Venezuelan Experiences and Perspectives about Natural Gas Flaring and Venting in the Oil Industry

Arcangelo Sena D'ANNA

Janeth Lopez DE MORENA

Objectives

• To present a diagnosis and experiences on flaring and venting of natural gas in Venezuela

• To present feasible solutions and technological alternatives to reduce natural gas flaring and venting in Venezuela

Global Figures on Flaring and Venting

• During 2004, 5296 billion SCF of natural gas were burned • Equivalent to:

– 75% of Russia´s gas exports– 30% of the European Union's annual gas consumption – 25% of U.S. gas consumption

• More than 80% of global venting and flaring occurs in fewer than 15 countries, including:–Nigeria, Russia, Iran, Iraq, Angola, Qatar, Algeria, Venezuela,

Equatorial Guinea, Indonesia, Brazil and Mexico

• In Nigeria, Russia and Iran occurs more than a third of global flaring and venting

• In Venzuela occurs 3.7% of global gas flaring and venting

Venezuela Overview

Location: South AmericaSize: 916,445 km2

Population:~26 millionLanguage: Spanish and indigenous dialects

Casigua

La Fría

Barbacoas

JosePLC

ValenciaBqto.

Altagracia

Maracay

S.J Morros

Morón Litoral

Arichuna

CaracasYaritagua

Amuay

Río Seco

Ulé

Maracaibo

Puerto Ordaz

SotoAnaco

Güico

Mamo

COPAMACOYA

URACOA

LAGO

YP

ANACO

OCN

NM

UPM

Morichal

N30

LA VELA

Quero

‘

La Toscana

AMERIVEN

San Vicente

Facilities and production capacity of PDVSA

CRP

ELP

PLC

NGL

CIJG/GO

G

G

PDVSA 2005

Oil production 3.2 MMBD Gas production 6.9 MMSCFD.

Natural Gas Balance in Venezuela - Year 2004

Total Production6,671 MMSCFD

Reinjection43%

NGL4.4 %

Fuel14.5%

Losses4.3%

Domestic Market25.8%

Flaring & Venting8.0 %

Total gas flaring and venting in Venezuela: 532 MMSCFD (equivalent to 3.7% of global gas flaring and venting)

SOURCE: Ministerio de Energia y Petroleo, Taller ARPEL,2005

Diagnosis of Flaring and Venting of Natural Gas by 1999

• The main sources of flaring in E&P are the flares in Gathering Stations and Gas Compression Facilities due to their low compression capacity

• The main sources of venting in E&P are the Well Heads, Gathering Stations and Compression Plants

GAS FLARING GAS VENTING

SOURCE : PDVSA Intevep, 2001

PDVSA Gas; 1%

E & P; 56%

Refineries; 41%

Petrochemistry; 2%

E & P; 99,60%

Refineries; 0,00% PDVSA Gas;

0,40%Petrochemistry; 0,00%

1703,7 Gg/year CO2 1753 Gg/year CH4

Experiences on Gas Flaring Reduction and Use

• The revamping of facilities with Steam Recovering Equipments in Gathering Stations of PDVSA Eastern Division has allowed the recovery of 15 MMSCFD, minimizing gas venting by 0.2% of 2004 Venezuelan production

• The operational starting of the High Compression Gas Facility (PIGAP II) in PDVSA Eastern Division has allowed us to achieve an injection capability of up to 1200 MMSCFD as Gas Lift, which represents 18% of 2004 Venezuelan production

Gas Rico

Pozo

WELL

WATER TANK

COMPRRESSORFLARE

1 2 3

VRU

Options for recovering and use of gas to reduce flaring and venting

• To revamp current facilities for separation, compression and gathering of gas to reduce flaring and venting, and increase the capabilities for transportation to the industrial and domestic market

• To design and build new facilities for recovering and treatment of gas to be used in Power Plants, bringing opportunities to local communities and promoting economical and sustainable development in those regions

• To do a technical and economical analysis of feasibility for different options of transportation and use of recovered natural gas–Gas Transportation as a liquid (LNG)

or hydrate (HGN)–Gas to Liquid (GTL)– Fertilizer production

Casigua

La Fría

Barbacoas

JosePLC

ValenciaBqto.

Altagracia

Maracay

S.J Morros

Morón Litoral

Arichuna

CaracasYaritagua

Amuay

Río Seco

Ulé

Maracaibo

Puerto Ordaz

SotoAnaco

Güico

Mamo

COPAMACOYA

URACOA

LAGO

YP

ANACO

OCN

NM

UPM

Morichal

N30

LA VELA

Quero

‘

La Toscana

AMERIVEN

San Vicente

Expansion Production Plan of oil and gas 2005 - 2012 (Oil Sowing Plan or "Plan Siembra Petrolera")

PDVSA 2005

Oil production 3.2 MMBD Gas production 6.9 MMSCFD.

Oil Sowing Plan

PDVSA 2012

Oil 5.8 MMBD Gas 11.5 MMSCFD.

PlataformaDeltana

Costa Afuera

CIGMA

ExportLNG/ GTL

CRP

ELP

PLC

NGL

STA INES

CABRUTA

CARIPITO

NGL

CIJ

G

G

G

G/GO

G

G/GO

G/GO

G/GO

G/GO

G/GO

G/GO

G/FO

GO

G

G

GO

GO

G

Actions aligned with the Oil Sowing Plan (Plan Siembra Petrolera) for reduction of flaring and venting of Natural Gas

• To guarantee that gas flaring and venting is minimized through the development of suitable, secure and energetically efficient new gas recovery facilities

• To build new gas distribution systems in conjunction with petrochemical industries to maximize the use of gas

• To initiate the conversion of fuel oil power plants to gas, reducing in this way the venting of gas and relatively more pollutant emissions of fuel oil plants

Conclusions

• The diagnosis of natural gas flaring and venting in Venezuela has allowed us to conclude that there are opportunities for technological upgrades and more efficient uses of this natural resource in order to promote a sustainable development of our country and society

• It is important to continue designing and building more efficient facilities for processing of natural gas with the aim to minimize flaring and venting