028,417 $15,013,775 $16,869,250

Net Present Value $16,869,250

IRR 39.14%

Year IndexCash Flow

6. COST BENEFIT ANALYSIS

The industry is continuously driving and initiating new approached towards minimizing the operating cost and so the improve the

cashflow and the profitability. The cost benefit analysis mentioned below, will give a picture of economic benefits of the Flaring Gas

supplying field. As the flaring gas data is different on each field, we have assumed certain parameters in YELLOW color, for the initial

study and reference.

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