DEMONSTRATION OF A LOW COST 2-TOWER MICRO SCALE N2 REJECTION SYSTEM TO UPGRADE LOW-BTU GAS FROM STRIPPER WELLS a JOINT PROJECT by THE KANSAS GEOLOGICAL SURVEY (KUCR, University of Kansas) & AMERICAN ENERGIES CORPORATION (Wichita, Kansas) Low BTU Natural Gas – Resource Base Pipeline specifications – > 950 BTU/cu ft U.S. natural gas reserves – 204 Tcf (EIA, 2006) Sub quality (low BTU) Gas & Reserves Less than 950 BTU/cu ft – considered as low-BTU > 2% CO2, or > 4% N2 or inert gases 17.5 Tcf – Mid-Continent (Hugman, 1990) 9 Tcf – Rocky Mountain Region (Hugman, 1990) 33% of 1253 gas analyses in KS are low-BTU (Newell, 2007) Low BTU due to presence of N2 32 Tcf nationwide (17% of reserves) (Lokhandwala, 2006) Significant portion located in small or modest size fields Great majority in Mid-Continent (Jenden, 1988) Low-BTU Gas Reserves in KS BTU/scf < 750 750-849 850-949 Problem Statement Available N2 rejection technologies N2 rejection technologies under development Lean Oil Absorption & Membrane Separation Most of the nation’s gas production – large fields Cryogenic – Large feed volumes (> 5 mmcfd) and expensive Conventional (3 or 4 Tower) PSA/TSA – 0.5 to 20 mmcfd Expensive to design and build – patented components/processes Low BTU gas processed at centralized facilities – cryogenic/PSA To meet long-term demand of natural gas in the US Small, isolated, low-BTU reserves have to be mobilized Currently SI or behind pipe – lacking micro-scale separation plants REQUIRE LOW COST MICRO N2 REJECTION PLANT ECONOMIC at LOW VOLUME, LOW PRESSURE Project Objectives Goals Design, build, optimize – 2-Tower Micro-Scale N2 rejection plant Using Pressure Swing Adsorption (PSA) Patent free – off-shelf, non-proprietary components Economic at low feed volumes - < 200 mcfd (shallow/small fields) Estimate well deliverability and decline – to size the plant Small field size affects production decline User friendly techniques & commonly available software/freeware Conventional plants – use proprietary components and processes Analyses – Wireline logs, 4-point test, and production decline Disseminate LESSONS LEARNED to stripper well community Technology Transfer Workshops & Publications Maps showing distribution of N2 rich low-BTU reserves in KS 2-Tower Micro-scale N2 Rejection Plant Diam. 4 ft, Ht. 8 ft Feed: 150 mcfd Composition: 70% CH4, 25% N2, 3% HHC, 2% inert Sales Stream: ~ 100 mcfd, <4% N2, ~ 975 BTU/cu ft Vent: ~ 5% CH4 Adsorbent – Activated Carbon made from coconut husks Palletized Activated Carbon Made from coconut husks Large surface area Adsorbs larger molecules N2, He, O2, H2, CO Regenerate adsorbed CH4 Activated Carbon from coconut Husk CH4, H2S, CO2, H2O Vents smaller molecules 300 to 4000 m2/g Pore size diameter – 10 to 25 Angstroms Under vacuum Proposed Technology vs. Conventional Conventional Commercial PSA Plants – patented parts/processes 3 to 4 Towers – requires professional design (1/3rd cost mark-up) Patented adsorption beds Patented purge cycles – reduces pressure shock on beds Surge towers – uniform composition of sales gas Economic feed volumes – 500 mcfd to 20 mmcfd Proposed Micro-scale Plant – non proprietary parts/processes 2 Towers – Easy to design and build (<10 moving parts) Use readily available palletized activated carbon for adsorption Carry out pressure equalization by pause using vent gas Discharge gas accumulator – uniform composition of sales gas Economic feed volumes – 40 to 200 mcfd (<100 psi) Enhances bed life and reduces dust emission (compressor fowl up) Additional Differences Micro plant – Modular & Scalable, Operate in remote locations Conventional PSA Plants – 3 & 4 Towers Surge Chambers Each tower in different cycle: 1. Adsorption 2. Desorption 3. Pressure up slowly 4. Slowly going to vacuum Cycle Time Optimization – Micro Plant Basic PSA Principle – TIME TESTED (IT WORKS) PSA used many different applications CH4 can be adsorbed in a bed of activated carbon Critical Question – How to optimize a micro-scale plant ? Main Goal – Shortest cycle time for max CH4 recovery Selectively vary input parameters: Inflow rates Cycle time Adsorbent quality Measure effect on CH4 recovery and breakthrough Bed economics – degradation, compaction, & heaving Operation costs Elmdale Field, Chase County, KS Other N2 Rejection Plants in KS -Cryogenic plant (McCoy Pet) -Feed volume – 5 mmscfd -Hodgeman & Ness County Other Features – Micro Plant Scalability Small, shallow, low BTU fields – production decline Designed to handle varying feed - 40 mcfd to 200 mcfd Operating Economics Initial investment ~ $100,000 (Conventional PSA 3 to 4 times) At $5/mcf, monthly income $4,500 to $11,250 (40 to 150 mcfd) Building Material – Carbon steel Skid mounted units – attach/detach units to process high/low feed Instruments & control panel – low cost cast iron (rated 125 psi) Widespread availability & easy replacement Patents – Proposed process and components not covered Previous SWC funding – None to our knowledge Anticipated Results – Micro Plant Significant Production Improvement U.S N2 rich low-BTU reserves – 32 Tcf (17%) (Lokhandwala, 2006) Proposed Micro Plant – Mobilize N2 rich low-BTU gas Could add 1 Tcf to U.S. reserves (Lokhandwala, 2006) Within resource reach of stripper well operators Reduction in Operating Costs Much of this “sub quality” gas – trapped in small, isolated fields Optimized, plant runs unattended 95% of time – 2 operator visits/d Monthly maintenance – compressor and bed level Less than 10 moving parts (outside engine & compressor) Minimal Environmental Impact Does not require electric power - compressor runs on feed gas Compressor engine – Powers batteries to run unit Solar panels – Power flare in vent gas line Vent gas has no VOCs, heavy HC, H2S, CO2, and H2O Small footprint - ~ 400 sq ft Anticipated Results – Micro Plant (contd) Commercialization Viability Our micro plant – Simple, patent-free, off-shelf components Within resource reach of stripper well operators Technology Transfer Workshops – upon completion Build, design, operate on their own or with minimal outside help No waiting period – for wide scale application Easy to use techniques to determine well deliverability & decline Step-by-step guide to scale & design a micro-plant – non-patented Best practices regarding optimizing plant performance Plant maintenance protocols Application of 2-Tower Micro-Scale N2 Rejection Plant Small, isolated N2 rich low BTU fields/stripper wells in US Low feed volumes < 200 mcfd If vent gas > 10% He – compress @ 3000 psi for He plants At current rates – value added by-product NITROGEN AND HELIUM % CENTRAL KANSAS GASES 10 Permian Pennsylvanian (Virgilian) Pennsylvanian (Missourian) "subquality" at BPU 1 "pipeline quality" He % 0.1 2.5:1 5:1 N2:He 10:1 ratio 20:1 0.01 0.1 "low-BTU" 40:1 80:1 160:1 1 N2 % 10 100 How does our proposed project complement SWC’s goals? SWC seeks to identify new technologies Successful demonstration of our proposed project Significant production increase - domestic O&G stripper well/field Significantly reduce operator costs Improve environmental issues Have broad applicability to large regions of the US Mobilize an entire class of unproduced gas ~ 1Tcf N2-rich low-BTU Unattended operation (95%), <10 moving parts, inexpensive spares No emissions of CH4, H2S, CO2, HHC, & VOCs $100,000 investment, attractive returns, technology transfer OUR GOALS – Field Demonstration & Tech Transfer Demonstrate how stripper gas operators can build and operate a low-cost N2 rejection plant using non-patented components ACTIVATED-C BASED ADSORPTION WORKS – NEED TO OPTIMIZE AT MICRO SCALES Benefits to AEC & Stripper Well Operators AEC primarily owns and operates stripper wells in KS Benefits to AEC Produce known low-BTU reserves behind pipe – Elmdale field Phase II – bring online low volume, low BTU wells – SI presently Proposed 2-Tower Micro Scale Plant Within resource reach of stripper well operators such as AEC Technology and Financial However, need to develop a learning curve Neighboring high BTU fields have depleted No micro scale N2 rejection plant is currently operating in KS Learn how to design, scale, build, operate, and optimize a micro plant Request SWC support to try new patent-free technology Technology transfer workshops upon completion Convey transfer lessons learnt to stripper well community