Flare Gas To Power Project Enables Operator To Maximise Oil Production
Flare Gas to Power project enables Operator to maximise oil production
- The Challenge
Complex project needs specialised engineering partner to design and finance the conversion and distribution of 40 Million SCF a day of Associated Petroleum Gas (APG)
- The Solution
Turn-key project to treat and separate gas to produce power, including the construction and upgrade of power infrastructure to provide to the local grid
- The Impact
Flaring eliminated, oil production maximised and reliable cost effective power to stabilise the local grid
Client:Oil Company
Location:Middle East
Sectors:Oil and Gas
The challenge
Complex project needs specialised engineering partner to design and finance the conversion and distribution of 40 Million SCF a day of Associated Petroleum Gas (APG)
A Middle East Operator’s oil production capacity was limited to no more than 30,000 bopd, otherwise gas would be depleted too quickly and the Operator would have to flare above the emissions limits.
They identified an opportunity to lower their emissions and impact on the environment while simultaneously maximising oil production by utilising the gas for power generation instead.
The local area had a power capacity shortfall, and was heavily dependent on liquid fuels in many places. Converting this gas for power instead of flaring it would add material power capacity for the local area and north of the country at an extremely competitive rate, which was welcomed by the local government.
The project required significant capital expenditure, including distribution construction and upgrades such as; new 6km pipeline to take the gas produced f rom the flare stack to where the power plant could be situated, a new 33kV 7km overhead line, and the upgrade of a 33km 132kv overhead line to the nearest town.
Flexibility is essential as the volume and specification of gas is rarely know at project design phase, it can change over the life of the field with the addition of new wells, or the depletion of the field. The customer needed the ability to increase or decrease capacity to match as best as possible the gas volume available and the power demand of the Operator or third party power off taker.
This complex project needed a specialised engineering partner with a proven track record in both technical and commercial expertise, as well as the financial capacity to design, engineer and in invest in the required infrastructure.
They likewise needed the ability to manage multiple stakeholders, including the Operator and Local Government as they will also manage the onward sale of power to third party where appropriate.