OIL & GAS METHANE REDUCTOIL & GAS METHANE REDUCTOIL & GAS METHANE REDUCT

C d CCunduacan ComCunduacan ComPEMEX E l tiPEMEX ExplorationPEMEX Exploration

Vill h TVillahermosa TaVillahermosa, Ta,

OVERVIEW OF OIL & GAS PROJECT OPPOROVERVIEW OF OIL & GAS PROJECT OPPORPEMEX E l ti d P d ti (PEP) b idi f P t ól MPEMEX Exploration and Production (PEP), a subsidiary of Petróleos Mep ( ), ysurvey at its Cunduacan Compressor Station located near the city of Vilsurvey at its Cunduacan Compressor Station located near the city of Vily p ysufficient process information to identify cost effective greenhouse gas (sufficient process information to identify cost-effective greenhouse gas (prepare a preliminary cost-benefit analysis to evaluate the feasibility of sprepare a preliminary cost benefit analysis to evaluate the feasibility of s

Cost effective CH4 emission reductions may be achieved through (1) diCost-effective CH4 emission reductions may be achieved through (1) difrom fugitive sources and (3) energy efficiency measures that provide dfrom fugitive sources, and (3) energy efficiency measures that provide dcombustion efficiencies, reduced energy consumption and related reduccombustion efficiencies, reduced energy consumption and related reduc

When reviewing a facility for cost-effective CH emission reduction andWhen reviewing a facility for cost-effective CH4 emission reduction and achieved by taking a holistic approach This approach considers all pracachieved by taking a holistic approach. This approach considers all prac

ti It l t k i d t f th i tgas consumption. It also takes maximum advantage of the review teamg p gincreases the cost effectiveness and economic impact of the surveyincreases the cost-effectiveness and economic impact of the survey. p y

Thi id tifi d th 9 000 MTCO E/ f t ff ti thThis survey identified more than 9,000 MTCO2E/y of cost-effective meths su ey de t ed o e t a 9,000 CO2 /y o cost e ect e etadding an additional 345 000 MTCO E/yadding an additional 345,000 MTCO2E/y. g 2 y

PROJECT DETAILSPROJECT DETAILSPROJECT DETAILSThe survey comprised measurements and tests to quantifyThe survey comprised measurements and tests to quantify emissions due to fugitive equipment leaks use of natural gas asemissions due to fugitive equipment leaks, use of natural gas as the supply medium for pneumatic devices, avoidable inefficienciesthe supply medium for pneumatic devices, avoidable inefficiencies i th i d id l fl t thin the compressor engines, and residual gas flow to the emergency p g , g g yfl t (i d l k i t th fl h d )flare system (i.e., purge gas and leakage into the flare header). y ( , p g g g )Additionally the available process data were analyzed to identifyAdditionally, the available process data were analyzed to identify y p y ypotential opportunities for process optimizationpotential opportunities for process optimization

GHG emissions from all primary sources amount to 354 221 metricGHG emissions from all primary sources amount to 354,221 metric t f b di id i l t (MTCO E) F ltons of carbon dioxide equivalent (MTCO2E) per annum. Fueltons of carbon dioxide equivalent (MTCO2E) per annum. Fuel

b ti b th t if l i th l t fcombustion by the centrifugal compressors is the largest source of y g p gGHG emissions accounting for 94 percent of the total EquipmentGHG emissions, accounting for 94 percent of the total. Equipment leaks are the major source of CH emissions accounting for 91 3leaks are the major source of CH4 emissions, accounting for 91.3 percent of the total. The balance is contributed by pneumaticpercent of the total. The balance is contributed by pneumatic d idevices.

The emissions from equipment leaks were primarily contributed byThe emissions from equipment leaks were primarily contributed by compressor seals (29%) and blow down vents (51%) The restcompressor seals (29%), and blow down vents (51%). The rest (20%) t ib t d b d d li l li f(20%) was contributed by open-ended lines, valves, pressure relief(20%) was contributed by open ended lines, valves, pressure relief d i d tdevices and connectors.

The emissions survey and energy efficiency assessment atThe emissions survey and energy efficiency assessment at Cunduacan Compressor Station has provided: (1) an overall facilityCunduacan Compressor Station has provided: (1) an overall facility i t f th d GHG i i (2) t finventory of methane, and GHG emissions; (2) an assessment of y , ; ( )methane and greenhouse gas emissions from fugitive equipmentmethane and greenhouse gas emissions from fugitive equipment leaks pneumatic devices and natural gas fueled combustionleaks, pneumatic devices, and natural gas-fueled combustion equipment; and (3) an energy efficiency evaluation of eachequipment; and (3) an energy efficiency evaluation of each

i itcompressor engine unit.compressor engine unit.

Flare related emissions were evaluated but not included inFlare-related emissions were evaluated, but not included in presented results as no direct measurements were possible due topresented results as no direct measurements were possible due to lack of suitable ports. Resulting GHG emissions could well be in thelack of suitable ports. Resulting GHG emissions could well be in the

f 10 000 MTCO E/range of 10,000 MTCO2E/year.g , 2 y

DISCLAIMER Th i f ti d di ti t i d ithi thiDISCLAIMER: The information and predictions contained within this pop pThe Methane to Markets Partnership cannot take responsibilit for the aThe Methane to Markets Partnership cannot take responsibility for the ap p y

ION PROJECT OPPORTUNITYION PROJECT OPPORTUNITYION PROJECT OPPORTUNITY

St timpressor Stationmpressor Station pd P d tin and Productionn and Production

b M iabasco Mexicoabasco, Mexico,

RTUNITY:RTUNITY: i d t d th (CH ) i i d ffi iexicanos conducted a methane (CH4) emissions and energy efficiency ( 4) gy y

lahermosa in Tabasco Mexico The purpose of the study was to collectlahermosa in Tabasco, Mexico. The purpose of the study was to collect p p y(GHG) reduction and energy efficiency improvement opportunities and(GHG) reduction and energy efficiency improvement opportunities and specific emission control opportunitiesspecific emission control opportunities.

rect recovery of vented and flared volumes (2) reduction of CH lossesrect recovery of vented and flared volumes, (2) reduction of CH4 losses direct and indirect CH4 emission reductions through improveddirect and indirect CH4 emission reductions through improved ctions in upstream activities.ctions in upstream activities.

energy efficiency improvement opportunities maximum benefit isenergy efficiency improvement opportunities, maximum benefit is cticable opportunities to reduce natural gas losses and to optimize fuelcticable opportunities to reduce natural gas losses and to optimize fuel ’ ti d t i t hil th it d it’s expertise and measurement equipment while they are on site, and it p q p y ,

h i i d ti ith t bi ffi i i thane emissions reductions, with gas turbine efficiency improvements a e e ss o s educt o s, t gas tu b e e c e cy p o e e ts

t b d th d t id d b th it d toster are based on the data provided by the site owners and operators.p y pacc rac of this dataaccuracy of this data.y

PROJECT DETAILS (CONTINUED)PROJECT DETAILS (CONTINUED)PROJECT DETAILS (CONTINUED)( )

K th t t ff ti CH d ti dKey reasons that cost-effective CH4 reduction and energyKey reasons that cost effective CH4 reduction and energy ffi i i t t iti i t t il d t lefficiency improvement opportunities may exist at oil and natural y p pp y

gas facilities include progressive deterioration of facilities changegas facilities include progressive deterioration of facilities, change in operating conditions from initial design outdated designs basedin operating conditions from initial design, outdated designs based on previous low energy prices, use of outdated technologies andon previous low energy prices, use of outdated technologies and l k f t d t t b ild b i f ifi CHlack of measurement data to build a business case for specific CH4p 4

emission reduction and energy efficiency improvementemission reduction and energy efficiency improvement gy yopportunities including a CHP pre feasibility analysisopportunities including a CHP pre feasibility analysis.

The main advantages of conducting an independent integratedThe main advantages of conducting an independent integrated energy and emissions review include:energy and emissions review include:

•Fresh views and insight coupled with the expert knowledge and•Fresh views and insight coupled with the expert knowledge and experience of the review teamexperience of the review team

•Increased probability of identifying cost-effective CH emission•Increased probability of identifying cost-effective CH4 emission reduction opportunities through a comprehensive facilityreduction opportunities through a comprehensive facility

i tiexaminatione a a o

•Potential synergies between disciplines for improved opportunityPotential synergies between disciplines for improved opportunity id tifi tiidentification

M i tili ti f th i t ’ ti•Maximum utilization of the review team’s expertiseMaximum utilization of the review team s expertise

•Independent verification of the facility’s performanceIndependent verification of the facility s performance

•Transparent third-party determination of the emissions baselineTransparent third party determination of the emissions baseline f fand other data needed for the design of a carbon credit projectand other data needed for the design of a carbon credit project

•Opportunity for technology transfer to and training of facility staffOpportunity for technology transfer to, and training of, facility staff

MEASUREMENT TECHMEASUREMENT TECHMEASUREMENT TECH

Conventional (left) and IR (right) imaging of valve blow down ventConventional (left) and IR (right) imaging of valve blow down vent

PROJECT CHALLENGESPROJECT CHALLENGESPROJECT CHALLENGES

Two main measurement challenges were encountered: 1) the lack of mTwo main measurement challenges were encountered: 1) the lack of mneed to use of lifting equipment to allow survey team members to approneed to use of lifting equipment to allow survey team members to appro

l i it i ibl t thi li h dgas volume, since it was impossible to measure; this was accomplishedgas volume, since it was impossible to measure; this was accomplished

ECONOMIC BENEFITSECONOMIC BENEFITSECONOMIC BENEFITS

If all the emissions reduction technologies and energy efficiency / CHPIf all the emissions reduction technologies and energy efficiency / CHP would be approximately 354 000 MTCO E/y) and the potential annual swould be approximately 354,000 MTCO2E/y) and the potential annual svalue This represents a gas rate of 31 497 (103 m3/y )value. This represents a gas rate of 31,497 (103 m /y ).

The review also provides the means to monitor performance over theThe review also provides the means to monitor performance over the p plong term by comparing performance against the baseline establishedlong-term by comparing performance against the baseline established at the time of the initial surveyat the time of the initial survey.

B th b i f ilit d i i t f li dBecause the basic facility designs, primary types of applied processes,y g , p y yp pp p ,and basic equipment being utilized in Mexico’s oil and natural gasand basic equipment being utilized in Mexico s oil and natural gas industry are the same as those being used throughout the rest of theindustry are the same as those being used throughout the rest of the world the learning from the current work is universally applicable toworld, the learning from the current work is universally applicable to

t f th il d t l i d tmost of the oil and natural gas industry.os o e o a d a u a gas dus y

CH emissions at Cunduacan Compressor Station (total CH emissionsCH4 emissions at Cunduacan Compressor Station (total CH4 emissions amount to 439 t/y)amount to 439 t/y)

HNOLOGIES APPLIEDHNOLOGIES APPLIEDHNOLOGIES APPLIED

HiFlow Sampler used for measuring the leak rate and concentrationHiFlow Sampler used for measuring the leak rate and concentration

measuring ports for velocity and flow measurement which resulted in themeasuring ports for velocity and flow measurement, which resulted in the oach and access the stack tips; and 2) the difficulty of estimating flareoach and access the stack tips; and 2) the difficulty of estimating flare d th h ti l i t h id through optical comparison techniques.d through optical comparison techniques.

improvement opportunities were implemented the emissions reductionimprovement opportunities were implemented, the emissions reduction savings would be worth $ 7 973 000 in equivalent saved natural gassavings would be worth $ 7,973,000 in equivalent saved natural gas

TYPE OF ASSISTANCE SOUGHTTYPE OF ASSISTANCE SOUGHTTYPE OF ASSISTANCE SOUGHT

• Technical Assistance in project development (e g methane emissions• Technical Assistance in project development (e.g., methane emissionsassessments energy efficiency (EE) and CHP pre-feasibility studiesassessments, energy efficiency (EE) and CHP pre feasibility studies.

• PEP is also actively looking to carry out other studies of emissions red• PEP is also actively looking to carry out other studies of emissions redprogramsprograms.

PROJECT FINANCESPROJECT FINANCESPROJECT FINANCES

P j t d it l t f ll t ff ti t iti t di d (CH• Projected capital costs for all cost – effective opportunities studied (CHj p pp (

P j t d ti d i t t f f ll i l t d j• Projected operation and maintenance costs for fully implemented projj p y p p j

FOR MORE INFFOR MORE INF

PEMEXPEMEXRosa Estela Lopez GRosa Estela Lopez G.p

S b t dSubgerente deSubgerente de D ll S t t bl C lid dDesarrollo Sustentable y CalidadDesarrollo Sustentable y Calidad

SIPA Región SurSIPA Región SurPEMEX Exploración y ProducciónPEMEX Exploración y Producción

Av Campo Sitio Grande 2000 Col FraccionamientoAv. Campo Sitio Grande 2000, Col. Fraccionamiento p ,Carrizal 86030Carrizal, 86030,

Vill h T bVillahermosa, TabascoVillahermosa, TabascoMEXICOMEXICOMEXICO

Tel 52-993-310-6262Tel. 52-993-310-6262Email: elopezg@sur pep pemex comEmail: elopezg@sur.pep.pemex.comg@

s measurement study technology/service provider input economics measurement study, technology/service provider input, economic

duction opportunities to define broader GHG emission reductionduction opportunities to define broader GHG emission reduction

H EE CHP) US$ 49 250 000H4, EE, CHP): US$ 49,250,0004, , ) , ,

t US$ 2 500 000/ect: US$ 2,500,000/year.$ , , y

FORMATIONFORMATION

Methane to Markets PartnershipMethane to Markets Partnership Carey BylinCarey Byliny y

Program Manager Natural Gas Star ProgramProgram Manager, Natural Gas Star Programg g , gM th t M k t Oil & GMethane to Markets, Oil & Gas,

U S E i t l P t ti AU.S. Environmental Protection AgencyU.S. Environmental Protection Agency1200 Pennsylvania Avenue NW1200 Pennsylvania Avenue, NW

(6207J)(6207J)Washington 20460 DCWashington 20460, DCg

USAUSAT l 1 202 343 9669Tel: 1-202-343-9669Tel: 1 202 343 9669F 1 202 343 2202Fax: 1-202-343-2202Fax: 1 202 343 2202

Email: bylin carey@epa govEmail: bylin.carey@epa.gov