Monetising APG For An Operator By Exporting Power To The Grid

A bespoke turnkey power package monetized Associated Petroleum Gas (APG) from new gas wells, delivering 7 MW installed capacity and an expected 350,000 MWh to the grid, ensuring profit and avoiding flaring fines.

The Challenge
Monetise APG from new gas wells including gas treatment and grid connection
The Solution
Bespoke turn-key power package with gas treatment skid and automated flaring system
The Impact
Successful and safe project execution delivers profit and avoids flaring fines

Client:Independent oil company

Location:Romania, Europe

Sectors:Oil and Gas

The challenge

Monetise APG from new gas wells including gas treatment and grid connection

An IOC had started extraction on 2 new gas wells and wanted to monetise the gas. To do this they would need to obtain the government permits and permission to become an independent power producer (IPP) to sell the gas to the grid. This gas would also need to be cleaned before it could be injected into Romania’s gas distribution network. The costs associated with the gas treatment and capex investment needed for them to build the distribution infrastructure was going to be too costly.

They need a reliable supplier who could not only turn the APG gas into electricity, but also assume responsibility for the full scope of the oil and gas project from seeking the power producer permits, to the engineering, construction, delivery, commissioning and 24/7 operation of the plant.

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350,000 mw/hExported to the grid

7MWInstalled capacity

24/7 expertOnsite support

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The solution

Bespoke turn-key power package with gas treatment skid and automated flaring system

Using our expertise already proven in the field of gas to power using associated gas and exporting electricity into the grid, backed with our highly efficient equipment, and full turn-key service we proposed a best in class gas power solution assuming the full scope of the project and helping the customer avoid a capex investment.

Aggreko invested in the infrastructure including building the concrete base, and access roads as well as installing High voltage cables which stretched 8km from the plant to the grid connection. We installed five gas generators along with a gas treatment skid, automated flaring system and transformers in order to use APG and turn it into high quality energy that is suitable for national grid injection.

The overall implementation of the project from contract award to power export into grid was 16 months. The project was delivered in two phases as we matched the gas well’s production curve.

The project is supported 24/7 by four staff – all of which were recruited and trained by Aggreko from the local workforce.

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We were impressed Aggreko was able to take responsibility for a complex project including helping us obtain permits, in doing so, it allowed us to focus on our core business.

Independent oil company, Chief Engineer

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The impact

Successful gas monetisation delivers profit and avoids flaring fines

The solution implemented by Aggreko has enabled our Customer to monetise the gas into electricity and has also helped them reduce their emissions levels and avoid associated gas flaring costs they would otherwise have incurred.

Around 350,000 mw/h are expected to be exported into the grid over the duration of the eight-year contract.