Lessons learnt in the storage of CO2 in geological formations

Tony Espie

Interest continues to grow – but high rate of attrition of projects

The storage landscape

Policy/commercial framework− Commercial viability (capture and storage)

− Regulations

Stakeholder acceptance

Appraisal, design and operations− Capacity− Injectivity− Integrity− Risk− Monitoring

6

Rock not swept by above discontinuous shale barriers

Rock well swept by gas

Rock partially swept by gas

Long tongue of gas swept rock under long shale barrier

Rock not swept by gas because of gravity override

Reservoir sweep in Prudhoe Bay

7

NWFB

EWEWPWZ

EPWZ(DS-13)

DS-16DS-04DS-03

Full field performance

MI INJECTOR

PRODUCER

Performance curves

0.0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1.0

0 0.2 0.4 0.6 0.8 1

Distance along Slimtube (Fraction)

Den

sity

(gm

/cc)

Oil Density

Gas Density

Fluid description

Mechanistic models

Upscaling tool

0%

5%

10%

15%

20%

0% 10% 20% 30% 40%MI INJECTED (TPV)

REC

OVE

RY

(%O

IIP)

Reservoir description

Scope of performance prediction

Lessons from selected projects

9

Sleipner field – CO2 treatment and injection

10From Chadwick and Noy, 2010

Evolution of migration plume

11

First major demonstration of capture from gas treatment plant with safe and effective storage in a saline formation

− Start-up in 1996

− c. 1 million tonnes/year of CO2 stored since

High permeability exemplar

− Plume dynamics are buoyancy controlled

Extensive monitoring programme with use of multiple 4D seismic to image plume dynamics

Influential in development of definition of storage technology programmes for last decade and in demonstrating potential of saline formation storage

What has been achieved at Sleipner?

12

CO2 captured from an offshore gas treatment plant has been successfully stored in an offshore saline formation for nearly 15 years

An extended monitoring programme has made extensive use of 4D seismic to acquire detailed imaging the plume development

Plume dynamics are buoyancy dominated in the very high permeability sands

Subtle heterogeneities in the geology influence the shape of the plume requiring high resolution reservoir characterisation and modelling

What has been learned at Sleipner?

13

G a s

W a te r

C a rb o n ife ro u s R e se r v o ir ~ 2 0 m e t re s th ic k

C a r b o n ife r o u s M u d s to n e s ~ 9 5 0 m e t re s th ic k

C re ta c e o u s S a n d s to n e s & M u d s to n e s ~ 9 0 0 m e t r e s th ic k (R e g io n a l A q u ife r ) 4 G a s

P r o d u c t io n W e lls

3 C O 2In je c t io n

W e lls

P ro c e s s in g F a c i l i t ie s

A m in e C O 2 R e m o v a l

T h e C O 2 S to r a g e S c h e m e a t K re c h b a

G a s

W a te r

C a rb o n ife ro u s R e se r v o ir ~ 2 0 m e t re s th ic k

C a r b o n ife r o u s M u d s to n e s ~ 9 5 0 m e t re s th ic k

C re ta c e o u s S a n d s to n e s & M u d s to n e s ~ 9 0 0 m e t r e s th ic k (R e g io n a l A q u ife r ) 4 G a s

P r o d u c t io n W e lls

3 C O 2In je c t io n

W e lls

P ro c e s s in g F a c i l i t ie s

A m in e C O 2 R e m o v a l

T h e C O 2 S to r a g e S c h e m e a t K re c h b a

G a s

W a te r

C a rb o n ife ro u s R e se r v o ir ~ 2 0 m e t re s th ic k

C a r b o n ife r o u s M u d s to n e s ~ 9 5 0 m e t re s th ic k

C re ta c e o u s S a n d s to n e s & M u d s to n e s ~ 9 0 0 m e t r e s th ic k (R e g io n a l A q u ife r ) 4 G a s

P r o d u c t io n W e lls

3 C O 2In je c t io n

W e lls

P ro c e s s in g F a c i l i t ie s

A m in e C O 2 R e m o v a l

G a s

W a te r

C a rb o n ife ro u s R e se r v o ir ~ 2 0 m e t re s th ic k

C a r b o n ife r o u s M u d s to n e s ~ 9 5 0 m e t re s th ic k

C re ta c e o u s S a n d s to n e s & M u d s to n e s ~ 9 0 0 m e t r e s th ic k (R e g io n a l A q u ife r ) 4 G a s

P r o d u c t io n W e lls

3 C O 2In je c t io n

W e lls

P ro c e s s in g F a c i l i t ie s

A m in e C O 2 R e m o v a l

G a s

W a te r

C a rb o n ife ro u s R e se r v o ir ~ 2 0 m e t re s th ic k

C a r b o n ife r o u s M u d s to n e s ~ 9 5 0 m e t re s th ic k

C re ta c e o u s S a n d s to n e s & M u d s to n e s ~ 9 0 0 m e t r e s th ic k (R e g io n a l A q u ife r ) 4 G a s

P r o d u c t io n W e lls

3 C O 2In je c t io n

W e lls

P ro c e s s in g F a c i l i t ie s

A m in e C O 2 R e m o v a l

T h e C O 2 S to r a g e S c h e m e a t K re c h b a

Krechba

Teg

Reg

Garet elBefinat Hassi MoumeneIn Salah

Gour Mahmoud

Proposed ISG PipelineREB

Hassi BirRekaiz

Hassi Messaoud

Hassi R’Mel

Tiguentourine (BP)

02151093

Algiers

Tangiers

Lisbon

Cordoba

Cartagena

M O R O C C O

A L G E R I A

S P A I N

L I B Y A

MAURITANIA M A L I

SkikdaTunis

N I G E R

In Salah Gas Project

• Industrial-scale demonstration of CO2 geological storage (conventional capture)• Storage formation is common in Europe, USA & China• Started storage in August 2004• Up to 1mmtpa CO2 stored (3.5mm tonnes stored to date)• $100mm incremental cost for storage; no commercial benefit• Test-bed for CO2 monitoring technologies $30mm research project

Project essential facts

In Salah – project overview

14

Krechba surface change – 2004 to 2010

15

$100 million investment to demonstrate practical capture from gas treatment plant and safe and effective storage

− 3.5 million tonnes of CO2 stored to date

Low permeability exemplar relevant to many other locations

− Geomechanical considerations paramount

Extensive monitoring programme steered by quantified risk assessment

Successful risk management through decommissioning of heritage well

Influenced development of regulatory frameworks

What has In Salah Phase One achieved?

16

CO2 captured from an onshore gas treatment plant has been successfully stored in the water leg of a producing gas field

A quantitative risk assessment programme has been used to guide data acquisition resulting in a comprehensive, cost-effective and fit-for-purpose storage monitoring programme that has been effective in guiding storage management

CO2 plume development is far from homogeneous and requires high resolution reservoir characterisation and modelling

Satellite InSAR data has proven highly valuable to monitor subtle (mm-scale) surface deformation related to subsurface pressure changes caused by injection and production

What has been learned at In Salah?

17

Otway geological model

18

Demonstrated safe and effective storage of 65,000 tonnes of CO2 in a depleted gas field with no leaks

Confident that would detect CO2 migration into the overlying formation and a significant leak into the atmosphere or soil

The reservoir models gave good predictions of ‘breakthrough’ of CO2

Have been able to sample ‘in situ’ formation waters from 2 km depth

Provides insights into the potential for CO2 enhanced gas recovery

The community has remained supportive and interested

The regulators are happy

Set the scene for Stage 2

What has CO2CRC stage 1 achieved?

19

Essential to engage regulator during project development particularly in absence of clear regulations

CCS R&D or pilot projects should not be regulated under the same regime as a commercial-scale project – too onerous and too expensive

Getting arrangements in place for handling liability is crucial to development of appropriate company structure – and vice versa

Assume it will cost you more than estimates suggest – we worked with a 20% contingency and used all of that

You are unlikely to achieve the Sleipner ‘gold standard’ of seismic imaging onshore and we have to be realistic about using onshore 3D seismic

Onshore 3D seismic surveys are disruptive to landowners and we will need effective fixed seismic arrays for onshore monitoring

Tracers are valuable in a research environment but are not appropriate for ongoing use in large scale CCS projects because of problems of contamination

Effective relations can be built up with local community, but start very early, be completely open – and still expect at least one difficult person

What was learned from CO2CRC Stage 1?

UK situation

21From Poyry Report to North Sea Basin Task Force, 2007

Possible CCS targets

22

Up to 2020 2020 to 2030 Storage integrity

•Develop understanding of coupled geomechanicaland geochemical impacts on seal integrity and injectivity under conditions of high depletion. •Improved understanding required of performance of well barrier systems in contact with CO2..•Characterise storage risk and develop intervention strategies to mitigate.

Operability•Develop techniques to manage well hydraulic performance when injecting super-critical CO2 into highly depleted reservoirs.•Assess HSE issues related to use of super-critical CO2 on initially hydrocarbon installations.•Demonstrate use of converted hydrocarbon pipelines and / or shipping buoys for delivery of CO2offshore.

Performance prediction•Test data expected to become available from UK Demonstration programme.•Test and improve approaches to performance prediction based on limited portfolio of field data and relevant analogues.•Assess whether there is any potential economic benefit from EGR under UK conditions.

Monitoring•Develop monitoring strategies for formations containing residual gas.

Maximise resource utilisation•Develop strategies to maximise sweep in heterogeneous settings and fields with mobile water.

Design for integrity•Demonstrate security of well integrity designs for post-operation and abandonment period.

Operations•Demonstrate understanding of risk profile and management and intervention options.

APGTF view on priorities for depleted gas fields

23

Up to 2020 2020 to 2030 Resource appraisal

•Large scale appraisal programme needed in order to ensure that saline aquifers are available for large scale storage post 2020. •Dynamic appraisal of key storage horizon using shipped CO2

Project design•Test generality of guidelines for design and operation derived from global projects to UK conditions•Test and improve approaches to performance prediction based on limited portfolio of field data and relevant analogues•Identify optimum development sequence for key basins•Water extraction and pressure management strategies likely to be required with associated monitoring strategies.

Monitoring•Address monitoring strategies in absence of large scale fluid extraction

Storage integrity•Improved understanding required of performance of well barrier systems in contact with CO2•Characterise storage risk and develop intervention strategies to mitigate

Maximise resource utilisation•Basin management strategies will be needed to ensure that storage capacity is used optimally

•Strategies developed to manage sweep in open formations

•Dynamic data acquired from portfolio of projects to improve understanding of level and kinetics of key trapping mechanisms (residual gas, dissolution and mineralisation)

•Validation of performance prediction tools against extensive portfolio of projects

Storage integrity•Demonstration of security of well integrity designs for post-operation and abandonment period

•Demonstrate understanding of risk profile and management and intervention options against portfolio of projects

APGTF view on priorities for saline formation storage

24

Hydrocarbon fields

Saline formations

Substantial time and effort still required

25

Questions?