For CSIS Seminar

Methane Hydrate R&D in Japan

Takami Kawamoto

JOGMEC

September 17, 2014

1

What is Methane Hydrate (MH)?

Combustion Test of Artificial MH

a Model of Molecule Structure of MH

（▲：Methane Molecule, ●：Water Molecule）

□Methane is a major component of natural gas.

□MH is a material that a cage structure, which water

molecules forms, contain a methane molecule inside it.

□MH is made of only methane and water.

□After dissociation, methane is burned when it catches fire

and water remains.

That is why MH is called ‘Fiery Ice’

□One MH contains 160-170 fold volume of methane

(under 0℃ and 1 atm. condition).

It may be possible to use MH as a natural gas resource.

□The environment where MH exists is ‘ Low temperature

and high pressure’

（Examples of existing environment for MH：

1atm and less than -80℃ 、0℃ and more than 23 atm）

□In the natural world, MH exists either under the ground of

permafrost area in the polar region or under the seafloor at

more than 500 meters in depth.

Stability Zone for MH

□Where MH exists onshore is at an area where permafrost layers are developed.

□Where MH exists offshore is in layers at a few hundred meter depth under the seafloor at

more than 500 meter depth.

□There is no permafrost layers in Japan and MH exists only offshore in Japan.

Temperature (℃)

MH Stability Zone

Pre

ssu

re (

atm

.)

Wat

er D

epth

(m

)

Methane Gas

Water

MH Stability Zone in an ocean environment

Prediction of MH Distribution in the World

Source: Research Consortium for MH in Japan (MH21)

Offshore, exploration conducted

Offshore, exploration/coring conducted

Onshore, exploration etc. conducted

Onshore, exploration/coring conducted

Offshore coring etc. conducted

Offshore, information only

Onshore, coring etc. conducted

Onshore, information only

To conduct studies to establish the technological platform for commercialization of methane hydrate •Middle to Long-term Offshore Production Test

•Preparatory study for Commercial Production •Economical Feasibility •Evaluation of Environmental Impacts •Overall Evaluation of the Total Program etc.

Production Tests ・1st Offshore Production Test in 2013 ・Middle to Long-term Onshore Production Test

Technological Studies • Designing and Manufacturing

Systems for Flow Test • Studying Production Methods • Assessing Environmental Impacts • Resource Assessment

Onshore Production Tests • 1st Production Test in 2002 • 2nd Production Test in 2008

Resource Assessment in Eastern Nankai Trough ・Seismic Surveys (2D, 3D) ・Exploratory Drillings

Basic Research Technological Research and Production Tests

Establishment of Technological Platform

Phase 1 (FY 2001 – FY2008)

Phase 2 (FY 2009 – FY2015)

Phase 3 (FY2016 – FY2018)

5

Japan’s Methane Hydrate R&D Program ( announced in 2001)

Onshore Production Tests in Canada

At Mackenzie delta (a permafrost area)in northwest of Canada, a test to produce methane continuously by dissociating MH was conducted as a pioneer in the world.

First Test (2002)

Second Test (2007, 2008)

Participated Nation

5 (JP, CA, US, DE, IN) 2 (JP, CA)

Production Method

Heated Water Circulation Method

Depressurization Method

Result Success in production of

methane gas (first in the world)

Success in continuous production by depressurization

Method (first in the world)

Cumulative Production

470m3 (in 5 days) 13,000m3 (in 6 days)

Issues Continuity of Production

Energy Efficiency Necessity of Long-term

Production Test

Production of Methane Gas (March 10-16, 2008)

The First Onshore Production Test (2002)

The Second Onshore Production Test (2007, 2008)

2D seismic survey (1996)

2D seismic survey (2001)

Exploratory Drilling ‘offshore Tokai /Kumano open sea’(2004)

Exploratory Drilling ‘Nankai trough’ (1999)

3D seismic survey (2002)

Research on Resource Assessment in MH Prospect Water (eastern Nankai trough)

Type

Parameter (total/average) MH resource amount in place

GRV N/G φ SMH VR CO P90 P10 Pmean

MHCZs

in

eastern

Nankai

trough (767km2)

drilled 4.455 bil.m3 0.38 0.43 0.52 172 0.95 40.2 bm3 136.9 bm3 83.8 bm3

undrilled 34.931bm3 0.37 0.45 0.51 172 0.95 136.7bm3 977.9 bm3 490.1 bm3

total 39.386 bm3 0.37 0.44 0.51 172 0.95 176.9 bm3

(6Tcf)

1,114.8 bm3

(39Tcf)

573.9 bm3

(20Tcf)

MH bearing

layers other than

MHCZ in eastern

Nankai trough (3,920km2)

area

3,920km2

Net

thickness

6.4m

0.48 0.29 172 0.95 106.7 bm3

(4Tcf)

1,220.8 bm3

(43Tcf)

567.6 bm3

(20Tcf)

(1,254.4 bm3) (0.02)

Total 283.5 bm3

(10Tcf)

2,335.6 bm3

(83Tcf)

1141.5 bm3

(40Tcf)

drilled: MHCZ confirmed by Exploratory Drilling ‘Tokai offshore ~ Kumano open sea (2004)’

undrilled：MHCZ expected by Seismic Survey ‘Tokai offshore ~ Kumano open sea (2002)’

Resource amount of MHCZs in place in eastern Nankai trough≒5.5 years of LNG import amount to Japan in 2011 Resource amount in place in eastern Nankai trough ≒11 years of LNG import to Japan in 2011

GRV: Gross Rock Volume, N/G: Net/Gross ratio, Φ: Porosity, SMH: MH-saturation, VR：Volume Ratio, CO: Cage Occupancy

Results of Estimated Resource Amount in Place in Eastern Nankai Trough

Source: Research Consortium for MH in Japan (MH21)

MH Distributed Areas Offshore Japan Estimated by BSR Occurrence

Eastern Nankai Trough

Concentrations of MH are confirmed (5,000km2)

Concentrations of MH are suggested (61,000km2)

Concentrations are not suggested (20,000km2)

Limited Data to estimate concentrations (36,000km2)

Total BSR Area = approx. 122,000km2

10

The First Offshore Production Test Site at 33°56’ N and 137°19’ E

BSR Distribution

Location of First Offshore Production Test

In real scale

BSR

Top of GHCZ

SE NW

2.5 0 1.25 距離(km)

β-1 well（2004）

1250msec

1500msec

1750msec

1250msec

1500msec

1750msec

Ogasa sequences

Vertically Exaggerated

11

WD~1000m GHCZ~270-333mBSF

（TVD=940m）

（TVD=1125m）

（TVD=1310m）

Seismic Profile of the Test Location

Sea Floor

Approx. 40m (20m each)

Monitoring Well (MC Well) (to monitor dissociated range)

Monitoring Well (MT1 Well) (to monitor dissociated range)

0m

Approx. 1,000m

Approx. 1,270m

Approx. 1,330m

Methane Hydrate Reservoir

Dissociation Dissociation

Riser Pipe

To produce gas and water through this

pipe Blow Out Preventer

(BOP)

Equipments incl. Pump etc.

Finished Interval

MH to be dissociated into gas and water in

this interval

Sea Level

3757360

3757370

3757380

3757390

3757400

3757410

3757420

3757430

3757440

Well Head

P Well（Production）

MT1Well MC Well

Y (m)

X (m)

Location of bottom of reservoir

Well Head Location of top of reservoir

Location of bottom of reservoir

Well Head

Ｃ Well（Coring）

Production Well (P well)

240 250 260 270 280 290 300 310 320

12

Layout of Production Test Wells

●Progress of the Operation (Jan.28-Apr.1, 2013)

・March 12:

5:40: Started flow test, decreasing pressure

9:30: Confirmed gas production

considered from methane hydrate formations

10:00: Ignited flaring

・March 18:

4:00: Confirmed sand production

on board

15:00: Completed kill well and

ended flow test

●Gas Production

・Duration：approx. 6 days

・Cumulative gas production：

approx. 120,000m3

・ Average gas production：

approx. 20,000m3/day 13

Wat

er P

rod

uct

ion

Rat

e (m

3/d

ay)

Gas

Pro

du

ctio

n R

ate

(m3

/day

)

Day/Time

Pre

ssu

re (

MP

a)

Gas Production Rate (m3/day)

Water Production Rate (m3/day)

Pump Intake Pressure (at 1184m) Depth from Sea Level

Results of Flow Test

Process toward Commercialization of Methane Hydrate (MH)

Conducted the world-first offshore production test from January, 2013

F Y 2 0 1 3 - F Y 2 0 1 5

○In the new ’Basic Plan on Ocean Policy’ (the Cabinet approved on April, 2013), (1) Regarding Sand-formation type MH, ①to surely reach a target of ‘to establish technologies toward commercialization

by FY2018 (Heisei FY30) ’ and ②to set a target toward a Commercialization Project for the first time. (2) As for Sea-bed type MH, to set a target for Resource Assessment for the first time. For assessing resource amount, to

conduct researches including surveys in wide area for about 3years starting from FY2013.

FY2016-FY2018

San

d –

form

atio

n T

ype

- FY2027

【Future Issues】 • Technological development for long and stable gas production • Technological development to reduce production cost greatly • to grasp environmental impacts by long-term production

Off

sho

re P

rod

uct

ion

Tes

t (m

idd

le t

o lo

ng-

term

)

to c

on

du

ct o

vera

ll

veri

fica

tio

n

Based on discussions on the future courses, to initiate serious surveys, R&D etc. for resource recovery

To make intensive efforts toward assessing resource amount in 3years starting from FY2013

Sea-

bed

Typ

e

○to conduct wide-area and detailed geological survey FY2013：offshore Joetsu/west offshore Noto peninsula, FY2014：Oki area/offshore Akita/offshore Yamagata (a part of them in FY2015) , FY2015: Hokkaido area

○to acquire geological samples at prospected points (FY2014-)

to conduct technical research on resource recovery

to C

on

firm

an

d R

evis

e th

e C

ou

rses

Result ：20,000m3/day of production in 6days

Duration and production target will be decided by around FY2015 depending on future progress of research etc.

○ to advance such technological development with a consideration that a project led by private companies may start in the latter half of Heisei FY30’s (until FY2027) while keeping an eye on international situations

to s

tart

pre

par

atio

ns

tow

ard

co

mm

erci

aliz

atio

n p

roje

ct,

to e

stab

lish

fra

mew

ork

led

b

y p

riva

te c

om

pan

ies

etc.

to Cope with Technical Issues Intensively

○Analyzing test results

○Overcoming technical issues

○to demonstrate a middle to long-term production test on shore

(continuous production for 1 to 3months)

to Establish Technologies for Commercialization

Thank you for your attention