COSMI/TCDtcd-italia.com/images/pdf/TCD-ITALIA-low.pdfFSO Vessels New Platforms/ Retroﬁ tting of existing platforms Raﬁ neries Petro-chemical Plants Storage Tanks E&P USERS Oil

FLARE / ASSOCIATED GAS RECOVERY SYSTEMS IN THE UPSTREAM AND DOWNSTREAM OIL & GAS INDUSTRY

COSMI/TCD

Accidents during drilling/production or in treatment plants which require to reduce pressure in the system

During the start up of a new fi eld (to determine fl ow rates and compositions)

Gas that accumulates in the annular space (casing head gas) during production / Gas Losses of various kinds in treatment/compression

The gas extracted together with oil (associated gas) is too little, too low pressure, located in remote and/or inaccessible area far from treatment plants to make uneconomical laying a pipeline

WHY IS THE GAS STRANDED ?

Examples of circumstances where recovering the gas is currently noteconomical, not feasible, not safe and therefore it is burnt or vented or simply re-injected.

2 COSMI Group / TCD Italia www.gruppocosmi.com

The fl are is the most visible sign of wasted high heat value resources and pollution from oil & gas operations.

Venting is even worst as, in addition to throwing a valuable resource away, vented gas GHG eff ect is 21 times higher than burning.

Pipelining to market is not always possible: off shore pipeline design and installations can be too costly and/or too risky and time consuming.

Associated Natural Gas must be either recovered and utIlized or re-injected: fl aring is not an option anymore.

A very general criteria is that any associated/fl are gas production above 250,000 cubic feet/day (250 MCFD) justifi es the installation of a Gas Recovery Unit.

Gas compression for re-injection to the fi eld is required and it is advisable to know that re-injection is not a free exercise but it has its problems. It is oft en uncertain as to whether re-injection will enhance oil production over the life of the fi eld or whether it will cause a net decrease in overall recovery of in-place oil,

Anyway, gas compression/re-injection always involves a signifi cant cost on the order of USD 2,500/10 MMCFD and can range up to USD 5,000/10 MMCFD at a

gas price ranging from USD 2/ MMBTU to USD 4/MMBTU (corresponding to 2,500 USD/d to 5,000 USD/d with an associated gas fl owrate of about 12,000 cu.mt./hr and an indicative re-injection pressure of 70 bar and sometimes much higher than this),

This cost can become very signifi cant at high Gas to Oil Ratios (GOR) and it does not make use of the gas resource.Therefore, in the end, the lost revenue due to re-injection is the “re-injection cost” plus the “cost of “lost sales”.

Flaring (and venting) has its problems

Flaring (and venting) is not an option any longer

Re-injection is sometimes desirable to enhance crude oil production while, in some cases, it reduces or hampers production

3COSMI Group / TCD Italiawww.tcditalia.it

FGRS Application sectors and users

OFFSHORE ONSHORE

AP

PLI

CAT

ION

S

FPSO VesselsFLNG VesselsFSO Vessels

New Platforms/ Retrofi tting of existing platforms

Rafi neriesPetro-chemical PlantsStorage TanksE&P

US

ER

S Oil CompaniesShipyardsOperators

Plant Owners


Typical FGRS Applications

OFFHORE PRODUCTIONFlare Gas Recovery - Associated Gas Recovery from Marginal Fields/ New Platforms and Retrofi tting of old ones

FPSO/FSO/FLNG VESSELSFlare Gas Recovery / VOC (Volatile Oil Compounds) Recovery / Recovery of associated gas / HCB (Hydrocarbon Blanqueting)

ONSHORE PRODUCTIONFlare / Associated Gas Recovery

SHIPS, STORAGE TANKS, TANKERSRecovery of VOC (Volatile Oil Compounds) during loading/unloading of hydrocarbons

DOWNSTREAM PROCESS PLANTSFlare Gas Recovery (see Refi neries etc.)

COSMI Group / TCD Italiawww.tcditalia.it 5

Typical Unit for Flare/Associated Gas Recovery (Skid mounted FGRU)

The FGR systems, constructed in accordance with API 521, consist essentially of one or more ‘compressors, the engines thereof, of a three-phase separator (for separating gas, water and liquid hydrocarbons), the relevant plant and a control system, all pre-assembled on a skid

For an av.ge c ty of 5000m3/hr disch. of 6 barg :L 14 m/W 6.5 m/H 4 m

Modular construction for ctr. shipment & easy/fast

Typical FGR unit, constructed in accordance with API 521, consist essentially of one or more compressors, the motors/engines thereof, a three-phase separator (for separating gas,

water and liquid hydrocarbons), the relevant plant and a control system,

all pre-assembled on a skid.

Skid mounted FGRU. In confi guratione with 2 compressors


Benefi ts that are immediately achievable:Closing of Flare LineConsiderable extension of Flare Tip lifetime

Profi t Recovery due to:a) Economic Value of Recovered Gasb) Increased Crude Oil production (Gas

Lift )c) No carbon Tax / ETS carbon credits

Proper maintenance and/or upgrades measures can be proposed and implemented to the purpose of reducing gas leakages and dispersions from various items of existing plants:

a) Replacement of leaking PSV that relieve to the fl are header,

b) Replacement of leaking Control Valves that relieve to fl are header,

c) Valve sealing,d) Control of header sweep gas fl ow

rates to reduce continuous purge rate.

Typical off shore FGRS application

Recovered Gas can be used in place (as Fuel Gas or Gas Lift ) / sent elsewhere / re-injected

Cosmi/TCD can carry out proper investigations and maintenance measures to reduce Flare Loads created by each item of Plant


Cosmi/TCD is the right partner for a “Total Approach” to Flare / Associated Gas Recovery ProjectOur technology, our experience and our engineering capability in Gas Recovery benefi t Oil & Gas operations whether it is matter of onshore facilities (E&P, refi nery, petrochemical plant etc.) or off shore facilities (Fixed and Floating production platforms, FPSO, FSO) engaged in every stage of fi eld development, from exploration and drilling through to production and transport.

We are also in the position as to carry out a complete FEED comprising:

a) Flow metering and defi nition of the range of compositions for the gas to be recovered,

b) collection of all necessary parameters like gas inlet conditions (Temperatures, pressures), required gas outlet conditions, density etc.

c) utility availability,

d) required system turndown.

e) the assessment of the existing fl are system, determining any necessary modifi cation/upgrading .

Taking into consideration that ensuring a consistent back-pressure is vital when installing a F/AGR system/unit, our experience will design the most suitable closing system in order for the unit to operate without pulsation or surging.


The FEED will also address the issue of the strategic use of the recovered gas, including the choice of the most suitable technology option. We will also provide feasibility and cost/benefi t analysis in order to forecast the return on investment. On the average, the return on investment of a Flare/Associated Gas

Recovery System is in the region of 12 to 18 months.Under certain conditions, this kind of project is also eligible for fi nancing by fi rst class worldwide well known credit institutions: our experience is available to investigate fi nancing options and possible access to emissions trading markets.

Once the decision has been taken, the F/AGR system will be custom designed and tailored to the process application, engineered and manufactured and we will fi nally supervise installation,

commissioning, start-up and training to ensure that the expected performance will be delivered.–

What to do with the recovered gas – How convenient is recovering the gas (Economic & Financial Analysis) – Financing the Project.

Cosmi/TCD shall ensure that the system will deliver as forecasted


Key components in designing a FGRS

In designing FGRS COSMI/TCD SpA is able to provide advanced security

systems in line with the most recent API standards

Main Features required by the machinery used in FGR ONSHORE

Based on project conditions, we operate an evaluation/selection amongst various types of compres-sors, addressed to ensure best ef-fi ciency/lowest operating cost. Our criteria being: the most suitable compressor for each application.

Operating cost makes a lot of diff erence by the end of the year

• They have to work with “dirty” gases (in the presence of water/steam, sludge, sand, hydrocar-bons, corrosive, toxic acids)

• Capable of inlet gas fl ow rates up to 10,000 Am3/hr (sometimes also beyond that)

• Withstand variations in the mo-lecular weight of the inlet gas

• Simple and fl exible fl ow control• High turn-down ratio• Low noise emissions • Low energy requirements• Do not contaminate gas with oil


USE OF RECOVERED GAS

It’s an area as critical as yet widelyunexplored and where COSMI can provide valuable Technical and Financial/Economical feasibility by directly interfacing with the Oil Company and the various Stakeholders (From Advisory Level to FEED / Financing Survey / EPCC)

Options for Associated Gas Utilization

State of the art of already assessed technologies

ONSHORE

• Fuel Gas for self-production of energy and power generation (for process machinery)

• Recovered gas, aft er treatment is pumped into the grid gas)

OFFSHORE (MARINE)

• Fuel Gas / Gas Lift • Gas Re-injection (for sequestration and/or EOR if reservoir

conditions permit)

OFFSHORE

• Fuel Gas / Gas Lift • Gas Re-injection (for sequestration and/or EOR if reservoir

conditions permit)

MEDIUM SCALE GAS UTILIZATION PROJECTS

• On the site Power Generation for delivery to Grid (Gas To Wire - GTW)• Gas supply via pipeline to major consumers (Power Stations

and local Industry)• Gas to Liquids (GTL) to be mixed with crude and pipelined to

shore plants or to obtain other high value fungible products (ultra clean diesel fuel, jet fuel and more)

SMALL SCALE GAS UTILIZATION PROJECTS

• Power generation for the electrifi cation of under developed rural areas

• LPG Production for local distribution and export

Use at the Production Site (Internal)

Use Outside the production Site (shared benefi t with local populations)


In summary …

Reducing emissions by earning profi t is the most rational way to care about environment and populations

We are able to assist the Owner of the system from the stage of FEED, to support the feasibility of the project also with economic and fi nancial analysis, up to EPCC

D)

FGR sector is still unexplored, especially in what concerns use of associated gas which is oft en re-injected with considerable energy loss

A)

We have developed long and qualifi ed experience in FGR and plant design and are the right partner for identifying the most suitable solutions

C)

Off shore FGR hardly can be reduced to a single, standardized plant design practice but has to be always designed to suit local conditions alongwith best economical criteria

B)


ALBERTO POLONITCD ITALIA SRL COSMI GROUP COMBUSTION ENGINEERING SRL

Project by

MIRKO FUCKSIAmob. [email protected] www.gruppocosmi.com

Contact us:

ADRIANO PIGOZZImob. [email protected]

ALBERTO POLONImob. +39 348 [email protected]

Cosmi S.p.A. SU Via Teodorico, 7 48122 Ravenna (RA) - Italy

ph. +39 0544 [email protected]

www.gruppocosmi.com

TCD Italia srl via Bachelet 81/8346047 Porto MantovanoMantova (MN) - Italy

ph. +39 0376 [email protected]

www.tcditalia.it

TCDitaliasrlw w w . t c d i t a l i a . i t

Documents

COSMI/TCDtcd-italia.com/images/pdf/TCD-ITALIA-low.pdfFSO Vessels New Platforms/ Retroﬁ tting of existing platforms Raﬁ neries Petro-chemical Plants Storage Tanks E&P USERS Oil