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© Chevron 2005 Gorgon Project Greenhouse Gas Emissions Management John Cain Chevron November 1, 2006

Gorgon Project Greenhouse Gas Emissions Management · Gorgon Project Greenhouse Gas Emissions Management ... November 1, 2006 © Chevron 2005 Chevron’s Climate Change Position and

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Page 1: Gorgon Project Greenhouse Gas Emissions Management · Gorgon Project Greenhouse Gas Emissions Management ... November 1, 2006 © Chevron 2005 Chevron’s Climate Change Position and

© Chevron 2005

Gorgon Project

Greenhouse Gas Emissions Management

John Cain

ChevronNovember 1, 2006

Page 2: Gorgon Project Greenhouse Gas Emissions Management · Gorgon Project Greenhouse Gas Emissions Management ... November 1, 2006 © Chevron 2005 Chevron’s Climate Change Position and

© Chevron 2005

Chevron’s Climate Change Position and Action Plan

Position: We at Chevron Corporation are responding to increasing climate change concerns by integrating an action-based approach into our business strategy

4-Fold Action Plan

Support flexible & economically sound policies and mechanisms that protect the environment

Reduce greenhouse gas emissions (GHG) and

increase energy efficiency

Invest in research, development, and improved technology

Pursue business opportunities in promising innovative energy

technologies

Page 3: Gorgon Project Greenhouse Gas Emissions Management · Gorgon Project Greenhouse Gas Emissions Management ... November 1, 2006 © Chevron 2005 Chevron’s Climate Change Position and

© Chevron 2005

Greater Gorgon Development Plan

0 50N

kilometres

Gorgon Field

Subsea tie-backto Barrow Island

2 x 5mtpa LNG trains & CO2 Injection on

Barrow Island

Domestic Gas Connectionto the mainland

North WestShelf

AUSTRALIA

Existing Domestic Pipeline

LNGExports

Jansz Field

Karratha

Onslow

Page 4: Gorgon Project Greenhouse Gas Emissions Management · Gorgon Project Greenhouse Gas Emissions Management ... November 1, 2006 © Chevron 2005 Chevron’s Climate Change Position and

© Chevron 2005

GHG Management Strategy

Gorgon GHG Management Strategy continues to guide decision making

LNG process technology & gas turbine & waste heat recovery configuration

• Major drivers of plant efficiency• Represent currently applied

best practice but not unproven or ‘leading edge’ practice

Injection of reservoir CO2 is an opportunity to significantly reduce Gorgon GHG emissions

Page 5: Gorgon Project Greenhouse Gas Emissions Management · Gorgon Project Greenhouse Gas Emissions Management ... November 1, 2006 © Chevron 2005 Chevron’s Climate Change Position and

© Chevron 2005

GHG Emissions - Efficiency Improvements

0.89

0.08

0.06

0.20

0.20

0.35

0.07

0.0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1.0

1998 Concept -Greenhouse Challenge

Agreement

Use of Sub-SeaProduction System

LNG TechnologyImprovement

Improved Waste HeatRecovery

Reservoir CO2 injection Reference CaseEmissions Efficiency

Potential for FurtherReductions Based onPerformance Targets

Tonnes

CO

2e

/ Tonne

LNG

Page 6: Gorgon Project Greenhouse Gas Emissions Management · Gorgon Project Greenhouse Gas Emissions Management ... November 1, 2006 © Chevron 2005 Chevron’s Climate Change Position and

© Chevron 2005

GHG Emissions – LNG Benchmarking

0.440.46

0.07

5

0.07

5

0.07

5

0.07

5 0.07

5

0.07

5

0.07

5 0.07

5 0.07

5

0.07

5

0.59

0.49

0.35 0.35

0.390.39

0.360.34

0.28

0.22

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

North

Wes

t She

lf (1

998)

North

Wes

t She

lf (2

003)

North

Wes

t She

lf - T

rain

4

North

Wes

t She

lf - P

roje

ct

Darw

in LN

G - 1

0 MTP

A De

sign

Gorg

on D

evelo

pmen

t

Snoh

vit

Oman

LNG

Nige

ria L

NG

Atlan

tic LN

G

RasG

as

Qata

rgas

Australian LNG

International LNG Developments

Gorgon Development

Tonnes

CO

2e

/ Tonne

LNG

Page 7: Gorgon Project Greenhouse Gas Emissions Management · Gorgon Project Greenhouse Gas Emissions Management ... November 1, 2006 © Chevron 2005 Chevron’s Climate Change Position and

© Chevron 2005

Gorgon Gas Processing and CO2 Injection

Greater Gorgon Gas Fields

Inlet Gas/Liquid Separation CO2 Removal Liquefaction LNG Storage

Domestic Gas Customer

Sub-sea Pipeline

CO2Compression

Injection Wells

Dupuy Formation

CO2Pipeline Injection of between 2.7 & 3.2

million tonnes CO2 per annum

Alternative greenhouse abatement options are more costly than CO2injection and have greater future price uncertainty and security

Gorgon will still emit ~ 3.5 to 4 million tonnes CO2 per annum

Page 8: Gorgon Project Greenhouse Gas Emissions Management · Gorgon Project Greenhouse Gas Emissions Management ... November 1, 2006 © Chevron 2005 Chevron’s Climate Change Position and

© Chevron 2005

Regulation

Barrow Island Act 2003 provides:

Legislative mechanism for CO2 conveyance & underground disposal by injection

Ongoing management by the BI Act Minister

Provision for Minister to place conditions or restrictions on the CO2 disposal

Conditions of approval will establish the regulatory framework

Areas where existing regulations can be applied

Federal & State environmental laws

State occupational health & safety laws

State petroleum pipelines laws (enabled by the BI Act)

State regulations for petroleum wells & geophysical surveys

Process in the PSLA for ongoing reservoir management

Page 9: Gorgon Project Greenhouse Gas Emissions Management · Gorgon Project Greenhouse Gas Emissions Management ... November 1, 2006 © Chevron 2005 Chevron’s Climate Change Position and

© Chevron 2005

CO2 Injection Development Concept

Subject to Environmental, State Government and Joint Venture approval

CO2 compressors and pumps integrated into gas processing facility

7 injection wells drilled from 2 or 3 drill pads

CO2 pipelines

Fit for purpose monitoring program

Commitment to make data from the ongoing monitoring available to the public

Page 10: Gorgon Project Greenhouse Gas Emissions Management · Gorgon Project Greenhouse Gas Emissions Management ... November 1, 2006 © Chevron 2005 Chevron’s Climate Change Position and

© Chevron 2005

Target reservoir for CO2 injection

2300m

SHALE / SILTSONE (Seals)CARBONATE

SANDSTONE

GREENSAND

Barrow Island Stratigraphy

Page 11: Gorgon Project Greenhouse Gas Emissions Management · Gorgon Project Greenhouse Gas Emissions Management ... November 1, 2006 © Chevron 2005 Chevron’s Climate Change Position and

© Chevron 2005

Containment Mechanisms

Solution of CO2 into formation water

Residual gas trapping

Mineralogical trapping

Large scale geometric trapping below formation seals

1mm

Fine-grained sandstone

Page 12: Gorgon Project Greenhouse Gas Emissions Management · Gorgon Project Greenhouse Gas Emissions Management ... November 1, 2006 © Chevron 2005 Chevron’s Climate Change Position and

© Chevron 2005

Reservoir Simulation

Reservoir SimulationSingle injection well simulationFull reservoir simulation

Pressure fieldDisplaced formation water

Deviations from simulation predictions

High permeability layersDown dip migrationExisting wells

Perforans

Reference Injection IntervalLower Dupuy

Upper Massive Sand

Upper Dupuy

Basal Barrow Shale

Barrow Group

Lower Dupuy ShalePerforans

Reference Injection IntervalLower Dupuy

Upper Massive Sand

Upper Dupuy

Basal Barrow Shale

Barrow Group

Lower Dupuy Shale

W

E

W

E

W

E

DM E-W : 5yrsDM E-W : 5yrs

Page 13: Gorgon Project Greenhouse Gas Emissions Management · Gorgon Project Greenhouse Gas Emissions Management ... November 1, 2006 © Chevron 2005 Chevron’s Climate Change Position and

© Chevron 2005

Dupuy Formation – 5 Years

DM E-W : 5

CO2 Plume

Perforans Siltstone:

UDUD

UMSUMS

UMSUMS

LDLDUDUD

UMSUMS

UMSUMS

LDLD

100

0

(m)

0 5

(Km)

DM E-W : 5

CO2 Plume

Perforans Siltstone:

UDUD

UMSUMS

UMSUMS

LDLDUDUD

UMSUMS

UMSUMS

LDLD

100

0

(m)

100

010

00

(m)

0 5

(Km)

0 50 5

(Km)

Page 14: Gorgon Project Greenhouse Gas Emissions Management · Gorgon Project Greenhouse Gas Emissions Management ... November 1, 2006 © Chevron 2005 Chevron’s Climate Change Position and

© Chevron 2005

Dupuy Formation – 25 Years

DM E-W : 25

CO2 Plume

Perforans Siltstone:

UDUD

UMSUMS

UMSUMS

LDLDUDUD

UMSUMS

UMSUMS

LDLD

100

0(m

)

0 5

(Km)

Page 15: Gorgon Project Greenhouse Gas Emissions Management · Gorgon Project Greenhouse Gas Emissions Management ... November 1, 2006 © Chevron 2005 Chevron’s Climate Change Position and

© Chevron 2005

Dupuy Formation – 50 Years

DM E-W : 50

CO2 Plume

Perforans Siltstone:

UDUD

UMSUMS

UMSUMS

LDLDUDUD

UMSUMS

UMSUMS

LDLD

100

0

(m)

0 5

(Km)

DM E-W : 50

CO2 Plume

Perforans Siltstone:

UDUD

UMSUMS

UMSUMS

LDLDUDUD

UMSUMS

UMSUMS

LDLD

100

0

(m)

100

010

00

(m)

0 5

(Km)

0 50 5

(Km)

Page 16: Gorgon Project Greenhouse Gas Emissions Management · Gorgon Project Greenhouse Gas Emissions Management ... November 1, 2006 © Chevron 2005 Chevron’s Climate Change Position and

© Chevron 2005

Dupuy Formation – 100 Years

DM E-W : 100

CO2 Plume

Perforans Siltstone:

UDUD

UMSUMS

UMSUMS

LDLDUDUD

UMSUMS

UMSUMS

LDLD

100

0

(m)

0 5

(Km)

DM E-W : 100

CO2 Plume

Perforans Siltstone:

UDUD

UMSUMS

UMSUMS

LDLDUDUD

UMSUMS

UMSUMS

LDLD

100

0

(m)

100

010

00

(m)

0 5

(Km)

0 50 5

(Km)

Page 17: Gorgon Project Greenhouse Gas Emissions Management · Gorgon Project Greenhouse Gas Emissions Management ... November 1, 2006 © Chevron 2005 Chevron’s Climate Change Position and

© Chevron 2005

Dupuy Formation – 500 Years

DM E-W : 500

CO2 Plume

UDUD

UMSUMS

UMSUMS

LDLDUDUD

UMSUMS

UMSUMS

LDLD

Perforans Siltstone:

100

0

(m)

0 5

(Km)

DM E-W : 500

CO2 Plume

UDUD

UMSUMS

UMSUMS

LDLDUDUD

UMSUMS

UMSUMS

LDLD

Perforans Siltstone:

100

0

(m)

100

010

00

(m)

0 5

(Km)

0 50 5

(Km)

Page 18: Gorgon Project Greenhouse Gas Emissions Management · Gorgon Project Greenhouse Gas Emissions Management ... November 1, 2006 © Chevron 2005 Chevron’s Climate Change Position and

© Chevron 2005

Dupuy Formation – 1000 Years

DM E-W : 1000

CO2 Plume

Perforans Siltstone:

UDUD

UMSUMS

UMSUMS

LDLDUDUD

UMSUMS

UMSUMS

LDLD

100

0

(m)

0 5

(Km)

DM E-W : 1000

CO2 Plume

Perforans Siltstone:

UDUD

UMSUMS

UMSUMS

LDLDUDUD

UMSUMS

UMSUMS

LDLD

100

0

(m)

100

010

00

(m)

0 5

(Km)

0 50 5

(Km)

Page 19: Gorgon Project Greenhouse Gas Emissions Management · Gorgon Project Greenhouse Gas Emissions Management ... November 1, 2006 © Chevron 2005 Chevron’s Climate Change Position and

© Chevron 2005

Monitoring

Monitoring technologies will evolve over the life of the project

A comprehensive CO2 monitoring program (today’s technology) has been developed focused on seismic technology & observation wells

Monitoring to be undertaken in accordance with Barrow Island Act & State Agreement land disturbance provisions

Draft EIS/ERMP contains a reference case based on repeat 3D seismic surveys

Use of pre-existing roads etc wherever possible for source lines

Hand carrying all receiver equipment from source line access

Estimated 81km (approx. 35Ha) of new source lines

Includes marine (transition zone) acquisition

Likely initial surveys will be acquired at 2-3 year intervals after the injection commences

Page 20: Gorgon Project Greenhouse Gas Emissions Management · Gorgon Project Greenhouse Gas Emissions Management ... November 1, 2006 © Chevron 2005 Chevron’s Climate Change Position and

© Chevron 2005

EIS/ERMP – Chapter 13

Chapter 13 – Greenhouse Gas Emissions Risks and Management

Provides and extensive discussion on Projects greenhouse gas management and the CO2 injection project.