Roadmap to Building a Natural Gas Fueling...
Transcript of Roadmap to Building a Natural Gas Fueling...
LNG and CNG CO2 and N2 Transportation and Logistics
Roadmap to Building a Natural Gas Fueling Network
Philip Fusacchia GE Oil & Gas Program Manager – Last Mile Fueling
North Dakota Natural Gas Network
On-Road Trucking Demand (1,000,000 DGE/Day)
Drilling & Completion Demand (200,000 DGE/Day)
Flare Gas Supply (250,000 DGE/Day)
1 – Equivalent volumes from existing NGL stripping units > 1000 mcfd 2 – Based on 74 rigs and 12 frac fleets active in basin
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CNG Partnership-Last MileTM
Fueling Solution 50/50 Joint Venture-Operated by Ferus
Reliable, fully-integrated natural gas fueling solution for E&P and other high horsepower industries
Natural gas expertise and solutions, capital and commercial investment
Energy services, expertise in supply and delivery of off-road cryogenic and gas products (CNG/LNG)
Ferus in North Dakota
Williston Base
Flare gas capture
Contracted CNG fueling
Planned Flare Gas Capture
Ferus Hess CNG Station
50,630 DGE/day CNG capacity by 4Q15 Pipeline Outage Service
Total Gas Captured:
400,000 Mcf
Base Opened: October 2014
Operational: October 2015
20,000 DGE/Day Capacity
Last Mile™ Flare to Fueling Turnkey gas capture service (Example)
• 1-2 MMSCFD • 3 – 12 month
period
• >1500 1150 BTU • 500-1,100 MCFD
available for CNG • 2-4 GPM NGL’s
• Rig & frac fuel • Gas lift primer • 3rd party sales • Pipeline Outage
• NGL storage & transport
• Locally marketed product
Eliminated
NGL
CNG
Sales Gas
2 3 Gas Supply 1 Gas Treatment Gas Transport
Last Mile Flare to Fueling Emission Benefits
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20,000
40,000
60,000
80,000
100,000
GHG (CO2)
Tons
/Yea
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CO2 Emissions
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5,000
10,000
15,000
20,000
Smog (O3)
Tons
/Yea
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Smog Emissions
-
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Respiratory (PM2.5)
Tons
/Yea
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Particulate Matter
55% reduction
98% reduction 97% reduction
The Last Mile approach to flare gas mitigation captures nearly all of the natural gas and natural gas liquids (NGLs), and uses that natural gas to displace diesel in end-use applications, resulting in significant incremental emissions reductions compared to NGL stripping alone.
Case Study
Flare gas capture site handles 2mmscfd, 30% of volume becomes NGL, 5% of volume powers system, 65% of volume becomes fuel or flared (Comparison includes emissions for the equivalent fuel for 10 rigs or 2 frac fleets)
NGL stripping only & diesel for fuel
NGL stripping & natural gas for fuel
ND Natural Gas Fueling Potential
3,012 1,760
1,016
Current Upstream
11,144
10,560
2,031
Upstream Fully Converted 11,144
10,560
2,031
6,625
Upstream Converted & On-Road Trucking (Estimate 2020)
Rigs
Frac Spreads
Water Heaters
On-Road Trucking
5,788 mcf/day (or 8,905 mcf raw gas)
24,074 mcf/day (or 37,036 mcf raw gas)
30,360 mcf/day (or 46,707 mcf raw gas)
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1 – currently 20 rigs & 2 frac fleets utilizing existing dual fuel engine tech in basin 2 – assumes 74 rigs & 12 frac fleets “ 3 – assumes 74 rigs & 12 frac fleets “ and 5% of daily state diesel over the road diesel sales converted to natural gas fuel
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Barrier: Nat. Gas fuel economics challenged
• 20-40% savings required for NG conversion kit payback to rig and frac
• Almost all of 2015 would not have met investment criteria savings for operator or service company
• Only 33% of rigs in basin are equipped to use NG fuel (all converted w/ >$1 savings to diesel)
Scenario – Current diesel pricing not allowing return on investment of nat gas conversion
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Minot, ND – Diesel “Rack Avg” Price + Delivery & Taxes
Last Mile – Power as a Service
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Rig Setup 1 Waukesha + 2 Diesel
Offering Overview
To Supply
Concept
Full service engine and fuel delivery at
one $/DGE price
CNG or Field Gas
Outcome
Reduced OPEX
Reduced diesel consumption
Reduced emissions profile
Reduced reliance on D.F. kits
• NG Genset supply and integration • Genset maintenance • Technical Expertise • ~60+ dedicated NG engines powering
NAM rigs
To Supply
• End to end operations management • Fuel delivery – CNG or Field Gas • Logistics support • Remote equipment monitoring
Pilot (Oct. ‘15)
Benefits: No Operator CAPEX
Reduced emissions profile Fuel savings up to $250,000/year
Powerblock | Service overview Powerblock proposal
Value proposition Potential hurdles
Value of producing oil faster
Capex vs. Opex for capitalizing grid infrastructure
Stranded gas utilization
Emissions regulations
Uninterrupted power and uptime benefit
o Investment/availability for electricity driven equipment
o Deployment time of micro grid infrastructure
o Energy source for micro grid … Co-Op constraints
o Initial down payment for micro grid development
o Regulated vs. de-regulated markets
o Keeping pace with O&G development
• Provide power for wing to wing oilfield services … drilling, completion, and production
• Micro grid solution … Rapid deployment and mobility
• Leverage natural gas supply service, powergen equipment, and smart grid controls to provide Powerblock solution