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R & D Centre for Oil and Gas Technology “LEMIGAS” Manila, 23 June 2011 Carbon Capture and Storage: Prospect & Development in Indonesia

CCS Development and Prospects in Indonesia - Sugihardjo

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This presentation was given as part of the CCS Ready workshop which was held in association with the 6th Asia Clean Energy Forum (20 – 24 June, Manila)The workshop discussed the range of measures and best practices that can be implemented to prompt the design, permitting and construction of CCS projects when designing or building a new fossil fuelled energy or industrial plant. The workshop hosted participants of the Asian Development Banks’ Regional Technical Assistance Program who updated the group on the outcomes of their individual projects.This presentation provides an update on the current project being undertaken under the Asian Development Bank’s Regional Technical Assistance Program which aims to conduct an analysis of the potential for CCS, culminating in a road map for a CCS demonstration project in Indonesia.

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Page 1: CCS Development and Prospects  in Indonesia - Sugihardjo

R & D Centre for Oil and Gas Technology

“LEMIGAS”

Manila, 23 June 2011

Carbon Capture and Storage: Prospect & Development in Indonesia

Page 2: CCS Development and Prospects  in Indonesia - Sugihardjo

Page 2

Outline

Background

Indonesia’s Pathway in CCS

Prospect of CCS Deployment

CCS Development in Indonesia

Main Issues and Challenges on CCS Deployment in

Indonesia

Basin Assessment and CO2 Storage Capacity Estimation

in Depleted Reservoirs

Selected Area for ADB Technical Assistance for CCS

Conclusions

Page 3: CCS Development and Prospects  in Indonesia - Sugihardjo

Page 3

Background

• GOI’s non-binding commitment to reduce

country emissions to 26% in 2020

• Current efforts are considered still

insufficient to achieve CO2 emissions

abatement target in 2020

• energy mix improvements

• the switch to less-carbon intensive fuels

• renewable resources deployment

• It is imperative for Indonesia to

investigate options for CCS Energy mix improvement for 2025 is still dominated by fossil fuel

As a result of objective function of Energy mix improvement :

The energy sector can achieve 950 Mt CO2reduction in 2025 from 1150 Mt in BaU

Page 4: CCS Development and Prospects  in Indonesia - Sugihardjo

Page 4

1. Preliminary studies on CCS-EOR in East Kalimantan & South

Sumatra (2003 – 2005)

2. Joint study on CCS potential with industries:

• Sojitz & Mitsubishi (2005); Total Indonesie (2007); Shell (2008);

and KIGAM (2010)

• MoU with METI-Japan CCS (2010)

3. Became a founding member of Global CCS Institute

(GCCSI) led by Australia (April 2009)

4. Joint Study with UK Government (November, 2009)

5. Other Cooperation:

• IEA - CCS Roadmap and Establishing of National Regulatory

Framework

Indonesia’s Pathway in CCS

Page 5: CCS Development and Prospects  in Indonesia - Sugihardjo

Page 5

CCS-EOR in East Kalimantan

1. 10 reservoirs are suitable for CO2-EOR

2. Screening Reservoirs from MMP

• MMP > current reservoir pressure

• 3 reservoirs above 0.8 psi/ft were eliminated (above pf)

3. Rule of Thumb Method:

• Potential Oil Recoveries of 3.6 – 7.2 MMSTB

• Sequestration volumes of 0.5 – 2.1 Million tons

4. The Results of Laboratory Study:• The result of CO2 injection at 3000 psig reveals that the recovery factor

was 93.3% OOIP after 1.2 PV CO2 injected.

5. The Simulation Results:• Continues CO2 injection

− Potential oil recoveries of 2.6 – 3.3 MMSTB− Sequestration volumes of 4.7 – 4.9 Million tons

• 1 : 1 WAG− Potential oil recoveries of 2.4 MMSTB− Sequestration volumes of 2.2 Million ton

Page 6: CCS Development and Prospects  in Indonesia - Sugihardjo

Page 6

A first comprehensive study to identify CCS potential deployment in Indonesia

Title: Understanding Carbon Capture and Storage Potential In Indonesia

Study Objective: To develop an understanding of the requirements associated with deploying CCS in Indonesia by addressing technical, commercial and regulatory aspects of CCS deployment.

CCS Study Working Group: Ministry of Energy and Mineral Resources (BALITBANG/LEMIGAS) , State Ministry of Environment, Shell, PLN, World Energy Council, and supported by UK Embassy in Jakarta

Status: Completed November 2009. Full report available at http://www.worldenergy.org/news__events/news/2746.asp

Joint Study with UK Government

Page 7: CCS Development and Prospects  in Indonesia - Sugihardjo

Page 7

Power Plant

Legend:

Storage Location

Pipeline

Note: Unscaled Map

Gas Processing Plant

GUU

U

Muara Tawar 2,3,4

Combined Cycle Power Plant

3 x 750 MW

Emissions Projection up to

2018: 26.6 MtCO2

Indramayu

Steam Coal Power Plant

2 x 1000 MW

Emissions Projection up to

2018: 65.8 MtCO2

Jawa Sea Offshore

South Sumatera Onshore

East Kalimantan Onshore

Bangko Tengah

Steam Coal Power Plant

4 x 600 MW

Emissions Projection up to

2018: 11.5 MtCO2

Subang

Gas Processing Plant

Emissions Projection up to

2018: 6.2 MtCO2

Muara Jawa

Steam Coal Power Plant

2 x 100 MW

Emissions Projection up to

2018: 10.6 MtCO2

60 km

60 km

320 km

35 km300 km

15 km

129.7 km

Power Plant

Legend:

Storage Location

Pipeline

Note: Unscaled Map

Gas Processing Plant

Power Plant

Legend:

Storage Location

Pipeline

Note: Unscaled Map

Gas Processing Plant

GUU

GUU

U

Muara Tawar 2,3,4

Combined Cycle Power Plant

3 x 750 MW

Emissions Projection up to

2018: 26.6 MtCO2

Indramayu

Steam Coal Power Plant

2 x 1000 MW

Emissions Projection up to

2018: 65.8 MtCO2

Jawa Sea Offshore

South Sumatera Onshore

East Kalimantan Onshore

Bangko Tengah

Steam Coal Power Plant

4 x 600 MW

Emissions Projection up to

2018: 11.5 MtCO2

Subang

Gas Processing Plant

Emissions Projection up to

2018: 6.2 MtCO2

Muara Jawa

Steam Coal Power Plant

2 x 100 MW

Emissions Projection up to

2018: 10.6 MtCO2

60 km

60 km

320 km

35 km300 km

15 km

129.7 km

Possible CCS Scheme in Indonesia (Power Plants)

Page 8: CCS Development and Prospects  in Indonesia - Sugihardjo

Page 8 Page │ 8

Existing CO2 Capture in Indonesia

Other PERTAMINA’S Planned CO2 Removal Plant

East Natuna: 2.4 BCSFD CO2

Cepu: 72.5 MMSCFD CO2

Bontang LNG Plant: 30.000 tD CO2

0 50 100 150 200

Subang

Cilamaya

Merbau

Gundih

MMSCFD

Full Capacity

Operational Capacity

Source: Modified from PERTAMINA

LEMIGAS

CO2 Production From

Bontang Area : +

30.000 T/D

Page 9: CCS Development and Prospects  in Indonesia - Sugihardjo

Page 9

CCS Development in Indonesia

2006 2007 2008 2009 2010 2011

CO2 Sequestration

on Geological

Storage

CO2Sequestration

on Saline

Aquifer

Laboratory

and

Reservoir

Simulation

Study of

CO2Injection in

Depleted

Reservoir

Worksheet

Screening CO2Sequestration

Potential

Basin

Assessment

and CO2Storage

Capacity

Estimation in

Depleted

Reservoirs

Merbau Field

Demo Project

Proposal

. . . . . .

Page 10: CCS Development and Prospects  in Indonesia - Sugihardjo

Page 10

CCS Development in Indonesia

2010 2011 2012 2013 2014

I. CO2 EMISSION FROM ENERGY SECTOR1.1 CO2 Emission from Energy Sector

1.2 Impact of Energy Effieciecy and Renewable Energy

II. CARBON TRADE

2.1 Carbon Trade Mechanism

2.2 CCS as CDM Activity

III. LEGAL AND REGULATORY FRAMEWORK ON CCS3.1 Existing Legal and Regulatory Framework from Developed Countries

3.2 Establish National Regulatory Framework

IV. CCS Potential on Geological Formation4.1 CO2 Emission Source

4.2 Capture and Transportation Technology

4.3 CO2 Storage on Depleted Oil and Gas Reservoirs

4.4 CO2 Stirage on Deep Saline Aquifers and Coalbed Methane

4.5 CCS Cost Unit

4.6 Risk Assessment

ROADMAP of CCS R&DYear 2010-2014

NO Activity Year

Page 11: CCS Development and Prospects  in Indonesia - Sugihardjo

Page 11

• New build Coal-fired power plants as a target from large point

sources of CO2 emissions

• The utilization of CO2 in petroleum industry particularly for

enhanced oil recovery (EOR)

• Enabling development of highly contaminated gas fields e.g.

Natuna D alpha

• In line with Government non-binding commitment to reduce

country emissions to 26% in 2020.

Prospect of CCS Deployment

Page 12: CCS Development and Prospects  in Indonesia - Sugihardjo

Page 12

• No public awareness of CCS and lack of technical capacity

• CCS costs must be reduced

• No Legal and Regulatory Frameworks

• Need accelerating investment on R&D

• Demonstration projects are needed in developing countries

funded by international sources

Main Issues and Challenges on CCS Deployment

Page 13: CCS Development and Prospects  in Indonesia - Sugihardjo

Page 13 Page │ 13

CRITERIA

Increasing CO2 Storage Potential

CLASSES

1 2 3 4 5

On/Off Shore Deep Offshore Shallow Offshore Onshore

GeothermalWarm

(>400C/km)Moderate

Cold

(<300C/km)

Maturity Unexploration Exploration Development Production Basin

Fault Intensity Extensive

Faulted and

fracture

Moderately Faulted

and fractureLimited Faulting and fracturing

Tectonic Setting For Arc Back Arc Platform Deltaic Rift Vally

Depth (meter)Shallow

(<1,500m)

Intermediate

(1,500-3,500 m)

Deep

(>3,500 m)

Size Small Medium Large Giant

Hydrocarbon

PotentialNone Small Medium Large Giant

Accessibility Inaccessible Difficult AcceptableEasy

Infrastructure None Minor Moderate Extensive

Developing Screening Criteria for Specific Indonesian Sedimentary BasinsModified from Bachu, 2003 and CO2CRC, 2009

LEMIGAS

Basin Assessment (Site Selection)

Page 14: CCS Development and Prospects  in Indonesia - Sugihardjo

Page 14 Page │ 14

Key assumptions

The Volume previously occupied by, by

and large the produced hydrocarbons

becomes available for CO2 storage

Reservoirs are not flooded (Secondary

& tertiary recovery)

Reservoirs are not in hydrodynamic

contact with an aquifer

Density was calculated using EOS

Span & Wagner

Np/Ult ratio ≥ 55%

BSeffURMCO rCO 22

Where:

MCO2 = CO2 storage capacity of the aquifer

CO2r = CO2 Density at P & T Reservoir

UR = Ultimate Recovery

Seff = Storage Efficiency Factor

B = Formation Volume Factor

Source: Bachu., et al, 2007 & Poulsen., et al. 2009

S i m p l i f i e d C a r b o n S e q ues t ra t i o n

Leadership Forum (CSLF) Methodology

LEMIGAS

Storage Capacity Estimation in Depleted Oil and Gas Reservoirs

Page 15: CCS Development and Prospects  in Indonesia - Sugihardjo

Page 15 Page │ 15

Selected Area for ADB Technical Assistance for CCS

South Sumatera

Specific Area for Demonstration Project

Merbau Gas Field

Merbau CO2 Removal Plant

Rationale

• Large presence of the industrial and power sector in South Sumatera Large potential and

various CO2 sinks (depleted hydrocarbon reservoirs, and coal seams)

• South Sumatera has low density population

• Existing infrastructure

• Stable geological formations from seismic and tectonic activity

• South Sumatera sedimentary basin has high suitability for CO2 storage

LEMIGAS

Page 16: CCS Development and Prospects  in Indonesia - Sugihardjo

Page 16 Page │ 16

Identified Large Stationary CO2 Sources in South Sumatera

Power Plant

Coal Mining

Paper Plant

Cement Plant

Refinery

Gas Processing

Plant

Fertilizer Plant

Oil and Gas

Industry

LEMIGAS

Page 17: CCS Development and Prospects  in Indonesia - Sugihardjo

Page 17 Page │ 17

Methodology for Calculating CO2 Emissions

2006 IPCC Guidelines for National Greenhouse Gas Inventories

■ Fuel Combustion:

■ Industry :

Shell Guidance 2006

■ Fuel Combustion :

API Compendium 2009

■ Flare:

12

442 ContentCarbonGasNaturalCO

12

442 EFQCO

12

442

CarbonMassMollar

MassMollarCarbonUsedFuelCO

12

44%2 mixtureCWTUsedFuelCO

LEMIGAS

Page 18: CCS Development and Prospects  in Indonesia - Sugihardjo

Page 18 Page │ 18

Candidate Field for CO2 Storage: Merbau Field

Owner : PERTAMINA

Discovery : 1975

Delineation : 1980

Total Well : ~17 Wells

Main Reservoir : Baturaja Formation (BRF)

Res. Depth : (1650 – 2100) m TVD

Aver Res. Thick : 70m

Average Porosity : 11% (5 – 15)%

Average Sw : 28% (10 – 35)%

Average Pressure : (2750 – 2850) psi at 1800 m tvd

Average Temperature : (260 – 270)0 F

OGIP (BSCF) : 353.577 (Status 2005)

RESERVE (BSCF) : 282.861

Current Production : 300 MMSCFD

LEMIGAS

Page 19: CCS Development and Prospects  in Indonesia - Sugihardjo

Page 19

• Deployment of CCS in Indonesia is aligned with national

energy policy and GoI’s commitment to reduce 26% country

emission.

• This pre-feasibility analysis for a demonstration CCS project

will culminate in the development of a roadmap for CCS

demonstration.

• CCS in conjunction with CO2-EOR will be the main highlight

in this project

• Other CCS key elements such as legal and regulatory

framework and socio-economic will also be assessed.

Conclusions

Page 20: CCS Development and Prospects  in Indonesia - Sugihardjo

Page 20

Thank You

Agency of R&D for Energy and Mineral Resources

R & D C e n t r e f o r O i l a n d G a s Te c h n o l o g y

Republic of Indonesia LEMIGAS

[email protected]

[email protected]

[email protected]