Agenda
December 03, 2008
Carbon Limits AS
2
• The use of non-associated gas in open-cycle gas-lift
• Example case from Democratic Republic of Congo
• Conceptual framework for a new CDM baseline methodology
• Key characteristics of the proposed methodology
• Conclusions
The use of non-associated gas for gas-lift leads to flaring and substantial GHG emissions
December 03, 2008
Carbon Limits AS
3
• Gas-lift is a commonly used artificial-lift method by which high-pressure gas assists in bringing oil to the surface
• High-pressure gas can be provided from either associated or non-associated sources
• Non-associated gas is often at higher pressure than associated gas and typically require less treatment than associated gas
• Where gas has low value, non-associated gas is often the lowest cost of supply of high-pressure gas for gas-lift
• When non-associated gas is used as gas-lift gas, there is often higher, absolute volumes of gas flared
Offshore oilfield in DRC utilizing non-associated gas for gas-lift as it represents the lowest cost of supply
December 03, 2008
Carbon Limits AS
4All numbers in MSCF/day
Original situation:
Project for optimization of gas utilization on-site developed based on potential CDM benefits: 30,000 tCO2e/month
December 03, 2008
Carbon Limits AS
5All numbers in MSCF/day
Pilot CDM project activity:
The characteristics of the DRC project provides the conceptual framework for a new CDM methodology
December 03, 2008
Carbon Limits AS
6
• Non-associated gas can be the lowest cost option to provide high-pressure gas for gas-lift of oil wells (i.e. an open-cycle gas-lift system)
• Gas from oil wells that is currently flared can be recovered and used to substitute for the non-associated gas, thus reducing flaring of gas
• The volume of gas recovered for use for gas-lift serves as a one-to-one proxy for the volume of non-associated gas that would have been used in the baseline to provide the same service
• Projects will take place in complex brownfield developments and could require utilization of both new and existing gas infrastructure
• A change in the supply to the gas-lift system will by itself not end gas flaring at the field
December 03, 2008
Carbon Limits AS
7
End-use (i.e. gas-lift system) included within project boundary and in the baseline selection
Highlights
December 03, 2008
Carbon Limits AS
8
• Substitution of non-associated gas with recovered gas for gas-lift leads to a measurable reduction in flaring and thus GHG emissions in situations with very limited opportunities to market gas
• CDM can alter the economic balance in favor of gas from oil wells given that the motivation for using non-associated gas is lower cost (example in DRC has an abatement cost of 2.9 USD/tCO2e)
• Procedure for selection of baseline scenario in NM0277 can be further improved to expand the applicability of AM0009/AM0037 to allow for the recovery of gas-lift gas as well as associated gas
Postboks 5, 0051 OSLO NorwayBiskop Gunnerus’ gate 14A, 0185 OSLO NorwayTelephone: +47 45 40 50 00Fax: +47 22 42 00 40
Oslo
Kirkegaten 3, 0046 STAVANGER, NorwayTelephone: +47 93 40 15 40Fax: +47 51 89 09 55
Stavanger
6378 Castello30122 Venice ITALYMobile: +39 349 813 3352Land: +39 041 277 0019
Venice