FLARE OUT SOLUTIONS 0

Transcription

1 FLARE OUT SOLUTIONS 0

2 FLARING A GLOBAL ISSUE Eastern Europe South East Asia Off Shore North Sea Africa 1

3 FLARING IN NUMBERS Global gas flaring is in the range of 150 to 170 billion cubic meters (BCM). Flaring adds about 400 million tons of carbon dioxide into the atmosphere each year. The global gas flaring represents 27% of the natural gas consumption of the USA with a potential market value of US$40 billion. Nigeria 47% of the total gas production (representing US$ 1.5 billion in lost revenue) Russia - 25 % of the total gas output Iraq 60% of associated natural gas (lost of 4,000 tons of LPG per day). 2

4 WHAT CAN YOU DO ABOUT IT?? 3

5 FLARE ISSUE Wells Flare 4

6 FLARE SOLUTION OPTIONS Wells Flare 200 BLS Storage tank Pump Separator Filter Separator Compression Gas Treating Equipment Sales Power Generation Injection Well CNG 5

7 LPG OPTION Wells 200 BLS Storage tank Pump Separator Filter Separator Compression LPG Facility Sales $$$$$ Power Generation Injection Well CNG 6

8 SAMPLE PROJECT OF MONETIZING A RICH GAS STREAM Project overview Client contacts Valerus to assist in providing the most economic solution to treat heavy hydrocarbons in a gas stream utilized for fuel gas in a 200MW power plant due to excessive maintenance related to the heavy gas. Actions: Valerus Team reviews gas analysis to determine best solution from a CAPEX standpoint. Alternatively the process engineers review the gas analysis to determine the economic opportunities associated with creating a revenue stream and compare the 2 alternatives. Solutions provided to customer: Alternative 1: Installation of a dewpoint plant to extract minimum heavy hyrdrocarbons to accomplish the BTU specification by the gas turbine manufacturer. Alternative 2: Installation of a modular cryogenic plant designed to maximize recoveries of LPG A preliminary proposal with cost and schedule are provided using the attached evaluation tools. 7

9 PRELIMINARY ECONOMICS OF GAS TREATING LPG & CONDENSATE PRODUCTION CRM NO.: DATE: September 19, 2013 CUSTOMER: Alternative # 1 DPP BY: SRG PROJECT: 40 MM CRYO Gas Composition Gallons/MSCF (GPM) Gas Heating Values MW of Gas Component Normalized GHV LHV Mole % Gas/Mole GPM GPD Mole % BTU/SCF BTU/SCF Mol%*GHV Mol%*LHV MW Mol%*MW N CO H2S C , C ,072 1, , C ,432 2, , IC ,629 3, , NC ,519 3, , IC ,409 4, , NC ,792 4, , C ,383 4, , C ,760 5, , C ,992 6, , C ,471 6, , C ,470 7, , He H Argon O GPM GPD Choose your GHV LHV TOTALS C ,072 process plant 1, ,161.7 MW C ,432 Btu/SCF Btu/SCF S.G INPUT C ,148 DPP Recovery % GPD BPD Products BPD GAS RATE MMSCFD C ,278 Propane 50 26, Total ,930 Butane 90 33, LPG 1,420 Pentane , Gasoline 927 LPG Price per Bbl $60 LPG Monthly Revenue $2,590,491 Gasoline Price per Bbl $75 Gasoline Monthly revenue Total Revenue $2,114,437 $4,704,928 8

10 PRELIMINARY ECONOMICS OF LPG BUSINESS CASE LPG & CONDENSATE PRODUCTION CRM NO.: CUSTOMER: Alternative # 2 LPG extraction Plant PROJECT: 40 MM CRYO DATE: BY: September 19, 2013 SRG Gas Composition Gallons/MSCF (GPM) Gas Heating Values MW of Gas Component Normalized GHV LHV Mole % Gas/Mole GPM GPD Mole % BTU/SCF BTU/SCF Mol%*GHV Mol%*LHV MW Mol%*MW N CO H2S C , C ,072 1, , C ,432 2, , IC ,629 3, , NC ,519 3, , IC ,409 4, , NC ,792 4, , C ,383 4, , C ,760 5, , C ,992 6, , C ,471 6, , C ,470 7, , He H Argon O GPM GPD Choose your GHV LHV TOTALS C ,072 process plant 1, ,161.7 MW C ,432 Btu/SCF Btu/SCF S.G INPUT C ,148 CRYO-SCORE Recovery % GPD BPD Products BPD GAS RATE MMSCFD C ,278 Propane 99 51,908 1,236 Total ,930 Butane , LPG 2,120 Pentane ,278 1,030 Gasoline 1,030 LPG Price per Bbl $60 LPG Monthly Revenue $3,867,578 Gasoline Price per Bbl $75 Gasoline Monthly revenue Total Revenue $2,349,374 $6,216,952 9

11 PRELIMINARY ECONOMICS OF LPG BUSINESS CASE PROPANE BUTANEPENTANE CRYO-GSP CRYO-NO C3 85 $3,867, CRYO-SCORE CRYO-SCORE DEEP CUT M DPP $2,349,374 CRYO-GSP $3,844,807 $2,349,374 CRYO-NO C3R $3,532,657 LPG MONTHLGASOLINE MONTHLY REVENUES DDP $2,590,491 ###### DEEP CUT M $3,126,567 ###### CRYO-NO C3 $3,532,657 ###### CRYO-GSP $3,844,807 ###### $3,126,567 DEEP CUT MRUCRYO-SCORE $3,867,578 ###### $2,231,905 $2,325,880 DDP $2,590,491 $2,114,437 $1,500,000/month additional revenue $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 LPG MONTHLY REVENUES GASOLINE MONTHLY REVENUES 10

12 PROJECT PICTURES $1,500,000/month additional revenue 11

13 PROJECT PICTURES $1,500,000/month additional revenue 12

14 PROJECT PICTURES $1,500,000/month additional revenue 13

15 PROJECT PICTURES $1,500,000/month additional revenue 14

16 SUMMARY Satisfy demand for energy consumption without tapping into additional natural resources Convert additional OPEX into an additional source of revenue Reduce CO 2 emissions in an effort to become compliant with global initiatives 15

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18 LPG BUSINESS CASE Conceptual design Forecasted Gas Volume 65 MMSCFD Target Recovery C3+ 95% Liquid Products (STD BBL/Day) Conceptual Contract Structure Plant Production Simulations Production CCU=10 barg(base) CCU-25 barg (Alt.) Summer Winter Summer Winter LPG 7,224 4,427 5,077 2,605 NGL 1, BOOO 60 months Lump Sump reimbursable $ 50 MM 30% advance Balance over 18 months period Monthly Processing Fee $ 3 MM Commercial Assumptions Export Price LPG $ 400/ton Export Price NGL $ 70/barrel Economic Evaluation Monthly Gross Revenue Monthly Gross Revenue Monthly Net Revenue $ 11.1 MM $ (3.0) MM $ 8.1 MM Rate of Return 123%* Pay off Reimbursable 6 months * 10 years of continuous operation 17