Presented by: Timothy J. Skone, PE ONE Future Methane & Climate Strategies Event, Houston, TX: May 15, Solutions for Today Options for Tomorrow

Transcription

1 Life Cycle Analysis of ONE Future s Supply Chain Methane Emissions Final Project Summary Presented by: Timothy J. Skone, PE ONE Future Methane & Climate Strategies Event, Houston, TX: May 15, 2018 Solutions for Today Options for Tomorrow

2 Mission Discover, integrate and mature technology solutions to enhance the Nation s energy foundation and protect the environment for future generations EFFECTIVE RESOURCE DEVELOPMENT EFFICIENT ENERGY CONVERSION ENVIRONMENTAL SUSTAINABILITY 2

3 NETL Competencies by Site Multiple Sites Operating as 1 LAB System OREGON Materials Performance Alloy Development/Manufacture Geospatial Data Analysis PENNSYLVANIA Process Systems Engineering Decision Science Functional Materials Environmental Sciences WEST VIRGINIA ALASKA Energy Conversion Devices Simulation-Based Engineering In-Situ Materials Characterization Supercomputer Infrastructure Oil and Gas Strategic Office TEXAS Oil and Gas Strategic Office 3

4 Energy Life Cycle Analysis Cradle -to-grave environmental footprint of energy systems Extraction Processing Transport Conversion Delivery Use Mission Develop and utilize the LCA framework and methods to support the evaluation of sustainable energy systems both in and outside of the Department of Energy Vision A world -class research and analysis team that integrates results which inform and recommend sustainable energy strategy and technology development Constr. Mfg. e n e r g y s u s t a i n a b i l i t y 4

5 Collaboration Between DOE and industry NETL supports DOE s mission to advance U.S. energy security and conducts a broad spectrum of research and development programs ONE Future is a group of leading natural gas companies focused on reducing methane (CH ₄) emissions a cross the supply chain Study objective: Characterize ONE Future s supply chain greenhouse gas (GHG) emissions and evaluate opportunities for improvement 5

6 ONE Future s Data Representativeness 2016 operations Full supply chain (production through delivery) 11 production basins 5% to 12% of U.S. supply chain c apacity (depending on stage) Includes facilities below EPA s reporting threshold 6

7 Emission Inventories vs. LCA LCA allows direct comparisons between U.S. and ONE Future 8,000 OTHER 100% 7,000 6,985 PRODUCTION/Vented and Combusted/Blowdowns 90% 6,000 PRODUCTION/Vented and Combusted/Liquids Unloading 80% kiloton CH₄/yr 5,000 4,000 3,000 DISTRIBUTION/Fugitives/Pipeline Leaks GAS PROCESSING PLANTS/Vented and Combusted/Compressor Exhaust PRODUCTION/Vented and Combusted/Compressor Exhaust PRODUCTION/Fugitives/Well Pad Equipment 70% 60% 50% 40% 2,000 1, TRANSMISSION AND STORAGE/Vented and Combusted/Compressor Exhaust TRANSMISSION AND STORAGE/Vented and Combusted/Transmission Stations PRODUCTION/Vented and Combusted/Pneumatics 30% 20% 10% 0 0% U.S. ONE Future PRODUCTION/Fugitives/Gathering and Boosting U.S. ONE Future Inventory does not facilitate comparisons per unit of delivered fuel (e.g., 1 MJ delivered natural gas) LCA is necessary to model an integrate ONE Future s assets into a balanced supply chain 7

8 ONE Future s Life Cycle CH₄ Emissions Representative of a hypothetical, vertically integrated ONE Future supply chain % % % g CH₄/MJ NG Delivered % 0.70% % 0.54% 0.60% 0.52% % 0.50% 0.42% % % 0.30% % Cumulative CH₄ Emission Rate % % PRODUCTION GATHERING & PROCESSING TRANSMISSION STORAGE PIPELINE DISTRIBUTION BOOSTING 0.10 g CH₄/MJ delivered natural gas (can be as high as 0.20 g CH ₄/MJ ) 0.67% CH₄ emission rate (can be as high as 0.92%) 2015 U.S. average emission rate is 1.62%; equivalent to a 240 Bcf /yr reduction 8

9 ONE Future Comparison to U.S. Average 2015 U.S. average natural gas compared to 2016 ONE Future operations 0.12 ONE Future U.S g CH₄/MJ PRODUCTION GATHERING& BOOSTING PROCESSING TRANSMISSION STORAGE PIPELINE DISTRIBUTION ONE Future total CH ₄ emissions are lower thanu.s. Distribution is only stage where ONE Future has higher emissions than U.S. Greater uncertainty for ONE Future a function of data representativeness and stage connectivity 9

10 Marginal Abatement Costs Used as a companion analysis tool that represents assets within ONE Future scontrol Mitigation options available to ONE Future are different than for the entire natural gas supply chain Low cost opportunities resultin 1.1 Bcf in annual CH 4 emission reductions Most opportunities have recovery costs that exceed natural gas market value 10

11 Findings and Recommendations Compressors - A significant emission source represented by all supply chain stages - More data and analysis could give us a mechanistic understanding of compressor emissions Episodic emissions - Liquids unloading variability is a top driver of uncertainty - Further research and analysis on episodic variability could inform the discussion on top -down vs. bottom -up emissions MAC - Complements LCA with a cost and scale perspective - Further development of MAC method could lead to regional and operator -specific recommendations for emission reductions 11

12 Potential Next Steps Moving from national and aggregated ONE Future perspectives to regional and sector assessments Value - Cost effective methane reduction opportunities vary by region and industry sector one-size-fits-all national perspectives can over and underestimate real world methane reduction opportunities - Improved transparency of both methane emissions and market viable reduction opportunities to investors/shareholders - Ability to benchmark and report methane emissions performance on an equivalent delivered unit of gas basis while appropriately acc ounting for the movement of gas from production to delivery to the end customer Keys to Success - Phase II private -public partnership between ONE Future and NETL to inform regional differences by operator - Company results blinded and reported at the basin - level by industry sector - Combined LCA and MAC analysis to inform future methane reduction potentials - Comparison to U.S. regional averages by sector to benchmark and communicate methane reduction opportunities 12

13 Acknowledgments DOE Office of Fossil Energy - Tim Reinhardt - HQ Director of Supply & Delivery - Christopher Freitas - HQ Senior Program Manager ONE Future - Fiji George - Richard Hyde AECOM - Terri Lauderdale - Matt Harrison 13

14 Report Access -analysis/search-publications/vuedetails?id=

15 Contact Information Timothy J. Skone, P.E. Senior Environmental Engineer Strategic Energy Analysis (412) James Littlefield Senior Engineer KeyLogic (412) e n e r g y s u s t a i n a b i l i t y netl.doe.gov/lca 15

16 Supporting Material: InventoryPerspective Greenhouse Gas Inventory (GHGI) shows emissions on an annual basis U.S. ONE Future 2,500 2,000 kiloton CH₄/yr 1,500 1, Gas Well Fugitives GasWells Well Pad Equipment Gathering and Boosting Blowdowns Chem. Injection Pumps CompressorExhaust DehydratorVents Drilling, Well Completion, and Well Workover Kimray Pumps Liquids Unloading NormalOperations Pneumatics Produced Water from CBM Produced Water from Coal Bed Methane Upsets Well Clean Ups Drilling, Completion, or Workover Flares CompressorSeals Plant Fugitives Recip. Compressors AGR Blowdowns/Venting CompressorExhaust Dehydrators Pneumatics Pipeline venting Storage Transmission Compressor Stations (Transmission) M&R Pipeline Leaks StorageStations TransmissionStations Wells (Storage) CompressorExhaust DehydratorVents Normal Operation Pneumatic Devices Transmission StoragePneumatics Transmission Pneumatics CustomerMeters CustomerMeters Meter/Regulator Meter/Regulator (City Gates) Pipeline Leaks Routine Maintenance Upsets Fugitives Vented and Combusted Fugitives Vented and Combusted Fugitives Vented and Combusted Fugitives Vented PRODUCTION GAS PROCESSING PLANTS TRANSMISSION AND STORAGE DISTRIBUTION 16

17 Supporting Material: Multi-faceted Results Interpretations can be made from more than one perspective Comparisons - Within ONE Future - ONE Future vs. U.S. Level of detail - Supply chain stages - Specific emission sources Metrics - Mass of CH 4 and other GHGs - Emission rate of CH 4 Magnitude Uncertainty - Variability - Data gaps 17

18 Supporting Material: Compressor CH₄ All supply chain stages have compressor systems with fugitive and exhaust CH ₄. CH₄ Emission Contributions CH₄ Emission Uncertainties PROCESSING / Vented & Combusted / Combustion Exhaust (compressor-drivers) PRODUCTION / Vented & Combusted / Liquids Unloading (adder) GATHERING&BOOSTING / Vented & Combusted / Combustion Exhaust (compressordrivers and other combustion of NG) PRODUCTION / Vented & Combusted / Liquids Unloading (Plunger) DISTRIBUTION / Fugitives / Distribution Mains & Services PRODUCTION / Vented & Combusted / Hydraulic Fracturing Completions & Workovers (flaring) PRODUCTION / Vented & Combusted / Pneumatic Device (Intermittent Bleed) PRODUCTION / Fugitives / Equipment leaks PRODUCTION / Vented & Combusted / Liquids Unloading (Manual) STORAGE / Vented & Combusted / Combustion Exhaust (engine) TRANSMISSION / Vented & Combusted / Combustion Exhaust (engine) TRANSMISSION / Fugitives / Reciprocating Compressors STORAGE / Vented & Combusted / Station Venting TRANSMISSION / Vented & Combusted / Blowdowns GATHERING&BOOSTING / Vented & Combusted / Pneumatic Device (Intermittent Bleed) PRODUCTION / Vented & Combusted / Combustion Exhaust (compressor-drivers and other combustion of NG and diesel) g CH₄/MJ NG delivered 18

19 Supporting Material: Liquids Unloading & Distribution Mains Some ONE Future emission sources are significant drivers of total emissions and significantly different than the U.S. average. are Liquids unloading adder - 18% of ONE Future CH 4-29% lower than U.S. CH 4 - Driven by regional differences in reported and simulated liquids unloading Fugitives from distribution mains - 14% of ONE Future CH 4-86% higher than U.S. CH 4 - ONE Future has more cast iron pipe in its infrastructure (a known issue being addressed by pipe replacement programs) 19