MAKING SENSE OF OUR GAS. Momade, F. W. Y. and Ankudey, E. A DAAD-IMRE Alumni Conference KNUST 2010

Transcription

1 MAKING SENSE OF OUR GAS Momade, F. W. Y. and Ankudey, E. A DAAD-IMRE Alumni Conference KNUST 2010

2 Introduction Previous activities in search of oil (Saltpond, Keta Basin, Tano Basin, Voltaian Basin?), Current announcement of discovery of oil and gas in commercial quantities, Estimates of 650 million to 2 billion of barrels light crude and 800 billion cubic feet gas given, but may increase as exploration intensifies, Actual reserves may change as conditions in the reservoir may turn out to be different, Expected gas production at Jubilee 120 msft 3 /day (in the first 18 months, 240 msft 3 /day thereafter.

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4 What are the benefits of the oil and gas discovery? Revenue to support development and to ensure future security of the country, Growing knowledge in gas and oil, and future export of that t knowledge, Investment in oil and gas and related industry, therefore growth in the economy, Job opportunities,

5 Expected Revenue from Crude ($ million) Year IMF World Bank Total 20, ,390

6 What can natural gas be used for? o Natural gas is one of the cheapest forms of energy available. Natural Gas Use By Sector Source: EIA - Annual Energy Outlook

7 What can natural gas be used for? (cont.) Power generation, Industrial usage (multitude industrial usage) Residential (heating and cooking, cooling?) Commercial (similar to residential) Other

8 Industrial usage of Natural gas Provides the base ingredients for such varied products as plastic, fertilizer, anti-freeze, and fabrics. Primarily consumed in the pulp and paper, metals, chemicals, petroleum refining, i stone, clay and glass, plastic, and food processing industries. As fuel for waste treatment and incineration, metals preheating (particularly for iron and steel), drying and dehumidification, glass melting, food processing, and fueling industrial boilers. Natural gas may also be used as a feedstock for the manufacturing of a number of chemicals and products.

9 Important chemicals based on methane, synthesis gas, ammonia, and methanol

10 Industrial usage of Natural gas (cont.) - Synthesis Gas and Ammonia/ Fertilizer Produced by steam reforming of natural gas (catalytic reaction): CH 4(g) + H 2 O (g) = CO (g) + 2H 2(g) CH 4(g) + 2H 2 O (g) = CO 2(g) + 4H 2 (g) Synthesis gas is a major source of hydrogen, which is used for producing ammonia: N 2 (g) + 3H 2 (g) = 2NH3 (g) ΔH = 46.1 KJ/mol Ammonia is the host of many chemicals such as urea, ammonium nitrate, and hydrazine. Other compounds based on ammonia include nitric acid, hydrazine, ammonium sulphate, ammonium nitrate, Carbon dioxide, a by-product from synthesis gas, reacts with ammonia, y p y g, to produce urea

11 Industrial usage of Natural gas (cont.) Synthesis gas and Methanol It is a building block for methanol, which in turn has many industrial applications: CO (g) + 2H 2(g) = CH 3 OH (1) ΔH = 128 KJ/mol CO 2(g) + 3H 2(g) CH 3 OH (l) + H 2 O Methanol (or Methyl Alcohol) in turn is used to produce such substances as formaldehyde, acetic acid, and MTBE (methyl tertiary butyl ether) that is used as an additive for cleaner burning gasoline. Other compounds from methanol include, methyl amine, dimethyl carbonate, methylamines, gasoline MTG products,

12 Industrial usage of Natural gas (cont.) Fuel Cells - promising technology Fuel cells have the ability to generate electricity using electrochemical reactions to generate electricity. Streams of fuel (usually hydrogen) and oxidants over electrodes that are separated by an electrolyte. The chemical reaction generates electricity without requiring the combustion of fuel. When pure hydrogen is used as fuel, and pure oxygen is used as the oxidant, the reaction that takes place within a fuel cell produces only water, heat, and electricity. In practice, fuel cells result in very low emission of harmful pollutants, and the generation of high-quality, reliable electricity.

13 Fuel cell from natural gas Natural gas can be used as it is in fuel cells or after conversion to hydrogen before use: CH 4(g) + H 2 O (g) = CO (g) + 2H 2(g) CH 4(g) + 1/2O 2 (g) = CO (g) + 2H 2(g) The use of natural gas-powered fuel cells has a number of benefits, including: clean electricity Distributed generation Dependability Efficiency

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15 MAKING SENSE OF OUR GAS

16 Overview - Ghana Offshore Timeline 16 North and South Tano have proven Gas reserve. Expected production rate of 80 MMscfd Jubilee FPSO operational by 4Q 2010 with a peak Gas Processing /Export capacity of 120, bopd and 120 MMscfd ( MMscfd to Shore) Jubilee field is envisioned to have a second FPSO with similar capacity by Odum discovery may produce up to kbopd Tweneboa exploratory wells suggests Gas Condensate field with Production likely by Sankofa gas filed

17 Sub-sector Strategy 17 No flaring or Venting of Natural Gas in the Ghana Project Addresses Environmental Issues of Oil & Gas Projects Sustainability concerns Economic, Social and Resource

18 Gas Utilization 18 (Installed : 380 MW) (Proposed : 1,970 MW) (Installed: 126 MW) (Installed: 300 MW) (Proposed: 250 MW) Mahogany-1 Hyedua-1 Odum-1

19 Gas Commercialization Project Concept 19 Gas Plant LPG Buoy

20 Jubilee Fields Development Plan 20 Phased Production of Field Phase 1 production starts in 4 th Quarter 2010 Exploit 278 Million Barrel Reserve 120,000 Barrel/Day Oil Production 120 MMSCF/Day Gas Production Gas to oil ratio: 1000MMscf Drill 17 wells (9 production wells, 3 gas injection wells, 5 water injection wells) Wells tied back via subsea infrastructure to FPSO moored in the Field Phase 2 production starts in 2013 Additional infrastructure required 240,000 Barrel/Day Oil Production 240 MMSCF/Day Gas Production Produced Gas will be piped to Shore or injected

21 Average Gas composition Component Mole percent North Tano South Tano 3-AX Structure Saltpond N CO H 2 S CH C 2 H C 3 H i-c 4 H n-c 4 H i-c 5 H n-c 5 H C 6 H C 7 H

22 What sense of our gas? (cont.) Ghana s oil deposits have a lot of gas associated, Oil needs to be treated to separate the gas, Gas transport and storage, Immediate uses of the Ghanaian gas - Power generation to improve industrial and domestic usage, - Improvement in LPG supply for domestic/commercial use across the country (decrease in rate of deforestation) - Compressed Natural Gas (CNG) for vehicle use, cooking and cooling?

23 What sense of our gas? (cont.) Options for Medium- and Long-Term Development Security for Ghana (only my views): 1. Produce LPG, sell and invest money for future use, 2. Generate power and sell to neighbours (WAPP), invest proceeds for future use, 3. Convert the gas wholly or partially to other products of economic importance (synthesis gas to fertilizer, methanol, plastics... ) 4. Use gas to add value to the natural resources (integrated aluminium industry, steel industry, ) 5. Invest money (from 1, 2, 3 and 4) in the acquisition of, research and development of high-end technology, converting the country to a high-tech knowledge-based country in the sub-region and Africa,

24 A few questions at the end!! Can we make sense of our gas? Who makes the decision and when, as to how we can make sense of our gas? (Remember, the gas starts flowing and cannot wait for us!!!) Can we leave a legacy for our generations to Can we leave a legacy for our generations to come?

25 REFLECT ON THESE THANK YOU AND GOD BLESS