Welcome the Hydrators Use of Hydrates for Natural Gas Storage Busola Odunuga & Ben Aseme Objective  Major gas storage methods:    Aquifers Depleted Gas Reservoirs Salt Caverns  Proposed method:  Hydrates The three.

Download Report

Transcript Welcome the Hydrators Use of Hydrates for Natural Gas Storage Busola Odunuga & Ben Aseme Objective  Major gas storage methods:    Aquifers Depleted Gas Reservoirs Salt Caverns  Proposed method:  Hydrates The three.

Welcome the Hydrators
Use of Hydrates
for Natural Gas
Storage
Busola Odunuga
&
Ben Aseme
Objective
 Major gas storage methods:



Aquifers
Depleted Gas Reservoirs
Salt Caverns
 Proposed method:

Hydrates
The three major methods of storing
natural gas are compared with the
use of hydrates.
Outline
Gas Hydrates Storage
Use of Depleted
Reservoirs
Use of Salt Caverns
Use of Aquifers
Natural Gas Storage - A brief history
“After WW II, natural gas consuming countries
noticed that the seasonal demands for natural gas
could not possibly be met by then present pipeline
delivery methods alone. The sizes and deliverability
of pipelines would have to be increased
dramatically to meet this challenge. The technology
to construct such pipelines to transport the gas to
major consumers was unattainable. Thus began the
natural gas storage movement”.
Why Hydrates as Storage Method?
Cost factor
Hydrates
could be relatively cheaper than other
forms of storage method.
 Hydrates can be used for economic storage of natural
gas in cold countries and the associated cost can be
relatively minimized.
Accessibility
 Tanks
can be easily accessed when needed especially
during peak periods.
Safety
 Incase
of an explosion, hydrates burn slowly due to
the presence of ice.
Natural Gas Hydrates
Gas hydrates are naturally
occurring solids composed of
water molecules forming a
rigid lattice cage containing
molecule(s) of natural gas.
Natural Gas Hydrate Structure
Options for Storage
Pressurized
Tank
Refrigerated
Tank
Natural Gas Hydrates
• Pressure = 6MPA and Temperature = 293K
Natural Gas Hydrates
Gas
Gas and water slurry after depressurizing
Slurry mixture
Storage for water and gas mixture
Heat
Recycled water flowing back to the system
Water removed
Hydrates gas recovery diagram
V-14
 Pressurized tank in order to reduce cost.
 Volume of tank needed was found by
Where Q is the inlet flow rate of gas, and R is the
rate of formation of hydrates.
Important Factors: Temperature and Pressure
Storage Method for Hydrates
 Where R is the rate of
hydrate formation, μ2 is
the second moment of
distribution around
particle size for hydrate; f
is the fugacity of gas, feq
is the fugacity of gas at
equilibrium, and K* is the
kinetic parameter
Volume of reactor used for
Hydration/Storage
V=Q/R , where V is the volume of the reactor, Q is the gas flow rate in the reactor, R is the
rate of hydrate formation.
Flare gas
Gas and water slurry supply after storage
Compressor 129KW
Gas and water mixture
Gas supply
Pressurized vessel heated
V-6
Storage for water/gas mixture
water
Gas Supply
Pressurized Tank
V-2
V-3
Fresh water supply
Fresh water supply
Heat
Pump
Recycle water
V-5
Fresh water supply
Process flow diagram for
Hydrates
V-4
V-13
Depleted Gas Reservoirs
 These are naturally occurring gas reservoirs that
have been tapped of all recoverable natural gas.
 Began in Ontario, Canada 1915.
Important Selection factors
 Porosity
 Permeability
Depleted Gas Reservoirs
‘the Hydrators’ Natural
Gas Delivery
How’s my driving?.....
Gas gathering pipeline
Compressor
Call: 1-800-Methane
Wellheads
Valve
Pump
Injection Well
Withdrawal well
Depleted Gas Reservoir
Working Gas
Cushion Gas
Depleted Reservoirs – Unique characteristics
Well-understood
geological make-up.
Existing gas
processing
facilities.
Primarily
used for baseload gas
storage.
Advantages
Disadvantages
Large storage volume
Demands ready market
Short development period
Requires low permeability
Poor regional spread
Aquifers
An aquifer storage field is a sub-surface
facility for storing natural gas.
Aquifers are water bearing sands topped by
an impermeable cap rock
Aquifers
 Summary of parameters used
Avg. Bottom Hole
pressure
Top pressure
volumetric flow rate
mass flow rate
Density
k
Length of Pipe
7.3
101325
100
4302
0.717
1.31
100
MPa
Pa
m3/s
kg/s
kg/m3
m
Aquifers
Withdrawal pipe
Gas supply
V-1
Withdrawal pipe
V-12
compressor
P-19
V-2
V-3
E-9
Injection
of gas
Process flow diagram for Aquifers
Aquifer Underground Storage
Aquifers
 Land for Aquifers
 Must be well spaced at least 320-640 Acres apart
 Must be located no less than
100 feet from private homes
 150 feet from public streams
 50 feet from any streams


Land cost= $/acre × amount of acre used for storage (including
restrictions)
Salt Caverns
These are large underground cavities created inside
salt domes/deposits using leaching (solution
mining) techniques.
Relatively new gas storage method (Began by SMGC
in 1961).
Increasingly popular method of natural gas storage.
Primarily located along the Gulf Coast (Texas,
Louisiana, Mississippi and Alabama).
Salt Caverns
‘the Hydrators’ H2O
Delivery
How’s my driving?....
Valve
Call: 1-800-Solvent
Solution mining technology
I/W well
Salt cavern
formation
Salt Dome
Salt Caverns
‘the Hydrators’ Natural
Gas Delivery
Gas gathering pipeline
Compressor
How’s my driving?....
Call: 1-800-Methane
Wellheads
Valve
Pump
Injection Well
Withdrawal well
Salt Cavern
Working Gas
Cushion Gas
Salt Caverns
Salt Caverns – Unique characteristics
Storage development
technology.
Smaller
storage
capacity.
Primarily used
for peak
shaving gas
storage.
Advantages
Disadvantages
Cavern volume control
Smaller storage volume
Low permeability
Expensive development
technology
Minimal cushion gas
requirement
Environmental
concerns
Development cost factors









Wells
Valves
Compressors
Cushion gas
Utilities
(Electricity)
Pumps
Land / Labor
Installation costs
Pressurized tanks







Gathering system
Gas flow meters
Dehydrators
Separators
Property
Taxes/Insurance
Drilling
Leaching
Gas storage cost breakdown
Wells
• As conduits for the transport of gas into and from the earth, they are an
important part of any gas storage facility.
• Primary Gas well components:
• Well casing
• Well tubing
• Average number of gas wells is between 2 and 4 per storage facility.
Compressors
• Compressors are one of the most expensive components of any gas storage
facility.
• Compressor-incurred costs come from power requirements, equipment material,
etc.
Compressor power calculation
HP = Theoretical Horsepower
Q=flow rate in Million Standard ft3 per day
P1=Suction-side pressure in psia
P2=Discharge-side pressure in psia
T1=Suction-side temperature in degrees Kelvin
Z1=compressibility factor
k=ratio of natural gas specific heats
Gas storage cost breakdown
Cushion Gas
Provides the
minimum
deliverability
pressure
required by
law.
Influences
storage cost
based on its
ratio to the
working gas.
Current
market price
for natural gas
is
approximately
$4.00 per
mmbtu.
Costs also
include
injection,
withdrawal
and storage
costs.
Gas storage cost breakdown
Utilities (Electricity)
Gas compressors and pumps are powered by electricity
and this adds to the storage facilities total cost.
• Storage capacities influence electrical power requirements which in
turn influence total cost.
• Electricity costs were calculated from compressor and pump power
requirements.
Pumps
• Pumps are required to aid gas delivery when the reservoir pressure is not
high enough.
• Pump incurred costs come from pump material and deliverability rates.
• Deliverability = Withdrawn gas volume(mmscf)/withdrawal period(days).
• They can be omitted if reservoir pressure is high enough.
Gas storage cost breakdown
Land
• Leasing or outright purchase of storage facility land
is an important cost item.
• Land is leased on a yearly basis.
• Can be estimated as a fraction of the total capital
investment.
Labor
• Labor is also an integral part of total cost calculations.
• Labor cost calculations came from total development and
withdrawal time periods.
• Estimated using semi-skilled labor pay rates(~$30.00/hr
basis).
Gas storage cost breakdown
Installation costs
Cost Factors
Separators: 25%
Compressors: 20%
Include
miscellaneous costs
associated with
installing purchased
equipment and
sometimes
associated labor.
Dehydrators: 22.5%
Installation costs
were derived as a
percentage of
equipment cost.
Flow meters: 30%
Pumps: 30%
Valves: 28%
Piping: 35%
Gas storage cost breakdown
Property Taxes/Insurance
Property taxes are in the range of 2
to 4 percent for highly populated areas and in
the range of 1 to 2 percent for less populated
areas.
Property insurance is about 1
percent the total fixed capital investment per
year.
“Nothing is certain but death and taxes” – Benjamin Franklin(1706-1790, American
founding father and polymath).
Depleted Gas Reservoirs
Wells
• Average depth of 5500ft.
• Well casing and tubing made
from medium grade steel.
• Combined weight of well
material is ~ 6 lbs/ft
• Current cost estimates of
medium grade steel =
$1000/ton
• Total costs = $35,000,000.00
Depleted Gas Reservoir
Compressors
• The basic compressor equation was used to
estimate the compressor power requirements.
• Horse power estimates came up to 41,795
theoretically.
• Resulting total compressor cost estimate was
approximately $7,877,987.14 .
Depleted Gas Reservoir
Cushion gas
Purchase cost
Occupied half
of gas is
of the total gas
approximately
reservoir
$4.00 per
volume.
mmbtu.
We used
estimates of
$4.00 per
mmbtu.
Total cushion
gas cost
estimates =
$22 million
for a max.
capacity of 10
BCF.
Depleted Gas Reservoir
Pumps
• Pump costs were calculated using the gas
delivery flow rates.
• Pump cost estimates were approximately
$418,619.79.
Electricity
• Estimated from the horsepower
requirements of the compressor and pump.
• Total estimates equal $6,370,695.01 .
Depleted Reservoirs
Land:
• Leasing cost estimates came up to about$250,000 per year.
Labor:
• Estimated at $192,000 over the activation/injection and
withdrawal period.
Installation costs:
• Combined total of percent equipment costs, approximately 40
million dollars.
Total cost estimate=$30 million per BCF.
Salt Caverns
Wells
Estimated total cost =$26,525,000.00
Valves
Estimated cost = $48,000.00
Compressors
Total estimated cost = $2,363,396.04
Salt Caverns
Cushion gas
Total cost estimate = $1,500,000 per BCF
Electricity
Total cost estimate = $63,400 per BCF
Pumps
Total cost = $209,000
Salt Caverns
Land
Total lease estimate = $257,000 per yr.
Piping
Estimated at $300,000 per BCF
Installation costs
Total estimate =$5,000,000
Total cost estimate=$14 million per BCF
Comparing the effects of natural gas prices in Aquifer
cost calculations
$120.00
$100.00
$/mmbtu
$80.00
$ 4 cushion gas
$60.00
$2 cushion gas
$6 cushion gas
$8 cushion gas
$40.00
$20.00
$0.00
0
2000000
4000000
6000000
8000000
capacity in mmbtu
10000000
12000000
TCI of Acquifer compared to Hydrates
$200.00
$180.00
$160.00
TCI/mmbtu
$140.00
$120.00
Hydrates
$100.00
Aquifer at $4/mmbtu
aquifer at $6/mmbtu
Aquifer at $8/mmbtu
$80.00
$60.00
$40.00
$20.00
$0.00
0
2000000
4000000
6000000
Capacity in mmbtu
8000000
10000000
ROI of Hydrates vs. Aquifer at different Natural gas prices
0.7
0.6
0.5
0.4
ROI
Hydrates
Aquifer at $4 cushion gas
Aquifer at $6 cushion gas
0.3
Aquifer at $8 cushion gas
0.2
0.1
0
0
2000000
4000000
6000000
8000000
Capacity in mmbtu
10000000
12000000
Cost Summary
Summary Results for Aquifers and Hydrates
Hydrates
Aquifers
Compressor
$291,466.80
Pumps
$83,333.34
Cushion Gas
Extra Fees
Land
Utilities
Pressurised Tank
-
$32,000,000.00
$1,800,000.00
$45,000.00
$42,000.00
$24,625,109.00
Valves
$182,625.97
Pipes
$181,779.20
TCI/mmbtu
ROI
Total Cost
$25,000,000.00
-
$15.18
$35.65
0.66
0.28
$25,591,314.31
$60,113,205.31
Cost Comparison for typical Salt cavern and Depleted
reservoir
$220.00
$200.00
$180.00
$160.00
$140.00
$/mmbtu
D.R. at $2.42/mmbtu
D.R at $4.42/mmbtu
$120.00
D.R. at $6.42/mmbtu
D.R at $8.42/mmbtu
$100.00
S.C at $2.42/mmbtu
S.C at $4.42/mmbtu
$80.00
S.C at $6.42/mmbtu
S.C at $8.42/mmbtu
$60.00
$40.00
$20.00
$0.00
0.00E+00
2.00E+06
4.00E+06
6.00E+06
mmbtu
8.00E+06
1.00E+07
1.20E+07
Return on Investment
0.20
0.18
0.16
0.14
ROI
0.12
0.10
D.G.Reservior
Salt cavern
0.08
0.06
0.04
0.02
0.00
0.00E+00
1.00E+06
2.00E+06
3.00E+06
4.00E+06
5.00E+06
MMBTU
6.00E+06
7.00E+06
8.00E+06
9.00E+06
1.00E+07
Conclusions
Equipment Cost for Hydrates is not as expensive as
other existing forms of storage.
Return on Investment is Higher than other
compared methods.
Accessibility/mobility factors favor hydrates.
Conclusions/Recommendations
● Hydrates can be used for economic storage of natural gas in countries with
colder climates.
● Associated costs of natural gas storage using hydrates can be relatively
minimized.
● The use of natural gas hydrates for storage is an alternative that maintains a
high degree of safety. An ignited gas hydrate mass burns slowly and doesn’t
explode due to the presence of frozen water molecules.
Thank you
Questions!
Questions!!
Questions!!!