Economic Best Management Practices for Small and Medium Sized Producers Lessons Learned from Natural...

Economic Best Management Practices forEconomic Best Management Practices forSmall and Medium Sized ProducersSmall and Medium Sized Producers

Lessons LearnedLessons Learnedfrom Natural Gas STARfrom Natural Gas STAR

Small and Medium Sized Producer Technology Transfer WorkshopSmall and Medium Sized Producer Technology Transfer Workshop

Bill Barrett Corporation, Evergreen Resources Inc,Bill Barrett Corporation, Evergreen Resources Inc,

Southern Gas Association andSouthern Gas Association and

EPA’s Natural Gas STAR ProgramEPA’s Natural Gas STAR Program

June 29, 2004June 29, 2004

Reducing Emissions, Increasing Efficiency, Maximizing Profits

Economic BMPs: AgendaEconomic BMPs: Agenda

What is the problem?What is the problem?

BMP I: Identify and replace high-bleed BMP I: Identify and replace high-bleed pneumatic devicespneumatic devices

BMP II: Install flash tank separator on BMP II: Install flash tank separator on dehydratorsdehydrators

BMP III: Additional profitable BMPs that BMP III: Additional profitable BMPs that reduce methane emissionsreduce methane emissions

Discussion questionsDiscussion questions


What is the Problem?What is the Problem?

Pneumatic devicesPneumatic devices 250 thousand gas pneumatic controllers in 250 thousand gas pneumatic controllers in

production sectorproduction sector Release gas to atmosphere by designRelease gas to atmosphere by design Production operations emit 31 Bcf/yrProduction operations emit 31 Bcf/yr

Glycol dehydratorsGlycol dehydrators 38 thousand dehydrators in the gas industry38 thousand dehydrators in the gas industry Remove moisture from gas but also absorb Remove moisture from gas but also absorb

methane, VOCs and HAPsmethane, VOCs and HAPs Vent absorbed methane, VOCs and HAPs to Vent absorbed methane, VOCs and HAPs to

atmosphereatmosphere Other opportunitiesOther opportunities

Stock tank venting, well venting, Stock tank venting, well venting, compressors, fugitivescompressors, fugitives

Releases of gas to atmosphere by design or Releases of gas to atmosphere by design or unintentionallyunintentionally


Solution: Implement BMPsSolution: Implement BMPs

Best Management Practices (BMPs) posted on Gas Best Management Practices (BMPs) posted on Gas STAR websiteSTAR website www.epa.gov/gasstarwww.epa.gov/gasstar Program overviewProgram overview Technical Support Documents: Lessons LearnedTechnical Support Documents: Lessons Learned

Replacing high-bleed pneumaticsReplacing high-bleed pneumatics Saves gas for sale instead of ventingSaves gas for sale instead of venting

Flash tank installationFlash tank installation Recovers all methane bypassed and most methane Recovers all methane bypassed and most methane

absorbed by glycolabsorbed by glycol

Partner Reported Opportunities (PROs)Partner Reported Opportunities (PROs) Technical Support DocumentsTechnical Support Documents


BMP I for Pneumatic DevicesBMP I for Pneumatic Devices

Replace High-Bleed Devices with Low-Bleed Replace High-Bleed Devices with Low-Bleed DevicesDevices


Replacing with Low-Bleed BenefitsReplacing with Low-Bleed Benefits

Up to 80% of high-bleed devices can be Up to 80% of high-bleed devices can be replaced or retrofitted with low-bleed replaced or retrofitted with low-bleed equipmentequipment

Every low-bleed replacement/retrofit gives Every low-bleed replacement/retrofit gives gas savings from $135 to $780 or more per gas savings from $135 to $780 or more per yearyear Implementation cost often recovered in less Implementation cost often recovered in less

than a yearthan a year Replacement/retrofit can provide better Replacement/retrofit can provide better

system-wide performance, reliability and system-wide performance, reliability and monitoringmonitoring


BMP II for Glycol DehydratorsBMP II for Glycol Dehydrators

Install Flash Tank Separator (FTS)Install Flash Tank Separator (FTS)


Glycol Dehydrator Methane EmissionsGlycol Dehydrator Methane Emissions

While glycol removes moisture from gas, While glycol removes moisture from gas, glycol also absorbs methane, VOCs and glycol also absorbs methane, VOCs and HAPsHAPs

Dehydrators vent absorbed methane, VOCs Dehydrators vent absorbed methane, VOCs and HAPs to the atmosphere, which wastes and HAPs to the atmosphere, which wastes gas, costs money and contributes to air gas, costs money and contributes to air quality problemsquality problems


Glycol Dehydrator Methane EmissionsGlycol Dehydrator Methane Emissions

Glycol Contactor

Dry Sales Gas

Inlet Wet Gas

Lean TEGPump

Driver

Water/Methane/VOCs/HAPsTo Atmosphere

Rich TEG

Fuel Gas

Glycol Reboiler/ Regenerator

Gas Bypass Glycol

Energy Exchange Pump

FTS

Gas Recovery


Installing Flash Tank SeparatorInstalling Flash Tank Separator

0

20

40

60

80

100

Per

cen

t

<1 1-5 >5

MMscfd processed

With FTS

WithoutFTS

Flashed methane can be captured using an FTSFlashed methane can be captured using an FTS Many units are Many units are notnot using an FTS using an FTS


How Can Glycol Dehydrator EmissionsHow Can Glycol Dehydrator EmissionsBe Minimized?Be Minimized?

Flash tank installationFlash tank installation Recovers all methane bypassed and most methane Recovers all methane bypassed and most methane

absorbed by glycolabsorbed by glycol

Optimized glycol circulation ratesOptimized glycol circulation rates Methane emissions are directly proportional to glycol Methane emissions are directly proportional to glycol

circulation ratecirculation rate

Electric pump installationElectric pump installation Eliminates need to bypass gas for motive forceEliminates need to bypass gas for motive force Twice as much gas bypassed as absorbedTwice as much gas bypassed as absorbed Eliminates lean glycol contamination by rich glycolEliminates lean glycol contamination by rich glycol


Installing Flash Tank BenefitsInstalling Flash Tank Benefits

Most dehydrators send the glycol/gas Most dehydrators send the glycol/gas mixture from pump driver to regeneratormixture from pump driver to regenerator

An FTS, operating at fuel gas system or An FTS, operating at fuel gas system or compressor suction pressure, recovers compressor suction pressure, recovers ~90% of methane and 10 to 40% of VOCs~90% of methane and 10 to 40% of VOCs

Low capital cost; short payback periodLow capital cost; short payback period


Installing Flash Tank Decision ProcessInstalling Flash Tank Decision Process

IDENTIFY destination for low pressure gas

ESTIMATE capital and installation costs of flash tank

IDENTIFY dehydration units without flash tanks

ESTIMATE gas savings potential

CONDUCT economic analysis


Flash Tank EconomicsFlash Tank Economics


Partner ExperiencesPartner Experiences

Shell Exploration and Production Company Shell Exploration and Production Company installed flash tank separators on 106 installed flash tank separators on 106 dehydrators over an 8-year perioddehydrators over an 8-year period Estimated methane emissions reduction of Estimated methane emissions reduction of

216 MMcf/yr216 MMcf/yr Estimated savings of $650,000Estimated savings of $650,000 Capital and installation costs of $15 to $30 Capital and installation costs of $15 to $30

thousand per dehydratorthousand per dehydrator 3-year payback period3-year payback period


BMP IIIBMP III

Partner Reported OpportunitiesPartner Reported Opportunities


BMP III: PROsBMP III: PROs

Many production facilities have identified Many production facilities have identified practical, cost-effective methane emissions practical, cost-effective methane emissions reduction practicesreduction practices

Production partners report saving 187 Bcf Production partners report saving 187 Bcf since 1990, 80% from PROssince 1990, 80% from PROs

PRO Fact Sheets from Annual Reports PRO Fact Sheets from Annual Reports 1994-20021994-2002

38 PROs applicable to production38 PROs applicable to production 56 total PROs56 total PROs


Discussion QuestionsDiscussion Questions

To what extent are you implementing these To what extent are you implementing these BMPs?BMPs?

What are the barriers (technological, What are the barriers (technological, economic, lack of information, regulatory, economic, lack of information, regulatory, etc.) that are preventing you from fully etc.) that are preventing you from fully implementing these BMPs?implementing these BMPs?

What PROs have you identified in your What PROs have you identified in your operations?operations?

Economic Best Management Practices for Small and Medium Sized Producers Lessons Learned from Natural...

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