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THE FUTURE OF GAS TNO Energy | Rene Peters

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Page 1: THE FUTURE OF GAS - VEMW

THE FUTURE OF GAS

TNO Energy | Rene Peters

Page 2: THE FUTURE OF GAS - VEMW

OVERVIEW

The Global perspective on gas and changing views on the role of gas

European and Dutch perspective and development

Groningen, N2 and storage

Elements of the new energy system

Concluding remarks

4-4-2018 9:29 Titel van de presentatie

Page 3: THE FUTURE OF GAS - VEMW

THE VIEW OF OIL AND GAS IS CHANGING OVER TIME – DRIVEN BIJ INCIDENTS OR REALITY? 1999 2003 2009 2013

Page 4: THE FUTURE OF GAS - VEMW

OLD FRAME OF GAS:

POSITIONING GAS AS A SAFE

AND SECURE ENERGY

SOURCE, BUT ALSO

RELATIVELY CLEAN

AND AFFORDABLE.

schoon betaalbaar

betrouwbaar veilig

Kernernergie

Duurzaam

(zon/wind/biomassa) Kolen

Gas

Page 5: THE FUTURE OF GAS - VEMW

THIS WAS ONLY 8 YEARS AGO

'Gasrotonde levert economie miljarden op‘, Telegraaf 09-12-2010

Page 6: THE FUTURE OF GAS - VEMW

NEW PUBLIC FRAME OF GAS

POLLUTING AND DANGEROUS

6

Page 7: THE FUTURE OF GAS - VEMW

RECENT GLOBAL CHANGES

IMPACTING VIEWS ON GAS

Global and EU

Gazprom interrupting gas to Ukraine – EU dependency of gas

Fukoshima disaster Japan – drive from nuclear to gas as energy fuel?

Atom Ausstieg Germany – back to coal/gas

Energiewende Germany – drive to renewables (and coal)

Shale Gas development US and Canada – change from LNG import to export

EU focus on energy transition, introduction of decarbonized sources

NL:

Seismicity Groningen, Huizinge and Zeerijp events – changed public view on gas

LNG import via GATE terminal Rotterdam with new applications in mobility

More focus on biobased sources such as Biogas and Green Gas in the distribution grid

Future development of Synthetic Natural Gas, Power to Gas and Hydrogen in the grid

Admixing with NG or pure transport?

Page 8: THE FUTURE OF GAS - VEMW

THERE IS NO SHORTAGE OF GAS IN THE WORLD

WORLD PROVEN GAS RESERVES AND REPLACEMENT RATE

From: IEA special report on gas

Page 9: THE FUTURE OF GAS - VEMW

• The European Commission's Energy Roadmap 2050: – Gas is a critical fuel for transition to low-carbon energy system

– Gas replacing oil and coal can reduce CO2 emissions

– Gas has a permanent role in future energy mix besides CCS

• EU will become more dependent on energy imports in the future – In particular gas

• Europe will be affected by shale gas activities elsewhere around the world, via

the global gas/LNG market

EU PERSPECTIVE ON GAS

Page 10: THE FUTURE OF GAS - VEMW

GAS IS NOW THE PRIMARY SOURCE OF POWER

28 September 2016 10 | VP Geo Energy

Page 11: THE FUTURE OF GAS - VEMW

AND THE CONSUMPTION OF GAS IS INCREASING

28 September 2016

Page 12: THE FUTURE OF GAS - VEMW

IN UK, GAS IS

CONSIDERED A

SOLUTION

TO REDUCE

CO2 EMISSIONS

UK:

Phase out coal

Increase biofuels/biogas

Increase gas

Increase renewables

Similar in US and China

CO2 emissions reduce as a result of

a switch from coal to gas

28 September 2016

Page 13: THE FUTURE OF GAS - VEMW

EUROPE IS STILL HIGHLY DEPENDENT ON GAS

Total EU demand

500 BCM and

increasing

Indigenous production

is in decline

i.e. more import from

Russia

Norway

Algeria

LNG

28 September 2016

Page 14: THE FUTURE OF GAS - VEMW

CHANGE IN NATURAL GAS PRODUCTION BY REGION

NORTH SEA IS THE FIRST REGION GOING INTO DECLINE

From: IEA special report on gas

UK and NL

Page 15: THE FUTURE OF GAS - VEMW

INTERNATIONAL GAS MARKT PRICES

Gas and LNG prices in decline with increased supply worldwide

Ondertussen in Gasland

Page 16: THE FUTURE OF GAS - VEMW

THE IMPORT

DEPENDENCY

OF RUSSION GAS

INCREASES

10 januari 2011

Russian gas import 180 bcm/yr

~30% of EU demand

~60% of EU import

Gepolitical impact mostly at

east European countries with

no access to other markets or

LNG

Page 17: THE FUTURE OF GAS - VEMW

SOURCE OF DUTCH WEALTH

Page 18: THE FUTURE OF GAS - VEMW

GAS EARNINGS IN THE NETHERLANDS

M Bouman

TNO Nieuwe huisstijl 18

From TNO: www.nlog.nl

Page 19: THE FUTURE OF GAS - VEMW

GAS PRODUCTION IN THE NETHERLANDS UNTIL 2013

OFFSHORE GAS IN DECLINE SINCE 2007, GRONINGEN AT ITS PEAK

10 januari 2011 M Bouman

TNO Nieuwe huisstijl

19

From TNO: www.nlog.nl

Page 20: THE FUTURE OF GAS - VEMW

CURRENT STATUS W.R.T. NATURAL GAS IN NL (2017)

481 gasfields discovered (2017)

both on- & offshore

241 In production

5 converted to gas storage

90 depleted

32 planned for production

75 “stranded fields”

N.B. infrastructure (platforms and

pipelines) are at maximum and will

decline from now on!

Current reserves: 740 BCM (20 jr)

Of which 586 BCM in Groningen

Page 21: THE FUTURE OF GAS - VEMW

RELATION PRODUCTION GRONINGEN

AND SEISMICITY

21 | Induced seismicity of the Groningen field

for events ML ≥ 1.0 Annual production

Page 22: THE FUTURE OF GAS - VEMW

DEVELOPMENTS THAT IMPACT THE TRANSITION TO NET IMPORT

10 januari 2011

M Bouman

TNO Nieuwe huisstijl 22

Groningen field

Small fields

Gas demand in NL

Export > 2020 < Import

1. Declining demand

2. Groningen production cap

3. Innovation in small fields

4. Exploration potential

Page 23: THE FUTURE OF GAS - VEMW

Vraag

(mrd m3)

2018 2030

45

20

10 Gasvraag kleine industrie (tuinders, kantoren)

Gasvraag huishoudens

Exportverplichting

GASVRAAG GRONINGEN KWALITEIT

Page 24: THE FUTURE OF GAS - VEMW

Aanbod

(mrd m3)

2018

45

23

Aanvulling uit Groningenveld

Capaciteit N2 voor pseudo G-gas

~2027

GASAANBOD GRONINGEN KWALITEIT

2030

Page 25: THE FUTURE OF GAS - VEMW

Aanbod

en vraag

2018 2030

45

23 20

10

Aanvulling uit Groningenveld

Capaciteit N2 voor pseudo G-gas

Gasvraag kleine industrie (tuinders, kantoren)

Gasvraag huishoudens

Exportverplichting

2027

GASAANBOD EN –VRAAG

GRONINGEN KWALITEIT - ACTIES

Page 26: THE FUTURE OF GAS - VEMW

OPTIES REDUCTIE GRONINGEN GAS (LC)

?

Page 27: THE FUTURE OF GAS - VEMW

Verschil leveringszekerheid <> voorzieningszekerheid <> veiligheid

N2 capaciteit is voldoende voor de totale vraag na ~2027

Extra N2 capaciteit is (te) laat beschikbaar (~2021)

Export vraag is maximum, en sterk weersafhankelijk

Meer opslagcapaciteit (bv Norg) kan piekvraag opvangen

Van vlak profiel naar seizoensgebonden profiel Groningen

Huishoudens ombouwen naar HC gas duurt (te) lang

Minder gas gebruik door besparingen en isolatie etc. is (te) traag

Kleine industrie ombouwen naar HC is een oplossing op korte termijn

Nieuwe velden met LC gas versneld ontwikkelen voor middellange termijn

ISSUES

Page 28: THE FUTURE OF GAS - VEMW

GASNET

BELGIE

1.6 Mln huishoudens

Ombouw tot 2030

Inclusief doorvoer Frankrijk

Page 29: THE FUTURE OF GAS - VEMW

L-GAS GEBIED

DUITLAND

4.9 Mln huishoudens

Ombouw tot 2030

Gebruik extra N2 capaciteit beperkt

Gebruik extra L-berging mogelijk

Page 30: THE FUTURE OF GAS - VEMW

BENUTTING STIKSTOF FABRIEKEN

Huidige baseload capaciteit, voornamelijk Wieringermeer (215.000 m3/hr) en Ommen (146.000 m3/hr)

Maximale base load capaciteit H-gas + N2 (Pseudo G-gas): 21 BCM

Onbenutte capaciteit gas jaar 2016/2017: > 8 BCM

Wiebes: nieuwe faciliteit Zuidbroek

Extra capaciteit Pseudo G-gas: 7 BCM

Inzet?

28 September 2016 30 | VP Geo Energy

Gas jaar MAXIMALE N2

FIRM

Nm3/hr INZETBARE N2

FIRM

%

firm

GEBRUIKTE N2 %

max

%

firm

2014/2015 0 0 686.572.144

2015/2016 2.420.144.000 276.272 1.964.938.067 81% 1.113.003.221 46% 57%

2016/2017 3.162.360.000 361.000 2.778.616.700 88% 1.706.998.321 54% 61%

2017/2018 1.175.777.000 1.070.524.667 91% 869.416.662 74% 81%

Data: GTS

Page 31: THE FUTURE OF GAS - VEMW

INZET BERGINGEN VOOR LAAGCALORISCH GAS

Nederland

Norg wordt gebruikt voor opslag

Groningen gas, niet pseudo G-gas

Maximale opslag voor pseudo G-gas

is 4 BCM vanwege transport

beperking

Kan vraag Groningen 4 BCM verlagen

Duitsland en Belgie

Zeer beperkte opslagcapaciteit B

6 L-gas bergingen Duitsland

Worden afgebouwd naar 2030

Mogelijk extra capaciteit te benutten

voor leveringszekerheid in de winter.

28 September 2016 31 | VP Geo Energy 1 BCM ~ 10 TWh

Page 32: THE FUTURE OF GAS - VEMW

NEW DISCOVERIES

OFFSHORE GAS

Discovery Hanze Hydrocarbons (2017)

Ruby Field - North of Groningen

GIIP 8 BCM (probably expanded)

20% N2, Low Caloric value gas

Potential expansion Tanzaniet, Apatiet

Potential 1 - 2 BCM/yr full field dev.

Green development, ‘’zero emission’’

28 September 2016 32 | VP Geo Energy

Page 33: THE FUTURE OF GAS - VEMW

THE FUTURE OF ENERGY SYSTEM

SHOULD BE HYBRID AND FLEXIBLE

We need clean electrons and molecules

Combination of fossil and renewable sources

Flexible in supply, central & decentralised

Storage via batteries, heat, gas, liquid

Energy transport via gas, electricity, heat

Conversion power to heat, gas, liquid

System integration of energy sources

Energy transition, a bumpy road

Page 34: THE FUTURE OF GAS - VEMW

SOME ELEMENTS OF THE FUTURE

ENERGY SYSTEM

ENERGY IN TRANSPORT Diversification of fuels

Low sulfur diesel

GTL/BTL

Biofuels

Gas (LNG/CNG)

Electric

Hydrogen

Synthetic fuels

For heavy duty

applications electric

is not an option

Decarbonising fuels

is a key driver

Energy transition, a bumpy road

Page 35: THE FUTURE OF GAS - VEMW

Groningen

Norway

Russia

LNG import

Shale Gas ?

Biogas ?

SNG ?

H2 ?

Gas quality monitoring

more important

Energy transition, a bumpy road

SOME ELEMENTS OF THE FUTURE ENERGY SYSTEM

A TRANSPORT NETWORK WITH MULTIPLE GAS SOURCES

Page 36: THE FUTURE OF GAS - VEMW

10 januari 2011

37

SOME ELEMENTS OF THE FUTURE ENERGY SYSTEM

THE GAS GRID WILL BECOME A SMART GRID

Page 37: THE FUTURE OF GAS - VEMW

SMART GAS GRIDS

TAKING INTO ACCOUNT GAS COMPOSITION CHANGES

PROVIDING OPERATIONAL SUPPORT TO THE OPERATOR

38 | Innovation in Oil and Gas Exploration & Production

Gas network of the Texel island Section of the smart gas network

• Operator support

• Gas quality monitoring

• Gas quality prediction

• Security of supply

• Maintenance support

Page 38: THE FUTURE OF GAS - VEMW

Increasing amount of offshore wind power generated intermittently will require

power balancing via energy storage, energy conversion or energy use in the

North Sea. Power to Gas / Hydrogen will play a major role

Energy transition, a bumpy road

SOME ELEMENTS OF THE FUTURE

ENERGY SYSTEM

OFFSHORE WIND AND POWER TO GAS

Offshore wind

Page 39: THE FUTURE OF GAS - VEMW

SYSTEM INTEGRATION OPTIONS

OFFSHORE ENERGY

Electrification of offshore

gas platforms

Power to Gas (P2G) & H2 transport

Carbon Transport and Storage (CCS)

Gas to Wire Energy storage

Development of large-scale offshore wind can be integrated

with offshore gas infrastructure along the following main options:

Targets:

Emission reduction (CO2, NOx)

Grid balancing

Efficient use of socialised cost

Re-use of invested capital * Full report on www.tno.nl see www.north-sea-energy.eu

Page 40: THE FUTURE OF GAS - VEMW

POWER TO X CONVERSION OPTIONS

Energy transition, a bumpy road Source: 2016 - ENEA - The potential of power-to-gas

Industrial use

Energy storage

Gas-to-Power Liq.-to-Power

Page 41: THE FUTURE OF GAS - VEMW

POWER TO GAS DEMO PROJECTS GERMANY

H2

to store energy

to source H2 network

as a product for chemical

industry

Energy transition, a bumpy road Source: Uniper (2016)

Next step:

Power to methane

Power to methanol

Power to DME

Page 42: THE FUTURE OF GAS - VEMW

Earlham

P01-FA Q1

P15 cluster

P18 Cluster

Rotterdam

Dutch North Sea Trunkline

Rotterdam CO2 Gateway

Onshore connection to collection network

Intersection

CO2 CAPTURE, TRANSPORT AND STORAGE

PCI “ROTTERDAM NUCLEUS”

December 7 2017 Offshore CO2 storage

Enabling storage of 30 MT/yr of CO2 offshore

Page 43: THE FUTURE OF GAS - VEMW

Source: 2013 - DVGW

Hydrogen admixing in the grid

Gro

ss

ca

lori

fic v

alu

e (

=H

HV

), H

s [

kW

h/m

3]

Analysis based on German DVGW Worksheet G 260. From the perspective of the regulations for the gas

characteristics of fuel gases for public gas supply system

admixing of hydrogen gas is possible:

• up to 15% H2 admixing for Groningen gas

• up to 15% H2 admixing for North sea gas

• up to 3% H2 admixing for Russian gas There are potential limitations of H2 additions for the structural elements in the natural gas grid and of gas consuming technologies: • Pipelines in high/medium/low-pressure grid: H2 addition

of up to 50 vol.% is considered uncritical.

• Existing gas turbines: limited to 1-5 vol.% H2. Higher

percentages are possible by adding fuel a gas

methanation unit.

• Ultrasound, turbine, and diaphragm gas meters: suitable

for high H2 concentrations.

• Volume conversion devices may be used without any

restrictions for gas mixtures containing up to 10 vol.%

H2.

• No major problems are expected with gas engines at H2

contents of up to 20 vol.%, provided that the engine

specific methane numbers are met. Yet the DIN 512624

provision is very restrictive in that it specifies a maximum

H2 addition of 2 vol.%.

Page 44: THE FUTURE OF GAS - VEMW

CONCLUDING REMARKS

The global role of gas is increasing, as a source of low carbon energy, to improve air quality

EU production of conventional gas resources is in decline, dependence of Russia is

increasing, LNG import should be stimulated

Gas Strategy of the Netherlands

Groningen production to be reduced to minimise seismic risk

More efficient use of N2 facilities and L-gas storage capacity

Offshore small fields policy should be strengthened to reduce import dependence

Renewable gas sources should be developed to reduce climate impact

Gas infrastructure should be prepared for renewable gas (Green Gas, SNG, H2)

Knowledge position build up needed for Hydrogen as a clean gas for industry, mobility

and households, including attractive energy storage and transport option

International renowned position of NL as a gas production, transport, trading and storage

should be maintained, and expanded with renewable gas such as Hydrogen

Page 45: THE FUTURE OF GAS - VEMW

THE FUTURE OF GAS IS BRIGHT

Take a look: TIME.TNO.NL