November 2015, Vol. 242, No. 11
Features
World News: Subsea Gas Compression Facility Begins Operation
Statoil has begun production of the world’s first subsea gas compression facility at the Åsgard field in the Norwegian Sea. The facility features two MAN Diesel & Turbo HOFIM compressor units which were supplied to Statoil’s contractor Aker Solutions. It consists of modules for two identical sets of compressors, pumps, scrubbers and coolers fitted together in a 1,800-metric ton steel frame.
While the natural pressure of the reservoir is declining, MAN’s motor-compressor units help to extend the reservoirs’ productive life on the Åsgard field for another 15 years. Overall, 306 MMbbls of oil equivalent will be added. While the first compressor train started production, the second train is under commissioning.
Gas Processing Capacity Expansion Led by U.S. and Middle East
Global gas-processing capacity is projected to increase from 458 Bcf/d in 2015 to almost 516 Bcf/d by 2019, driven by a full slate of projects in the Middle East, North America and Asia, according to research and consulting firm GlobalData.
The company reports that increasing domestic demand and opportunities for exports are driving gas-processing construction plans in the Middle East and North America. The two regions combined account for over half of the planned global gas processing capacity growth and capital expenditure (capex) through 2019.
Matthew Jurecky, GlobalData’s head of Oil & Gas Research and Consulting, noted, “There is broad growth across Asia, but leading gas-processing expansion plans are fractionation in the U.S., and dehydration and sweetening in Iran and the rest of the Middle East.”
The report highlights that some of the largest planned gas-processing plants slated to come online are located in the Middle East, including the Kish terminal in Iran and the Wasit terminal in Saudi Arabia, with capacities of around 3 Bcf/d each.
Jurecky said, “The Middle East has the most gas-processing capacity growth with the highest spending in the world the next five years. About $32 billion is expected to be spent on the proposed projects to increase capacity to 17.9 Bcf/d. Driven by unconventional production, there is an estimated $27 billion between the U.S. and Canada to increase processing capacity by 15.9 Bcf/d across over 100 plants.”
GlobalData named Gazprom, Shell and Saudi Aramco among the companies leading the construction of the most significant planned processing plants.
“Gazprom is planning one of the largest gas-processing facilities in the world, driven by demand from China and fueled by new fields in East Siberia. This single project would significantly shift the Asian market closer to Russia, building on ties being made with the Power of Siberia gas pipeline,” the analyst concluded.
Itchthys LNG Central Processing Facility Launched
INPEX Corp. (INPEX) announced that the INPEX-operated Ichthys LNG project launched its central processing facility (CPF) on Sept. 19 from the offshore floating dock at the Samsung Heavy Industries shipyard in Geoje, South Korea, where it is being constructed
Noting that the operation was completed in just two days, Managing Director of Ichthys LNG project Louis Bon said, “The CPF is now berthed quayside at the shipyard where work is continuing to lift and install the living quarters and integrate and commission all equipment in preparation for the CPF’s sail away.”
The project involves liquefying natural gas lifted from the Ichthys gas-condensate field offshore Western Australia at an onshore gas liquefaction plant constructed in Darwin, Northern Territory, and producing and shipping 8.9 mtpa of LNG and 1.6 mtpa of LPG, along with 100,000 bpd of condensate at peak
The CPF will be towed 5,600 km to the Ichthys Field in the Browse Basin where it will be permanently moored for the life of the project –over 40 years.
BW Group to Provide LNG Regasification Services in Egypt
The BW Group was selected by the Egyptian Natural Gas Holding Co. (EGAS) to provide LNG regasification services utilizing a Floating Storage and Regasification Unit (FSRU) in Ain Sokhna, Egypt. The project requires a fast track schedule – five months from project inception to first gas – which represents a record short time for implementation.
BW’s state-of-the-art FSRU BW Singapore, built at Samsung Heavy Industries in South Korea, will be utilized for the project. The FSRU offers a low environmental footprint, high efficiency, storage capacity in excess of 6 MMcf and a peak regasification capacity of 750 MMcf/d.
Ghana’s First Lady Names FPSO for 10 Oilfields
The First Lady of the Republic of Ghana, Dr. Nana Lordina Mahama, officially named Ghana’s second floating production, storage and offloading (FPSO) vessel at a ceremony in Singapore. The First Lady named the vessel FPSO Prof. John Evans Atta Mills after the late president who oversaw first oil from Ghana’s Jubilee Field in 2010.
The FPSO will produce and store oil from Ghana’s Tweneboa -Enyenra – Ntomme (TEN) oilfields located about 60-km off the coast of the Western Region.
The vessel is nearing the end of its construction at Sembcorp Marine Shipyard in Singapore and is due to sail for Ghana around year end. It is expected to arrive in Ghanaian waters in February to be hooked up to the subsea production equipment which is being installed on the seabed in the TEN fields. The FPSO will start producing oil in mid-2016.
The development of the TEN fields is being led by Tullow Oil along with its partners the Ghana National Petroleum Corp., Anadarko Petroleum Corp., Kosmos Energy and Petro SA.
Esso Australia Resources to Replace 187-Km Pipeline
ExxonMobil Australia’s subsidiary, Esso Australia Resources Pty Ltd, will replace a 187-km pipeline to transport crude oil and condensate between its Longford and Long Island Point facilities in Victoria.
The pipeline will allow the continued delivery of crude oil and condensate and ensure that natural gas from offshore Gippsland operations continues to flow to Australia households and businesses.
The pipeline replacement has received full project funding from Esso Australia Resources and Gippsland Basin Joint Venture partner BHP Billiton. Each has a 50% interest in the project, with Esso Australia Resources acting as the operator. Pending regulatory approval, the construction of the replacement pipeline is expected to begin later this year.
Russia Becomes World’s Largest Producer of Crude, Lease Condensate
Russia is the world’s largest producer of crude oil (including lease condensate) and the second-largest producer of dry natural gas, after the United States. However, recent international sanctions on Russia, coupled with low oil prices, have put pressure on the Russian economy.
According to a U.S. Energy Information Administration report, Russia exported over 4.7 MMbpd of crude oil and lease condensate in 2014. Countries in Asia and Europe received over 98% of Russia’s crude oil exports. Asia accounted for 26% of Russia’s crude oil exports, and Europe – which depends on Russia for over 30% of the region’s oil supply -accounted for 72% of crude oil exports. Russia’s economy largely depends on energy exports: oil and natural gas revenues accounted for 68% of total export value in 2013.
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