OTC-29551-MS

Smart Integration of Natural Gas Valorization Systems and Flexible Plant

Installation in Existing and Low Capacity Gas Production Sites

Matteo Falsini and Filippo Conforti, BHGE

Copyright 2019, Offshore Technology Conference

This paper was prepared for presentation at the Offshore Technology Conference held in Houston, Texas, USA, 6 – 9 May 2019.

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Abstract
The increasing demand of energy efficiency, the evolution of emission regulatory and the limited
investments allocation, increases the attractiveness for flexible gas valorization systems [GGFR]. Gas
valorization system can be considered all the technical solution i.e process or new equipment installation
that allow to use wasted gas sources to produce electricity of mechanical power for different application.
The recovery of associated or stranded gases presents various complexities especially if applied to remote
locations. For this reason, to maximize synergies with the existing premises, a flexible design and pre-
assembled solutions might be recommended.
This paper presents, the integration of flexible installation solutions with natural gas valorization systems.
This approach is finalized to maximize the production capability of a hydrocarbon production site with a
low impact on existing infrastructures and relocation possibility.
On this regard, the main emphasis is placed to the following actions:

• The integration of flexible systems in the gas recovery processes,

• The upgrade of existing equipment to resolve production bottleneck,

• The use of mobile technology to accommodate plant flexibility.

During the plant life cycle, operating conditions of some critical links of the production chain need to to
be adjusted. In this case the upgrades of processes and equipment flexibility helps to prevent inefficiencies
that may result in gas flow underutilization or associated gas flaring.
Moderate natural gas flows, either from oil production associated products or stranded gas reserves, limits
the economic viability of a gas valorization system. For this reason, solutions integrating the standard design
balance of plant and the mobile truck architecture are technical choice that provide beneficial impact on
the site effectiveness and economics. Moreover, mobile plants provide the further advantage to be reused
in different sites through a simple relocation and minor adjustment.
Offshore oil plants may not include gas boosting/offload or spare power generation solutions while small
space and limited load capability generate additional complexities. In these cases, a dedicated approach like
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the construction of floating modular systems to be connected to the existing structure represent a viable
solution.

INTRODUCTION
The evolution of regulatory on emission control and the growing energy demand increase the attractiveness
for unused gas valorization. This trend impacts the gas sources that before, given limited production flow
and lifecycle, were unexploited or flared in the atmosphere. On this regard, oil and gas field operators are
challenged by multiple complexities that affect these fields from different perspectives:

• Product losses along the production path

• Emission regulatory and the larger diffusion of carbon tax

• Fast maturity of existing sites and relevant changes in production parameters

• Capex control for brownfield equipment rejuvenation

These points drive to a dedicated approach for the utilization of such fragmented gas resources [Farina,
M.F., Jan. 2011].
Figure 1 describes the key phases composing a typical model of small gas stream valorization. Production
optimization helps to reduce bottlenecks on the gas path and minimize inefficiencies in the gas reuse for
plant purposes. Gas gathering form flaring system or from stranded resources, impurity removal and gas
treatment contribute to prepare the recovered gas for the final valorization. Then, the unused gas is converted
into energy for plant internal use or is delivered to remote users [ENI 2012 – Total Expl. 2008].

Figure 1—Typical model of small gas streams valorization

Remote or harsh field locations, lack of transportation infrastructure and the unpredictable duration of gas
production, drive the operators to solutions that offer ease of installation and operation flexibility. In many
cases these complexities, combined with fast installation demand, makes the mobile approach a valid option.
In fig. 2 are listed some typical cases where short or unpredictable gas availability suggest the use of
flexible or relocatable solutions.
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Figure 2—Map of natural gas recovery sources vs. valorization processes

In the next section are detailed the phases of a gas monetization process and detailed their benefit for
the plant.

GAS PATH OPTIMIZATION, TREATMENT AND VALORIZATION AT THE

PRODUCTION PLANT
The "Production Optimization" phase include solutions dedicated to maximizing the gas utilization for plant
related purpose.
Fig. 3. shows a simplified oil production process with a maximum case of associated gas plant utilization.
In the schematic are plotted three different paths of gas recovery:
1. A high pression gas compression line for oil stimulation such as gas lift (about 150bar) or gas
reinjection (300 to 700 bar),
2. A 30-40bar gas line dedicate to fuel gas production for the generation of fuel gas for energy production
(electricity or heat),
3. A medium pressure gas export line (60 to 100 bar) for pipeline gas delivery is dedicated to the sales
of the remaining portion of gas flow.

Figure 3—Area of intervention to optimize the associated gas management

In this system, the three gas recovery lines have a positive impact on the plant energy balance. Oil
production stimulation will generate more throughput and revenues. Energy production within the plant
would impact positively opex by generating saving on energy/fuel purchasing. Finally, the remaining dry
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gas and the production of NGLs will contribute to operator revenues through their sales to the distribution
channels.
The next phases "Gas Treatment" and "Gas Valorization" vary depending on the recovered products. The
level of contaminants in the gas feedstocks might influence the selection, preferring solutions/products that
can tolerate higher level of contaminants to reduce the gas treatment requirements. Gas treatment may have
a significant impact on plant total costs and its flexible design helps to optimize capex utilization.
Here below are the products arising from the "Gas Valorization" phases… combination of these products
can also be achieved, depending on oil/gas field operator demand [BHGE].
1. Fuel Gas to be used for power generation
2. Export Natural Gas
3. NGL/LPG/Condensate by gas fractionation
4. CNG
5. Small scale LNG
In fig. 4 are summarized the key options that apply to the various environmental and infrastructures.

Figure 4—Mapping of gas valorization throughput

Among the various approaches, Gas–To–Power solutions based on gas turbine generation sets fit to
mobile and relocatable installations and offer additional advantages for larger fields. With this configuration,
energy solutions both for plant use and for distribution grid can be applied [GE].
Gas-To-Power options are mostly viable if a connection to the electric grid is close to the field, in case of
two or more fields can be electrically connected or if the conversion to electric power of the field equipment
is required.
In figure 5 is summarized a Gas-To-Power system for a gas valorization plant. The electric power
produced by this system that is sufficient to provide power for the electrification the entire oil production
plant, simplifies the plant operation with easy maintenance and better control capability.
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Figure 5—Gas Turbine based Gas-To-Power solution

Here below some key advantages of a gas turbine-based Gas-To-Power approach:

• Support power demand for electrification of compression and pumping systems

• Mobile solution available for easy installation and replacement

• Possible connection of various production site to a main power station

• Heat recovery from turbine exhaust available for process purposes (e.g. steam production, oil
heating) or civil application (district heating, industrial, etc.)
Depending on specific plant requirements (e.g. modest plant lifecycle or tight economics), fast installation
and flexible solutions may be required. In the next chapter is discussed this topic and described some blocks
of the gas valorization process that can be executed with modular or mobile approaches.

MODULARIZED AND MOBILE SOLUTIONS

In an oil production plant, the necessity of a minimum impact on plant operation is a condition to
guarantee production linearity. Approach. Space saving, manpower reduction, ease of project execution in
remote/severe sites are the main drivers for this. Recently, key requirements like fast and lean installation,
compact solutions fitting space constrain and limited load capacity has been often required for new systems
integration. Moreover, integrability of new sub-systems such as gas treatment, separation and storage has
been required. These requested are perceived as a non-intrusive approach that facilitate the new plant
viability and the integration with the existing ones. The best solution to answer to all these questions is the
concept of mobile solution and in case the modularization of the rotating equipment.
Modularization is also a powerful way to mitigate the construction risks at site, since most of the
construction and commissioning activities are carried out at module construction yards.
The degree of modularization should be optimized considering several factors (logistic constrains, cost
and availability of local manpower, risk assessment) [BHGE].
The following categories can summarize possible solutions answering to site requests described in
previous paragraphs:
1. Mobile power generation using rotating equipment
2. Mobile mechanical drive solution
3. Mobile and truck-mounted skids that includes equipment and piping where dimensions are driven by
track constrains (max. 4x15x7 m WxLxH)
4. Module, multi-deck solutions that includes rotating equipment, process equipment with control cab
and maintenance facilities (cranes, laydown area, etc…). Full module solutions provide a major
section of the plant resulting from a combination of remote assembly
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Present article is concentrated mainly on the first 3 solutions and the way how can be used.
Fig. 6 shows an example of total installed cost diagram which helps to identify the degree of pre-assembly.
Total installed cost is the sum of Capex and Installation Costs. These two parameters are function of
the level of pre-assembly (increasingly higher Capex and lower installation cost starting from stick-built
up to full module).

Figure 6—Capex vs. installation cost matrix

Transportation constrains can sometime limit the extension of modularization. High modularization
degree is always convenient all the time that there are manpower shortages or high manpower or logistic
costs at site.
Available solution in the range of 20-33 MW:
The most advance mobile solution is represented by the an aeroderivative gas turbine trailer mounted
that is capable to deliver a power range of 30 MW in electric generation mode. This solution can run on
both natural gas and/or diesel and implement also the water injection for NOx abatement. Mounted on a
mobile, two-trailer assembly, aeroderivative gas turbine generator sets can be transported via land, sea, and
air to remote places. The aeroderivative gas turbine design for easy relocation make possible the swiftly
deployed to other sites within days when it is no longer required at the original site.
Extremely flexible, these gas turbines have a sub 10-minute start cycle to full power and the installation
time is highly reduced compared to the standard construction approach.
Solution in the range of 5 – 17MW:
The LT family gas turbine has been recently developed for power generation in the range of 5 to 17 MW.
Typical arrangement of these package is showed in the picture Fig 7.
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Figure 7—LT trailer mount

Gas turbine power generation sets can be skid mounted with single lift handling solution for easy and
plug and play installation. Auxiliary services and control room can be normally arranged in standard 20 or
40 feet containers for fast delivery and connection.
The compact design and the good compromise between weight and performences (typical of industrial
engines) makes this gas turbine family ready for installation on a mobile truck.
Pre-assembled units that includes rotating equipment and main auxiliaries on a common deck with or
without a control cab on board. This solution includes pre-assembled, prefabricated components, and/or
equipment that are joined together at a remote location for subsequent installation as a sub-unit.
Module, multi-deck solutions complete the options. They include rotating equipment, process equipment
with control cab and maintenance facilities (cranes, laydown area, etc.).

DISCUSSION AND CASE STUDY

The range of solutions described in this paper can be applied to satisfy the wide range of conditions that
impact the recovery of flaring gas.
Depending on the plant dynamics the following results can be produced to generate stand alone or
combined benefits:

• Small well exploration and utilization,

• Shale gas early production

• Recovered gas and related products sales for local energy contribution

Next sections will describe some projects where these solutions have been applied.

CASE 1 – SMALL WELL EXPLORATION AND UTILIZATION

This first case presented is linked to the possibility to consider the track mounted solution during the
exploration of new fields and its relative usage. The idea is to consider a flexible solution due to the fact
that the capacity of the welds is reasonably small, and therefore a large investment cannot be justified in
terms of a reasonable return of investment.
The area to be explored is consistent and basically the process can be summarized in two phases:
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1 phase (pilot development program) 2 phase (plant installation works)

Oil 300 hundred tons/year 1 000 hundred tons/year

Bottom water 1,0 mln tons/year 2,5 mln tons/year

Gas 1 bln m3/year 1,5 bln m3/year

The initial selection for the compressor service based on the date received by customer shows the
possibility to use 5MW units to process the gas and the oil production.
One possibility is to use a gas turbine of the 5 MW gas turbine familiy mounted on truck to provide the
electricity to the site and then a process island with different trailer trucks for oil separation and compression
station. Oil threatment system, gas reinjection and water treatment are the key assets to be modularized.
The 5 MW size allows for the installation of additional trailed to add incremental power capacity.
In the following scheme (Fig 8) it is represented the simplified scheme of the site assets.

Figure 8—Plant overall single line diagram

CASE 2 – SHALE GAS EARLY PRODUCTION

North America, which produces almost 4 million barrels of oil a day, has expanded so quickly that suppliers
of the electricity needed to keep wells running are struggling to keep up. The Permian area, alone consumed
the equivalent of 350 megawatts this summer, tripling the load from 2015. This amount of energy required
is linked to the installation of new equipment to exctract gas and process it up to the pipelines. This energy
is the same necessary to power about 280,000 U.S. homes. Latest estimation shows the demenad to triple
again by 2022.
Providers are rushing to build new power lines, but it takeslong time to get them up and working, normally
from three to six years. In the meantime, drillers are bemoaning the reliability of the system. They are
seeking alternatives including, exploring the use of solar and natural gas to to provide power, though the
electrical grid in West Texas is not set up to withstand that much power going through it.
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Power is just one more oilfield complication in this region that deals with extraordinary growth over a
short period of time. Worker and pipeline shortages are major concerns, along with the growing levels of
water and sand needed for fracking. Meanwhile, highways initially designed for minimal use are gridlocked
in the day and deadly at night.
Conventional drilling with vertical wells in the region reached an apex in 1973, producing about 763
million barrels that year. Output then steadily declined, falling to 309 million barrels in 2006.
Leveraging the new frontier in terms of fracking, the new installation related to the fraking gave a
tramendous contribution to the increment of power demand in the region (figure 9). At the same time, the
well count has grown dramatically, rising by 33,483 since 2006, according to Austin-based Drilling Info Inc.

Figure 9—Power demand in region

Shale wells developed using fracking can run horizontally for miles. To lift oil out, companies now
depend on electric submersible pumps that individually draw about 300 kilowatts.

Gas-Fired Turbine
A key rotating equipment OEM is working with several customers on a pilot project to power its electric
submersible pumps from a gas-fired turbine, which can be more powerful than a diesel generator and
requires less maintenance. The world's second-biggest oilfield service provider sees its turbines filling a
void in areas where the electrical grid hasn't yet expanded, or where power cuts out too often.
The contribution in power increase is not only linked to the fracking process but also the necessity to mix
water and sand is give a significant boost to the peak demand.
It has become a key factor in determining where to place pumps for moving water to the frack job.
A modularized solution, the TM2500+, has been considered in some regions to produce energy and a
mobile solution with an electric motor capable to drive 2 pumps. Figure 10 explains the two types of assets
used:
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Figure 10—Trailer mounted asset

This solution allows the production of electrical power for the local site utilities and the possibility to
feed the electric pumps.

CASE 3 – FAST TRACK GAS TO POWER SOLUTION

This case describes a modular construction applied to a gas valorization project.
The objective of this project was the production of electricity using the associated gas coming from the
process otherwise flared in the atmosphere. The electricity was exported to the local electric grid and, in
order to maximize the return of investment, the project needed to be executed quickly.
The project scope of work (figure 11) was bases on a compression system, comprised of a low and a
medium pressure stages, for fuel gas generation and a gas turbine generation set to produce 21 MW (at ISO
conditions) of power.
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Figure 11—Modular Gas-to-Power solution

The compression system was skid mounted and included compressor equipment with auxiliary on a
single baseplate. The skid included also integrated coolers to achieve compactness and ease of installation.
Compressor packages were also completed with instrumentation, climatized control cabinet and electrical
panels and two out of the three units were refurbished equipment.
The power generation system was composed of a trailer mounted gas turbine generator. This solution
allowed to achieve short delivery and plug-and-play installation.
The combination of described solutions allowed to match required project delivery with a saving on
installation schedule of about 40%.

CONCLUSIONS
Present Oil & Gas industry dynamics such as growing focus on energy efficiency and emission control
increased the interest in associated gas recovery.
Plant operators are getting ready for this innovation and are starting to consider this trend as an
opportunity to produce additional energy and generate environmentally sustainable revenues.
The efficient integration of natural gas valorization systems in existing oil and gas production sites is a
roadmap that create benefit for the field operators and produce value for territory matching hydrocarbon
production efficiency and reducing environmental impact.

REFERENCES
BHGE small-scale LNG modular plants. https://www.bhge.com/modular-solutions/small-scale-modules
BHGE Modular Solutions. Fully-tested gas turbine power-generation and compression modules with all equipment and
auxiliaries integrated and tailored to customer needs. Drilling info Database. https://info.drillinginfo.com/
ENI / Technology role for Natural Gas Valorization. ENI Exploration and Production, 2012. http://ilp.mit.edu/images/
conferences/2012/EURO/Tannoia.pdf
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GE / Emergency, Fast-Track, and Mobile Power Solutions. https://www.ge.com/power/applications/fast-power

GGFR Global Gas Flaring Reduction Partnership. http://www.worldbank.org/en/programs/gasflaringreduction
Farina, M.F.: GE Energy, Global Strategy and Planning, Flare Gas Reduction, Jan. 2011. http://www.ge-spark.com/spark/
resources/whitepapers/Flare_Gas_Reduction.pdf
Total About Gas Valorization Routes. Total Exploration and Production, 2008. https://www.globalmethane.org/
documents/events_oilgas_20081203_oilgas-4Dec08_seguineau.pdf