Natural Gas Natural Gas & Natural Gas Liquids& Natural Gas Liquids
Presented by
Dennis Steffy, DirectorMining and Petroleum Training Service
Natural Gas Natural Gas & Natural Gas Liquids& Natural Gas Liquids
Purpose:Purpose:
To establish a factual understanding of To establish a factual understanding of
Hydrocarbon GasesHydrocarbon Gases, their properties and , their properties and
some facts pertaining to their production, some facts pertaining to their production,
conditioning, processing and conditioning, processing and
transportationtransportation
Origin of Oil and GasOrigin of Oil and Gas
Oil and gas originated from the remains Oil and gas originated from the remains of microscopic life in shallow marine of microscopic life in shallow marine environmentsenvironments
Fossil Fuels are composed
ofhydrocarbons
Origin of Oil and GasOrigin of Oil and Gas
The total amount of organic matter stored this way is less than 1% of all the organic matter that has been formed by plants and animals over geologic time
Origin of Oil and GasOrigin of Oil and Gas
These remains These remains decomposeddecomposed to form to form oil and gasoil and gas
Then migrated upwards until Then migrated upwards until trapped by some sort of trapped by some sort of subsurface geological formationsubsurface geological formation
Natural Gas Natural Gas & Natural Gas Liquids& Natural Gas Liquids
The rock where oil and gas forms The rock where oil and gas forms is called the “is called the “sourcesource” formation” formation
The rock where the oil and gas is The rock where the oil and gas is found is called the “found is called the “reservoirreservoir””
A reservoir must be both A reservoir must be both porousporousand and permeablepermeable
Oil and Gas ReservoirsOil and Gas Reservoirs
High Porosity and PermeabilityHigh Porosity and Permeability
are goodare good
Porosity is open space in the Porosity is open space in the formation where oil and gasformation where oil and gas
can accumulatecan accumulate
Oil and Gas ReservoirsOil and Gas Reservoirs
More PorosityMore Porosity= = more room for oil and gasmore room for oil and gas
Permeability is the ability of oil and Permeability is the ability of oil and gas to move through the formationgas to move through the formation
High permeability means easy andHigh permeability means easy andrapid movement of oil and gas to the wellrapid movement of oil and gas to the well
Oil and Gas ReservoirsOil and Gas Reservoirs
Organic rich limestone - a good source rock
Certain conditions of Certain conditions of pressure and pressure and temperature are temperature are required to create required to create petroleum petroleum -- the the hydrocarbon windowhydrocarbon window
Oil forms in a Oil forms in a source source rockrock like organic shale.like organic shale.It It migratesmigrates until it is until it is trappedtrapped by a by a cap rockcap rock..It resides in a It resides in a reservoir reservoir rockrock like sandstone.like sandstone.
ReservoirsReservoirs should have should have high porosity, permeabilityhigh porosity, permeability
Examples: sandstone, conglomerate, Examples: sandstone, conglomerate, cavernous limestone, highly fractured rocks cavernous limestone, highly fractured rocks
(even granite)(even granite)
Oil and Gas ReservoirsOil and Gas Reservoirs
In the reservoir:In the reservoir:Water is found on the bottomWater is found on the bottom
-- water is heavier than oil or gaswater is heavier than oil or gas
Oil is found just above the waterOil is found just above the water
Gas is found at the top of the reservoirGas is found at the top of the reservoir
Oil migrates up dip because it is less dense than rockOil floats on water of the saturated zone; natural gas (methane) floats on top of the oil
Faults may themselves seal off migration, or may place impermeable rock against the reservoir to block escape
Angular unconformity traps oil in lower dipping layers
Fossil reefs are bulbous lenses interbedded with normal layers
They trap oil derived from lower source rocks
Sedimentary facies changes create lens-shaped wedges or pinch-outs that may serve as traps insome conditions
Summary of Petroleum TrapsSummary of Petroleum Traps
Prudhoe Bay Oil Fields developed below regional unconformities
Oil and Gas ReservoirsOil and Gas Reservoirs
Much gas can also be found Much gas can also be found dissolved in the oildissolved in the oil
Associated GasAssociated Gas
Oil and Gas ReservoirsOil and Gas Reservoirs
Associated gasAssociated gas leaves the oil when the leaves the oil when the pressure is reduced to a certain levelpressure is reduced to a certain level
Associated gasAssociated gas slowly leaves the oil as slowly leaves the oil as the reservoir pressure is reduced the reservoir pressure is reduced through production of fluids from the through production of fluids from the reservoirreservoir
Oil and Gas ReservoirsOil and Gas Reservoirs
The pressure generated by the gas in The pressure generated by the gas in the formation is the formation is critical critical to moving to moving the oil to the surfacethe oil to the surface
As gas pressure is reduced by As gas pressure is reduced by drawing fluids from the reservoir, drawing fluids from the reservoir, energy must be addedenergy must be added to the to the reservoir to bring oil to the surfacereservoir to bring oil to the surface
Oil and Gas ReservoirsOil and Gas Reservoirs
Energy can be added to the Energy can be added to the reservoir by:reservoir by:
Gas Injection Gas Injection
Water FloodWater FloodMiscible Flood Miscible Flood
Oil and Gas ReservoirsOil and Gas Reservoirs
Standard practice:Standard practice:
First: Produce the oil First: Produce the oil
Next: The gas when the energy Next: The gas when the energy provided by the gas is no provided by the gas is no longer neededlonger needed
Secondary RecoverySecondary Recovery
Secondary and even tertiary recovery Secondary and even tertiary recovery methods aid in recovering the methods aid in recovering the maximum maximum amount of oil from the amount of oil from the reservoirreservoir
Secondary RecoverySecondary Recovery
Methods include:Methods include:Down hole pumpsDown hole pumpsGas LiftGas LiftMechanical PumpingMechanical Pumping
Other Gas SourcesOther Gas Sources
MethaneMethane can also be found in can also be found in connection with coal or lignite connection with coal or lignite depositsdeposits
Synthetic methane can be produced Synthetic methane can be produced however at high costhowever at high cost
Oil and Gas ReservoirsOil and Gas Reservoirs
Decomposition ofDecomposition of
organic material always organic material always
produces methaneproduces methane
Other Gas SourcesOther Gas Sources
Large numbers of CowsLarge numbers of Cows
A burping cow is a polluting cow!
Cows, which have doubled in population in the last40 years to an estimated 1.3 billion worldwide, produce one pound of methane for every two pounds of meat that they yield
Hydrocarbons are composed only of Hydrocarbons are composed only of Hydrogen Hydrogen and and CarbonCarbon
We will deal with rather We will deal with rather simplesimplehydrocarbons in this presentationhydrocarbons in this presentation
The hydrocarbons of interest all end in The hydrocarbons of interest all end in the letters ‘the letters ‘--aneane’’
Petroleum HydrocarbonsPetroleum Hydrocarbons
Physical PropertiesPhysical Properties
40094009+97+97C5H12C5H12PentanePentane
32603260+31+31C4H10C4H10ButaneButane
25172517--4444C3H8C3H8PropanePropane
17701770--127127C2H6C2H6EthaneEthane
931 BTU931 BTU--260 F260 FCH4CH4MethaneMethane
Heating Heating ValueValue
Boiling Boiling PointPoint
FormulaFormulaChemical Chemical NameName
Methane
Ethane
Propane
CH4
C2H6
C3H8
Contaminates in Produced GasContaminates in Produced Gas
North Slope gas may have significant North Slope gas may have significant amounts of undesirable contaminates amounts of undesirable contaminates including:including:
Carbon Dioxide up to 13%Carbon Dioxide up to 13%Hydrogen Sulfide up to 250 ppmHydrogen Sulfide up to 250 ppmWaterWater
Conditioning Natural GasConditioning Natural Gasfor Transmissionfor Transmission
To transport gas in a pipeline, To transport gas in a pipeline,
a “contract” establishes the a “contract” establishes the
maximum amountsmaximum amounts of of
undesirable contaminatesundesirable contaminates
Oil and Gas ReservoirsOil and Gas Reservoirs
A A conditioning plantconditioning plant must be must be
designed to meet contract designed to meet contract
specifications specifications over the life of the over the life of the
projectproject
Hydrocarbon Dewpoint Control System
ConditioningConditioningNatural Gas for TransmissionNatural Gas for Transmission
Carbon DioxideCarbon Dioxide and and Hydrogen Hydrogen
SulfideSulfide are called “are called “acid gasesacid gases” ”
(often called Sour Gas) because (often called Sour Gas) because
they form acids when in contact they form acids when in contact
with water.with water.
ConditioningConditioningNatural Gas for TransmissionNatural Gas for Transmission
Acid gases cause severe corrosion of Acid gases cause severe corrosion of process equipment and pipelinesprocess equipment and pipelines
Hydrogen Sulfide is an Hydrogen Sulfide is an extremely toxicextremely toxicsubstance, immediately dangerous to life substance, immediately dangerous to life and health at very low levelsand health at very low levels
Conditioning Conditioning Natural Gas for TransmissionNatural Gas for Transmission
The removal of ‘The removal of ‘sour gassour gas’’ from a from a
methane stream is called methane stream is called
““sweeteningsweetening” and is a part of the ” and is a part of the
conditioning of gasconditioning of gas to meet pipeline to meet pipeline
contract specificationscontract specifications
There are many There are many
processes to processes to
sweeten gas, sweeten gas,
however the however the
most common is most common is
the the Amine Amine
systemsystem
This natural gas sweetener is designedto remove H2S to less than 4 vppm
and water to less than 1 vppm
The pictures above illustrate a natural gas sweetener installed at a plant site
Absorber
Sour gas or LPG
Rich Amine
FilterFlash Drum
Flashed Gas
Rich-LeanHeat Exchanger
Cooler
Filters
Lean Amine
Treated gas or LPG
Regenerator
Acid Gas
Condenser
Reboiler
MEA filtration gas sweetening unit
Gases are washed in a counter current washing column and the dissolved H2S separated in a later step using steam
Fines, worn from the piping, collect in the amine solution, which ultimately lead to blocking and foam generation in the column
Filters for clearing these streams and discharging either wet or dry cakes have yield excellent results
ConditioningConditioningNatural Gas for TransmissionNatural Gas for Transmission
Amine TreatmentAmine Treatment can remove can remove
both both Carbon DioxideCarbon Dioxide and and
Hydrogen SulfideHydrogen Sulfide
ConditioningConditioningNatural Gas for TransmissionNatural Gas for Transmission
Carbon DioxideCarbon Dioxide can be recan be re--injected into injected into the formation to maintain pressure the formation to maintain pressure and sweep oil toward the well boreand sweep oil toward the well bore
Removal of Removal of Hydrogen SulfideHydrogen Sulfide can can generate large amounts of elemental generate large amounts of elemental SulfurSulfur
ConditioningConditioningNatural Gas for TransmissionNatural Gas for Transmission
Carbon DioxideCarbon Dioxide can form can form Dry IceDry Ice in in process equipment and plug off process equipment and plug off critical componentscritical components
Dry IceDry Ice must be thawed with heat to must be thawed with heat to remove the plugremove the plug
Frozen natural gas shed
In Canada
ConditioningConditioningNatural Gas for TransmissionNatural Gas for Transmission
Water content must be reducedWater content must be reducedto a very low levelto a very low level
Water can freeze and plugWater can freeze and plugcritical process equipmentcritical process equipment
Water combines with Water combines with MethaneMethane totoform form Hydrates Hydrates that can plug off that can plug off
critical process equipmentcritical process equipment
DehydrationDehydration
The most common large scale process The most common large scale process for removing water from a gas stream for removing water from a gas stream is called “is called “Glycol DehydrationGlycol Dehydration””
Glycol dehydration is used all overGlycol dehydration is used all over
the Slope and the Inletthe Slope and the Inlet
Glycol UnitGlycol Unit
DehydrationDehydration
Cold Glycol can absorb large amounts of water Cold Glycol can absorb large amounts of water vaporvapor
When heated, the Glycol then gives up the When heated, the Glycol then gives up the water vapor and can be cooled and reusedwater vapor and can be cooled and reused
Large equipment would be required to handle Large equipment would be required to handle the amounts of gas contemplated by the the amounts of gas contemplated by the North Slope gas lineNorth Slope gas line
Boiler UnitBoiler Unit
Natural Gas Drying & NH3 Removal
This design is capable of removing moisture and ammonia from natural gas through it's adsorption process
The system is capable of taking saturated feed gas and returning dry gas with less than 0.1 ppmv of water
In addition, NH3 is removed down to less than 0.2 ppmv
The pictures above depict a natural gas dryer prior to shipment
This allows the LNG facility to liquefy excess quantities during periods of low use and store them until they can be vaporized at a time of need
This LNG Prepurifier is designed to remove moisture, CO2, and mercaptans from natural gas taken from a pipeline
Gas Custody Gas Custody and Custody Transferand Custody Transfer
The volume of gas transferred from seller The volume of gas transferred from seller to buyer is measured in to buyer is measured in SCF SCF (Standard (Standard Cubic Feet), measured at 14.7 psi and Cubic Feet), measured at 14.7 psi and 60 degrees F60 degrees F
Alternate specifications are more Alternate specifications are more commonly stated in metric unitscommonly stated in metric units
Gas Custody Gas Custody and Custody Transferand Custody Transfer
The The Heating ValueHeating Value of the gas in of the gas in
BTU’s per cubic foot is an BTU’s per cubic foot is an
essential sales parameteressential sales parameter
Gas Custody Gas Custody and Custody Transferand Custody Transfer
Pure Methane generates 931 BTUPure Methane generates 931 BTU
Penalties may be assessed when the BTU Penalties may be assessed when the BTU value is below contract specificationsvalue is below contract specifications
The The heating valueheating value is measured in a calorimeter is measured in a calorimeter that burns a carefully measured amount of gasthat burns a carefully measured amount of gasunder controlled conditions and measures the under controlled conditions and measures the heat producedheat produced
Gas Custody Gas Custody and Custody Transferand Custody Transfer
Standard Units for Gas MeasurementStandard Units for Gas MeasurementMCFMCF 1000 cubic feet=(10’x10’x10’)1000 cubic feet=(10’x10’x10’)MMCF Million Cubic feet=1000xMCFMMCF Million Cubic feet=1000xMCF
100’x100’x100’100’x100’x100’
BCF Billion Cubic feet=1000XMMCFBCF Billion Cubic feet=1000XMMCF1000’x1000’x1000’1000’x1000’x1000’
TCF Trillion Cubic feetTCF Trillion Cubic feet--1000xBCF1000xBCF10,000’x10,000’x10,000’10,000’x10,000’x10,000’
Stranded GasStranded Gas
Stranded Gas is Gas that is
not yet connected
to a transportation system
ShrinkageShrinkage
Shrinkage is the loss of gas used to process and transport the product
Fuel for power generationFuel for facility heatingFuel for compressors and process equipmentIncidental losses through leaks, flares, carryover, etc.
ShrinkageShrinkage
Typical Shrinkage numbers:
–4% to 5% for pipeline compression, the longer the line the greater the shrinkage, up to 8%
–1% to 4% for gas conditioning, probably greater on the Slope
–14% to 17% for LNG production
Contract PriceContract Price
The price paid forlong-term agreements
or agreements to purchase an established volume of gas over a specific time period
Tied to the standard price per BTU for energy
Spot MarketSpot Market
Prices bid for short term or one-time purchases
Traded as commodities
Prices vary according to amounts in storage, anticipated weather conditions
and international markets
Trading Floor at a Natural Gas Marketing Company
Storage GasStorage GasIn the lower 48 where demand is greater than local supply, gas is stored underground in reservoirs during periods of low demand and retrieved when demand increases above local supply
Suppliers can control amounts of gas sold for storage and influence later prices
Storage GasStorage Gas
Sometimes gas can be purchased at Sometimes gas can be purchased at lowerlower costcost during offduring off--peak times peak times andand stored for stored for laterlater useuse
Storage gas Storage gas maximizes the usemaximizes the use of of longlong distancedistance pipelines that can pipelines that can shipship at full at full capacitycapacity more gas than more gas than isis required, required, andand the excess stored the excess stored againstagainst times of times of increasedincreased demanddemand
Source: Energy Information Administration
Components of Residential Natural Gas Prices
Transmission/Storage 19%Commodity 34%Distribution 47%
Industrial 33.2%Elect. Power 23.8%
Residential 21.5%Commercial 13.7%
O&G Indust Ops 4.9%Pipeline Fuel 2.8%Vehicle Fuel 0.1%
Questions?