Recovery of Associated Gas for independent power generation The Kwale

1
Recovery of Associated Gas for independent power
generationThe Kwale Okpai Project Nigeria

• Paolo LINZI
• Safety, Environment and Quality VP
• Eni EP Division

2
Agenda

• Background Flaring down in Nigeria
• The Kwale - Okpai Project overview

3
Enis Action Plan on Kyoto Protocol

• Eni Action Plan for Flaring / Venting reduction
• RD activities CCS Project and GTL pilot project
• Development of a sustainable energy model and
  definition of the transition path

4
Flaring Down in Nigeria

• View of Nigerian flares as seen from the
  satellite
• An unusual brightness in the dark of the African
  continent
• Nigeria produces 2.3 M Bopd of oil and 6 BScf/day
  of associated gas.
• About 45 of produced gas is presently flared.
• Gas reserves in the country are estimated to be
  180 Tcf
• The government through fiscal incentives has
  opened new markets
• The exportation of liquefied natural gas (N-LNG)
  started in 1999

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History of Eni in Nigeria (1)

• 1962 Establishment of Nigerian Agip Oil
  Company NAOC starts exploration activities
• 1973 First jv with Nigerian government (60
  NNPC)
• 1976 Electric power supply to Brass community
• 1980 Establishment of AENR ltd
• 1985 Gas re-injection in Obiafu-Obrikon plant
• 1989 NAOC acquires 5 of the Shell assets
  (increase of about 60,000 bopd equity)
• 1989 Establishment of Nigeria LNG ltd (Agip
  10.4)

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History of Eni in Nigeria (1)

• 1994 First NGL supply to Eleme petrochemical
• 1996 Establishment of NAE Ltd
• 1997 Renewal of NOAC jv OMLs until year 2027
• 1999 NAOC provides first gas for N-LNG plant
• 2000 NAOC defines a plan to reach zero flaring
• 2001 NAOC signs the first electric power sale
  agreement for the IPP at Okpai
• 2003 Start up of Abo field (first off-shore
  deep water in Nigeria)
• 2003 Establishment of Brass LNG Ltd (Eni 17 )
• 2005 Start-up of Okpai IPP (first IPP in Nigeria)

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Relationship With Local Communities
Social and Environmental commitment

• 1976 1st social project Power supply to Brass
  Community
• 1985 Reducing gas flaring through gas
  re-injection
• 1987 Green River social project
• 2000 Start of zero gas flaring project
• 2001 Social projects - Roll-back malaria, Burma
  Rice

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Nigerian Zero Flaring Gas Master Plan
GAS SUPPLIES (existing and planned) to N-LNG -
Trains 1 2 - Train 3 - Trains 4 5 - Train 6
to Brass LNG to IPP - Okpai Phase 1 - Okpai
Phase 2 (planned) to Rivers State Gov. Power
Plant to Eleme Petrochemical - Fuel Gas - NGL
GAS INJECTION - Kwale field - Ob/Ob field
INTERNAL CONSUMPTIONS Fuel Gas - power
generation - gas turbines drivers
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IPP project
IPP
NAOC Gas Configuration Land Swamp Area
AKRI
KWALE
EBOCHA
IRRI/ISOKO
OB/ OB
SAMABRI
IDU
FORCADOS
OSHIE
TUOMO
ELEME
ROW GTS - 1 (N-LNG)
NAOCs ROW (OB/OB-Brass)
BENIBOYE
T6
P/ HARCOURT
SPDCs ROW (Nun river-Kolo creek-Rumuekpe)
OGBAINBIRI
Rumuji
TIE-IN POINT NAOC/NLNG GTS
Legend
CLOUGH CREEK
OBAMA
ROW GTS -4 (N-LNG)
Oil Terminal
TEBIDABA
LNG Terminal
Raw Gas
BRASS
Gas Line to Bonny
BONNY
NGL
Gas Parallel Line
New pipelines
Flowstation Upgrading
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Agenda

• Background Flaring down in Nigeria
• The Kwale - Okpai Project overview

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The Project Concept

• PURPOSE/ACTIVITY
• Utilization of previously flared associated gas
  produced in the Kwale Oil-Gas Processing plant
• Transportation of the gas through a 14 km long
  pipeline
• Use as fuel in plant and in ad hoc built Combined
  Cycle Gas Turbine Independent Power Plant

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On-grid energy installed capacity in Nigeria
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Project Description

• IPP PROJECT PARTNERS
• NNPC (60) NAOC (20) PONL (20)
• TECHNOLOGY
• Gas dehydration, taking up ullage at the existing
  Kwale OGPP
• Gas compression
• 14 km pipeline inter-connector from the Kwale
  OGPP to the IPP at Okpai
• A 480 MW combined cycle gas turbine power plant

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Methodology Overview

• Approved Methodology AM0009 version 02
• Recovery and utilization of gas from oil wells
  that would otherwise be flared

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Baseline and Monitoring Plan

• BASELINE
• CO2 equivalent emissions from flaring of
  associated gas, less
• Volume of dry gas exported from Kwale plant to
  OB/OB gas plant
• Volume of dry gas used for reinjection at OML 60
• MONITORING
• Ex post monitoring of various carbon flows
  across the gas recovery, processing, export, and
  emergency relief (flares) systems, plus any
  accidental releases through plant or pipeline
  failure

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Boundaries and Crediting Period

• BOUNDARIES
• The project boundaries are the Kwale Oil-Gas
  Processing Plant and the pipeline inter-connector
  between Kwale OGPP and the IPP
• CREDITING PERIOD
• A crediting period of 10 years (2006-2015) has
  been chosen
• OVERALL CREDITS
• 14.97 Miln tones CO2eq

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Additionality assessment
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Project Emissions

• Emissions from the Kwale gas processing plant
  that are attributable to the gas trains exporting
  to the Okpai IPP
• Fugitive and accidental emissions from the
  transportation of gas to the Okpai IPP
• Emissions related to the flaring of blow down
  from the IPP pipeline

The Emissions Reductions are equal to the
emissions related to the recovered gas less the
project emissions
Emission Reductions over the crediting period
14,969,337 tonnes CO2eq
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Project Emissions
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Conclusions

• The Clean Development Mechanism
• A help for the Oil Gas sector in the economic
  efforts to
• Cut flaring and venting emission
• Deploy Efficient Technologies in developing
  countries
• The Kwale Okpai Project
• A contribution to sustainable development. Its
  benefits
• A significant step to Eni "Zero Gas Flaring" Plan
• Climate change mitigation
• Deployment of sustainable technology in Nigeria
• Boosting CDM projects development in Nigeria
• New opportunities to implement flaring down
  projects worldwide