(92f) Monetizing Options for Small Reserves of Low-Quality Natural Gas with High Carbon Dioxide Content

The feasibility of monetizing small (daily production 10 MMSCFD) stranded natural gas reserves containing carbon dioxide is analyzed. The carbon dioxide being considered is of varying range from 5% to 60%. The price of natural gas is expected to remain on the higher side over the long term. The high prices of oil & gas make the utilization of more remote low quality gas economically attractive. The different options of power generation and chemical production from low quality gas are explored against the base case of producing pipeline quality gas by removing the carbon dioxide. The project economics are evaluated using the approach of netback value. Power generation is considered by evaluating the economic potential of burning low-Btu gas using aero-derivative turbines. Small-scale methanol manufacturing is evaluated by considering the economics of CO2 reforming to manufacture fuel grade methanol. Reforming with carbon dioxide present has the advantage of generating a stoichiometric ratio of CO/H2 which favors the overall economics. The base case economics is evaluated by considering amine treating for low carbon dioxide content and hybrid systems comprising amine & membranes for high carbon dioxide content.
Furthermore, different risk scenarios are investigated using statistical techniques so as to rank the different options. Uncertainties like demand, price of end products, natural gas well-head prices, transportation charges and variability is processing costs for different operating conditions are considered for the project risk analysis.

Keywords: Natural gas, remote gas, economics, process analysis& simulation, risk management.