CO 2 Capture and Storage: ONGC’s Perspective and Plan Workshop on CCS January 23,2008

1. CO2 Capture and Storage: ONGC’s Perspective and PlanWorkshop on CCSJanuary 23,2008 A B Chakraborty ONGC New Delhi

2. Contents • CCS and global concerns • CCS– its relevance and inevitability • Scope in up/mid stream oil and gas sector • Processes involved • Monitoring and safety aspects • ONGC and CCS projects • CCS– Indian prognosis

3. Global concerns: Is CCS worth an endeavour? • Divided verdict– Developed vs developing debate • Too costly • Insignificant short term return • Zero incentive-- UNFCCC’s reluctance • Long term efficacy • Leakage potential • Safety

4. Global Initiatives: Can CCS be made worth the endeavour? • Extensive R&D for establishing long term efficacy • Rigorous monitoring of established projects • Benefits through EOR • Supplement with incentives (recognition by UNFCCC) • Making mandatory by law

5. CCS– Is it relevant and important? • Relevant and important if • Fossil fuel remains the major source of energy; because • Only known process for long term mitigation • Only known process for large scale mitigation at one go • Only known process without possibility of manifestation of CO2 at some other time and place. • Irrelevant and unimportant if • Fossil fuel ceases to be the major source of energy We are to decide.

6. CCS projects-- Prerequisites • Assured Source • Technique to capture CO2 • Availability of a sink • Technique to transport CO2 from source to sink • Availability of effective monitoring system

7. CCS– Scope in up/mid stream O&G sector

8. CCS– Scope in up/mid stream O&G sector contd. • The scope of CCS projects are limited except for an assured source • Possible sources • Plants processing sour gas • Flue gas • Tie up with other sector

9. Processes involved • Source identification • CO2 capture • Reservoir analysis • Transportation to sink • Injection • Monitoring

10. CCS– Monitoring and safety Reservoir monitoring to check leakage Baseline survey prior to injection Stimulated reservoir analysis backed up by regular and reliable monitoring Multi formation monitoring scheme is the latest recommendation ( ground water, seismic, PVT , logging etc) Surface facility monitoring to check corrosion/scaling

11. CCS– Monitoring and safety contd. Safety issues: Safe containment of CO2 underground over the project life. There should be no need to re demonstrate in the future generation about safety aspect of a CCS site. No storage site should be closed unless long term safety assured. A proper regulatory framework to be in place.

12. CCS– possibility in ONGC Limited scope • ONGC– an up and mid stream O&G company • Most reservoirs are sweet oil bearing Possibility • Offshore reservoirs as they have sour gas • Flue gas from in situ combustion at Mehsana Asset

13. CCS– ONGC experience • Approved projects: • CCS for EOR ( Hazira/Ankleshwar) • Potential project • CCS for disposal of acid gas (Uran) • Flue gas recovery (Mehsana)

14. CCS for EOR ( Hazira/Ankleshwar) • Capture of CO2 from Hazira plant • Source– Sour gas from B&S field of Mumbai Offshore(Hazira Plant processes 40 MMSCMD of sour gas) • Transport it to the mature (depleted) onshore reservoir of Ankleshwar • Inject it at S3+4 sand zones for enhanced recovery of crude from the reservoir.

15. CCS for EOR ( Hazira/Ankleshwar) contd • Project potential • CO2 EOR is feasible by injecting CO2 in the major oil bearing sand zone under immiscible conditions. • incremental oil recovery over the base case scenario • 6.9% of the in high case, • 4.5% of OIIP in most likely case • 2.25% of OIIP in low case. • Project life– 30-35 years • Net gain of 3.13 MMt

16. CCS for EOR ( Hazira/Ankleshwar) contd • Processes involved • Sweetening of sour gas by amine absorption • Acid gas is the byproduct (97% CO2) • Selective removal of H2S from acid gas by selective regenerative amine ( modified LOCAT Sulphur removal) • Dehydration and compression of CO2 at Hazira. • Transportation to Ankleshwar through 12” dia 75 Km pipeline (new pipeline with anti corrosive material) • Recompression of CO2 to 160Kg/cm2 for attaining super critical stage.

17. CCS for EOR ( Hazira/Ankleshwar) contd • Processes involved • Injection of CO2 in 12 injector wells.( new wells required with anti corrosive casing) • Production of oil from 67 producer wells (new wells). ( Expected peak production rate is 770M3/day). • Monitoring for leakage , safety aspects, scaling, sand problems, corrosion

18. CCS for EOR ( Hazira/Ankleshwar) contd • Status • Completed activities: • CO2 Capture and dehydration studied: Can be operationalised • Reservoir analysis • Under completion: • Transportation of gas • Establishing surface facilities

19. CCS in Uran • Source • Acid gas obtained from sweetening of the sour gas from MH and N&H Assets processed at Uran plant. • Issues : • Absence of a nearby onshore reservoir, • Low quantity of CO2 ( Uran only generates 0.2 MMSCMD of acid gas, too low to consider offshore sequestration) • Best available alternatives mulled: • Supply of CO2 to nearby fertiliser plant to manufacture urea. ( there will be 25% increase in urea production).

20. Flue gas recovery at Mehsana • Source: • Flue gas from in situ combustion at the Santhal and Balol field Flue Gas Composition.doc • Issues: • Removal of Nitrogen • Very low quantity of CO2. • Best available alternative: • Yet to be found.

21. CCS– Its future in India • India is a member of CSLF • Undertakes R&D on CCS as per CSLF. • Industrial synergy is imperative for better CCS • Up/Mid stream O&G sector to hire/provide sinks • Downstream O&G/ power sector to store/provide source. • Excellent opportunity for up/mid stream O&G sector

22. CCS and synergy– future of sustainable development Thank you