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January 2016 DEW JOURNAL 1


January 2016 - Volume 25, No.03 dewjournal.com
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CONTENTS
ISSN-0971-7242 R.N.I. No. 51048/89 © 2015 Technology Publications
Editorial and Advertising Office
Cover Focus 15/19, Kalidas Road
P.B. No. 271, Dehradun - 248 001

39 Magnetotellurics (Uttarakhand) India


info@dewjournal.com
for oil exploration subscription@dewjournal.com
Tel./Fax : +91 - 135 - 2740559
Magnetotelluric geophysical Chairman Editorial Board and
technique has proved it’s capability Chief Editor
for various exploration problems. Arun Kumar Singhal
This greatly reduces the cost Director
involved in exploration strategy Shrey Singhal
The state-of-the-art vessel used in Gulf of Kutch region to conduct Editorial Advisors

marine magnetotellurics to map the buried sediments. Satish Kumar Mathur


former General Manager (E&S), ONGC
The Wärtsilä Mobile LNG has been developed for challenging
76 locations where pipelines and large-scale LNG receiving terminals
Prof (Dr.) Nikolay P. Zapivalov
Chairman of Novosibirsk Centre of
Russian Academy of Natural Sciences
are not feasible, or where the quantities of LNG needed are smaller. and Professor of Novosibirsk
Being mobile, it can be easily re-located giving it a high resale value University, Russia
Dr. Himmat Singh
Wärtsilä Mobile LNG: An innovation unthinkable uptill now Head of Department - Petroleum
Floating an idea has never been more apt a metaphor, as Wärtsilä proposes an all- Engineering, Chandigarh University
former Distinguished Professor,
in-one barge that receives and regasifies LNG for power generation and distribution. Hydrocarbon Engineering, UPES,
The Wärtsilä Mobile LNG solution could unleash the economic potential of many former Advisor (R&D), Bharat Petroleum
regions struggling to reinvent their energy mix and lower electricity prices Corp. Limited, former Sr. Dy. Director
(Scientist “G”), Indian Institute of Petroleum

82 LNG bunkering, gas carrier technology and LNG S K Das


Former Executive Director, ONGC
as ship fuel to significantly increase in the Publisher
Arun Kumar Singhal
coming years: Group President & CEO, DNV GL Advertising Manager
Ms. Saroj
LNGreen: Next-generation Circulation Manager
Pramil Khanduri
LNG carrier concept Design & Graphics
Abhinav Arya
Finance Manager
Special Report Pramod Kumar
Regional Coordinator - New Delhi
Mukesh Gupta
22 GERMI A centre of excellence Regional Coordinator - Mumbai
J. Chakarborty

24 In India of international scale! Regional Coordinator -


South East Asia & China
Tony Chen W. K.
Prof.(Dr.) C.Gopalkrishnan, Director-in-charge School of Petroleum
Annual Subscription Rs. 3000
Management-Pandit Deendayal Petroleum University talks to DEW Journal US $ 150 £ 90 (inclusive of Postage).

30 ‘Energy and infrastructure issues in changing Cover Price US$30 £25 Rs.300
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global dynamics are of a key significance’ rates for individuals countries email :
Dr. Kaushal Kishore, Organising Secretary, ICEIM 2016 subscription@dewjournal.com
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43 Oil and Gas: An industry where the Connected Enterprise is


Drilling & Exploration World (DEW) published
since 1989 by Technology Publications from
Dehradun is an internationally circulated
driving much needed improved productivity Energy and Oil & Gas journal. The journal
holds the distinction of being the only
MONTHLY Energy and Oil & Gas journal
Experts catch up on the latest automation trends at Rockwell Automation O&G Forum published from India.
All rights reserved in respect of all

Technology/ Technical Papers articles, illustrations, photography etc.


published in Drilling & Exploration World
(DEW). Reproductions or imitations are

47 Well Sickness Diagnosis and Treatment Techniques expressly forbidden without the permission
of the publisher. The opinions expressed

52 Fluor Ethane Cracker Project hits milestone


by contributors (editorial and advertising)
are not necessarily those of the publisher/
editor, who can not accept responsibility

53 Composite wrap tackles complex pipe geometries for any errors or omissions.
While every effort is made to ensure that
the contents published in the journal are

57 Chemistry of reservoir rock relative permeability correct and up-to-date, the Publisher, Editors
and Advisors do not accept any responsibility
for any error, omissions and factually

68 Understanding LNG value chain and related market concerns incorrect statements published. This implies
for both editorial and advertising contents.

2 DEW JOURNAL January 2016


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January 2016 DEW JOURNAL 3


From the Editor
dewjournal.com Petro-Events Calender

January 16 the world witnessed what has been hailed as the most significant diplomatic
breakthrough since the collapse of the Soviet Union: the lifting of nuclear sanctions
against Iran.
The lifting of nuclear-related sanctions by the United States and the EU against
Iran, which include oil-related sanctions that have limited Iran’s ability to sell its oil
on the global market since late 2011 will lead to an increase in Iran’s oil production
and exports, which had been subject to an EU embargo among other sanctions. Iran’s
crude oil production has been relatively flat over the past three years while sanctions
were in place, averaging 2.8 million barrels per day (b/d) in 2015, representing 9% of
total crude oil production from the Organization of the Petroleum Exporting Countries
(OPEC). To EIA Iran’s annual average crude oil production is forecast at 3.1 million
b/d in 2016 (10% of projected total OPEC production), and almost 3.6 million b/d in
2017. January 26-28, 2016, LAGOS, Nigeria
Consistent with these forecasts for average annual production, Iran’s crude oil The 20th Offshore West Africa
production reaches 3.3 million b/d at the end of 2016 and 3.7 million b/d at the end www.offshorewestafrica.com
of 2017. EIA estimates a subjective uncertainty range of +/- 250,000 b/d surrounding
these year-end projections, with actual outcomes dependent on Iran’s ability to mitigate February 18-19, 2016, GUJRAT, India
production decline rates, deal with technical challenges, and bring new oil fields into International Conference on Energy and
production. Infrastructure Management
Most of Iran’s forecast production growth comes from Iran’s pre-existing crude oil spm.pdpu.ac.in
production capacity that is currently shut in, while the remainder comes from newly February 24-25, 2016, KL, Malaysia
developed fields. Iran has a number of new oil fields that Iranian and Chinese companies Fire Safety Conference
have been developing over the past several years, which have the potential to add www.fleminggulf.com
100,000 b/d to 200,000 b/d of crude oil production capacity by 2017.
Beyond crude oil, Iran’s condensate and natural gas plant liquids (NGPL) February 25-26, 2016, NEW DELHI, India
production is currently almost 750,000 b/d, of which 75% is condensate and the Global HSE 2016
remainder NGPL. Iran’s non-crude liquids production has grown over the past few www.iconex.in
years. The main buyers of Iran’s non-crude liquids have been in countries in Asia, March 15-17, 2016, LAGOS, Nigeria
mainly China, and the United Arab Emirates (UAE). Lean Maintenance & Lean Plant/Asset Mgt.
As per EIA’s estimates, Iran’s non-crude liquids production is expected to grow by infocusinternational.com/leanmaintenance
150,000 b/d by the end of 2016 and by an additional 100,000 b/d by the end of 2017,
as more project phases at the South Pars natural gas field come online. More than March 15-17, 2016, JAKARTA, Indonesia
80% of Iran’s condensate production comes from the South Pars field located offshore Gas Indonesia - Summit & Exhibition
in the Persian Gulf, which is Iran’s largest non-associated gas field. Lack of foreign www.gasindosummit.com
investment and insufficient financing, stemming from international sanctions, have March 29, 2016, GANDHINAGAR, India
slowed the development of South Pars. However, some progress has been made in The 2 nd International Conference on
recent years, and sanctions relief is expected to quicken the pace of development of Geothermal Energy
its remaining phases over the next decade. www.pdpu.ac.in
With Iran’s petroleum and other liquid fuels consumption expected to remain
flat over the next two years, crude oil and other liquid fuels from the production May 23-24, 2016, Kota Kinabalu, Malaysia
increase is likely to be sold in export markets. The pace that Iran will ramp up its The 5th Sabah Oil and Gas Conference
exports now that sanctions are lifted is uncertain. Iran has a considerable amount of & Exhibition
oil stored offshore in tankers (between 30 and 50 million barrels), most of which is www.sahahoilandgas.com.my
condensate, and crude oil stored at onshore facilities. Initial post-sanction increases
June 7-9, 2016, KL, Malaysia
in Iranian exports will most likely come from storage, while meaningful production
The 6 th Annual HSE Forum in Oil, Gas
increases will occur after some of the storage is cleared.
and Petrochemicals
While Iranian crude output and exports are expected to rise in the coming
www.fleminggulf.com
months, it remains to be seen how quickly Iran’s order to its state-owned oil companies
to increase crude output although Iran had recently said it plans to double its oil September 22-24, 2016, YANGON, Myanmar
exports to 2 million b/d within six months of the removal of sanctions. Manufacturing 2016 - 3rd International
Top Iranian officials have said Iran plans to regain its lost market share but in a Manufacturing Machinery, Equipment,
manner that would have the least impact on oil prices. Iran has based its next budget Materials and Services Exhibition
for March 2016-March 2017 on an oil price of $40/b and exports of 2.25 million b/d, a www.manufacturingmayanmar.com
government spokesman has said. Iran even hopes to attract top international oil
companies to its upstream sector to help it develop its vast reserves of oil (estimated at September 28-30, 2016, KL, Malaysia
157 billion barrels) and gas (about 1,200 Tcf). It has designed a new upstream contract The 3rd MOGSEC 2016
model that it will present in London in February. Truly interesting! www.mogsec.com.my
On the global scale oil production from the OPEC has fallen by 130,000 barrels November 15-17, 2016, SHANGHAI, China
per day (b/d) in December on lower volumes from Iraq, Nigeria and Saudi Arabia, SIPPE 2016
according to the latest Platts survey of OPEC and oil industry officials and analysts. www.sippe.org.cn
Crude prices, meanwhile, remain under pressure from oversupply and brimming
stocks, and are trading at multi-year lows. Brent futures sank as low as $27.10/barrel on November 16-17, 2016, KL, Malaysia
January 20, the lowest level since early November 2003. OPEC’s own crude basket, The 4 th Offshore Engineering Malaysia
representing streams from all 13 member countries, stood at $22.48/b on January 20. www.fleminggulf.com
OPEC is not due to meet until June 2, but the relentless fall in prices has November 29-December 2, 2016, SINGAPORE
renewed calls for an emergency meeting from the group’s more cash-strapped members. The 21st OSEA 2016
With OPEC members battling for market share both among themselves as well www.osea-asia.com
as within a larger world of well-supplied producers is a cause of concern. So what
would it take for global oil prices to lift significantly? What sort of news could bump up July 9-13, 2017, ISTANBUL, Turkey
prices and, more impressively, keep them up? The year 2016 has many things in The 22nd World Petroleum Congress 2017
store… AKS www.22wpc.com

4 DEW JOURNAL January 2016


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January 2016 DEW JOURNAL 5


dewjournal.com News

Outstanding subsalt images in the Gulf of Mexico reduce drilling risk

StagSeis
An innovation and collaboration success story
Final results from IBALT and DEUX, deliver the desired results,
the first and second surveys of acquisition began.
CGG’s StagSeis™ multi-client StagSeis deploys the largest
program of 871 offshore blocks in technology experts worked closely areal spread of any available
select locations of Garden Banks, with clients to define key acquisition configuration
Keathley Canyon, Walker Ridge parameters to deliver better subsalt (equivalent to the area of
and Green Canyon, are now imaging than was previously Manhattan Island).Operating such
available and widely recognized as possible, within the clients’ a large spread safely and efficiently
the clearest subsalt images in this timeframe. These included better requires strict adherence to robust
complex area of the Gulf of Mexico. sampling of offset and azimuth HSE procedures, and CGG
Final results from the third survey, along with increased bandwidth. maintained an exceptional safety
TROIS, are due next year. The The resulting patented and environmental record during
original IBALT survey commenced StagSeis solution uses multiple more than seven vessel-years of
acquisition in 2012 but planning vessels with a staggered geometry operation.
began three years earlier. At the and orthogonal shooting, delivering Fast-Trax results from a priority
time, wide-azimuth (WAZ) surveys consistent regular fold and azimuth area were delivered in the first three
with advanced processing distribution and providing full months. Initial Full Azimuth Fast-
techniques provided the best azimuthal coverage to 9km with Trax RTM images from DEUX were
subsurface images in the Gulf of ultra-long inline offsets to 18km(on of such high quality that a client
Mexico, but some features below 4 azimuths). BroadSeis™ is also included a data image in an
more complex salt structures employed to provide bandwidth investor presentation, stating that
remained difficult to illuminate and down to 2.5Hzalong with CGG’s StagSeis provided step-change
image fully. proprietary deg hosting and improvements in subsalt imaging,
Building on their experience in imaging technology. Once boosting confidence in appraisal
WAZ capabilities, CGG’s modeling by both CGG and clients well locations and accelerating
subsurface imaging and marine confirmed that StagSeis would maturation of off-setting prospects.

StagSeis Final RTM image (right) shows superior illumination and imaging beneath the complex salt geometry as compared to the WAZ final RTM
image (left)

6 DEW JOURNAL January 2016


News dewjournal.com

Final results from IBALT and


DEUX show staggering
improvements of subsalt
images over previous best
images obtained from WAZ data,
particularly in terms of continuity,
illumination and fault definition,
PETRONAS achieves first oil production
as shown in the image
comparison.
from Tanjong Baram Oil Field
StagSeis also delivered new The Tanjong Baram Field is estimated to produce an average
and valuable data to imaging. 2,000 barrels of oil per day. The field is located offshore the
Full azimuths provided better coast of Miri in the state of Sarawak, Malaysia. The field is
sampling of anisotropy, and the operated under a Risk Service Contract (“RSC”) with EnQuest
ultra-low frequencies and long Petroleum Development as its operator in partnership with a
offsets of StagSeis allowed Full local Malaysian company Uzma Energy. Tanjong Baram is the
Waveform Inversion (FWI) to fifth RSC that has achieved oil production after Berantai, Balai
build high-resolution velocity Cluster, Kapal Banang Meranti Cluster and Tembikai
models. The enormous full-
azimuth, ultra-long offset, PETRONAS has announced that oil production from Tanjong Baram
broadband datasets acquired Field has commenced. The field is operated under a Risk Service
with StagSeis also brought Contract (“RSC”) with EnQuest Petroleum Development Malaysia Sdn
processing challenges. A series Bhd as its operator in partnership with a local Malaysian company Uzma
of innovations from CGG Energy (Sarawak) Sdn Bhd. Tanjong Baram is the fifth RSC that has
Subsurface Imaging included achieved oil production after Berantai, Balai Cluster, Kapal Banang
development of true 3D deg Meranti (KBM) Cluster and Tembikai.
hosting and source designature The Tanjong Baram Field is estimated to produce an average 2,000
to accommodate much larger barrels of oil per day. The field is located offshore the coast of Miri in the
inline and cross-line offsets. state of Sarawak, Malaysia. The development consists of a lightweight
CGG also optimized demultiple, and unmanned platform with production tied in to PETRONAS Carigali
velocity model building, and Sdn Bhd’s (PCSB) West Lutong Drilling Platform A (WLDP-A) complex
imaging modules to handle via a flexible production pipeline.
larger datasets. “On behalf of PETRONAS, I would like to extend my gratitude to all
CGG achieved a very high the dedicated and diligent Tanjong Baram project team and Contractors
level of pre-commitment for the in achieving their first oil. This achievement marks another successful
StagSeis surveys, with nine milestone in RSC projects to PETRONAS. The success would not have
underwriters signing up for the been possible without support and cooperation of the RSC partners”,
program. The StagSeis solution said PETRONAS Vice President of Malaysia Petroleum Management,
provided better geological Encik Muhammad Zamri Jusoh.
definition of the subsurface, To date, PETRONAS has awarded six RSCs namely: the Berantai
illuminating complex salt bodies field to Petrofac and Sapura Kencana Petroleum Bhd in January 2011;
and previously obscured subsalt the Balai Cluster offshore Sarawak to a consortium comprising Roc Oil
reservoirs. Superior images Malaysia (Holdings) Sdn Bhd, Dialog Group Bhd and E&P Venture
reduce financial and HSErisk Solutions Sdn. Bhd. in August 2011; the KBM cluster to Coastal Energy
from both reservoir and drilling KBM Sdn Bhd in June 2012; the Tembikai Chenang cluster to VESTIGO
perspectives. CGG believes that Petroleum in October 2013; the Tanjong Baram field to EnQuest
this tailor-made, collaborative Petroleum Developments Malaysia Sdn Bhd and Uzma Energy Venture
approach, from project design (Sarawak) Sdn Bhd in March 2014; and Ophir field to Ophir Production
through end results, is the way Sdn Bhd, a joint venture company between Octanex Pte Ltd, Scomi D&P
of the future. Sdn Bhd and VESTIGO Petroleum Sdn Bhd in June 2014.

January 2016 DEW JOURNAL 7


dewjournal.com News

Everything3D delivers new opportunities


for the efficient execution of brownfield projects
AVEVA has recently to model the demolition
announced the sequence prior to refit is
commercial launch of a major step forwards
AVEVA Everything3D™ 2.1 AVEVA’s latest release of AVEVA which together with a
(AVEVA E3D™). The Everything3D delivers major advances for unique “Laser in Draw”
release builds on the designers working with laser data ensures that up-to-date
software’s proven ability laser data and design
to deliver time and cost savings for and accuracy. That has been the information can be used to make
brownfield and revamp projects by essence of further developing 2D deliverables. These unique
increasing productivity for EPCs AVEVA E3D. features mean that the need to
and Owner Operators. Enhanced ‘The advances in technology remodel existing plants prior to
capabilities such as PointCloud and user experience within this revamp and drawing generation
demolition and displaying laser release continue to demonstrate has been removed and
data directly on drawings enable why AVEVA E3D is the most considerable man hour savings
designers to interact with 3D innovative and efficient 3D design can be made on projects. This
models in ways that have not been software available today and is ideal ensures that AVEVA E3D is by far
previously possible. Optimised for brownfield projects of any size.’ the leading tool when it comes to
design efficiency is delivered Rick Standish, VP Solution efficient execution of brownfield
through an enhanced user interface Strategy added, ‘AVEVA E3D 2.1 projects.’
which reduces learning curves and takes built-in laser functionality to Other enhancements to
moves projects more quickly into a new level. It includes the usability include in-canvas
production. introduction of HyperBubble™ commands, redesigned structural
‘In the current economic technology that allows the user to and supports modules, and
climate where Capex spend is work in a fully immersed as-built improved P&ID/3D integration.
reduced, life extension of existing environment. Using the laser data For almost 50 years, AVEVA
assets is a priority for our software has enabled the
customers,’ said Dave AVEVA Everything3D (AVEVA E3D) is AVEVA’s top-of- creation of some of the
Wheeldon, CTO, AVEVA. the-range, multi-discipline, 3D plant design solution. world’s most complex
‘Listening to that It combines the latest 3D graphics, laser scanning power and process
message we have put and user interface technologies with state-of-the- art plants, vessels and
added focus on data management to deliver the most comprehensive, offshore facilities.
capabilities which can productive and tightly integrated 3D plant design AVEVA’s Digital Asset
transform how solution available. AVEVA Everything3D is part of approach ensures there
customers perform AVEVA’s Integrated Engineering & Design solution. is always an accurate
brownfield projects, to digital representation of
increase productivity, each physical asset. This
improve quality and drive allows engineering
down project time. contractors, owner
Brownfield projects range operators and ship
widely in scale with many builders to work more
of short duration, so safely, more efficiently
being able to mobilize the and with less risk
systems rapidly is really throughout the life cycle of
important, and doing so their projects and
while ensuring quality operations.

8 DEW JOURNAL January 2016


News dewjournal.com

Government to set up 70 more CIPET centres;


petrochemical complexes in all 16 refineries
With a view to boost that”, the minister said.
chemical sector in the Highlighting the
c o u n t r y, the dearth of workforce, Mr
Government of India Kumar said, we
will come out with a require human
national policy on resource capacity
chemicals in a couple building. Against a
of months, Chemicals demand of 4.5 lakh
& Fertilizers Minister, engineers every year
Government of India Mr in this sector we are
Ananth Kumar said in producing 44,000 only
New Delhi. of which most of them
“Our national policy are going abroad,
on chemicals, first ever getting placed before
in independent India is they complete their
finalised, we have As only four out of total sixteen courses this needs to
already sent it to the refineries in the country have petrochemical b e t a k e n c a r e , h e
cabinet and soon we complexes, the government is in the process stressed.
are going to have a to roll out a policy to have petrochemical The union
national chemical complexes in all the refineries minister also informed
policy, which will be that considering there
having some niche things like national chemical are only 23 centres under the Central Institute of
development centre, which is going to promote Plastics Engineering and Technology (CIPET), the
research and development,” said Mr Kumar. government has decided to increase the number of
“We have taken all the industry inputs, it has been centres to 100 in the coming years.
circulated to various ministries, we are getting The government has sanctioned 10 more
comments and finally the union cabinet will decide centres in different parts of the country, with plans to
and promulgate the first ever national chemical policy add 70 centres in next three years so that we can
of the country,” he added. increase the roll out of plastics technicians five times,
“We are also going to have one national chemical Mr Kumar said.
safety centre. There is a proposal for a national The minister stressed the need to enhance
bureau of corrosion control also,” the minister said. private sector participation for development of human
Talking to DEW about the format of the policy, the resources in the chemical industry.
union minister said, “Enabling the chemical industry, He also said that the biggest task ahead of the
environment, infrastructure and duty structure are chemical sector is to make India a net exporter of
three basic parameters, which the national chemical chemicals and petrochemicals. Our total exports are
policy will achieve.” worth US Dollar19 billion and imports are US Dollar
Considering that only four out of total 16 refineries 27 billion, there is therefore an urgent need to reverse
in the country have petrochemical complexes, the this trend, from a net importing country in chemicals
government will ensure through the policy to have and petrochemicals to an exporting one. This
petrochemical complexes in all the refineries. according to the minister was a core issue.
“We will also see that they will not be stand alone The minister also stated that the growth and
petrochemical complexes to manufacture the development of chemical sector is critical for making
feedstock but there will be further value addition to India’s growth story galloping.

January 2016 DEW JOURNAL 9


dewjournal.com News

Largest ever controlled


Carbon capture, utilisation and storage (CCUS)
is gaining momentum to meet stringent climate
change goals and secure energy supplies for
the future. To fully understand the
environmental and safety implications
“This is the largest “Developing best associated with the development of CO2
experimental practice guidance pipelines, DNV GL is conducting the oil and
investigation to date through this ground gas industry’s largest ever controlled release
of underwater breaking project will of carbon dioxide from an underwater pipeline
carbon dioxide help the CCUS at its full-scale Spadeadam Testing and
releases which will industry establish Research Centre, located in Cumbria, UK.
study the effects of itself as it begins The planned underwater release,
depth on measured the rollout of vital scheduled to start in January, is part of an
and observed carbon abatement international Joint Industry Project (JIP) ‘Sub-
parameters” technology” C-O2’ to develop safety guidelines on the use
of offshore CO2 pipelines. Companies
- Gary Tomlin - Hari Vamadevan
Regional Manager participating in the JIP are Norway’s Gassnova,
Vice President Safety & Risk
DNV GL DNV GL-Oil & Gas Brazil’s Petrobras, the UK government’s

New ways for the


Pipeline development projects
are becoming increasingly
complex, spanning longer and
deeper terrains. Pipelines must
operate at higher pressures and
temperatures, in harsher
environments and to stricter
regulatory requirements. Projects
must also be feasible in a cost-
constrained market. DNV GL is
inviting industry players to take
part in two Joint Industry Projects
(JIP) to help the industry work
more efficiently while maintaining
safety.
The first JIP will reduce
uncertainty in tensile testing
results and the associated costs
of inaccuracies and delays, while
the second will help operators
save time and money in adapting
to new industry requirements.
Gaining confidence in tensile
testing results
Inaccurate yield strength
measurements can have

10 DEW JOURNAL January 2016


News dewjournal.com

release of Carbon dioxide from an underwater pipeline

The planned underwater release, scheduled to


start in January, is part of an international Joint
Industry Project ‘Sub-C-O2’ to develop safety
guidelines on the use of offshore CO2 pipelines

pipeline industry to cut costs and complexity


significant negative implications for a pipeline as during the testing and analysis
project, ranging from schedule disruptions and of existing pipe, ultimately saving time and cost,” says
commercial disputes to unanticipated costs and Melissa Gould, Senior Engineer, DNV GL - Oil & Gas.
potential regulatory challenges. Current industry The JIP will be carried out in conjunction with
standards allow a wide range of tensile testing recognized parties such as the US National Institute
parameters, creating variability and uncertainty in of Standards and Technology (NIST) Material
the test results. Measurement Laboratory (MML) and the former chair
The Standardization of Flattened-strap Tensile of the ASTM (American Society for Testing and
Testing of Line Pipe JIP will investigate different Materials) Committee E28, Earl Ruth. The project is
tensile testing variables that affect results, including expected to last for 18 months and the results will
material properties, sample flattening and be suitable for incorporation into standards and
preparation practices, testing equipment and testing recommended practices, as applicable.
procedures. The objective is to establish testing Standardized approach to meet new
parameters and procedures to reduce the variability requirements for girth weld repairs
in yield strength results for large diameter line pipe. The offshore and onshore pipeline industry is
The results will be applicable to both onshore and adapting to the updated requirements for repair
offshore pipelines.
“The project will ensure that
the tensile testing results are
“The project will ensure that the tensile testing results are
both more reproduceable and both more reproduceable and indicative of line pipe
indicative of line pipe performance. It will reduce the uncertainty of the results and
performance. It will reduce the give pipeline operating companies the confidence they need
uncertainty of the results and give when purchasing new line pipe as well as during the testing
pipeline operating companies the and analysis of existing pipe, ultimately saving time and cost”
confidence they need when - Melissa Gould
purchasing new line pipe as well Senior Engineer, DNV GL - Oil & Gas.

January 2016 DEW JOURNAL 11


dewjournal.com News

Research Centre, which is located see whether it reaches the surface


in Cumbria, UK. and analyse what happens.”
“This is the largest The installation of offshore
experimental investigation to date CO 2 pipelines linked to depleted
of underwater CO2 releases which subsea gas reservoirs is a
will study the effects of depth on possible solution to mitigate CO 2
measured and observed emissions from power plants and
parameters,“ said Gary Tomlin, VP large industrial sources. The
Safety and Risk, with DNV GL at transportation of CO 2 through
Spadeadam. “The testing is offshore pipelines may also
designed around what is already increase due to enhanced oil
Department of Energy and Climate known about underwater natural recovery programmes.
Change, the UK’s National Grid gas (methane) leaks and the The first phase of experiments
and DNV GL. Italy’s ENI is expected possible occurrence of CO 2 are currently underway at
to join the JIP in early 2016. hydrates collecting on pipework. By Spadeadam and involves small-
This is the second experimental using high-speed, underwater scale, controlled CO2 releases from
phase which will run for three cameras and other measurement a three inch nominal bore pipeline
months and will involve releases in techniques, we can examine the in a 8.5 metre diameter, three metre
a 40-metre diameter, 12-metre deep configuration and characteristics of deep water tank and are expected
pond at the Spadeadam Testing and the released gas. It will allow us to to be completed by December.

The project is
expected to be
concluded within
18 months and
will result in
procedures and
guidelines to
help the industry
meet the new
API 1104
requirements

12 DEW JOURNAL January 2016


News dewjournal.com

Spadeadam is one of a The first phase of experiments are currently underway at


network of 18 laboratories and Spadeadam and involves small-scale, controlled CO2
testing centres operated by DNV GL releases from a three inch nominal bore pipeline in a 8.5
on three continents. The facility metre diameter, three metre deep water tank and are
provides companies with the rare expected to be completed by December. Spadeadam is
opportunity to undertake full-scale one of a network of 18 laboratories and testing centres
fire, explosion and release operated by DNV GL on three continents
experiments, to demonstrate
whether equipment and the rollout of vital carbon abatement adjustments to be made to
components are fit for purpose, to technology,” said Hari Vamadevan, computer modelling of CO 2
test new products, techniques or regional manager, UK and Sub dispersion. Even larger-scale,
processes, and to provide data to Saharan Africa, DNV GL – Oil & Gas. controlled testing in the natural
validate computer models. DNV GL “Spadeadam puts theory and environment may subsequently
are opening a new major hazard desktop modelling to the test to take place.”
training and conference facility at prove the limits, capabilities and Experimental findings are
the site in April 2016. behaviours of both small and large shared periodically with JIP
“Developing best practice scale operations in real-world participants so that next steps can
guidance through this ground situations. The data gathered from be refined. CO 2 testing at
breaking project will help the CCUS this large-scale experimental Spadeadam will conclude by June
industry establish itself as it begins programme will enable 2016.

“Repair welds are often made under more


challenging conditions than production
welds, which can potentially reduce the
quality of the completed welds. The project
fulfils an industry need to meet new
requirements and has the potential to reduce
cost and complexity, increase safety and
reliability, and deliver better quality pipelines”
- Brad Etheridge
Senior Engineer, DNV GL – Oil & Gas

welding in the Twenty-First RTD, address the technical aspects of girth weld
Edition of the well-known repairs and the practical aspects of repair welder
API Standard 1104, qualification during the construction of new pipelines.
“Welding of Pipelines and The project is expected to be concluded within 18
Related Facilities”. The months and will result in procedures and guidelines
updates place more to help the industry meet the new API 1104
requirements on the requirements.
qualification of repair “Repair welds are often made under more
welding procedures and challenging conditions than production welds,
welders. which can potentially reduce the quality of the
The JIP on the completed welds,” says Brad Etheridge, Senior
Development of Industry Engineer, DNV GL – Oil & Gas. “The project fulfils
Best Practice for Girth Weld an industry need to meet new requirements and
Repairs will, in cooperation has the potential to reduce cost and complexity,
with pipeline engineering increase safety and reliability, and deliver better
specialists Kiefner/Applus quality pipelines.”

January 2016 DEW JOURNAL 13


dewjournal.com News

Hannon Westwood reports on 2015 drilling activity


A year on since the oil price Humphrey, Sparrowhawk and Jasmine) compared to
collapse and the effects are making 12 the previous year. By area, just one well was
themselves felt across NW Europe, spudded in the West of Shetlands (WOS), whilst the
particularly in the UK and Northern North Sea (NNS) saw three exploration
Norwegian sectors. The count of spuds, and the Southern North Sea Gas Basin (SNS)
Hannon Westwood
has been advising
E&A well spuds in the UK is an all- just one exploration and one appraisal. No wells
the oil and gas time low, a level not seen since were drilled in the East Irish Sea (EIS), whilst the
industry for 23 years
and over the past offshore drilling commenced in Central North Sea (CNS) saw the lion’s share of
five years has 1964, whilst in Norway a glut of dry drilling with some 10 spuds, split with eight
provided board level
insight leading to holes and technical-only, rather exploration and two appraisal wells.
investments totalling than commercial, successes have In terms of success, the NNS saw discoveries at
$3.5 billion. It offers
a wide range of plagued otherwise buoyant activity Boatswain, K Prospect (Callater) and Corona, whilst
bespoke intelligence, levels. However, whilst the UK saw success at Mustard (WOS), Baroli (Shearwater) (CNS)
portfolio business
development and just 13 exploration spuds last year, and Sillimanite (SNS) helped the sector achieve a
advisory services
matching that of 2014, commercial 46% commercial success rate, the best since 2002.
and underpinned by
proprietary software success rates have been the Just one technical success, at Corfe (CNS), was
systems and
databases the
highest for over a decade, and in recorded, whilst dry wells at Niobe, Manhattan, Bear,
company regularly 2015, the UK delivered the same Wall, Red Castle and Les Arcs are noted. Total
provides expert
commentary to both volume of new resources through resources of 165 mmboe are estimated to have been
the UK Government the drill-bit as Norway, despite far found through exploration in 2015, whilst the re-entry
and key opinion
formers within the oil fewer wells, with 16.5 mmboe per appraisal at Seagull adds a further 100 mmboe to
and gas industry. well comparing favourably to just 6 the year’s findings, thereby totalling some 265
mmboe per well east of the median line. Meanwhile, mmboe discovered through the drill-bit.
continued caution in the M&A market has resulted in In the M&A market, the oil price collapse created
only a handful of transactions in the UK, whilst it is a predator-prey scenario, with Shell’s takeover of BG,
business as usual in Norway with over 40 deals announced early in the second quarter of the year
conducted, Hannon Westwood (HW) reports. with a value of $70 billion, being one such example
The spike in new reserves coming on-stream of this. Immediately following this takeover bid it
from UK fields that commenced production in 2014, seemed further mergers might follow, however a
totalling over 500 mmboe, failed to be maintained further fall in commodity price served to dampen any
into 2015, when seven fields containing just 63 enthusiasm for M&A, to the point where the value of
mmboe reserves saw first oil, comprising Alma/ the BG/Shell deal is now being thrown into question
Galia, Cladhan, Enochdhu, Godwin, Peregrine and in the current price environment.
Ythan. In addition, with tax receipts to the Treasury HW records 36 deals that took place during the
predicted to be to the tune of just £130 million in year in the UK, compared to over 50 recorded in 2014,
2015/16, compared with £2.2 billion the year before, with a total value estimated at $3.5 billion for those
a reduction of 94%, there are very few companies 13 deals with published values, over 35% of which is
actually making a profit from production – on the attributed to infrastructure related transactions, in
last day of the year, a barrel of oil was trading at just particular Total’s sale of interests in the SIRGE and
$36.50, 36% below the start of 2015. For all that by FUKA pipelines, and St Fergus Gas Terminal, to North
year end oil and gas production is expected to show Midstream Partners for $905 million and BP’s sale of
an increase of between 7% and 8% in 2015, the first CATS to Antin for $486 million.
increase in 15 years. Edison’s acquisition of Apache’s interests in the
HW records some 16 E&A spuds in 2015, and Scott and Telford fields, along with Shell and Exxon’s
whilst the exploration spud count matches that of last exit from their Anasuria area illustrates there remains
year (13), a sharp reduction in the number of appraisal significant value to be derived from late life assets,
wells is evident; just three (including wells at whilst INEOS’ purchase of DEA’s UK assets for a

14 DEW JOURNAL January 2016


News dewjournal.com

reported $750 million constitutes one of the year’s key


transactions. Meanwhile, Statoil has bolstered its position in cross
median line Alfa Sentral, through the purchase of interests from
First Oil and subsequently Repsol, whilst EnQuest’s Scolty and
Crathes tie-backs are being progressed, with the operator having
acquired Ithaca’s 10% interest. Also dealing in the development
arena is SSE, which acquired a 20% interest from Total in the
WOS Laggan, Tormore, Edradour and Glenlivet fields, in a deal
with a headline value of $876 million.
In the farm-in market, five deals took place in 2015, which
have led to two wells spudding in the year, with a dry well at Wall
and an oil discovery at Mustard, the remaining three deals are on
yet to be drilled promote licences in the Gas Basin.
In Norway, production in 2015 increased to 1.46 billion barrels
of oil equivalent (bnboe) according to Hannon Westwood figures
– up from 1.33 bnboe in 2014. Drilling on the NCS has also
remained buoyant through 2015 with 45 E&A well spuds at year-
end, compared with 46 E&A well spuds in 2014; significantly higher
than UK levels for both years. Of these 45 spuds, 39 were
exploratory whilst only six were classified as appraisal.
Once again, the North Sea saw the highest level of drilling
activity in the Norwegian sector with 26 E&A wells (22 exploration
and 4 appraisal), followed by the Norwegian Sea where 14 wells
were drilled, all of which were exploration. The Barents Sea has
seen a lull in activity in 2015 with only five wells drilled, three
exploration and two successful high impact appraisals on
Lundin’s Alta Discovery. As was the case in 2014, the Norwegian
Sea was the most technically successful region, with an average
exploration success rate of 50%; the North Sea followed closely
with an exploration success rate of 47.6%. Of the three
exploration wells in the Barents Sea one has been temporarily
suspended, one was dry, and one made a sub-commercial gas
discovery on the Ørnen Prospect towards the end of the year. In
total 16 new discoveries were made in 2015 to which Hannon
Westwood attributes an estimated 268 mmboe, substantially
less than 2014 volumes when an estimated 838 mmboe could
be attributed to a total of 18 discoveries. Of particular note are
the 45.5 mmboe (18 mmbbls condensate & 165 bcf gas) Julius
Discovery, the 42 mmboe (250 bcf) Snefrid Nord Discovery and
the 22 mmbbls Boomerang Discovery.

Looking forward, a number of potentially high impact


E&A wells in the UK are expected in 2016, whilst the
deals market in Norway is anticipated to remain
stable despite a forecast drop in E&A drilling. So
whilst investment is flagging, and companies are
becoming ever more averse to unnecessary
or risky expenditure, there remains quite a lot to be
positive about in the coming 12 months

January 2016 DEW JOURNAL 15


dewjournal.com News

Similarly, deal activity in Norway


has remained active with HW
recording that some 41 deals took
Sonar demonstrations
place in 2015, compared to 36 the Maritime security technology company, Sonardyne International Ltd,
previous year, with a total value of has successfully demonstrated the capabilities of its Navigation
$2.65 billion for the 11 deals with and Obstacle Avoidance Sonar, NOAS, during three days of water
published values that related borne demonstrations in Plymouth, south-west England.
specifically to NW Europe. Of these 41 More than twenty five equipment specifiers, owners’
deals seven are corporate representatives and vessel operators from the European superyacht
acquisitions, the largest of which industry, commercial shipping and naval community attended the
includes the previously mentioned event in late November to witness first-hand the capabilities of NOAS
$70 billion Shell/BG deal, DEA’s as an important new aid to vessel navigation and underwater
acquisition of E.ON’s Norwegian obstacle avoidance.
assets for $1.6 billion and Det Above the water, innovations such as ECDIS (Electronic Chart
norske’s acquisition of Premier’s Display and Information System) which integrates GPS, AIS and
Norwegian assets for $120 million. radar, have delivered valuable improvements in situational
One of the largest asset transactions awareness for captains and their crews. However, when navigating
of the year, Tellus’ acquisition of poorly charted or unfamiliar areas, commercial ships, expedition
various assets from Wintershall, cruise ships and naval vessels remain vulnerable to groundings
valued at $602 million plus a and collisions with submerged objects. In their quest for privacy,
contingent $100 million, was large private yachts are particularly at risk as owners seek to explore
announced in mid-year but was remote locations, often close to shore. This is where underwater
cancelled just before the festive break. forward-looking sonar technology provides a solution.
Positive results from the UK, in NOAS works by scanning a wide area in front of a vessel with
particular with regard to high multiple sonar ‘pings’ to create a highly detailed, 3D model of the
commercial success rates and sea floor and water column along a vessel’s course. The intuitive
production levels, and Norway, where display informs the crew of water depth, underwater features and
activity levels have remained high potential hazards to a range of up to 600 metres over a 90 degree
despite the current environment, are field of view. NOAS also has a sonar mode for navigation and
supplemented with encouraging underwater intruder detection capability out to a range of 1,500
signs elsewhere in North West metres over a 180 degree field of view.
Europe. The largest gas discovery in For the demonstrations, NOAS was
the Netherlands for some time was Maritime security operated from Sonardyne’s sea trials and
reported last year, albeit at 150 bcf, technology research vessel, Echo Explorer, illustrating
along with substantial interests in the company, the ease with which the system can be retro-
latest offshore Ireland licensing Sonardyne has fitted to existing vessels as well as new
Round provide optimism for the successfully vessels.
industry. Looking forwards, a number demonstrated the During each trip around the Tamar estuary
of potentially high impact E&A wells in capabilities of its and Plymouth Sound, the system’s hull-
the UK are expected in 2016, whilst Navigation and mounted sonar and processor located on the
the deals market in Norway is Obstacle vessel’s bridge, generated real-time 3D
anticipated to remain stable despite a Avoidance Sonar, images. These were overlaid on digital
forecast drop in E&A drilling. So whilst NOAS. NOAS is navigation charts, offering those on board
investment is flagging, and an important new with a highly immersive view of the
companies are becoming ever more aid to vessel underwater environment. Alerts based on
averse to unnecessary or risky navigation and water depth, distance from the vessel and
expenditure, there remains quite a lot underwater estimated time to impact were created to
to be positive about in the coming 12 obstacle demonstrate how NOAS warns operators of
months. avoidance potential collision hazards or shallow water.

16 DEW JOURNAL January 2016


News dewjournal.com

show the way ahead for vessel navigation


NOAS works by scanning a wide area in front of a vessel with multiple sonar ‘pings’
to create a highly detailed, 3D model of the sea floor and water column along a
vessel’s course. The intuitive display informs the crew of water depth, underwater
features and potential hazards to a range of up to 600 metres over a 90 degree field
of view. NOAS also has a sonar mode for navigation and underwater intruder
detection capability out to a range of 1,500 metres over a 180 degree field of view

With NOAS, sonar imagery over a wide field of basis. However, as expected, NOAS performed
view is temporarily retained, providing the operator exceptionally in these difficult environmental
with a recent history of the vessel’s passage. This conditions, producing consistently high quality
feature is expected to be of particular value when navigation sonar imagery.”
manoeuvring large vessels as the depth of the water He added, “The first new-build vessels to be
and potential hazards can be confirmed even when specified with NOAS are close to completion, and
outside of the sonar’s current field of view. we look forward to developing further opportunities
Speaking on the success of the demonstrations, for this unique sonar technology with our commercial,
Nick Swift, Business Manager for Maritime Security private and naval partners.”
at Sonardyne said, “We appreciate the investment in Sonardyne International Ltd is recognised as a
time made by our clients to travel to Plymouth and world leader in the design and manufacture of
experience NOAS first-hand. The prominent spring underwater acoustic positioning, inertial navigation,
tides and high levels of fresh water run-off from the wireless communications and sonar technology
surrounding farmland and Dartmoor, led to extreme systems for the offshore oil and gas, ocean scientific
sound velocity profiles which changed on an hourly and maritime security industries.

NOAS has performed exceptionally


well in difficult environmental
conditions, producing consistently
high quality navigation imagery

Vessel equipment specifiers from across Europe witnessed first-hand the capabilities of Sonardyne’s NOAS as an important new aid to vessel
navigation and underwater obstacle avoidance.

January 2016 DEW JOURNAL 17


dewjournal.com News

Primus Green Energy and Jereh collaborate


to deploy gas-to-liquids (GTL) systems
Primus Green Energy Partnership offers comprehensive gas monetization Jereh and Primus
Inc., a gas-to-liquids solutions using breakthrough STG+™ technology offer the energy
(GTL) technology and industry an
solutions company that transforms delivery capabilities, making this the unmatched gas monetization
methane and other hydrocarbon ideal collaboration for the strategic solution from a single vendor that
gases into gasoline, methanol and deployment of our GTL systems." utilizes a best-in-class GTL
diluent, and Jereh, an international, The STG+T technology can use technology," said Li Weibin, vice
integrated oil and gas company a range of natural gas feedstocks, president at Jereh. "Our combined
specializing in Oil and Gas EPC including wellhead and pipeline team will support clients during
services, oilfield technology gas, dry or wet associated gas, every phase of the implementation,
services and equipment "stranded" ethane, excess syngas guaranteeing seamless project
manufacturing, have recently from underutilized reformers or delivery and maximum performance
launched of a global market mixed natural gas liquids. The of the advanced systems."
collaboration. systems' stranded and associated Furthermore, the pre-
Primus and Jereh will jointly gas applications offer an ideal engineered, modular units are
market and deploy a range of solution to the lack of traditional fabricated offsite, then transported
flexible, robust GTL systems - natural gas pipeline infrastructure to the project site for final
including gas-to-gasoline and in remote locations, enabling the assembly, enabling rapid delivery
gas-to-methanol systems - that monetization of gas that would and expedited construction time.
use Primus' proprietary STG+T otherwise be stranded or flared. Primus' process has been
process to produce high-quality The low sulfur, zero benzene validated through over 7,000 hours
liquid products from natural gas. gasoline produced through the of operation at its commercial
The technology economically STG+T process can be sold into a testing plant in Hillsborough, N.J.
transforms natural gas feedstocks refinery blending pool or directly By comparison with other GTL
into liquid end products at scales into the wholesale market. technologies, Primus' STG+T
as small as 4 MMscf per day Methanol produced through the process holds many key
(100,000 Nm 3 per day) of natural GTL systems can be sold into advantages, including record low
gas. regional markets or used onsite in capital and operating costs, high
"With the rapidly growing oil and gas production operations, liquid product quality, zero
demand for gas monetization where it functions as a corrosion wastewater, and unmatched
technologies, this collaboration will or scale inhibitor, a friction reducer, process simplicity. These
provide prospective clients with a inhibitor of hydrate formation and a advantages result in STG+T
unique opportunity to obtain a best- fracturing fluid flowback enhancer. technology being uniquely
in-class GTL solution on a "Through this partnership, economical at all scales, starting
comprehensive lump- as small as 100,000
sum single vendor
The STG+T technology can use a range of Nm3 /day of feed gas.
basis." said Sam
natural gas feedstocks, including wellhead and A global leader in
Golan, Chief Executive
pipeline gas, dry or wet associated gas, Gas-to-Liquids
Officer of Primus
"stranded" ethane, excess syngas from (GTL) technology,
Green Energy. "Jereh underutilized reformers or mixed natural gas Primus Green
has a strong global liquids. The systems' stranded and associated Energy™ delivers
marketing network gas applications offer an ideal solution to the lack solutions for gas
and world-class of traditional natural gas pipeline infrastructure in monetization based
f a b r i c a t i o n , remote locations, enabling the monetization of on its STG+™
engineering and gas that would otherwise be stranded or flared technology.

18 DEW JOURNAL January 2016


News dewjournal.com

India’s Petroleum Minister and OPEC’s Secretary General


discuss oil issue under India-OPEC Institutional Dialogue
The Minister of State (I/C) for
Petroleum and Natural Gas, Mr.
Dharmendra Pradhan held a
meeting with an Organization of
Petroleum Exporting Countries
(OPEC) delegation led by its
Secretary General, Mr. Abdalla
Salem El-Badri. This is the first
regular meeting held at the level of
Minister/Secretary General under
the India-OPEC Institutional
Dialogue, which was set up during
the last OPEC Summit in Vienna,
The Minister of State for Petroleum and Natural Gas (Independent Charge), Mr. Dharmendra
Austria in June 2015. Pradhan and the Secretary General of OPEC, Mr. Abdalla Salem El- Badri addressing a joint
The two sides exchanged press conference on the India-OPEC Dialogue, in New Delhi on December 15, 2015.

views on the emerging global crude between India and OPEC is in organization of 13 major oil
markets and deliberated on India’s mutual interest and it should be producing countries which together
concerns vis-à-vis oil purchase continued in future. Both India and produce about 40% of the world's
from OPEC member countries. Mr. OPEC reaffirmed their commitment crude oil. OPEC oil exports
Pradhan gave Indian perspective to further increase their co- represent about 60% of the total
on developments in the global oil operation in the oil and gas sector. petroleum traded internationally.
market. He reiterated that The meeting comes amidst the India is the world’s 3rd largest
reasonable and responsible oil backdrop of continuing fall in global importer of crude oil behind only
prices will be beneficial in long crude prices which has recently the US and China. Our imports from
term, for both oil producing and oil witnessed a slide to nearly 12 year OPEC countries constitute 85% of
importing countries. The two sides low of below US$ 30/barrel. our total crude imports and 94% of
agreed that such annual dialogue OPEC is an inter-governmental the gas imports, the minister said.

Investment of Rs.5,000 crore by ONGC in the equity


of its wholly-owned subsidiary, ONGC Videsh Limited
The Cabinet Committee on Theinvestment will strengthen
Economic Affairs (CCEA), chaired by the capital base of ONGC
the Prime Minister Mr. Narendra Videsh and enhance the
Modi, has given its approval for ability of ONGC to undertake
investment of Rs.5,000 crore by Oil overseas Exploration and
and Natural Gas Company Limited Production (E&P) business,
(ONGC) into the equity share capital thereby improving the energy
of ONGC Videsh by conversion of security of the country
existing loan of equivalent amount
into equity. ONGC to undertake overseas
The approved investment will Exploration and Production (E&P)
strengthen the capital base of ONGC business, thereby improving the
Videsh. It will enhance the ability of energy security of the country.

January 2016 DEW JOURNAL 19


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20 DEW JOURNAL January 2016


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January 2016 DEW JOURNAL 21


dewjournal.com Profile

Needless to emphasize the proactive initiatives


by my colleagues responsible for the significant
levels of output seen in the past. They have, for
example, provided scientific, technological,
management and training leadership in the field
of energy and environment says Prof.
Harinarayana. The ambitious Gandhinagar 5
MW Photovoltaic Rooftop Programme in the
State of Gujarat is one standing example. The
reality checks to streamline the institutional
mechanisms to transform the intent related to
the solar energy optimization with the twin
objective of safe climate and integration of
alternative energy systems is another example
of scientific excellence, according to Prof.
Harinarayana.
The initiatives in petroleum sector are under
way with major multi-lateral, multi-institutional
Prof. T. Harinarayana
co-operation. Another standing example is the

GERMI
mega-project taken up in the environment sector
under full funding support from the United

A centre of excellence
Nations Environment Programme (UNEP)
dealing with chemical substitution and
compliance, which is a major highlight of

T he Gujarat Energy Research and Management Institute GERMI’s research activity, he added.
(GERMI), a registered society and trust was setup in The institute is poised for integrated growth
Gandhinagar, Gujarat by the Government of Gujarat, with substantial output in the coming few years
promoted by Gujarat State Petroleum Corporation Ltd. is based on the initiatives being undertaken in the
dedicated to energy related goals-Education, Research and petroleum and renewable energy sectors. With
Industrial Training since its inception. a strong team under it’s arm in the field of
Under the aegis of GERMI, Pandit Deendayal research, training and management, GERMI will
Petroleum University (PDPU) is flourishing with schools soon get the attention of international scientists
namely School of Petroleum Technology, School of stresses Prof. Harinarayana. GERMI has invited
Technology, School Petroleum Management and School of research institutes and organizations to partner
Liberal Studies according to Prof. T. Harinarayana, Director, with it through joint research projects. GERMI-
Gujarat Energy Research and Management Institute PDPU are in the process of initiating
(GERMI), India while talking to DEW Journal. programmes - internships to the students,
The research team of GERMI-Research, Innovation and visiting scientist fellowships to the scholars and
Incubation Centre (GRIIC) is presently focusing on three visiting professorship awards to intellectuals to
research wings - Petroleum, Solar and Environment. share their innovative thoughts and give a
helping hand to the
upcoming young scientists,
“The MBA programme of School of Petroleum
Prof. Harinarayana said.
Management (SPM) has been well recognised by School of Petroleum
the industry and business. Excellent placements Management (SPM)
that the students of SPM have been receiving right To cater to the managerial
manpower requirements of
from the inception of the School are testimony of the Energy and
the quality of the programme delivered” Infrastructure Sector, the

22 DEW JOURNAL January 2016


Profile dewjournal.com

“The research team of GERMI-Research,


Innovation and Incubation Centre is presently
focusing on three research wings - Petroleum,
Solar and Environment. Another standing example
is the mega-project taken up in the environment
sector under full funding support from the United
Nations Environment Programme dealing with
chemical substitution and compliance, which is a
major highlight of GERMI’s research activity”

Management School was first established as the Teaching pedagogy at


Institute of Petroleum Management, Gandhinagar SPM emphasizes, in
(IPMG) in 2006 by GERMI. Subsequently in 2007, when addition to lectures, case
PDPU was established by GERMI, IPMG became the studies, student
constituent of PDPU and changed its name to SPM. presentations, student-
The SPM admits every year a select group of research, seminars and
students for undergoing training in areas such as other modern methods of
Energy & Infrastructure Management and General education and training in
Management with specialisation in Marketing, Finance, management. Long term
Human Resources Management and Operations industry immersion is
Management. While Energy & Infrastructure stream of attempted through
students mainly cater to the most vital energy sector, summer internship of 8
other highly significant sectors such as IT and Banking weeks’ duration in highly
& Finance also find them most appropriate for reputed organisations. We
employment for their Energy & Infrastructure verticals. are also in the initial
The General Management students are trained mainly process of planning for an “Under the
for employment across the sector in all functional optional short duration of
aegis of
areas of Management. stay for students in one of
At SPM, the exposure of students to the world of the reputed universities GERMI,
Management through rigorous classroom training by abroad as part of their Pandit
our highly qualified faculty is supplemented with education programme at Deendayal
regular sessions from experts from business and SPM, Prof. T. Harinarayana
industry according to Prof. Harinarayana. As a matter pointed out. In short, SPM
Petroleum
of fact SPM firmly believes in regular sessions by attempts to develop highly University is
management practitioners as an essential part of trained managers to meet flourishing with
good management education and training, he says. the present as well as the
In addition, recurring management conclaves, future requirements of the
international
seminars, conferences and occasional special management profession in level schools”
lectures enrich the knowledge base of students at business and industry.
the School. Students at SPM have opportunities to The MBA programme of School of Petroleum
listen and learn from experts from abroad who are Management (SPM) has been well recognised by the
invited to the University from time to time. Fulltime industry and business. Excellent placements that the
residential requirements and two years of engaging students of SPM have been receiving right from the
co-curricular and extra-curricular activities also add inception of the School are testimony of the quality of
value to the personality development of our students, the programme delivered, stresses Prof.
according to Prof. T. Harinarayana. Harinarayana. dewjournal.com

January 2016 DEW JOURNAL 23


dewjournal.com Face to Face

“We belong
to the top
tier of In India of international
b-Schools in Visionary leadership, dedicated faculty, bright students,
Energy unparalleled ambience with international standard
sector campus and facilities, School of Petroleum Management
Management (SPM)-Pandit Deendayal Petroleum University (PDPU)
in India and is in league of best b-schools in India. SPM aims to be
aim to be the top b-school in the energy sector in Asia, says
one of the Prof.(Dr.) C.Gopalkrishnan, Director-in-charge while
talking to Arun Kr. Singhal, Chief Editor, DEW Journal.
top schools
in Asia in
Energy and
Infrastructure
Management
in the
coming
years”

Prof. (Dr.) C. Gopalkrishnan

24 DEW JOURNAL January 2016


Face to Face dewjournal.com

Exclusive to DEW

What are your priorities and thrust areas?

scale !
Pandit Deendayal Petroleum University (PDPU) has
built excellent facilities and infrastructure at par the
best. The School of Petroleum Management (SPM),

Established in 2007 by the Gujarat Energy Research


and Management Institute (GERMI), a registered
society and trust, PDPU has grown into a full-fledged
petroleum technology and management education hub
with international collaborations, facilities and
recognitions. PDPU’s objective is to develop Gujarat as
‘Petro-education Capital of India’ by offering globally
skilled human resource for the hydrocarbon sector
PDPU has modern classrooms, excellent library, well
trained, dedicated faculty and other facilities to take
care of the educational and career related needs of
the students. The campus of the University has
sprawling lawns and gardens which create an
environment suitable for learning.
The SPM is lucky to have access to a large
number of expert visiting us from the industry because
of our proxmity to number of industries in Gujarat.
In addition, the highly committed and visionary

Dr. C. Gopalkrishnan, Ph.D. is Director in Charge, SPM-PDPU, Gandhinagar, Gujarat. A


vivid writer he has numerous publications in journals, chapters in books and writings in
Economic & Financial newspapers. He has co-authored a book, Trade Unionism &
Industrial Development (1989) and co-edited two books, Creating Wealth through
Strategic HR & Entrepreneurship (2009), and Partners in Success: Strategic HR &
Entrepreneurship (2009). His recent book ‘The Entrepreneur’s Choice: Cases on Family
Business in India’ is highly appreciated.
Dr. Gopalkrishnan has been a visiting professor at the Indian Institute of Management
and Mudra Institute of Communication, Ahmedabad, and Institute of Rural Management,
Anand. He was also a Canadian International Development Agency-UGC scholar at
University of Regina, Canada besides being CRMS fellow at the IIM, Ahmedabad.

January 2016 DEW JOURNAL 25


dewjournal.com Face to Face

6th Pandit Deendayal Memorial Lecture-2015 at SPM, PDPU stakeholders of the


university enable the
‘Reinventing India as an Innovation Nation’ school to adopt best
The School of practises in all its
P e t r o l e u m functionings which
Management (SPM), ultimately benefit the
PDPU recently students. This is reflected
organized the 6th by the excellent placement
Pandit Deendayal of our students year after
Memoral Lecture. Dr.R.A. year.
Mashelkar, FRS and Besides this, our
Padma Vibhushan, an Alumni in India and
Eminent Scientist and abroad act as the
President – Global university’s extended
Dr.R.A. Mashelkar delivering the 6th Pandit Deendayal Memoral Research Alliance arms promoting it.
Lecture. (Inset Photo): Pandit Deendayal Upadhyay
delivered the memorial Our priorities lie in
Dr. Mashelkar spoke about the doctrine lecture to over 500 further strengthening
“integral humanism” developed by eminent personalities placement of our students
Pandit Deendayal Upadhyay from different walks of abroad in view of the
life. excellent programmes
Dr. Mashelkar talks focused on ‘Reinventing India as an Innovation Nation’. that we offer.
In his lecture he spoke about the doctrine “integral humanism” developed by Another aspect is
Pandit Deendayal Upadhyay is whose name the University is christened who related to our Ph.D.
had demonstrated innovative ideas in public life. Pandit Deendayal Upadhyay Programme. We pay a
(1916-1968) was a man of soaring idealism who having qualified the Civil Services handsome stipend to the
exam opted out of it to serve the common people of the country. Pandit Upadhyay students who are doing a
is well known for his idea of Integral Humanism who visualized for India a self- full-time Ph.D. at the
reliant economy with the village as the base. University. We would like
Dr. Mashelkar emphasised that Innovation is the key to accelerated inclusive to make the programme
growth and competitiveness. He spoke about the philosophy of "More from Less more vibrant.
for More" (MLM) which India has achieved. He said India is right at the top in We are also
Grassroots Innovation, Democratization of Innovation where Innovation is by the strengthening our
People, for the People. He highlighted innovative initiatives by several M a n a g e m e n t
organizations and individuals. D e v e l o p m e n t
He also spoke about India’s 3 freedoms, First the political freedom in Programmes (MDP) with
1947, Second the Trade and Economic freedom in 1991 and the third more long-duration MDPs.
Technological freedom in 2008 (Indo-US Nuclear 123 Agreement). Dr. Mashelkar These are some of
particularly emphasized about the changing landscape in the context of India’s the priorities that we have
3 Freedoms: Indian Corporate Innovation Movement, Emergence as a Global set before us.
R&D Platform, Indian MLM Innovation and India as a Start-up Nation.
He pointed out that innovation is moving from periphery to centre stage in Where do you see SPM
the corporate world as several companies have started setting up their placed in the league of
innovation council or foundation. majors i.e. major
petroleum management
“We are planning to expose our students to institutes in India and
foreign educational system through visits to foreign South-East Asia?
We presently belong to the
universities which are well known in our area top tier of b-Schools in the
of education and research” Energy sector in India.

26 DEW JOURNAL January 2016


Face to Face dewjournal.com

“The highly Eminent personalties at PDPU


committed and
visionary
stakeholders
enable the
school to
provide good
programme to
the students”

With the kind of


infrastructure and facilities
that we have, we should Prime Minister of India Mr. Narendra Modi (center) alongwith Mr. Mukesh Ambani (left), Chairman & Managing
be one of the top b-School Director, Reliance Industries Limited and President & Chairman of the Board, PDPU and Mr. Bob Dudley,
Group Chief Executive, BP at Pandit Deendayal Petroleum University (PDPU) Convocation.
in Asia in Energy and
Infrastructure Management in the coming years. forte of the School of Petroleum Management
(SPM). Will you substantiate this?
You mentioned of the excellent placement which Of course, there is no doubt about it. We have built a
stood at 100% during 2013-15, how do you make sure group of expert faculty and visiting faculty from industry
this trend continues?
Though we are very
comfortable on the
SPM celebrates 9th Anniversary
placement front today, our The School of Petroleum Management (SPM), PDPU completed its 9 years of
MDPs and our Executive existence on December 18, 2015. The students and the faculty organized a
MBA programmes are full day event to celebrate the 9th Anniversary. The highlight of the day was a
helping us to further build ‘Energy Run (Mini Marathon)’, a friendly faculty- student cricket match followed
our reputation. We have by a cultural evening where both students and the faculty showcased their
expert lectures, talents in singing and dancing.
distinguished lectures,
and CEO meet from time
to time which enhance our
reputation further. So far as
the students are
concerned, we are also
planning to expose them
to foreign educational
system through visits to
foreign universities (which
would also include
attending lectures etc.).
So all these and other
such measures will keep
our placements high.

Energy & Infrastructure


Management is a strong A special cake prepared on the occasion of its 9th Foundation Day

January 2016 DEW JOURNAL 27


dewjournal.com Face to Face

Students interest at the core to deliver the programme.


As stated earlier, we have
The School of Petroleum Management (SPM), PDPU offers extraordinary excellent infrastructure
opportunities for individual growth through participation in various cultural and programmes.
and academic clubs, outdoor activities, field trips, academic seminars, cultural Over a period of time,
programs, debates, discussions and various community services. Workshops we have also recruited
are also organized periodically to help students think out of the box. well trained and
experienced faculty in the
area of Energy and
I n f r a s t r u c t u r e
Management and General
Management. We offer a
good programme in
General Management to
students at par to that
offered by any other
internationally acclaimed
b-school.

India is set for a period of


Outdoor activities to keep the students agile rapid, sustained growth
in energy demand: how
could this re-shape the
energy scene?
The Indian energy
demand is linked to the
growth of the Indian
e c o n o m y, w h i c h w o u l d
rise with regard to energy
security in future. As a
result, in the coming
years, it is expected that
India will invest in a still
bigger way in
Students with faculty member, SPM, PDPU ready for marathon development of energy
infrastructure both within
and outside the country.
The energy sector will
therefore be more vibrant
in the coming times.
Another aspect is
development of
alternative energy
sources, especially solar.
We may also have to look
at the solar energy policy
in the coming years to
develop this sector
The IT enabled lecture theatres at SPM, PDPU further. Solar Energy will

28 DEW JOURNAL January 2016


Face to Face dewjournal.com

Growing Recognition: 77 B-schools attend SPM’s Annual Fest


The School of Petroleum Management (SPM), Pandit Deendayal Petroleum University (PDPU) 2015 Annual
Fest provided an opportunity to the students from across India to showcase their talents in diverse fields
ranging from business, performing arts and sports. With participation of 77 B-Schools from across the
country and 17 teams from industry, SPM Annual Fest was greeted with a tremendous response both from
the industry as well as the students. Business leaders from across various sectors, entrepreneurs and
students also participated.

certainly play an important “We pay a handsome stipend to the students who
role in India’s energy
basket in a big way in
are doing a full-time Ph.D. at the University. We
future. This would also be would like to make the programme more vibrant
the answer to some of the besides further strengthening our Management
issues related to climate
change and the pledges
Development Programmes in the coming years”
made by India.
provide opportunity to oil companies
What will low oil prices mean for energy security to optimize their operations.
and energy transition?
Low oil prices offers the country a better SPM is organizing ICEIM 2016;
position to address its long term this has drawn many industry
security issues by investing in the leaders in its past. Who are the
sector. big wigs this time?
Low oil price regime may also We have invited leading players
in the Energy sector to grace this
occasion. Many renowned
“Leading players in the
experts from the top
Energy sector and multinational oil companies will
experts from the top be there. Some of these experts
multinational oil also belong to the policy making
bodies of the government. We
companies and policy also expect a few expert faculties
making bodies will from overseas also to address
address ICEIM-2016” the conference. dewjournal.com

January 2016 DEW JOURNAL 29


dewjournal.com Event Preview

FACE TO FACE
Dr. Kaushal Kishore,
Organising Secretary,
ICEIM 2016

Major players from energy sector, international

‘Energy and infrastructure


global dynamics are of a

Prof. (Dr) Kaushal Kishore

ICEIM-2016 theme “Energy & Infrastructure Management in


Changing Global Dynamics” covers global issues with special focus
on ‘Energy & Infrastructure Management in Changing Global
Dynamics’ and ‘Capacity Building in Indian Energy & Infrastructure
Sector in context of Make in India’. The event will be addressed by
eminent speakers from Industry, academia, government
bodies (policy makers) and from foreign universities/organizations

30 DEW JOURNAL January 2016


Event Preview dewjournal.com

experts to deliberate at ICEIM 2016

issues in changing
key significance’
“ICEIM-2016 in
its 5th edition
attempts to
premeditated,
discuss and
document key
contemporary
issues relevant
to managing
energy and
infrastructure
sector”

January 2016 DEW JOURNAL 31


dewjournal.com Event Preview

The ICEIM series of conference ICEIM-2016 is in its 5th


“Economic development focusing on Energy and edition with an objective
Infrastructure Management & scope to deliberate,
and growth are closely organised by the School of discuss and document
linked to technological Petroleum Management-Pandit key contemporary issues
progress and output. Deendayal Petroleum University relevant to managing E&I
(PDPU) over the years have sector with reference to
Compared to agriculture been a great success. What’s Changing Global
and service sectors, in store for ICEIM-2016? Dynamics.
manufacturing sector is The ICEIM series of conference The event serves as
at SPM, PDPU is a bi-annual a platform for professionals,
relatively higher energy-
fixture attracting participation of practitioners, academicians,
intensive, which implies industry, academia and researchers working in
that industrialization international experts. Energy & Infrastructure
increases demand for The theme of the ICEI-2014 Sector to share their
was “Energy and Infrastructure views on issues and
energy, thus, a need for Management: Prospects and challenges in managing
adequate energy and Challenges in Emerging different aspects of the
infrastructure support to Economies” aimed at
discussing the often complicated energy and infrastructure
the economy. To have landscape. Additionally, we had couple of round tables to
adequate supply of energy complement the conference’s theme. The one on
and robust infrastructures, “Addressing Issues and Challenges of Energy and

policy framework is equally


important. Energy &
Infrastructure sector
issues are thus of
paramount significance for
deliberation and
discussions leading to
policy improvements and
implementation”

32 DEW JOURNAL January 2016


Event Preview dewjournal.com

sectors. The two day Matters


event comprise of an • Marketing Issues
inaugural ceremony • Financial and
followed by couple of Accounting Issues
round tables and • Operational Excellence
technical paper and Management
presentation sessions. • Social and Human
The conference shall Resource Management
also focus on identifying • Capacity Building-
new opportunities, Make in India
challenges, best The ICEIM-2016 is
practices and strategies one of its kinds to make a
for global economy on sincere attempt to
various complementing deliberate issues and
issues like: challenges in the sectors
• Business and Techno- and hopefully industry
Managerial Issues will be benefited
• Regulatory and Policy attending it.

Infrastructure Sector in India and the Role of Energy


Institutes in India” and other one on “Addressing
Issues and Challenges of Energy and Infrastructure
Sector in India and the Role of Alternative Energy”,
were appreciated and well attended.
The ICEIM-2016 has taken a broader theme
“Energy & Infrastructure Management in Changing
Global Dynamics” which is certainly beyond the
emerging markets rather covering global issues. The
upcoming conference attempts to discuss the global
issues and challenges with couple of round table. The
The first round table is planned on the theme of the conference
ICEIM-2016 ”Energy & Infrastructure Management in
Changing Global Dynamics”. The second roundtable
will focus on
will be on ”Capacity Building in Indian Energy & capability
Infrastructure Sector in context of Make in India”. For building in
both round tables, we have eminent speakers from
Industry, academia, government organizations (policy
Indian energy
makers) and from foreign universities/organizations. and
I am sure ICEIM -2016 will throw open a good debate infrastructure
and touch upon relevant issues pertaining to the
sector in
theme of the event.
context of
Energy and Infrastructure are critical to any ‘Make in India’
economy for the development and sustainability; will campaign of
this also be focused?
ICEIM-2016 in its 5th edition has an objective and
the
scope to premeditated, discuss and document key Government
contemporary issues relevant to managing E&I sector of India
with reference to Changing Global Dynamics. ICEIM

January 2016 DEW JOURNAL 33


dewjournal.com Event Preview

I am happy to say that,


ICEIM-2016 is going to deliberate
on all broader issues. Energy &
Infrastructure (E&I) sector issues
are thus of paramount
significance for deliberation and
discussions leading to policy
improvements and
implementation.

What are some of the new


emerging opportunities,
challenges, best practices and
strategies in the field of energy
and Infrastructure?
Economics of natural resources
are complex in nature. The low
price of crude is certainly an
opportunity for emerging
economies including India.
Indian economy has potential to
-2016 will have a major focus on role of energy and grow at around 7-7.5% and may go up though majority
infrastructure in economy development and growth. of the developed economy are still in recession stage.
Economic development and growth are closely The growth rate of Indian economy is well
linked to technological progress and output. complemented by lower crude price as India is energy
Compared to agriculture and service sectors, deficit economy. Low price of crude is helping the
manufacturing sector is relatively higher energy- economy to control its import bills and current account
intensive, which implies that industrialization deficits, which looks good now.
increases demand for energy and, thus, a need for But just think of Middle East economy, who
adequate energy and infrastructure support to the supplies crude and gas to India. Under the present
economy. To have adequate supply of energy and scenario, these economies may have shortfall in
robust infrastructures, policy framework is equally foreign exchange which may affect their imports from
important. emerging markets. This is certainly a threat.
To secure adequate supply
of energy resources, it is
important for energy deficit
economies to develop bilateral
and regional strategic energy
partnerships with energy surplus
economy. The bilateral and
regional relationships will
certainly reduce risks of over
dependency on single economy.
Acquisition of foreign
hydrocarbon assets are indeed
“We have invited budding researchers and good strategy in the present
scenario.
management students from different B-Schools
in India and abroad during the conference” How do you see the increased

34 DEW JOURNAL January 2016


dewjournal.com

January 2016 DEW JOURNAL 35


dewjournal.com Event Preview

complexity of an energy-interdependent world while striving to meet


economic, security and environmental needs?
The complexity of an energy-interdependent world while striving to meet
economic, security and environmental needs are growing. This is
happening because a common consensus requires on balancing
demand and supply of energy and infrastructure. The unplanned and
greedy approach by few economies through industrialization makes
the situation worse.
In the last decade, renewable energy has become life line to many
economies including India. Though progress is slow but it has great
potential to address energy requirements in years to come. The
renewable energy is good in the context of green house gases.
Need for a much more sophisticated approach to energy policy
making is required, one that fully appreciates the interdependence of
global markets, the complex nature of energy security and the need to
manage the trade-offs inherent in the energy decision-making.

How many industry leaders and government functionaries do you


see attending ICEIM -2016?
We anticipate about 400 attendees from the public, private and
academia of Energy & Infrastructure (E&I) sector including some
overseas guests.

Will you throw light on your areas of expertise and engagement at


SPM, PDPU.
I am a faculty of Marketing & International Business at the School of
Petroleum Management (SPM), Pandit Deendayal Petroleum University
(PDPU). Having done PhD in Management (Branding in Petroleum
Retailing) I also have a Masters in Marketing Management (M.M.M),
Master of Arts (M.A) in Economics and Post Graduate Diploma in
Materials and Logistics Management (P.G.D.M.L.M) having topped the
University of Pune.
With graduate degree in Chemistry (honours) from the Magadh
University, Bodh-Gaya I have cleared the UGC-NET examination for
Assistant Professorship. I am fortunate to be a part of the 2nd & 3rd
Doctoral Consortium as a ‘Consortium Fellow’ organized by the Academy
of Indian Marketing (AIM) and American Marketing Association (AMA),
Sheth Foundation in India and Dubai.
Very recently I was selected at all India level to attend the
‘International Visitors Leadership Programme (IVLP-2015) on the
U.S.A Foreign Policy and Energy Security’ completely sponsored by
the Department of State, U.S.A. I have also been associated with the
Indian Institute of Management, Ahmedabad (IIM-A) as an Academic
Associate in Business Policy Area and worked for PGP, PGPX and
FDP programs.
I feel greatly honoured to have been bestowed with the responsibility
of being the Organizing Secretary of the International Conference on
Energy and Infrastructure Management (ICEIM-2014 and 2016) by my
university. dewjournal.com

36 DEW JOURNAL January 2016


dewjournal.com

January 2016 DEW JOURNAL 37


dewjournal.com News

REC rolls out industry-leading


certification program for
solar installers in India
R EC, a leading global provider of solar energy backed by excellent technical and safety expertise, with
solutions with one of the largest vertically the assurance of REC’s high performing solar panels.”
integrated and fully automated production facilities A total of 20 companies from India were certified
in Southeast Asia, is rolling out its successful REC as REC installers. India is now the world’s fastest-
Solar Professional Program for solar installers in growing economy and is set to become the world’s
India. This comes right after similar programs were most populous country in seven years. According to the
launched in the Philippines and Indonesia. World Resources Institute, a global research body, India
As a global company with business footprints in is also the world’s third-biggest emitter of carbon, after
Asia Pacific, REC believes that a strong local China and the U.S. Its annual greenhouse emissions
presence should be supported by a network of expert could reach one of the world’s highest by 2050. Achieving
local partners. The REC Solar Professional Program effective climate policy in India is a global challenge,
promotes a long-term alliance between both parties, and one that, if surmounted, could bring global benefits.
which is important in the fast-paced and dynamic India’s solar market is set for a big boost. Under
solar industry. A stringent criteria is in place to ensure the Ministry of New & Renewable Energy’s National
that only the best and most qualified local partners Solar Mission, India aims to have an installed solar
come onboard as new REC Solar Professionals. This power capacity of 100 gigawatts by 2022. This will
unique differentiator sets them apart from other include 40 GW rooftop solar power capacity and 57
installers. End customers benefit from the REC Solar GW utility-scale solar power projects. India had an
Professional Program as they will be assured of a operational solar power capacity of around 3 GW when
consistently high standard provided by their installers the National Solar Mission announced its targets
who use REC’s high quality solar panels. earlier this year.
Steve O’Neil, REC’s CEO said, “REC’s Solar REC Solar Professional Program for solar
Professional Program is a key differentiator that sets installers in India is a timely response to the demand
us apart from our competitors. We equip in-country for solar power. Through its network of qualified
installers with the tools installers and EPC
and technical skills to REC’s Solar Professional Program equip in- companies trained by
increase their country installers with high-quality installations REC, customers in
credibility and grow backed by excellent technical and safety India can be assured
their businesses as expertise, with the assurance of REC’s high of high-quality
professionals. We are performing solar panels. India’s solar market is installations backed
delighted to offer this set for a big boost. Under the Ministry of New & by excellent technical
program to solar Renewable Energy’s National Solar Mission, India and safety expertise,
installers in Southeast aims to have an installed solar power capacity of with the assurance of
Asia. We started this 100 gigawatts by 2022. This will include 40 GW REC’s high performing
initiative in the rooftop solar power capacity and 57 GW utility- solar panels. The
Philippines, followed scale solar power projects. India had an extended two-year
by Indonesia and now operational solar power capacity of around 3 GW warranty period is
India. All installers can when the National Solar Mission announced its provided to customers
now provide their targets earlier this year. REC Solar Professional with rooftops of up to
customers with high- Program for solar installers in India is a timely 500kW capacity.
quality installations response to the demand for solar power dewjournal.com

38 DEW JOURNAL January 2016


Geophysics dewjournal.com

Magnetotellurics - a natural EM
source method for oil exploration
A case for mapping 3D Lithospheric electrical resistivity structure

E xploration of natural resources


is one of the main concerns of
an earth scientist. Electrical and
electromagnetic methods are quite
useful in the exploration of oil, Prof. T. Harinarayana
mineral, water, etc., as they exhibit Director, Gujarat Energy Research and
anomalous electrical conductivity Management Institute (GERMI), India
compared to the surrounding
media and thus can be identified Magnetotellurics helps to explore
with ease. Here we discuss a
geophysical technique-
hydrocarbons, geothermal resources, deep
Magnetotellurics - based on the crust, earthquake regions etc. Since it’s
natural electromagnetic field as it’s introduction in India during early 80’s, this has
source. The method helps to
been applied at many locations to test the
explore hydrocarbons, geothermal
resources, deep crust, earthquake efficacy of the method. The method depends
regions etc. Since it’s introduction on the natural variation of Earth’s magnetic field
in India during early 80’s, this has
and also the induce electric field (telluric field)
been applied at many locations to
test the efficacy of the method. For
details see the research publication
by Harinarayana 2011 and also
figure 1. The method depends on
the natural variation of Earth’s
magnetic field and also the induce
electric field (telluric field). Natural
variation of magnetic field happens
mainly due to two major
phenomena in space, namely,
Thunderstorm activity and
Interaction of Solar plasma with
magnetosphere. Thunderstorm
activity is responsible for providing
signals greater than 1 Hz and
variation of low frequency (<1 Hz)
Fig.1 Various geological problems tackled by magnetotelluric technique showing different regions
signals are generated from and also the fund supporting organizations

January 2016 DEW JOURNAL 39


dewjournal.com Geophysics

boreholes, shallow (< 1


km) geothermal potential
has been established.
However, due to lack of
deep subsurface
mapping, deeper source
could not be established.
A breakthrough in
geothermal region is
achieved through
magnetotellurics. This is
shown with a case study
in Puga geothermal
region, Ladakh, Jammu
and Kashmir State. (see
Figure 3).
Killari earthquake
in Latur, Maharashtra has
occurred and taken away
more than 10000 human
Fig.2 Source field characteristics showing the various phenomena and activity in outer space lives. It is quite
Ionosphere-magnetosphere with presented with case studies in unexpected to many seismologists
solar plasma (see figure2). India in the following. Exploration as this area was believed to be an
In our discussion, it’s for geothermal regions has been aseismic region. The cause of the
application for different problems taken up as a major programme in earthquake has become a puzzle
related to geothermal, deep crust, India by Geological Survey of India- to many earth-scientists.
earthquake etc. with a focussed GSI. With conventional geophysical Magnetotellurics has delineated a
attention to oil exploration are techniques and drilling test large conductor at a depth of
around 7 km and gave an
evidence for the existence
of fluids trapped at upper
crustal depth and tries to
escape to the surface is
the cause for Killari
earthquake. Later
scientists have explored
many other regions in the
world for possible
existence of such a
similar signatures in the
area.
There are several
tectonic blocks exist in
India. However, it is
difficult to assess their
past events and
signatures, for example
it’s movements. Due to
Fig.3 A schematic diagram showing the geothermal scenario of Puga region, Jammu and Kashmir state.
Large high conducting high temperature magmatic body is delineated at about 1.5-2 km. tectonic activity, surface

40 DEW JOURNAL January 2016


Geophysics dewjournal.com

and shallow geological


features are deformed.
This makes the geological
reconstruction of the
region as a major
problem. However, deep
crustal features are
relatively undisturbed.
Deep crustal features help
to understand the ancient
tectonic activity. Through
magnetotelluric studies,
past geological events of
Narmada Sone lineament
(NSL) region are well
understood. Deep
electrical structure to a
depth of about 50 km
mapped across NSL
region and the past
Fig.4 The vessel used in Gulf of Kutch region to conduct marine magnetotellurics to map the buried sediments.
tectonic history of the
region will be presented. more number of stations in a grid exploratory bore wells. Boris
Detection of hydrocarbons in a fashion and also with other Petrov research vessel (Fig.4) is
relatively difficult region – sub- geophysical methods. Similarly, used and marine magnetotelluric
basalt – is discussed considering western part of Narmada Son equipment from Scrips Institute of
a few examples- from Saurashtra region is studied in greater detail Oceanography, USA has been hired
region and also from Gulf of Kutch that has indicated large thickness under a collaborative research
region in marine environment. of sediments below the traps. programme for this project.
Saurashtra region is mostly Areas identified based on From all the above case
covered by Deccan Trap region. magnetotellurics integrating with studies, it is clear that
From paleochannel studies, it was other geophysical methods have magnetotellurics has played a key
believed that the exposed been demarcated by DGH for role in understanding various
sediments towards the north might detailed exploration and complex geological problems
have been migrated towards the exploitation under NELP. related to geothermal, tectonics,
south and thus the thickness of the Presence of large thickness of earthquake studies and also in oil
sediments increases through river sediments towards NW part of exploration. It can map the
transportation towards the south. Saurashtra near Jamnagar and electrical resistivity structure of the
However, after the application of large thickness of sediments Earth from a shallow depth of 10/
magnetotellurics along NS-EW towards southern part of Kutch 100m to as deep as 100-200 km.
profiles, it was shown that the region gave an indication for large Since application of seismic is
sediments are thin towards the thickness of sediments in Gulf of expensive, magnetotelluric method
south as compared to north. Kutch region. This area is explored need to be applied to prioritize the
Additionally, thick sediments are by applying marine area for detailed seismic survey.
indicated towards the western part magnetotellurics and also through This way exploration cost can be
of the region. This has been proved marine seismics. Results optimized. ONGC-KDMIPE has
later by deep drilling at Lodhika. indicated nearly 4 km thick been exploring various
The estimations for the thickness sediments in Gulf of Kutch region. sedimentary basins of India for oil
of Deccan traps is also validated. This information demands more and gas exploration. Out of 26
Later the region is well explored by detailed study of the area with a few sedimentary basins, only a few of

January 2016 DEW JOURNAL 41


dewjournal.com Geophysics

strategy. Additionally, it is
suggested to map the
deep structure that greatly
helps to understand
the evolution of
sedimentary basins and
inturn may provide
clues for exploration
targets. Accordingly, it is
necessary to take up
m e a s u r e m e n t s
with broadband
magnetotellurics in a grid
fashion at each crossing
of the degree as shown in
Fig.5.

Reference
Harinarayana T. Natural
Signals to Map the Earth’s
Fig.5 A schematic map showing the possible locations of broadband magnetotellurics with the objective of Natural Resources In:
preparation of a 3D Lithosphere structure. chapter-1, Earth’s
them are well explored and much detailed exploration using Magnetic Interior, IAGA Special
need to be done in Category-II and seismics. This greatly reduces the Sopron Book Series, Vol.1, pp.1-17,
Category-III type basins. In this cost involved in exploration 2011.
context, it is of utmost important to
about the author
understand the 3D Lithospheric
structure of India. Accordingly, it is Prof (Dr.) T. Harinarayana is the Director of the Gujarat Energy Research
proposed to scan the entire India and Management Institute, Gandhinagar, Gujarat. He has over 30 years
through magnetotelluric technique. of experience of working with CSIR-National Geophysical Research
For this purpose long period Institute as Scientist “G”. He is a leading scientist, well recognized for
magnetotelluric technique his excellence in deep EM Technique- Magnetotellurics among the
involving the measurement of national and international scientists.
signals from 1 KHz to 50,000 - Prof. T. Harinarayana holds two doctoral degrees in the field of Electro
100,000 sec. is required. This magnetics-one from Edinburgh University, UK & the other from Indian
helps to map the Earth from School of Mines, Dhanbad. He served as a visiting professor at the
shallow to Lithospheric structure. University of Tokyo, Japan and the University of Texas at Austin, USA.
It is suggested to acquire the data Prof. Harinarayana has worked as Dy. Director at NGRI, Hyderabad. His
for every grid cross point, say 1 X studies includes Geothermal, Hydrocarbon, Earth quake and Deep crust.
1 o . Suggested location map is Dr. T. Harinarayana is a member of the Russian Academy of Natural
shown in Figure 5. Sciences, Moscow. Became a Member of Governing Council of newly
formed IIIT-Vadodara. Recently, he has received ISCA-International
Summary Best Researcher Award-2013. He has received the National Mineral
Magnetotelluric geophysical Award-1991, the Andhra Pradesh Scientist Award-2008. While serving
technique has proved it’s capability as Scientist and Head of the magnetotelluric Division, NGRI, Hyderabad
for various exploration problems. he became a fellow and a member of national (IGU, AEG, APAS etc.)
It’s usage in oil exploration need to and international (IAGA, EMSEV etc.) scientific societies, academic
be applied judiciously to demarcate forums and editorial boards of various techno-scientific journals of
the areas to investigate for more global importance.

42 DEW JOURNAL January 2016


Special Report dewjournal.com

Experts catch up on the latest automation trends at Rockwell Automation O&G Forum

O&G: An industry where the


Connected Enterprise is driving much
needed improved productivity

A report by:
Automation fair 2015: Bob Buttermore
Highlights from the Windy City Regional Director, SE Asia
Rockwell Automation
Rockwell Automation, the world’s largest company
dedicated to industrial automation and information,
blew into The Windy City, hosting its 24 th Automation A t the Rockwell Automation O&G Forum, experts
revisited the state of this market – with its history
Fair, a premier annual industry event. A record- of booms and busts – where oil prices tumbled down
breaking 15,345 attendees buzzed around a slippery slope these last 18 months, and still remain
McCormick Place on November 18-19 – catching up unstable. They recounted how worldwide lukewarm
on the latest automation trends at eight Industry demand and escalating supply had been a recipe for
Forums, enjoying interactive Rockwell Automation shrinking prices, lost earnings, rig
demos at 19 Hands-on Labs, receiving training from decommissionings, slashed investments in
leading manufacturing and product experts at 90 exploration and extraction, aborted orders for drilling
Technical Sessions, and expanding their know-how and extracting equipment, and layoffs of hundreds of
of integrating information, control, power
and safety technologies at over 180 Oil and Gas entities can now become Connected
booths on the show floor. Enterprises by integrating network-enabled plantwide
Attendees at Automation Fair 2015 and in-field devices to collect and analyse critical
recapped their overall impressions from the actionable insights, and then deliver contextualised
event as follows: material seamlessly to team leaders company wide.
1. Contemporary industrial engineers
and technical professionals worldwide
are embracing the advent of intelligent
production-which is based on the
convergence of IT and OT leveraged
over a common, standard and secure
EtherNet/IP network-as the foundation
for sharing the ubiquitous flow of
actionable knowledge
2. O&G entities can now become
Connected Enterprises by integrating
network-enabled plantwide and in-field

January 2016 DEW JOURNAL 43


dewjournal.com Event Review
Rockwell Automation strongholds

• The leading company solely dedicated to industrial power, control


devices to collect and analyse
and information automation solutions for smart, safe and
critical actionable insights, and
sustainable operations in a wide range of industries then deliver contextualised
• Oil & Gas: The primary vertical market for Rockwell Automation
material seamlessly to team
Southeast Asia leaders company wide.
• Vision: To be the most valued global provider of innovative industrial
3. The journey towards
automation and information products and services that leverages
becoming a Connected
the convergence of plant-floor Operations Technology (OT) and IT,
Enterprise cannot be done all at
so customers can utilise actionable data company wide to become
once. Energy firms have to take
Connected Enterprises deliberate steps to assess,
• Core offerings: A broad portfolio which includes Integrated
safeguard and upgrade their
Architecture® system, Intelligent Motor Control, and Solutions and
communications before running
Services under the Allen-Bradleyand Rockwell Software brands
analytics and big-data tools on
• PartnerNetwork™: A team of best-in-class authorised their records. Next, they can apply
distributors, OEMs, strategic alliances, systems integrators and
the results and maximise
licensed developers that work together to design, build and
collaboration to attain the
maintain better implementations than any single supplier could.
competitiveness offered by The
Connected Enterprise
4. O&G is forecasted to
continue to make up the majority
of the world’s available energy
through 2050-placing continuous
pressure on firms to explore,
extract, produce, transport and
process O&G more effectively,
safely, and profitably
5. Rockwell Automation
promised tangible business-
value creation with the
Keith Nosbusch, Chairman and CEO, Rockwell Automation speaking at the Automation Fair 2015 introduction of 55 new, state-of-
the-art products and services at Automation Fair
thousands of workers. They also forecast that since
– including Intelligent Motor Control, Integrated
O&G is expected to continue to comprise the majority
Architecture, as well as Solutions and Services
of the globe’s energy mix through 2050, there will
that are networked, productive and secure
continue to be enormous pressure on firms to explore,
6. With more than 150 partners attending Automation
produce, transport and process O&G more efficiently
Fair and jointly displaying their next-generation,
and safely, whilst expanding their bottom lines.
smart, safe and sustainable systems, Rockwell
Yet, in the face of such adversity, Rockwell
Automation continues to direct success with its
Automation customers shared case studies to show
Partner Network programme – comprised of best-
how they were able to drive the necessary efficiencies
of-breed authorised distributors, SIs, OEMs,
to survive by countering current challenges – including
strategic alliances and licensed developers
unplanned downtime, stringent regulatory
7. Rockwell Automation customers showcased
restrictions, slack employee output, expensive
countless examples of how knowledge is being
disaster recovery, cumbersome maintenance
used in a variety of application scenarios–
management, escalating expenses for deployment
resulting in quicker time to market, lower total cost
and application development, ageing infrastructure,
of ownership, raised asset utilisation, increased
rising security requirements, mounting overheads,
process productiveness, uptime and availability,
and a dwindling skilled workforce.
as well as decreased risk management
Savvy operators demonstrated novel ways to tap

44 DEW JOURNAL January 2016


Special Report dewjournal.com

Innoavtive new product


into the convergence of IT and OT
– as well as the proliferation of
The release of thePlantPAx® next-generation distributed control system
self-aware and system-aware in-
(DCS) helps industrialists across all industries modernise their plant and in-field sensors – to
factories, boost output and company integration, shorten time to market,
allow workers to share up-to-the-
enhance factory-wide process management, lessen lifecycle expenses minute insights with intelligence
and promote scalability. across business teams.
Updated system capabilities include: a more productive design Connected via a standard and
environment to promote efficiency; easier adoption of new enabling secure EtherNet/IP network, they
technologies to enrich the user experience; expanded functionsfor real-
are achieving unmatched
time prediction of potential failures; as well as open communication performance, simplification and
via EtherNet/IP™. flexibility. They also explained how
Innovative Integrated Architecture Portfolio big data/analytics, cloud
Rockwell Automation broadened its state-of-the-art, high-performance computing and virtualisation are
Integrated Architecture offerings to match the demands of savvy allowing them to overcome
manufacturers requiring improved networked equipment. Now, obsolete hardware and limited
processors can further engineer their design and control systems to technology infrastructure by using
meet Connected Enterprise standards to seamlessly connect plant- IT as a service, perform disaster
floor Internet-enabled machines with up-to-the-minute intelligence, recovery, and streamline
analytics and visualising applications
T H E C O N N E C T E D E N T E R P R I S E
for advanced efficiency.
Users will benefit from diminished
complexity, superior decision making
for enhanced throughput and
profitability, shortened development,
and increased scalability.
The range presently includes a
newly released Allen-Bradley
ControlLogix ® controller, graphic
terminal displays, a servo drive and
distributed I/O system, as well as the
latest releases of the Rockwell
Software Studio 5000 ® and
FactoryTalk®.
FactoryTalk VantagePoint
FactoryTalk VantagePoint enterprise
manufacturing intelligence (EMI) v7.0
software from Rockwell Automation
enables one-time EMI configuration.
The mobile interface provides an
intuitive way to access Logix-based
knowledge by providing a simple,
guided work flow. To promote advanced
critical thinking, authorised users may
store, visualise and share specific
insights and trends with collaborators
across the firm and interact with Logix-
based information from their PCs,
tablets or mobile phones.

January 2016 DEW JOURNAL 45


dewjournal.com Event Review

“We are assisting O&G operators to Business Development


Manager, Oil & Gas
speed high-performance and Rockwell Automation. “O&G
enhance worldwide competitiveness entities can now become
by integrating network-enabled Connected Enterprises by
collecting and analysing
plantwide and in-field devices to
critical and actionable facts,
enterprise teams and architectures” and then delivering
contextualised material
- Luis Gamboa, Global Business Development
Manager, Oil & Gas Rockwell Automation ubiquitously and
seamlessly to leaders
companywide.”
deployments and maintenance. In addition, they “A Connected Enterprise also responds to
described how mobility is giving remote workers the changing market conditions, using predictive analytics
knowledge to make faster and better decisions and to manage the supply chain, decrease risk, maximise
how to optimise security at multiple layers throughout efficiency, and squeeze the most out of limited cap-ex
the ecosystem. dollars,” Gamboa said. “Manual reports and
“In line with the Rockwell Automation vision of the spreadsheets are replaced with up-to-the-minute
Connected Enterprise, we are assisting O&G operators knowledge directly communicated over standard,
to speed high-performance and enhance worldwide unmodified Ethernet™. This makes it possible to
competitiveness by integrating network-enabled recognise the patterns and opportunities to expedite
plantwide and in-field devices to enterprise teams and time to market, raise asset utilisation, heighten
architectures,” explained Luis Gamboa, Global productivity, lower
total cost of
Secrets to Driving Efficiencies ownership, advance
workforce efficiency,
Rockwell Automation customers share secrets as well as minimise
to driving efficiencies: corporate-risk
BHP Billiton detailed the benefits that server management.”
virtualisation can bring to offshore production “Execution is a
facilities-such as hardware consolidation, journey that cannot
15,345 delegates attend Forum’s 180 booths
diminished energy consumption, a smaller filled with equipment and displays from Rockwell be done all at once,”
hardware footprint, increased uptime and Automation and its partners concluded Gamboa.
reliability, quicker disaster recovery, shortened application design and “You have to take successive
deployment, and easier upkeep and management. steps. First, assess, secure and
Repsol Ecuador B.U. described how it was challenged by an ageing upgrade your network
system at one of its crude-oil facilities, which was impacting its process- communications. Then
safety operations. With the help of Rockwell Automation, Repsol was organise the working data
able to modernise-whilst maintaining high-performance production and capital and run analytics on the
adhering to safety standards-via a gradual transition to ever more efficient records you already have. Next,
technologies. apply the results, optimise and
Williams showcased the importance of accuracy when deploying collaborate to realise the value
high-availability HMI and information systems at its continuous- creation derived from The
processing facility. Connected Enterprise and its
Techint and ISI Mustang presented the difficulties faced in moving smart, safe, and sustainable
gas along the Los Ramones Pipeline running almost 1,000 kilometres implementation.” dewjournal.com
in rugged terrain through central Mexico. Rockwell Automation controls
*Ethernet and EtherNet/IP are trademarks of ODVA.
equipment installed on compressor stations, main-line valves, metring **ControlLogix, FactoryTalk, Integrated Architecture
stations and scrapper traps helps keep the gas flowing. system, PartnerNetwork, PlantPAx, and Studio 5000
are trademarks of Rockwell Automation, Inc.

46 DEW JOURNAL January 2016


Production Optimization dewjournal.com

Well Sickness Diagnosis


and Treatment Techniques
Dr. Pushpa Sharma, Professor, Department of Petroleum Engineering & Earth
Sciences, University of Petroleum & Energy Studies, Dehradun
Dr. Saurabh Mittal, Assistant Professor, Department of Petroleum Engineering &
Earth Sciences, University of Petroleum & Energy Studies, Dehradun
Kumar G. Mulemane, Director, Engineering & Business Development, TECHINT India.
PhD Scholar, Petroleum Engineering, University of Petroleum & Energy Studies
Dr. D. K. Gupta, Professor & HoD, Petroleum Engineering & Earth Sciences, UPES Dr. Saurabh Mittal

Oil and Gas Exploration and Production (E&P) business is inescapably the most risky
ventures of the human endeavours with several risks at various stages of E&P right from
exploration, well appraisal, well testing, field development and production planning and
actual production. During the actual production, many of the oil and gas wells fall sick for
one reason or the other. Well sickness symptoms reveal during the actual production
time in terms of low productivity, excessive water cut, Gas Oil Ratio (GOR), wax deposition
and sand production. Sick wells have caused the loss of hundreds of crores rupees
every year to oil production companies. It is therefore imperative to address well sickness
issues scientifically, timely and cost effectively and ensure the best possible optimum
HC production with minimal production loss. Well sickness could be treated as one of
the avoidable risks with proactive and preventive design under ideal conditions, however,
in practice, it is impossible to completely avoid well sickness. The best possible approach
is to anticipate such problems and be ready with the most effective and efficient remedial
approaches suitable for the identified sickness. As each sickness symptom may have
unique combinations of causes, it is therefore imperative to scientifically distinguish
between those over-lapped causes and arrive at the definite cause which is essential for
effective treatment suitable for a particular well sickness. This paper has attempted to
conceptually address the main well sickness issues as precisely as possible based on
the author’s knowledge, experience and the distilled insights from the listed references.

H ydrocarbon Production
Optimization within the
inevitable constraints of the
to the following:
• Mal-operations for want of
relevant experience and detailed
pumping and control system
• Incomplete or incorrect reservoir
PVT data / crude characterisation
production system is one of the operating instructions • Inevitable unknown unknowns
most challenging tasks operation • Unreliable reservoir Most of the above causes
and production engineers characterization would finally lead to the basic
encounter on almost daily basis. • Faulty well completions problem of Sick Well which needs
There could be several • Incorrect simulation and a scientific diagnosis and timely
contributors to the sub-optimal unrealistic production planning treatment with corrective action to
production including but not limited • Defective design of tubing and ensure the best possible optimum

January 2016 DEW JOURNAL 47


dewjournal.com Production Optimization

production within the known and treatment techniques. It is possible in the well bore and tubing. Further
inevitable constraints. It is that some of the symptoms remain production log should be critically
possible that even after diagnosing without identifying scientific causes reviewed and checked whether the
the well sickness, some of the due to the limitation of available flow has drastically come down or
causes would remain unknown data, human knowledge and uniformly decreased. Drastic
which are beyond presently experience. The untreated increase in water cut / GOR
available knowledge and symptoms may resurface leading indication of well sickness. By
experience domain, which need to to additional information regarding comparing the flow rate with that of
be treated by trial and error the actual causes and these may the neighbouring well / field
techniques to achieve the new get treated with plausible / should provide further insight to fix
possible optimum production. assumed techniques through trial the real cause of the low HC
The production well may fall and error approach till the actual production rate.
sick several times during its cause is fixed and treated
economic life period and each time completely. Excessive Gas / Water Production
of falling sickness it may pose with High water cut and GOR are the
different challenges of Drastic decrease of HC common problems encountered in
comprehension complexities and production rate oil production wells. These could
unfold new characteristics of the The HC Production logging is one be due to casing leaks,
reservoir and production system. of the ways to monitor the channelling behind the casing,
This article is intended to address production rate pattern. The preferential flow through high
the possible causes, effects and production rate along with well bore permeability zones in the
available treatment techniques for pressure compared with the well reservoirs, or water / gas coning.
the identified causes of well test data provides the insight to The production log data can be
sickness. identify the possible causes of low used to locate the source of gas /
HC production rate. The possible water production and then assign
Diagnosis& Treatment Techniques causes of low HC productivity the actual cause of the undesirable
The well sickness generally could be attributable to reservoir high water cut and GOR.
appears through the following itself or pumping system. The
symptoms: reservoir related causes could be Casing leak and Channelling
• Drastic decrease of HC lower than expected kh (product of Channeling between the casing
production rate permeability and pay thickness), and the formation caused by poor
• Steep increase in water cut lower relative permeability, cementing would cause high water
• Unmanageably high sand formation damage, poorly or gas production rates.
production penetrated or plugged perforations Measurement of mechanical
• Unmanageably high GOR and partially plugged gravel pack. properties of cement behind the
• Erratic flow and pressure It is essential to distinguish the casing using ultrasonic instrument
fluctuations formation low flow from restricted indicates the possibility of
• Frequent pump / motor (ESP) low flow due to borehole damage channeling. Production logs with
damage or completion restrictions. This production rates, temperature,
• Flow tube and line vibrations distinction is possible from the radioactive tracers help to identify
The above symptoms need to transient test to measure kh and the source of water or gas. The
be systematically diagnosed and skin factor. The low flow could be remedial action could be cement
linked to the scientifically identified due to well bore restrictions, squeeze and cement circulation
causes. Each of the symptoms may insufficient drawn-down caused by behind the casing at the location of
have a single or multiple causes faulty lift mechanisms, excessive water / gas passage to prevent
and some of the causes may be pressure drop in tubing, well bore leakage.
shared among several symptoms. scale, fill in the wellbore or casing Figures 1 & 2 above indicate
Identification of scientific causes collapse. A caliper log run should the channeling mechanism
would mostly lead to the effective facilitate to locate the restrictions causing gas / water leakage.

48 DEW JOURNAL January 2016


Production Optimization dewjournal.com

Fig.1 Casing Leak & Gas Channeling [1] Fig.2 Water Channeling [1]

Fig.3 Conformance Problems associated Water Cut Trends Fig.4 Early gas break-through high permeability layer [1]

Preferential gas / water flow Fracturing job went to water could be ascertained through
through high permeability layers Curve 3 and 4: Conning or cresting careful production log/gas injection
Preferential gas / water flow through and Watered-out zone profile monitoring. If the gas
high permeability zones (thief zones) Curve 4: Channel from injector and production is from upper part of the
is a very common cause of high gas/ High permeability streak oil zone, it may be due to gas
water production rate in oil wells. If the water entry location is at coning or channeling and further
This production of high water / gas the bottom of the completed information apart from flow profile
can be identified through production interval, the water source may be is needed for complete and correct
logs. Fig.3 gives high water due to channelization or water diagnosis.
production trends due to various coning. In such cases, additional
causes. test is required to distinguish these Water / Gas coning
Curve 1: Flow behind casing causes. Similarly, high gas Water/Gas coning is another
Curve 1 and 2: Casing Leaks, production due to channelization/ common cause of excess water /
Completion near a water zone and injection gas/gas cap/gas coning gas production rates from oil wells.

Fig.5 Water coning [1] Fig.6 Gas coning [1]

January 2016 DEW JOURNAL 49


dewjournal.com Production Optimization

Water coning occurs from an the treatments (work overs), that lines. The wax deposition could be
underlying aquifer if vertical can benefit post treatment mitigated and managed by proper
permeability is high enough and production are remedial crude oil characterization
gas coning takes place when a well cementation, re-perforating, amenable for the optimum
completed near a gas / oil contact acidizing, fracturing and water treatment choice, maintaining
and sufficient vertical permeability shutoff or profile modification relatively high flow line velocity, heat
exist for gas to flow downward to treatments. tracing / insulation / mechanical
the wellbore as the pressure is scrappers / periodic pigging /pipe
drawn-down around the well. Excessive wax deposition line inner surface treatment to
Coning is a difficult As the reservoirs of light crude oil make it hydrophilic (water wet) /
phenomenon to diagnose are getting exhausted, it is chemical (solvent / surfactants /
conclusively with production inevitable to depend on heavy dispersants) injections to reduce
logging alone as water could be crude oil reservoirs which pose pour point, viscosity, crystal growth,
due to a high permeability zone or several flow assurance issues stickiness and improve flow and
(and) coning. A noise log including but not limited to high pressure performance. The
responding to flow outside the pressure drops in reservoirs, treatment choice is made based on
casing can eliminate the water wellbore, tubing and flow lines due the crude characteristics and
source through higher permeability to high viscosity and wax maximum cost benefit ratio.
zones. The temperature log will deposition. PVT analysis
respond similarly to both coning performed during well evaluation Excessive sand production
and channeling hence it is not stage provide the data to predict Sand production is due to the
useful. The most conclusive test for wax deposition problem and if the migration of young &
coning would be to produce the well available PVT data is incomplete unconsolidated formation sand
at different flow rates or drawn- with the required crude oil caused by the higher flow rate of
downs as coning is inherently rate characterization including wax reservoir fluids overcoming the
sensitive phenomenon. content then unexpected sand particle form drag force.
production rate decrease due to The sand production begins
Data for well sickness treatment excessive wax deposition will be when the rock around the
Production logging provides useful encountered during the production perforations fails, and the fluids
data for the well sickness treatment time. One of the most common can push the loose grains into the
planning. problems of heavy crude oil is wellbore. Sand production is a
The production flow excessive wax deposition in the process that develops
distribution during various phases flow paths all along from reservoir progressively in three stages:
is used to well work-over planning. to surface facilities. The excessive failure of rocks surrounding an
The production logs are also wax deposition is clearly indicated open hole or perforation from which
useful to measure the through high pressure drops and free sand grains are generated,
effectiveness of the post treatment. low flow rates through tubing / flow disaggregation of sandparticles
Diagnostics plots from failed
with Water Oil material, and
Ratio (WOR) with transport of those
cumulative free grains by the
production time effluents into the
for channeling wellbore, tubing,
and coning and flow lines up
provided in to the surface.
Annexure 1 clearly The sand
diagnose the p a r t i c l e s
causes of high disintegrate from
water cuts. Among Fig.7 Sand versus HC production rates [2] its parent rock

50 DEW JOURNAL January 2016


Production Optimization dewjournal.com

first, flow along with the reservoir formation sand grain size is placed unreliable reservoir
fluids in to the wellbore. This between the formation and a characterization, faulty well
happens when there servoir rock screen or slotted liner. The gravel completions, incorrect simulation
has low formation strength and pack sand should retain most of and unrealistic production
fails under the in situ stress the formation sand, but let a very planning, defective design of
conditions and the imposed stress fine particles pass through it and tubing and pumping and control
changes due to the hydrocarbon be produced. The gravel and system, incomplete or incorrect
production. screen shall be sized / designed to reservoir PVT data / crude
The sand production cause ensure maximum permeability of characterisation and inevitable
severe operational problems the grave pack and maximum unknown unknowns which could
ranging from erosion and damage retention of clay particles and not have been controlled and
of downhole and surface formation fines. The gravel packing corrected before the production
equipment such as valves, sizing is based on formation well falls sick. The lessons learnt
pipelines, separators, wellbore particle size distribution through could probably mitigate such
filling-up with sand, collapsed sieve analysis from the samples problems in future for similar field
casing for want of support, clogging of rubber sleeve cores / wells. A scientific diagnosis clearly
of surface processing equipment conventional cores / side wall core. identifying the cause of a sickness
and inhibition of production through The gravel sand size should be is critical to optimally resolve the
well clogging. These issues could larger than the average formation production issues. Besides, proper
be mild or severe depending on the sand grain size and liner screen training of operation and
flow rate and viscosity of the size should be smaller than the maintenance personnel, detailed
produced fluid, and the rate of smallest gravel sand size. operating procedures /
production and accumulation of instructions, adequate
fines and sand grains. The sand Results and Discussions instrumentation and control,
production problems may be It is evident from various facts meticulous production logging,
tolerated to some extent but mentioned above that oil / gas trend analysis and realistically
disposal could be challenging production wells fall sick due to assigning the encountered
particularly for offshore fields. The various reasons including but not symptoms with actual causes
sand production can cost oil limited to mal-operations, would greatly facilitate effective and
companies hundreds of efficient treatment
crores of Rupees yearly. It techniques. It is also
is therefore desirable to experienced that despite of
limit sand production having taken the best
without unduly inhibiting possible actions in terms
HC production rate. of best possible system
Sand production is design with optimal
controlled mainly by using instrumentation and
properly designed gravel control, operating
pack completions, slotted personnel training, and
line completions or sand meticulous production
consolidation treatment, monitoring and logging, it
gravel pack completions is is practically impossible to
the most common avoid well sickness, it is
one.The most common therefore imperative for the
types of gravel packs are production engineers to
shown in Figure 8 below. prudently anticipate such
In gravel pack problems and be ready to
completions, sand that is provide timely optimum
larger than the average Fig.8 Common types of gravel pack completions [1] solutions with minimal

January 2016 DEW JOURNAL 51


dewjournal.comOptimization
Production

production loss.

Conclusions & Recommendations


Oil and Gas E&P business is
inescapably the most risky ventures
Fluor Ethane Cracker
with several risks at various stages Project hits milestone
of E&P endeavours right from
exploration, appraisal, testing, field Fluor Corporation has announced that it has
development and production completed the tallest lift on its U.S. Gulf
planning and actual production / Coast Petrochemicals Project for Chevron
operation stage. Well sickness Phillips Chemical Company LP (Chevron
issues have caused hundreds of Phillips Chemical).
crores rupees to oil production Fluor, in a joint venture with JGC, is
companies which clearly indicate performing the engineering, procurement
the importance of the treating and construction of a 1.5 million-metric-tons-
techniques. Well sickness could be per-year ethane cracker and associated
considered as one of the avoidable offsite components at Chevron Phillips
risks although in practice it is Chemical’s existing Cedar Bayou complex
impossible to completely avoid it. in Baytown, Texas. Fluor direct-hire craft
The best approach is to anticipate workers are executing construction for the project, which is the first
such problem and be ready with the greenfield cracker project in the United States in more than a decade
most effective and efficient remedial and will be one of the largest crackers in the US when completed.
approaches suitable for the Over the past three months, Fluor has executed nine mega-lifts at
identified sickness as each the site by erecting the major pieces of equipment that will be used in
sickness symptom may have the plant’s operations. Each lift was more than 275 tons, with three of
unique combinations of causes and the lifts weighing more than 500 tons.The final lift, to erect a C2 Splitter
it is imperative to scientifically (used for olefin separation) that is part of the ethane cracker, was
distinguish between those over- more than 250 feet tall and weighed more than 570 tons. Two best-in-
lapped causes and arrive at the class cranes were needed to lift the unit, which weighs more than 300
definite cause which is essential for cars. All nine lifts were completed safely and on schedule.
treating particular well sickness. “Achieving this milestone is a testament to the dedication and
This paper has attempted to commitment of our 2,500 craft workers currently at the site,” said Jim
conceptually address the main well Brittain, President of Fluor’s Energy & Chemicals business in the
sickness issues as precisely as Americas. “We are deploying our full suite of integrated solutions-
possible based on the distilled including our self-perform construction expertise, innovative
insights from the listed references. construction execution methodologies and unique scaffolding
partnership-to meet Chevron Phillips Chemical’s cost and schedule
References goals.”
1. Petroleum Production System Construction has begun on the world-class furnaces and above
by Michael J. Economides, ground piping systems.
Daniel Hiil, Christine Ehlig- Fluor Corporation is a global engineering and construction firm
Economides, Pentice Hall that designs and builds some of the world's most complex projects.
Petroleum Series. The company creates and delivers innovative and integrated solutions
2. Sand and Fines in Multi-phase for its clients in engineering, procurement, fabrication, construction,
Oil and Gas Production, maintenance and project management on a global basis. For more
Thesis work by Richard, than a century, Fluor has served clients in the energy, chemicals,
Richard Udoh, Norwegian government, industrial, infrastructure, mining and power market
University of Science and sectors. Headquartered in Irving, Texas, Fluor ranks 136 on the
Technology. dewjournal.com FORTUNE 500 list.

52 DEW JOURNAL January 2016


Corrosion dewjournal.com

A case study on recent repairs made to severely


corroded gas pipes on a Norwegian FPSO

Composite wrap tackles


complex pipe geometries
I n April 2015, a Norwegian
Floating Production, Storage and
Offloading vessel (FPSO)
requested a solution to rebuild,
strengthen and protect corroded
gas pipes. A series of pipes on Thomas Belli
board the North Sea FPSO were Belzona Polymerics Limted
displaying signs of corrosion
between both the pipe and support, corrosion between the pipe and unique cold applied solution due
in some areas registering thin wall support. Significantly, the to the total number of irregular pipe
defects with up to 35% wall loss. hazardous part of the project was geometries, incorporating a well-
Not only did this represent a severe lifting the pipes because of internal engineered design, for both Tee
containment issue, but it also pressures; therefore, in order to junctions and sharp bends.
threatened the vessel’s operation. eliminate the associated risks, the Consequently, the customer
Impressively, FPSOs combine project needed to be executed selected Belzona SuperWrap II,
facilities for production, processing offline. In order to limit the downtime because of the composite wrap’s
and storage all in the same place. of the FPSO, the asset owner versatility and ability to conform to
Often viewed as a safer and more assigned a limited shutdown complex geometries. Having
economical solution, with the ability period, totalling 7 days. previously worked with the Belzona
to relocate to another development, Because welding was not an distributorship in Norway, CAN AS,
these vessels have become the option, the application required a the customer received a precise
foremost system for offshore oil
and gas production. Receiving
material from subsea reservoirs, it
is then processed before being
stored on board, until it is possible
to offload elsewhere via tanker or
through pipelines. These pipes
often suffer severe corrosion at
support point due to abrasion and/
or galvanic corrosion. This can
have destructive effects on the
wall’s integrity, quickly developing
into thin and even through-wall
defects.
In this situation, the customer
highlighted how the 6" gas pipe
system was suffering from Thin-wall corrosion up to 35%

January 2016 DEW JOURNAL 53


dewjournal.com Corrosion

in conjunction with a bespoke


hybrid reinforcement sheet based
on fibre glass and carbon fibre. The
fibre glass offers flexibility, in
addition to serving as a wet-out
indicator, which ensures effective
application of the reinforcement
sheet. Interwoven with carbon
fibres, the reinforcement sheet
provides the composite wrap with
the strength it needs to retain high
pressures and loads. Belzona
were able to cut the reinforcement
sheets to match the unique pipe
dimensions in the form of a
reinforcement jackets for the tees,
Belzona SuperWrap II tackles complex geometries whilst utilising specifically
timeline for the applications, overall than a third of the substrate had measured strips for the bends.
guaranteeing an efficient and succumbed to thin wall corrosion, Before each application, the
structured process. Within this thus demanding reconstruction of substrate was wetted with the fluid
time, five of the days were specified the pipeline surface before the grade resin system, maximising
for the design and installation of application of Belzona SuperWrap the bond between the carbon steel
all six repairs, whilst the remainder II. As a part of the designated plan, and Belzona SuperWrap II.
allowed for curing and the installation team assembled Covering lengths of 690mm,
demobilisation of all equipment tarpaulin housing around the applicators used seven spirals of
and personnel. specific pipe defect, for grit blasting reinforcement around each defect,
The application was carried and climate control purposes. creating a tapered profile of 14mm
out in accordance with ISO/TS Each wrap application followed the at the densest section. Finally, this
24817 and ASME PCC-2 Article 4.1., same procedures, by initially grit was consolidated by tightly
certifying the composite wrap blasting in accordance with wrapping release film around the
system in line with equipment and Standard SA2.5, removing any composite wrap, which was later
piping repair regulations, for foreign corrosive matter. Ultimately removed after the cure process was
petroleum, petrochemical and this provided an optimum substrate complete, allowing the repair to
natural gas industries. Prior to the surface profile of 75µm, ideal for securely adhere.
installation, heavy equipment was successful application. Once Following completion of the
rigged into place, necessary for achieved, corrosion resistant Belzona SuperWrap II installation,
lifting the large sections of pipe, Belzona 1111 (Super Metal) was a new solution was implemented
consistent with engineering used to rebuild the metal substrate. to place the pipes into position, fit
designs. Notably, some areas The versatile adhesive properties for purpose. Belzona 1311
needed the use of rope access of the resurfacing epoxy-based (Ceramic R-Metal) was adapted by
techniques, requiring an overall composite, particularly on carbon applicators to create irregular
team of five operators, including steel substrates, created a level loading bearing shims between the
riggers, inspectors and product surface for the next stage of repair. pipeline and support. Often used for
specialists. As highlighted, the complex metal repair and protection against
In order to determine the extent pipe geometries included bends, the effects of erosion and corrosion,
of the defect, ultrasound equipment straights and tees, necessitating a these reinforced plates were
was used to inspect the status of tailored design for the Belzona installed to transfer the load of the
the damaged pipework. Eventually SuperWrap II application. The two- pipe, demonstrating the material’s
this revealed areas where more part, fluid grade resin system works excellent compressive strength.

54 DEW JOURNAL January 2016


Corrosion dewjournal.com

Inclusive of grit blasting the pressure had been restored to its Primarily, all phases of the
defected areas, each Belzona original levels, without any project were handled by one
SuperWrap II installation was irregularities, the pipe system was contractor, allowing for a consistent
finished within 6 hours, leaving set back into production. Due to the approach that ensured the
sufficient cure time for each initial planning, combined with the application was successfully
application. Once the entirety of the correct equipment and application achieved within the allotted
repair was completed, it was management, there were no issues schedule. Furthermore, this was
necessary for pressure testing to be during the timeline of the project, significantly aided by the ease and
carried out. After successful consistent with the customer’s speed in which Belzona’s versatile
assessment indicated that the pipe specified shutdown period. composite wrap system could be
applied. Since installation, the
customer has indicated that the
application is functioning well and
is set for periodic inspection, in line
with the specified design life of 20
years. Between 2010 and 2015, a
total of 48 Belzona SuperWrap
applications have been
commissioned by the customer,
across various offshore oil and gas
platforms. This figure has
subsequently risen, after three
repairs executed in August 2015
were completed, serving as an
indication of the product’s strength
and the customer relationship
Ceramic shim plates take the load off developed. dewjournal.com

January 2016 DEW JOURNAL 55


dewjournal.com

56 DEW JOURNAL January 2016


Geochemistry dewjournal.com

Chemistry of reservoir
rock relative permeability
Kumar G. Mulemane, Director, Engineering &
BD, TECHINT India. PhD Scholar, Petroleum
Engineering, UPES

Dr. Pushpa Sharma, Professor, Department of


Petroleum Engineering & Earth Sciences, UPES

Dr. D. K. Gupta, Professor and HoD, Department of


Petroleum Engineering & Earth Sciences, UPES Kumar G. Mulemane Dr. Pushpa Sharma Dr. D. K. Gupta

Relative permeability, Kr, of Oil and Gas Reservoir rock is a vital parameter to ascertain the
economic viability of any field development plan including enhanced oil recovery schemes.
Many eminent authors have made several attempts for decades to get a handle on it
considering variety of parameters but mostly in terms of physical properties; this paper
addresses this critical parameter through chemistry involving the interactions between the
reservoir rock mineral and fluid molecules. It is scientifically infeasible to dependably
predict Kr as it is an outcome of many geological events taken place billions of years ago.
However, the study of chemistry of the reservoir rock mineral and fluid molecules would
provide much better insight on this vital parameter. This desk study paper qualitatively
identifies the chemistry with enhanced chemical activity of the reservoir rock surface
attributable to surface morphology, surface defects, unbalanced electronic sites attributable
to meso/micro-porous media, coordinatively unsaturated sites, high number of edges and
corners of reservoir rocks including but not limited to adsorption / chemisorption properties
along with the associated molecular forces such as van der Waal forces, dipole-dipole
forces, hydrogen bonding, ionic electrostatic forces andun-satisfied valence forces. This
paper is also expected to catalyse further experimental efforts to find out possible qualitative
as well as quantitative relations between chemical properties of rock mineral and fluid
molecules and relative permeability of a reservoir rock.
Based on the established concepts, such as reservoir chemistry, wettability, chemical
compositions of reservoir minerals, molecular dynamic forces, surface dis-continuity,
free energy, nano structured catalytic properties and enhanced oil recovery process
schemes from the reference literatures, chemistry of the reservoir rock relative
permeability is inductively elucidated through application of intersectional concepts.
It is theoretically anticipated to have a definite correlation between rock mineral
chemical compositions, fluid compositions and reservoir pore surface morphology and
relative permeability of rock. However, it is practically infeasible to conduct representative
experimentations to quantitatively ascertain the possible correlations between rock and
fluid chemical properties and the relatively permeability K r although experimental studies
based on typical reservoir surface morphology, mineral and fluid chemical compositions
are imperative to reasonably ascertain quantitative correlations. It should be possible to
have a gripper handle on the reservoir rock K r considering the reservoir rock minerals’
and fluids’ chemical compositions and surface morphology.
The new knowledge from the chemistry of reservoir rock relative permeability is

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deeper understanding leading to better assessment of relative permeability of reservoir
rock Kr from mineralogy, surface morphology, chemical properties of reservoir rocks and
fluids instead of physical and collegiate properties such as lithology, wettability, capillary
pressure, pore characteristics, and clay content. Based on the deeper comprehension of
chemistry of reservoir rock relative permeability, it should be possible to reliable discover
an effective mechanism and scheme to dislodge hydrocarbon molecules from the rock
surface and enhance the hydrocarbon flow rate and recovery from the reservoirs.
Keywords: Hydrogen bonding, residual valence bonds, van der Waal forces, electrostatic
forces, surface discontinuities, coordinatively unsaturated sites, molecular forces, surface
free energy, relative permeability Kr, residual oil saturation, irreducible water saturation
and wettability.

Introduction geometry, throat size distribution including natural


Relative permeability Kr of Oil and Gas Reservoir rock fractures, grain shape, texture, fabric, size, contact,
has a significant and strong bearing on economic spherificity, surface area, cementation factor, throat
viability of any field development plan including size, and saturation including capillary pressures.
enhanced oil recovery schemes. The hydrocarbon (HC) These factors are mostly addressing in terms of
production rate is controlled by original oil in place, physical properties of reservoir rocks and fluids.
drive mechanism, pore pressure, aquifer pressure Although reservoir rock permeability is measured in
support, lateral continuity and relative permeability Kr terms of physical properties but it depends not only on
of the reservoir rock. The reservoir rock relative physical properties but also on chemical properties of
permeability, porosity along with saturation indicating reservoir rock minerals and fluids molecules. The
the accumulated quantity of hydrocarbon is microscopic mechanism controlling oil & water
conventionally treated as physical properties of the rock cohesion, adhesion, selective dis-engagement,
however; Kr of the reservoir rock is not only physical movement of oil in the reservoir pore system are
property but also chemical property which demands controlled by rock – fluid molecular interactions
new ways of investigation and analysis. The prevailing controlled by electrostatic, chemical and physical
practices to comprehend and capture the relative forces. Several studies have been performed in the
permeability K r are generally empirical in nature by past on pore geometry and pore size (macro, meso,
treating it as physical and collegiate property but it is micro, nano) but pore surface mineralogy still needs
imperative to analyse and characterize it from chemical focused study to develop analytical tools to eliminate
properties point of view to get a deeper and better expensive experimental tests and associated
understanding of this performance critical parameter inaccuracy in establishing reservoir relative
K r as it has a serious and significant techno- permeability, K r. In order to improve the recovery of
economic-ecological impact on oil and gas reservoir hydrocarbon, it is essential to selectively or
oil recovery. Direct permeability measurement using preferentially dis-engage oil from the rock pore surface
functional Nuclear Magnetic Resonance is gaining and or neighboring immobile water phase so that
importance but it is an expensive indirect method further physical fluid movement of oil is controlled only
making it necessary to evaluate it through chemical on the available differential pressure between the
properties which could probably be a convenient and source (reservoir pore) and destination (borehole),
competitive approach to reliably and reasonably passage area, passage friction and the distance to
ascertain Kr in future. It is therefore the intention of the destination like in conventional conduit hydraulics flow.
authors to perform a deep desk study on reservoir rock In fact, the conservation of energy equation consisting
mineral and fluid molecular forces in terms of of pressure energy, kinetic energy and potential energy
compositions, molecular structures, physical and due to position with additional energy due to rock-fluid
chemical properties and to better understand Krwith molecular forces should be applicable considering the
an objective of achieving higher HC production rate reservoir as millions of micro-tubes. For steady state
and recovery for a given reservoir rock. hydraulics analysis, the Darcy law used to capture
Many authors have already investigated effective permeability is applicable only for single phase flow
porosity and relative permeability in terms of pore in simple sand and not for meso/micro/nano porous

58 DEW JOURNAL January 2016


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reservoir rock with lots of molecular interactions process leading to porosity loss in sandstones.
induced flow resistances. Like in the case of Porosities in carbonates are often much lower and
conventional conduit steady state, one dimensional far more localized than in sandstones, it is difficult to
flow equation needs additional factor dmc to account trend porosity/permeability. According to Choquette and
for molecular forces induced flow resistance apart from Pray, there are fifteen recognizable types of carbonate
conventional factors as illustrated in the following porosities. These are grouped according to the
equation applicable to each phase. environment in which they are commonly created or
according to the degree of rock fabric control over their
dp/ + vdv/g + dz + dhf + dmc = 0 creation. Inter-particle is largely a primary porosity, it
can be enhanced by secondary dissolution of grains.
Where p is fluid pressure, is fluid density, v is fluid Inter-particle is the main porosity type in dolomites.
velocity, z is height from reference point, hf is frictional Moldic porosity is secondary porosity caused by
head and m c is molecular head due to molecular dissolution of unstable allochems such as aragonitic
forces which depends on the chemistry of the shells. It can be an important porosity type in
reservoir rock mineral and fluids. grainstones and packstones but in wackestones it is
The additional flow resistance factor attributable patchy in-effective porosity. Boring porosity is created
to chemical properties of reservoir rock mineral and by boring organisms in consolidated sediments such
fluid molecular forces, dm c is further explicated in as hard grounds. Burrowing porosity is created by
the following sections. burrowing organisms in unconsolidated sediments.
Vugs and caverns porosity are also common in
Porosity, Permeability and Productivity carbonate rocks. Porosity modifiers are generally used
Pore geometry is categorized as inter-granular, inter- with carbonate porosity and these are genetic modifier,
crystalline, vuggy/moldic, or fracture. Pore throat sizes size, type and abundance.
are categorized into mega, macro, meso, and micro- Conventionally permeability is a measure of the
port types. Combining both pore geometry and port ability of a porous rock to transmit a fluid under the
type into a classification scheme is an effective method pressure difference (differential pressure). Absolute
of describing pore systems. Porosity of reservoir rocks permeability (K a ) is the property of a rock that
could vary from mega, macro, meso, micro to nano characterizes the flow of fluids (gas, oil, or water)
with throat size r35 (35% non-wetting phase saturation) through its inter-connected pores at 100% saturation
>10 , 2-10 , 0.5-2 , 0.5-0.1 and <0.1 respectively. with that fluid. Effective phase permeability is the
The effective and connected porosity is important for ability of a rock to transmit one fluid phase (gas, oil,
the reservoir rock permeability and HC recovery. If the or water) in the presence of other fluid phases.
reservoir voids are not connected then HC production Relative permeability to a fluid is the ratio of effective
rate and recovery will be poor. Conventionally, the phase permeability at a given saturation to the
“effective” porosity, in conjunction with the relative permeability at 100% saturation (the absolute
permeability, indicates the ultimate quality of the permeability, ka). The terms kro (=ko /ka ), krg (=k g/k a),
reservoir with HC production rate and recovery. and k rw (=k w/k a ) denote the relative permeability to
Porosity consists of primary and secondary forms. oil, to gas, and to water, respectively (k a is the
Primary porosity is formed when the sediment is absolute permeability, often the single-phase liquid
originally deposited. Secondary porosity results from permeability). The relative permeability is expressed
diagenesis by solution, crystallization and replacement in percent or as a fraction. It ranges from zero at a low
processes and tectonic activity. The primary porosity saturation to 1 at 100% saturation.
in sandstones is mainly inter-particle, generally the Horizontal Kh a is generally greater than vertical
larger the grain size, higher the porosity. The porosity Kv a because of vertical changes in sorting and of
will decrease due to the formation of clays and alteration bedding laminations. High vertical Kv a generally
products after deposition. Compaction and results from fracturing or even burrowing that cuts
cementation after deposition will also reduce the across bedding. Most K a calculations are made from
absolute porosity. Generally, porosity decreases as measurements of horizontal plugs.
depth increases. However, cementation is the principal There is a general relation between air

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permeability K a and porosity . The Ka/ ratio reflects contact with the water (e.g. there is only a water-rock
rock quality in terms of flow efficiency of a reservoir contact (water wet rock) and an oil-water contact in
sample. For a given rock quality, Ka increases with the pore spaces), the water tends to surround the oil
porosity . When clastics and carbonates are in the pore spaces.
deposited, they have a close correlation of particle As per Darcy law, the reservoir production rate Q
size to the Ka/ ratio. 3
(M /s) is directly proportional to permeability (k), pass
Permeability can vary greatly depending on area A, and differential pressure between reservoir
orientation (e.g. vertical permeability maybe far lower pressure (P r )and borehole pressures (P w )and
than horizontal permeability) for the same rock, inversely proportional to viscosity ( ) of the fluid and
especially if micas are abundant. Permeability may length of the passage (L) as per the following
also be strongly influenced by cross-bedding and equation.
other sedimentary structures deposited in practically
every environment, with the primary environments Q kA*(Pr – Pw)/ L
of deposition being river floodplains, lakes, large
deltas, the continental shelves and platforms, and The natural drivers (Reservoir pressure, P r –
the ocean floors. Bore-hole well pressure, P w) in the reservoir are
In the majority of formations there is a derived from Water drive, Gas expansion, Solution
simultaneous presence of more than one phase: (1) gas, Rock compaction drive and Gravity drainage. If
oil and gas, (2) oil and water, or (3) oil, gas, and water. these drivers are not enough for economical HC
The concept of effective permeability is that except recovery then it is necessary to increase permeability
one phase other phases are mobile. While and or decrease viscosity of the fluids. It is some
calculating effective permeability a correction factor time not sufficient or not cost effective to reduce fluid
should be used as a part of the effective pore space viscosity leaving no chance but to increase relative
is occupied by another phase. The magnitude of permeability of the rock. In order to ensure the most
effective permeability depends on rock wettability, i.e. economical HC recovery design, it is essential to
on whether the immobile phase does not wet the solid deeply understand not only physical characteristics
surfaces of the rock and, therefore, occupies the but also chemical characteristics of rock permeability
central parts of the pores, or the immobile phase wets based on molecular interactions between rock
the solid surfaces and thus tends to concentrate on mineral molecules and fluid molecules.
pore surface and in smaller pores. The nature, Darcy’s law for permeability is only valid with
distribution, and amount of immobile phase affect single phase flow in 100% saturated porous media
the effective permeability. signifying it as physical property. When more than
Economic value of a reservoir system depends one fluid is present then effective permeability is
on the capacity of a reservoir to store and transmit oil conventionally used, meaning one rock may have
or gas. The reservoir fluid flow system is determined three permeability values; effective permeability for
by reservoir pore type, shape, volume, throat size oil Kro, water Krw and gas K rg which depend on rock
distribution (including natural fractures), mineral and fluid molecular interactive forces. It is
permeabilities to hydrocarbon, water saturation evident that Darcy equation is too simplistic to account
(hydrocarbon pore volume), lateral continuity, number, for multiphase flows, volume / density changes on
and position of flow units and containers and reservoir the flow passage, static height and rock matrix
pressure and drive mechanisms. These quality minerals and fluid molecular forces.
parameters are shaped by several geophysical and It is proposed to treat the reservoir as a collection
geochemical processes during its geological time of millions of micro-tubes and apply a steady state
period which are the focal point of this paper. conventional one dimensional flow energy
The amount of recoverable hydrocarbons is conservation equation with an additional factor dmc to
directly based on the amount of water in the pore account for molecular forces induced flow resistance
spaces. Therefore water volumes are a necessary apart from conventional factors as shown below:
calculation before any hydrocarbon production
calculation takes place. Because the oil is in direct dp/ + vdv/g + dz + dhf + dmc = 0

60 DEW JOURNAL January 2016


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Where p is fluid pressure, is fluid density, v is the effective size of the already small pore throats.
fluid velocity, z is height from reference point, h f is Therefore, a greater differential pressure is required
frictional head and m c is the additional molecular for oil or gas to move out of such pore system. Micro-
force related head to be applied to each phase to pore reservoirs have longer saturation transition zones
account for rock matrix minerals and fluids molecular than macro or meso-porous reservoirs; immobile water
forces. This flow resistance factor dmc to be applied saturation is lower in macro-porous rocks.
to each phase. Assuming the flow is horizontal, dz A pore system 100% saturated with any fluid
could be ignored, and assuming velocity and velocity transmits that fluid at a rate relative to the pore throat
change are low, vdv/g may be negligible. For meso/ size and the pressure differential. In the figure 1 (water
micro porous medium, dm c is controlling the flow wet rock) and figure 2 (oil wet rock) below, the absolute
resistance hence when pressure energy exceeds the pore throat size (x) is noted as the distance between
energy due to molecular physical-chemical forces grain surfaces. When a sample contains oil or gas
denoted by dmc then only will the oil flow from reservoir and water (where water wets the grain surface), the
to borehole. Hence by estimating the value of dmc for pore throat size (y) for oil or gas flow is less than the
a given reservoir rock and reservoir pressure it should
be possible to ascertain the oil flow both qualitatively
and quantitatively and it should also be possible to
estimate the value of dm c by knowing the type of
molecular forces.

Rock Wettability (Chemical Property)


Conventionally, rock chemical properties are presently
captured through rock wettability measured in terms
of capillary pressures (Pc) and Pc curves relate to
varying rock throat size r35 (port size profile: 35% non-
wetting phase saturation) and water saturation. Due
to preferential attraction of water molecules by rock
surface mineral molecule, resulting water film
deposition on the pore surface and reduction in flow
area, causing the resistant force to hydrocarbon flow.
P c is a function of the interfacial tension ( ), the
Fig.1 Water wet reservoir rock
wettability ( ), and pore throat radius (r). The interfacial
tension and wettability are directly related to pore throat
size and mineralogy where molecular forces such van
der Waal forces, hydrogen bonding, electrostatic
forces between water, crude oil, dissolved salts and
mineral oxides molecules play significant role. P c
increases with decreasing pore throat size, increasing
interfacial tension, and increasing contact angle
(greater oil wetting) as per the following relation.

Capillary pressure Pc = 2 Cos /r

As pore size decreases, capillary pressure


increases with decreasing water saturation and
increasing transition zone (water oil contact) height.
Macro-pore reservoirs have little or no saturation
transition zone. In rocks with micro-porosity, capillary
forces hold water tightly to rock surfaces, decreasing Fig.2 Oil wet Reservoir rock

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absolute pore throat size (x). The thickness of the water in case of water
wet (oil in case of oil wet) layer coating the grains is proportional to the
S w (So for oil wet) of the rock. In other words, as S w (So for oil wet)
decreases and the effective size of the pore throat for oil or gas flow (y)
increases and vice versa. Rock wettability nothing but its chemical
property has a profound effect on multiphase rock-fluid interactions.
Wettability affects (a) the microscopic fluid distribution at the pore scale
in the porous medium, (b) the magnitude of the irreducible water
saturation, (c) the efficiency of an immiscible displacement in the porous
medium, (d) the residual oil saturation, (e) the capillary pressure curve
of the porous medium, (f) the relative permeability curves of the porous
medium and (g) the electrical properties of the porous medium.
Rock wettability (chemical property) determines the microscopic
fluid distribution in a porous medium at the pore scale. The wetting
fluid occupies the small pores, coats the surface of the solid grains
and occupies the corners of the grain contacts [3]. The wetting phase
occupies the small pores, which have high specific surface areas
(S=3(1- )/r) and minimizes the specific surface free energy of the system.
The non-wetting phase occupies the large pores and is located at the
center of the pores. In case of oil wet, oil over-saturation leads to oil
drops / globules move along with water as shown in Figure 2 [3].
In the case of water wet rocks, the thickness of water film on rock
pore surfaces decrease in the presence of surface-active substances
clearly indicating chemical property of the rock. For example the
adsorbed film layer is thinner in case of alkaline water containing certain
amount of salts of organic acid soaps.
At low water saturation, water is present as a dispersed
(discontinuous) phase. The intensity of its transition from a
discontinuous phase into a dispersion medium (continuous medium)
is determined by the intensity of coalescence of water droplets and
intensity of their adhesion to solid surfaces depending on rock and
fluid molecular attractive forces. The water saturation at which water
changes from a discontinuous phase into a continuous phase
decreases with decreasing time of coalescence and sticking of water
droplets to solid surfaces and this happens due to higher rock and fluid
molecular attractive forces.
The forces resist the oil and gas flow include (1) viscous friction,
(2) inter phase friction (caused by motions of oil, gas and water relative
to one another), (3) viscosity (or internal friction), and (4) molecular
attraction between the rock walls and moving fluids (capillary forces).

Mineral & Fluid Molecular Interactions


Enhanced chemical activities including adsorption / chemisorption of
the reservoir fluids on reservoir rock mineral surfaces depend on the
chemical compositions of minerals and fluids, pore throat radius, pore
surface heterogeneity, surface morphology, surface defects, unbalanced
electronic sites attributable to meso / micro-porous media, high number
of edges, coordinatively unsaturated sites and corners of reservoir rocks
creating molecular forces such as van der Waal forces, dipole-dipole

62 DEW JOURNAL January 2016


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forces, hydrogen bonding, ionic electrostatic forces gas and saline water with acidic/alkaline impurities.
and un-satisfied valence forces. Depending on the pore surface mineral composition,
The following are the possible inter-atomic and structure, pore size /throat radius, intermolecular forces
molecular forces between rock and fluid molecules [4]: are operating between rock pore surface minerals, clay
1. Ion-ion, short range, proportional to 1/r (r = radius molecules and fluid molecules. Water being polar
of atom or molecule) molecule with a significant dipole moment and
2. Hydrogen bond, short range, proportional to 1/r 2 dissolved salts being strongly ionic has significant
3. Ion-dipole, variable, proportional to 1/r2 or 1/r 4 molecular interactive forces. These molecular forces
4. Ion-induced dipole, proportional to 1/r4 have a strong influence on the residual water saturation
5. Dipole-dipole, variable, proportional to 1/r3 or 1/r6 which in turn control relative permeability of rock and
6. Dipole-induced dipole, proportional to 1/r 6 consequent HC recovery for given differential pressure
7. Induced dipole-induced dipole, proportional to 1/r6. and drive mechanism.
The attractive or repulsive electrostatic Presently, relative permeability versus water
interactions between permanent charges in the case saturation graph is used to have some insight on the
of molecular ions, induction (also known as behavior of fluids in a particular pore system.
polarization), which is the attractive interaction However, the study of pore mineral surface
between a permanent multi-pole on one molecule mineralogy, composition of formation fluids including
with an induced multi-pole on another. This interaction water, oil gas, dissolved components causing
is sometimes called Debye force after Peter J.W. intermolecular forces provides the ingredients of
Debye. Dispersion (usually named after Fritz London), permeability insight.
which is the attractive interaction between any pair of The reservoir fluid flow rate fundamentally
molecules, including non-polar atoms, arising from depends on the reservoir differential pressure energy
the interactions of instantaneous multi-poles. between the source (reservoir) and destination
The van der Waals forces are weaker than normal (borehole), various flow resistances, length and cross
covalent or ionic bonds, they are additive and cannot sectional area. The flow resistances are skin viscous
be saturated, have no directional characteristic, forces, inertia forces due to tortuous flow paths, flow
independent of temperature; except dipole - dipole obstructive forces caused by neighboring immobile
interactions, all short - range forces and hence only medium such as sand grain, clay, shelter, vugs, shale,
interactions between nearest need to be considered van der Waals forces, interfacial tension and
instead of all the particles. The greater is the attraction electrostatic forces between rock and fluid molecules.
if the molecules are closer. Traditionally the flow resistances due to molecular
The attractive van der Waal forces between rock forces between rock and fluid molecules are
and fluid molecules caused by induced dipole- addressed in terms of wettability and capillarity which
induced dipole, which vary inversely as the sixth is somewhat a macroscopic approach which needs
power of the intermolecular distances, hydrogen to be microscopically analyzed and understood at
bonding which vary inversely as the second power molecular level.
and dipole-dipole forces which vary inversely as the Since direct observation of pore surface and rock–
third or sixth power of the intermolecular distances. fluid interactions in the reservoir is impossible;
These forces play decisive role in reservoir relative presently capillary pressure and pore size curves of
permeability. These forces control many properties core samples are used to obtain the required insights
of hydrocarbons and water, including adsorption on on relative permeability and the behavior of fluids in a
rock pore surface, solubility in polar and non-polar particular pore system however, every pore type has
media. In the reservoir rock, the magnitude of a unique relative permeability signature.
molecular interactive forces between fluids and rock The wettability is generally calculated on the
molecules depend on the pore space, geometry, rock basis of core sample weights measure at various
surface mineralogy and fluid composition including testing modes which is expensive and time
ionic and polar impurities. consuming. There is a need to find out a reasonably
The rock and clay are mainly of mineral oxides, accurate analytical method to estimate the magnitude
silicates, carbonates and the fluids are mainly HC oil, of these molecular forces governing economics of

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hydrocarbon recovery. Focused theoretical study and experimental


research in Chemistry of Reservoir Rock Relative permeability is
expected to meet this intended purpose.

Chemistry of Reservoir Rock


There are seven different clay mineral groups exist in reservoir rocks,
Illite, kaolinite, smectite (formerly called montmorillonite), chlorite,
vermiculite, mixed layer and lath form, each of these group has different
clay chemical compositions, out of which, components SiO 2 , Al 2 O 3 ,
Fe 2 O 3, H 2 O- and H 2 O+are common to all the groups which are
significant.The average content (approximate) of the main clay minerals
are montmorillonite 75% wt, illite 12% wt, kaolinite 5% wt, chlorite 4%
wt and mixed layered 4% wt of the clay weight. The Ada, the diffusion–
adsorption factor (mV), is practically the same when the montmorillonite
content in clays is the same.
It is well known that the surface activity of montmorillonite clay is
higher in comparison with other clay minerals. The smectite is a group of
phyllosilicate mineral species, the most important of which are
montmorillonite, beidellite, nontronite, saponite and hectorite. The mixed
layer groups contain a variety of intermediate forms of clays that are in a
state of evolution from one mineral group to another. The chemical activity
is also greatly influenced by the content and type of clays, which are
present as a cementing material in reservoir rocks. Several empirical
relationships have been established for the permeability, K (mD), and
sand stone clay content, Ccl (%wt),carbonate cement content Ccarb (wt%)
for various types of reservoir rocks. Wire-line nuclear and natural gamma
ray logs are used to estimate the type of major clay distribution
components consisting of SiO2, Al2O3, Fe2O3, FeO, MgO, CaO, Na2O,
K2O, H2O- and H2O+. From the established correlations, it is observed
that as clay content increases, permeability decreases and this is
attributable to flow inhibiting inter molecular forces between clay mineral
and fluid molecules due to chemical properties of rock and fluid
molecules but it requires further studies to get a gripper handle on it.
Clay constitutes only a small fraction of a sandstone /limestone /
carbonate reservoir rock by weight, ranging from 5% in clean formation
to 20% in clay formation, however, it plays a very important role in electro-
chemical behavior (relative permeability) of a reservoir because of their
chemical composition, large surface area, structural heterogeneity,
crystal defects and easy accessibility.
Clays are composed of layers of silica (SiO2) molecules of tetrahedral
and alumina (Al 2 O 3) molecules of octahedral structures stacked up
parallel to each other in various configurations [2]. Because of the layered
clay molecular structure, clay platelets behave anisotropically; the basal
surface attains a net negative charge due to isomorphons substitution of
silicon or aluminum sites by lower valence elements, whereas the edge
surfaces attain the their surface charge due to broken bonds at the crystal
edges and consequent proton or hydroxyl ions exchange with the
surrounding fluids. The basal surface charge is independent of pH of the
formation water whereas the edge surface charge is depended on pH of

64 DEW JOURNAL January 2016


Geochemistry dewjournal.com

formation water and will become more negative with oil. In the case of hard water, on the other hand, the
increasing pH. All members of smectite group oil becomes a dispersed phase at higher water
(montmorillonite, beidellite, nontronite, saponite and saturation in a porous medium than in the case of
hectorite) swell in water and they exchange their alkaline waters. The intensity of the transformation of
cations with the cations in solutions. Because of these oil into a dispersed phase is greater in the alkaline
two factors - swelling and ion exchange, than in hard waters. As in case of non-polar oil, the
montmorillonite has a strong influence on porosity and attachment of oil to solid surfaces is negligible in the
relative permeability of the reservoir rocks. presence of both alkaline and hard waters, there is
Under the proper physical conditions of the no change in critical saturations and hence the
adsorbent, similar chemical exchange can occur with recovery of oil and water is the same in each case.
the anions. Some of the constituents in formation that Mutual solubility of fluids, as a factor promoting
are capable of exchange and adsorption are fluid flow, significantly varies with increasing
argillaceous minerals, zeolites, ferrichydroxides and temperature and pressure. The role of sorption and
certain organic compounds [2]. Particle size hydrophilic or hydrophobic properties of rocks
influences the exchange rates and capacities if the decreases with increasing temperature. The issue
solids are clays such as montmorillonite, illite and of the contacts and fluid separations (w-o-g) in the
kaolinite. The ion exchange rate increases with reservoirs is especially important if oil-water
decreasing particle size due to increase in mobility. emulsions are present in the accumulations.
However, if a large mineral has a lattice, the exchange The emulsions are electrically charged and
can easily occur on the plates. Higher exchange can electro-chemically active. The major obstacles for the
takes place when the solution is highly concentrated movement of colloidal solutions are the size of the
with dissolved solids. particles (0.1 – 0.001 mm). According to Eremenko
Clay minerals, authigenic or allothigenic, in and Chilingar (1996), the particles move
reservoir rocks may occur in a dispersed form in pores unobstructed through the pores where the pore throat
and pore throats, on lining detrital grains and as large (or canal) diameter is at least three times greater
discrete crystals or grains. Different types of clay than the particle size. When micelles form, the size of
minerals distribution affect the effective porosity and the resulting globules may be comparable or even
relative permeability in a drastically different manner. greater than the diameter of pore throats as in the
Distributed clays (leafy crystals, irregular plates, case of polymer flooding to improve sweep efficiency.
fibers etc,) in the pore space occur as discrete
particles, coating on elastic grains by inter-grain clay Conclusions
crystal lining and clay crystals bridging across the The economic viability of an oil reservoir throughout at
pore space. For pore lining allows reservoir varies stages of its economic life, entirely depends on
permeabilities of about one to two order magnitude the quantity of accumulated Original Oil In Place (OOIP),
higher (k = 1 to 100 md). Discrete clay particles still the production rate over a reasonable production period
allow higher permeability in excess of 100 md and in and the extent of Hydrocarbon (HC) recovery. The HC
to Darcy range but it depends on clay distribution. production rate is controlled by drive mechanism, which
In the case of sandstone rock (silicates) and clay in turn governed pore pressure, aquifer pressure
with silica is acidic, basic constituents in water and support, and relative permeability of the rock which is
oils will readily be absorbed resulting in water or oil- controlled by pore shape, geometry, throat size, lateral
wet or mixed wet surface. In contrast, the carbonate continuity, matrix mineralogy, texture, surface
(CaCO3) water interface is basic and will attract and characteristics, fluid physical and chemical properties
absorb acid compounds. Since crude oils generally causing adsorption due to electrostatic forces, van der
contain acidic/neutral polar compounds, there is a Waal forces and hydrogen bonding. Most of current
tendency for silicate rocks to be neutral or water-wet methods of reservoir rock permeability measurements
and carbonates to be neutral or oil-wet. are based on petro-physical properties of the reservoir
Attraction of non-polar oil to solid surfaces is rocks and this paper highlights the necessity to
negligible and that the mobile oil presents less consider chemical properties of reservoir rocks and
resistance to flow of water than does the immobile fluids. Oil and Gas Reservoir rock and fluid molecular

January 2016 DEW JOURNAL 65


dewjournal.com Geochemistry

forces along with associated chemistry about the authors


have a strong bearing on relative
Kumar G. Mulemane, B. Tech in Chemical Engineering,presently
permeability. Quantification of these
pursuing PhD in Petroleum Engineering from University of
chemical properties attributed forces is
Petroleum & Energy Studies (UPES). Currently working as the
essential to ascertain the flow rate of the
Director Engineering & BD, Board Member in TECHINT India Pvt
reservoir fluids with the available reservoir
Ltd., processing 35 years of professional experience in Process
pressure. It is therefore imperative to
Engineering, Technology & Project development, Plant
further perform deep study and conduct
Engineering, Procurement, Construction Management and Plant
experiments on reservoir rock mineral and
Commissioning for Oil & Gas, Refinery, Petrochemical, Fertilizers,
fluid molecular forces in terms of molecular
Chemical Plants, LNG Regas Terminals, Power Plants and other
structure, compositions, physical and
Utilities & offsite units.
chemical properties, reservoir mineral
surface morphology, pore characteristics Dr. Pushpa Sharma working as Professor in Department of
and establish quantitative methods and Petroleum Engineering & Earth Sciences in University of Petroleum
means to understand, measure and & Energy Studies (UPES). She is teaching Reservoir Simulation &
control relative permeability of the reservoir Modeling, Enhanced Oil Recovery and Oil & Gas Field Development
rock with an objective of achieving higher to B.Tech. & M.Tech. Classes. She has also guided and coordinated
HC production rate and recovery. to students for Schlumberger Ocean Plug-In competitions-2014 &
2015. She is guiding masters / PhD / Schlumberger Ocean Plug-In
References students. She has 28 years and 2 months vast experience as a
1 Geology and geochemistry of oil and Reservoir Engineer of ONGC. She was associated with Reservoir
gas Development in Petroleum Simulation and Modeling, Reservoir Characterization, Petrophysics
Sciences 52 G.V. Chilingar, L.A. and Development and Monitoring of various oil and Gas Fields of
Buryakovsky, N.A. Eremenko & M.V. ONGC. Besides this, She has also formulate the various
Gorfunkel Amsterdam Development strategies for various marginal Field through various
2 Enhanced Oil Recovery I, Reservoir Simulators (CMG, Eclipse, FORGAS and Petrel).
fundamentals and analyses, Edited She has published more than 49 Research Papers and
by Erle C. Donaldson, George V. Articles in National and International Journal, Conferences and
Chilingarian and The Fu Yen periodicals.
3 Predicting Reservoir System Quality Professor Dharmendra Kumar Gupta, Ph.D. in Drilling
and Performance by Dan J. Engineering is a first class bachelor degree in Mechanical
Hartmann and Edward A. Beaumont Engineering from Pune University in 1992 & masters in Analysis
4 Israelachvili J.N., Inter-molecular and & Design of Process Equipment’s from NIT Allahabad in 1997.
surface forces, Academic press, Sas He has 22 years of experience in academia and industry.
Diego, 1992 His research interest is in Geomechanics of Hydrofracturing
5 Nanostructured Catalysts, Edited & Borehole Instability Analysis. He has guided masters / PhD
by Susannah L. Scott, Cathleen M. students and conducted consultancy projects for NALCO & ABB.He
C r u d d e n , a n d C h r i s t o p h e r W. has published & presented several papers in national /
Jones. dewjournal.com international journals & conferences.

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66 DEW JOURNAL January 2016


Marine Technology dewjournal.com

New integrated ship shore link and


emergency shutdown systems
An update by Trelleborg Marine Systems

A s the global market leader in requirements. For ship owners, the is the obvious place to showcase
Integrated Ship Shore Link new systemprovides improved our capabilities, and the product
Systems (SSL), Trelleborg’s operator feedback and portfolio we have developed to
marine systems operation has visualmaintenance diagnostics. support our LNG clients with
announced its newIntegrated Ship As well as being on stand to thegrowth they have seen in terms
Shore Link and Emergency discuss the details of the new of both capacity and variety of
Shutdown (SSL/ESDS) system in integrated ESDS/SSL system, markets. The USL8810 has been
Singapore recently. Trelleborg will be demonstrating its designed in collaboration with the
This is designed to work in both USL8810 Universal Safety Link, industry, and expertise gained in
the large- and small-scale LNG designed specifically for the small the large scale LNG market has
sectors, and is the operation’s latest scale LNG transfer and LNG been applied to meet the needs of
LNG fuelling technology. fuelling markets. the more cost sensitive LNG
Richard Hepworth, President of Hepworth continues, “Gastech fuelling sector.”
Trelleborg’s marine Trelleborg currently
systems operation, says: has SSL systems on 400
“Combining the SSL and
Trelleborg’s marine systems LNG carriers, 25 FSRUs
ESDS into one system operation has announced its new and 100 LNG terminals,
was a logical step to Integrated Ship Shore Link and all supported by a global
take. Although we have a service team on 24/7
Emergency Shutdown system
long and well- basis. With an unrivalled
established reputation designed to work in both the track record spanning
as the leading supplier of large-and small-scale LNG decades of service to the
SSL technology, we know sectors, and is the operation’s port and harbour, marine,
we have to continually offshore and
innovate to ensure our
latest LNG fuelling technology shipbuilding industries,
offer is always at the Trelleborg’s marine
cutting edge.” systems operation is a
The new product world leader in the
development brings design and manufacture
benefits for both ship of advanced Marine
yards and ship owners. Fenders, Oil & Gas
For ship yards,a Transfer, Ship
simplified single cabinet Performance, Docking &
solution is included to Mooring, Surface
reduce both spaceand Buoyancy & Service and
i n s t a l l a t i o n Support. dewjournal.com

January 2016 DEW JOURNAL 67


dewjournal.com Liquefied Natural Gas

Understanding LNG value chain


and related market concerns

At a time when the world needs to


respond to the threat of climate change
natural gas continues to be favoured as
an environmentally benign alternative fuel
and is arguably the cleanest fossil fuel

G lobal energy demand is


rapidly rising at a time when
the world needs to respond to the
power plants required <“50% of the
level zed capital cost of coal per
MWh, <33% the cost of nuclear, and
distances of more than 1290 km
(<“800 miles) or 3540 km (<“2200
miles) in the case of onshore
threat of climate change by reducing <20% the cost of onshore wind, let pipelines.
carbon dioxide emissions, many of alone offshore wind. Tables 1 & 2 compare the fuel
which came from the use of fossil Although considered to be the properties of natural gas at standard
fuels. Of the three largest energy most favoured fossil fuel, natural temperature and pressure and LNG
sources (coal, oil, and natural gas), gas faces the challenge of (“162 °C). It can be seen that
natural gas continues to be favoured transport to the demand sites, liquefaction of natural gas into LNG
as an environmentally benign because of its gaseous state. substantially increases the energy
alternative fuel and is arguably the Pipelines and as LNG are the two density of the fuel, enabling the
cleanest fossil fuel. The direct GHG most widely used methods for economic long-distance transport of
emissions from the combustion of natural gas transport. An economic the fuel. Because international trade
coal and oil are also significantly analysis by the Institute of Gas of natural gas is typically in distances
higher per unit of energy compared Technology, included in a report by exceeding 3540 km transport of
to that of natural gas. In short gas is the Center for Energy Economics natural gas as LNG is the preferred
the best bridging fuel towards a low in the University of Texas at Austin option. Therefore, LNG offers a
carbon future. Furthermore, shows that transport of natural gas global commodity, and its supply
according to the U.S. Energy as LNG becomes cheaper chain has been subjected to
Information Administration, new gas compared to offshore pipelines for significant development in recent

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Technological
advances have
significantly Prof. (Dr.) Himmat Singh
increased the Head of Department, Petroleum Engineering,
Chandigarh University, India
profitability of LNG
value chains,
LNG is being increasingly recognized as an important
leading to a factor in the global energy trade. Significant research
advances have been made in the LNG value chain and
substantial the understanding and management of the associated
reduction in the cost risks/safety issues during the handling, storage, and
transport of LNG. Recent developments in the LNG
of LNG value chains production chain have focused on optimizing the process
for efficiency improvement, particularly those in the
liquefaction and re-gasification processes, of which
several have been implemented.
Considering LNG prices, current differentials between
Eastern Asia and the rest of the world are based on the
lack of alternatives for the main importers, Japan and South
Korea. Increased supplies and a certain arbitration
capacity for the Chinese buyers may lead to a structural
lowering of the price level on the East Asian markets.
However, the strength of the final demand in the region is
likely to justify a positive differential between Asian and
non-Asian price seven in the future decade.

in 2020, closely followed


Table-1. Typical Composition of Natural gas compared to LNG
S.No Component (Mol%) Natural gas LNG by the completion of
1. H2S 0.96 projects in North America.
2. CO2 2.45
years as a result of Considering the overall,
3. N2 3.97 0.00-1.00
concerns over increasing the life cycle performance
4. CH4 82.62 84.55-96.38
requirements on energy 5. C2 H6 4.84 for a period of 20 years, it
2.00-11.44
security, rising energy 6. C3 H 8 1.78 0.35-3.21is observed that natural
production costs, 7. i- C4 H10 0.39 0.00-0.70gas on average produces
increasing natural gas 8. n- C5 H12 0.67 0.00-1.30low GHG emissions for
9. I- C5 H12 0.29 0.00-0.02
prices, and rising gas fuel production, electricity
10. n -C 5H12 0.27 0.00-0.04
import. 11. n- C6 H14 0.34
production, and transport
The global LNG trade 12. Others 1.42 use and costs less as a
has evolved from 73.62 Total 100 100 system compared to other
bcm [2.6 tcf] in 1990 to Table-2. Comparative Fuel properties of Natural gas @ STP fossil fuels, such as oil
and LNG(-162 0C)
283.17 bcm (10 tcf) in and coal. This makes
S.No. Natural Gas LNG
2010 and is estimated to 1. Molecular Wt(g/moe) 19.5 16.043 natural gas a very strong
rise to 566.34 bcm (20 tcf) 2. Density (kg/m3) 0.7-0.9 422.5 competitor in the world
by 2040. Another surge in 3. Energy density(Mj/L) 0.0375 20.3 energy sector.
the LNG trade is expected 4. Boiling Point( 0 C) -161 -161 Technological advances
5. Viscosity(kg m-1s-1) 1.1x10 -5 1.14x10 -4
to come in the time frame have significantly
6. Surface Tension(N/m) 13.36
of 2015–2025 because of increased the profitability
7. Specific Heat(kj kg-1K-1) 2.215 4.186
projects in Australia 8. Therm cond.(Wm K ) -1 -1 0.33 0.2015 of LNG value chains,
expected to be completed 9. Shelf life(days) 5-7 leading to a substantial

January 2016 DEW JOURNAL 69


dewjournal.com Liquefied Natural Gas

reduction in the cost of LNG value found onshore or offshore, as located onshore or offshore (to date,
chains. Concrete values depend associated or non-associated gas. most liquefaction plants have been
upon different factors, including All forms of natural gas need to onshore), and may have a number
traded volume, transportation be treated to remove impurities (e.g., of parallel systems (called trains)
distance, and/or employed carbon dioxide, hydrogen sulfide, of heat exchangers and gas or
technologies. The upstream gas nitrogen, and mercury) and/or steam turbines driving the
prices mainly depend upon the heavier hydrocarbons (e.g., butane compressor. The natural gas is
reservoirs, while the liquefaction and propane) before the gas can be liquefied into LNG via cooling it to
cost depends upon feed gas sent to the downstream liquefaction 112 K, reducing the volume of
composition and the liquefaction plant. The pre-treatment may natural gas by a factor of 600. The
process in use. The shipping costs consist of three main stages: acid LNG product is then stored in
are determined primarily by the gas removal, dehydration, and insulated double-walled tanks
distance between the sellers and mercury removal. Impurities in the designed to maintain the low
buyers, while re-gasification prices gas stream are referred to as acid temperatures of the LNG. These
are dependent upon the gas, removal of which can be storage tanks contain an inner
construction costs, re-gasification achieved via using an amine solvent cryogenic nickel/steel tank,
technology, and storage capacity. mixed with water. If significant surrounded by insulation and then
hydrogen sulfide is present in the followed by a pre-stressed concrete
LNG PRODUCTION CHAIN acid gas, then a separate stream or mild steel outer tank (when mild
A LNG production chain transforms for sulfur recovery is required. Gas steel is used as the outer tank, a
the raw natural gas into LNG as a leaving the acid gas removal berm is constructed to contain the
carrier product for the transport and system is generally saturated with LNG in the case of a spill).
distribution of natural gas to the end water vapour and, therefore, passed The rising demand of LNG has
users. It consists of four crucial through a dehydration system. This led to the development of the
stages, including upstream gas is to prevent freezing when the gas gravity-based structure (GBS) and
production and gathering, reaches the main liquefaction the floating LNG (FLNG) concepts
liquefaction, shipping, and re- exchanger and is attained by first aimed at exploiting offshore natural
gasification, each of which is briefly cooling the gas with water, air, or a gas reserves that are too remote
explained below, including some refrigerant and then passing it or not economically viable for
recent R&D advances. through a molecular-sized sieve. onshore liquefaction facilities.
Upstream gas production and The final stage of gas pre-treatment Essentially, the GBS is an artificial
gathering is mercury removal. Which corrode island, where LNG production and
All fossil fuels are formed when aluminium, of which most storage will take place, and is
remains of plants, animals, and equipment in the heat exchanger is intended for shallow waters. In the
microorganisms are compressed made of. it is crucial that this case of FLNG, the system is floating
underneath the earth under high process is carried out. Mercury and mobile, unlike the GBS. The
pressures and temperature for removal is achieved by passing the idea is that the structure will be
long periods of time. The suitable feed gas through a sulfur- prefabricated onshore and sunk to
geological conditions breaks down impregnated carbon bed, during the seafloor at the required
the carbon bonds in organic matter which the mercury becomes a non- location. This technology has been
to form natural gas, oil, or coal, with volatile mercury sulfide. The natural applied to multiple oil production
more oil produced at lower gas after this series of pre- facilities. However, such LNG
temperatures but more natural gas treatment is then sent to the facilities also suffer from some
produced at higher temperatures. liquefaction plant. undesired disadvantages,
Natural gas is normally trapped LNG Production / Liquefaction, including large footprint, large
under ground in a reservoir or by Storage and Shipping construction costs, constant
sedimentary rock (shale gas) and, The natural gas leaving the upgrading for existing onshore
at times, interacts and is absorbed production facilities is piped to a facilities, only applicable to a
by coal (coal seam gas). It can be liquefaction plant, which can be smaller range of water depths, and

70 DEW JOURNAL January 2016


Liquefied Natural Gas dewjournal.com

potential safety risks. The rising demand of LNG has led to the
Various liquefaction processes
have been developed by different
development of the gravity-based structure
companies, as reviewed in a recent and the floating LNG (FLNG) concepts aimed
publication and the fundamental at exploiting offshore natural gas reserves
principles of these processes can
that are too remote or not economically
be found in other related
publications elsewhere. These viable for onshore liquefaction facilities
processes have different single
train capacity and efficiency
(relative to cascade or C3MR) and
deploy a range of refrigerants and
heat exchangers for pre-cooling,
liquefaction, and/or sub-cooling.
The recent research advances
on the topic has been focused on
the optimization of the LNG
liquefaction process, via several The world’s second-largest LNG exporter after Qatar, Petroliam Nasional Berhad (PETRONAS) of
Malaysia is ready to deliver a game-changer to the LNG industry with one of the world’s first floating
possible strategies. Design or liquefaction plants (FLNG1) in early 2016 and its second floating liquefaction facility (FLNG2) by
Selection of Optimized Refrigerant the year 2018. The photo shows PETRONAS FLNG1 vessel. (Photo Courtesy: PETRONAS)

Mixture can be made using the to approx. 160 years at current Nigeria, by contrast, has a
method proposed by Khan et al production levels. Due to its large decreasing internal consumption
which is a knowledge-based internal production and significant and large reserves, but it is facing a
optimization (KBO) method for international investments at the deteriorating security environment,
selecting mixed refrigerant, that beginning of the 2000s, the country which prevents new international
achieved a total reduction in power has dominated LNG markets for a investments in upstream and export
of 30 and 13% in the SMR and decade. Exploiting its geographical capacity currently limited to 22 bcm.
C3MR LNG processes, respectively position, Qatar is a major supplier Other major supplies of LNG are
but within certain limitations. it is to both Asian and European small producers. The largest is
quite robust and can result in a importers, partially rerouting its Trinidad and Tobago, which
higher energy saving than other flows according to the evolution of exported 18 bcm in the 2013, Oman
methods, such as that provided by final demand, a strategy which is (11 bcm), Brunei (9 bcm) and
Alabdulkarem et al. Optimization of not available to competitors reliant Yemen (9 bcm), followed by several
the Pre-cooling Cycle is possible on pipelines. In 2013, Qatar other still smaller ones.
Via HYSYS simulations. Recent exported 104 bcm via its twelve The most important is Russia,
research progress has been made LNG trains. the world’s biggest exporter of gas,
on the smart use of the cold energy Beyond Qatar, there are four which in 2013 supplied more than
of sub-cooled LNG that can be medium-sized producers strongly 200 bcm to international markets,
easily implemented into existing focused on the Eastern Asian 14 of which via the Sakhalin
facilities for improving the efficiency market: Malaysia, Australia, liquefaction terminal. A similar
of the LNG liquefaction process. Indonesia and Nigeria. Malaysia amount was exported by Algeria,
and Australia each export more than while a much smaller amount was
LNG SUPPLY TO A GROWING 30 bcm of LNG, i.e. 10% of the global exported by Norway (4 bcm).
MARKET market. Their gas industries are Incidentally, all three countries are
LNG production is currently growing.. Indonesia on the other major suppliers of the EU market
dominated by Qatar. Unlike its Arab hand is a mature producer which is via pipeline, thereby limiting the
neighbours, Qatar has relatively striving to maintain its current export incentives to promote a massive
limited oil reserves but massive levels (25 bcm) and to supply its development of their LNG capacity
gas reserves: 25.000 bcm, equal rapidly growing domestic market. to supply their core markets.

January 2016 DEW JOURNAL 71


dewjournal.com Liquefied Natural Gas

SHIPPING capacity (87,500 m 3) compared to LNG VALUE CHAIN POTENTIAL


After production /liquefaction and that of the membrane or the moss HAZARDS
storage, the LNG is then loaded systems hance hav limited nimber During the LNG production
onto specialized ships for its long- in service. The 4 th type C ships are processes, some simple failures/
distance transport. The ships are able to resist sloshing, use events can lead to a series of
designed with double hulls for polystyrene for insulation, and were catastrophic events, with the most
structural rigidity and also to provide designed specifically for cases common been a LNG spill. This can
room for ballast water, considering where small-cargo transportation lead to three events that follow: (a)
how light the cargo is. The cargo is required (2500–30000 m3). At the pool formation,; (b) vapour
tanks are not a part of the ship end of 2013, the total LNG tanker dispersion, and (c) combustion,
structure and are therefore installed fleet consisted of 354 large vessels understanding of all events is
separately into the holds of the ship. and 24 small ones. In addition 26 needed to contain the possible
There are four types of LNG more additions were expected in hazards.
ships that have been developed 2014 and book order for transport
since the late 1960s. The vessels of another 103 units. LNG GROWING ROLE IN ENERGY
membrane-type ships, ranging in During the shipping of LNG, TRADE / BUSINESS
size from 145,000 to 265,000 m3 , boil-off occurs (approximately The infrastructure is very
use fully integrated rectangular 0.15% of the cargo (28)). Because expensive; export terminals,
tanks with reinforced polyurethane current LNG ships are not notably, can easily cost over 10
or plywood/perlite insulation. The constructed with an on-board re- billion dollars per unit. However,
next type is, moss-type ships, gasification facility, the boil-off gas once online, those terminals can
ranging in size from 138000 to is captured and used as fuel to supply natural gas to virtually any
255000 m 3 , designed with assist in propelling the ship. Once re-gasification terminal in the world,
spherical tanks, independent of the at the import terminal, the LNG is creating the technological
hull structure, and use unloaded, leaving behind a small conditions for a global market.
polyurethane insulation. There is a amount of LNG, the heel, to keep LNG trade requires special
preference for the membrane the tank cool in the ballast voyage. terminals for liquefaction and re-
tankers, mostly because of their (28) To date, there has been no gasification processes. Over the
capacity efficiency with little to no LNG cargo lost or spilled during the past decade, the LNG market has
void space between the storage shipping phase, and it is believed steadily expanded: from
tanks and the ballast tanks that, with acceptable maintenance, approximately 210 bcm of natural gas
compared to the moss tanker. This the LNG vessels can have a in 2006 to 315 bcm in 2013. Eastern
will make a moss tanker of similar working life of 40 years or more. Asia traditionally accounts for the
capacity as the membrane tanker largest part of the market. In fact,
more expensive. However, the REGASIFICATION TERMINALS distance from the producing
moss tanker has a higher A LNG value chain ends with re- countries and geographical
resistance to sloshing and will gasification terminals. At each features such as insularity or limited
most likely be considered for future unloading berth, several unloading availability of local energy sources
offshore storage, especially in arms, with articulated joints and created the conditions for an early
areas of bad weather. The next type emergency release couplings, are and massive development of the
is the IHI SPB-type ships that also generally employed for transferring LNG technologies in the region. In
use rectangular tanks with LNG from the LNG tankers to the 2013, Eastern Asian countries
polyurethane insulation; however, storage tanks. The main purpose accounted for three quarters of the
unlike the membrane-type tanks, of storage tanks is to hold the LNG global LNG consumption. Three
the IHI SPB does not rely on the until it is ready to be vaporized. The final markets in particular provided
hull of the ship for structural storage tanks used at the re- the bulk of demand: Japan, South
support. The IHI SPB ships are gasification terminals are exactly Korea and China.
also resistant to sloshing, but its the same as those at the The Japanese economy is
expensive design and small liquefaction plant. heavily industrialised, with large

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Liquefied Natural Gas dewjournal.com

primary energy consumption Europe. Demand in the region has Currently, all Indian imports are
combined with a particularly small been significantly reduced following via LNG and the construction of a
domestic production of energy. As the economic crisis and massive pipeline from Turkmenistan has
a consequence, it relies on subsidies provided to renewable just been initiated. As a
imported fossil fuels both for sources. Four countries constitute consequence, LNG will supply the
transport (oil) and power the EU core markets: Spain (12 additional import demand of the
generation (mainly natural gas). In bcm), the UK (9), France (8) and Italy Indian market. According to the
2010, Japan imported 92 bcm of (5). Germany, the main European IEA’s predictions, India will
natural gas - 32% of the world total- gas market, has no re-gasification increase its imports from 17 bcm
exclusively via LNG. After the capacity, relying on piped gas from in 2013 to 25 bcm in 2020 and 54
Fukushima Daiichi disaster, Japan Russia and Norway. The only other bcm in 2030. The sheer size of
substituted a significant share of relevant natural gas market in the India’s estimated demand will
its nuclear power generation with region, Turkey, imported 6 bcm via affect global markets, creating
natural gas, increasing its LNG in 2013, and was not affected more competition.
dependence on LNG imports. Thus by the EU’s economic crisis.Latin
in 2013 Japan imported 116 bcm, America is a smaller but more OUTLOOK TO 2020 AND BEYOND
37% of the world total. dynamic regional market. Overall, its LNG is an Eastern Asian business
South Korea is similarly consumption amounted to 25 bcm and the situation is unlikely to
dependent on imported gas for in 2013, with an annual growth of change significantly within the
power generation, and it is the 34% and a global share of 8%. current decade. Asian economies
second final market at the global The Key Drivers are growing, driving up energy
level: it imported 54 bcm of LNG in East Asia will represent the core demand. China and India will lead
2013, i.e. 17% of the world total. final market for LNG in the future. this trend, but smaller developing
The third is China, which imported However, a major shift is underway: countries in the region will also
54 bcm (9%). Unlike Japan and while current demand is coming see their energy imports grow
South Korea, the Chinese economy mainly from Japan and South steadily. Moreover, industrialised
currently has a low level of Korea, new demand will come from economies, namely Japan and
dependence on imported energy, China and, to a lesser extent, India. South Korea, will continue to rely
since it retains a large domestic In 2013, China imported 47 bcm of on massive energy imports,
production. However, its increasing gas, of which 25 via LNG: less than including LNG.
final consumption and the need to a quarter of the Japanese Outside the region, a significant
reduce coal consumption in imports. However, according to the increase in LNG imports is likely
several polluted regions are driving base scenario proposed by the IEA, only in Latin America, despite some
a significant increase in natural gas Chinese natural gas imports will uncertainty in the fundamentals of
imports, both via pipeline and LNG. be nearly 130 bcm in 2020 and economic growth. Northern America
Besides those three large more than 200 in 2030. LNG will is set to become an exporter of LNG,
consumers, other growing Eastern represent a sizeable share. completely reversing expectations
Asian economies represent a India will also play a smaller of just a few years ago.
dynamic market for LNG. In though still relevant role in the The European case is more
particular, Taiwan is a relatively evolution of the global LNG market. complex, but the outlook for LNG
mature market, while India is set Currently, India has significant demand is likely to remain very
to become one of the most regasification capacity: 4 terminals weak during this decade, and at
important players at the regional with a combined capacity of 38 bcm best uncertain for the next one.
and global levels in the coming per year, of which 12 were
decades. Both countries imported commissioned in 2013. Moreover, THE IMPACT OF LOWER OIL
17 bcm each in 2013, i.e. slightly another terminal of 7 bcm per year PRICES ON GLOBAL GAS AND
more than 5% of the world total. is under construction and several LNG MARKETS
Outside Eastern Asia, the most others are at various stages of The Oxford Institute of Energy
important LNG regional market is planning. Studies ( University of Oxford) in its

January 2016 DEW JOURNAL 73


dewjournal.com Liquefied Natural Gas

RasGas delivers first cargo to Petronet under the new SPA


MTA. RasGas has been supplying LNG reliably to
India and Petronet, a key long term partner and
customer of RasGas,since 2004. RasGas has
delivered, to this date,nearly 81 MTA of LNG to India,
to meet the country’s growing demand for cleaner
fuel and energy.
Earlier RasGas and Petronet LNG Limited had
entered into a binding SPA for supply of an additional
1 MTA of LNG to India starting in 2016 for onward
RasGas’ Al Thumama (Q-Flex) vessel safely delivers first cargo,at sale to four Indian entities, i.e. IndianOil, Bharat
Dahej Terminal, to Petronet under the new SPA (Photo Courtesy: RasGas) Petroleum, GAIL and GSPC on December 31, 2015.
RasGas Company Limited delivered the inaugural RasGas CEO, Mr. Hamad Mubarak Al-
LNG cargo to Petronet LNG Limited under the new Muhannadi, stated that “these positive developments,
Sales and Purchase Agreement (SPA) between including the new SPA, demonstrate the strength of
Petronet and RasGas. The LNG cargo was delivered our long term relationship with Petronet and
to Dahej LNG Terminal in India on January 13, 2016 commitment to growing sales into India to meet its
marking the commencement of the new 1 MTA SPA. expanding clean energy needs”. Petronet CEO, Mr.
The new SPA together with the long term SPA Prabhat Singh, stated that “these developments
between Petronet and RasGas signed in 1999 for highlight both parties confidence in the Indian market
7.5 MTA raises the total annual long term and our commitment to LNG as a cleaner, more
commitment between the two companies to 8.5 efficient source of energy”.

Qatar cuts gas price for India under long-term deal with Petronet LNG
Petronet LNG has reworked its long-term gas deal The biggest Indian gas importer, Petronet had
with Qatar’s RasGas that will halve the import price been forced to buy one of the most expensive liquefied
and waive the penalty of Rs. 12000 crore for lifting natural gas (LNG) in the world this year due to a 25-
lower than the contracted amount, a sign of the year contract that didn’t quickly reflect the global price
changing global commodity market and the related crash. The spot LNG prices have fallen to $6.7 per
shift of power to the gas consumers. unit but Petronet had to purchase LNG at $12-13 per
unit under the contract. This price will fall
to $6-7 per unit from January under a
reworked pricing formula, India’s oil
minister Dharmendra Pradhan said,
following the agreement between the two
companies after negotiations that lasted
several months and involved multiple
interventions from Prime Minister
Narendra Modi, Pradhan and the head of
the state Qatar.
“It’s no more a buyer-seller
relationship. We are now advancing
towards a partnership,” Pradhan said,
referring to the success of the
The Minister of State for Petroleum and Natural Gas, Mr. Dharmendra Pradhan addressing
negotiations and the key consumers like
at the signing ceremony of Gas Sales and Purchase Agreements between Petronet LNG India have gathered in the global
and other companies in New Delhi on December 31, 2015. The Secretary, Ministry of
Petroleum and Natural Gas, Mr. K.D. Tripathi and other dignitaries are also seen. commodity market lately.

74 DEW JOURNAL January 2016


Liquefied Natural Gas dewjournal.com

publication N 99 of July 2015 component (US/North America) re- and re-gasification processes, of
entitled “ The Impact of Lower Gas connects with the global system in which several have been
and Oil Prices on Global Gas and the form of 77 bcma (and counting) implemented.
LNG Markets” has dealt with this of new LNG export projects. Europe Considering LNG prices,
subject in detail Part of the will be a passive recipient of excess current differentials between
summary and conclusions are supply at a time when its gas Eastern Asia and the rest of the
reproduced from the document demand growth is at best tepid, but world are based on the lack of
which is self explanatory. its import requirement may be alternatives for the main importers,
“The aftermath of warmer than rising due to declining domestic Japan and South Korea. Increased
normal 2013/2014 winters in production.” supplies and a certain arbitration
Europe and Asia, evidence of The impact of this change has capacity for the Chinese buyers
slowing Asian LNG demand growth been experienced by our country, may lead to a structural lowering of
through 2014 and the collapse of as reported in the Indian Economic the price level on the East Asian
the oil price in late 2014 has Times dated January 1, 2016 under markets. However, the strength of
resulted in a painful ‘new normal’ the item “QATAR CUTS PRICE FOR the final demand in the region is
for key players in the global gas INDIA UNDER LONG TERM DEAL likely to justify a positive differential
system, specifically LNG project WITH Petronet LNG. The statement between Asian and non-Asian price
investors and Russia/Gazprom. further reads: seven in the future decade.
Although this paper has used a “India’s biggest gas
similar approach to previous work importer Petronet LNG will buy BIBLIOGRAPHY
by the author relating to global LNG liquefied natural gas (LNG) from The article is based on the
interactions, the context in mid 2015 Qatar’s RasGas at virtually half the following four recent documents:-
has changed markedly and while original cost, the government said 1. LNG MARKET: TRENDS AND
the gas industry has in the past in a statement recently. The price OUTLOOK, March 21st,
experienced and weathered cut will help Petronet save Rs 40 201512:00am Posted In:
periods of low prices, this time ‘it billion ($604.69 million) a year, oil LNG, News By Country,
really does feel different’. minister Dharmendra Pradhan told Russia, China, Iraq, Featured
At one level we can rationalise reporters, adding that the Qatar- Articles, Qatar, Expert Views.
the slowdown in Asian LNG based supplier has also waived off 2. The Impact of Lower Gas and
demand and stagnant European the penalty fee for lower off take.” Oil Prices on Global Gas and
gas demand as having a direct GAIL is also expected to sign LNG Markets,N G99,The
causal impact on European hub LNG deal with US company for one Oxford energy Institute ( Oxford
and LNG spot prices. The oil price of the LNG terminals as well. University) July 2015.
fall has in parallel brought oil- 3. Some Recent Advances in LNG
indexed gas and LNG contract price CONCLUDING REMARKS Production, Spill, Dispersion, and
levels down to levels unimaginable LNG is being increasingly Safety: Walter Chukwunonso
just two years ago. With project recognized as an important factor Ikealumba and Hongwei
economics challenged and cash in the global energy trade. Wu * ,School of Chemical and
flows crimped, investors in new gas Significant research advances Petroleum Engineering, Curtin
supply projects, especially LNG, have been made in the LNG value University, GPO Box U1987,
will inevitably hold back, cut costs chain and the understanding and Perth, Western Australia
and await a more positive market management of the associated 6845,Australia, Energy
outlook. At a more fundamental risks/safety issues during the Fuels, 2014, 28 (6), pp 3556–
level however, what we may be handling, storage, and transport of 3586.
about to witness is a significant LNG. Recent developments in the 4. Qatar cuts LNG price for
disruption to regional gas equilibria LNG production chain have India, Reuters, New Delhi
as a wave of new (Australian) LNG focused on optimizing the process December 31, 2015 & Indian
supply meets a slowing Asian for efficiency improvement, Economic Times January 1,
market and a significant regional particularly those in the liquefaction 2016. dewjournal.com

January 2016 DEW JOURNAL 75


dewjournal.com Face to Face

Face to Face: Timo Koponen, Vice President, Flow & Gas Solutions,

Mr. Timo Koponen is the Head of the Flow & Gas Solutions business line within
Wärtsilä’s Marine Solutions Division. In his role he has the end-to-end business
responsibility for Wärtsilä’s pumps & valves and gas process technology
operations globally. The businesses include various world class brands for pumps
and valves, as well as leading gas value chain related technologies such as
small scale liquefaction, reliquefaction and regasification for both land-based
and marine applications. He is one of the main architects of Wärtsilä’s shift to
the gas age, advocating the benefits of wider use of LNG in marine and related
industries. DEW Journal talks to Mr. Timo to learn about ‘Wärtsilä Mobile LNG’,
an innovative solution that provides a flexible means of meeting small and
medium scale LNG power generation, a concept unthinkable uptill now.

Wärtsilä Mobile LNG: An innovation


What will be LNG scenario in the coming years? Will shale gas have an affect on its scope?
The gas consumption has been estimated to grow approx. 50% over the next 20 years. During
the same period the growth in LNG is expected to be more than 100%. Shale gas will be
forming a significant part of this development. It has started in North America and has created
a whole new industry on the continent. It has also already now strongly changed the dynamics
in gas trading globally and this development is expected to continue.

“The Wärtsilä Mobile LNG


What has motivated Wärtsilä to introduce Mobile LNG concept?
has been developed for
Discussing with customers and industry experts, the common message
challenging locations where
pipelines and large-scale
LNG receiving terminals are Wärtsilä Mobile LNG: Easily the best
not feasible, or where the Alternatively, it can be used to supply
A new LNG (liquefied
quantities of LNG needed natural gas) storage conventional land-based power plants. The
are smaller. Furthermore, and regasification Wärtsilä Mobile LNG solution will make LNG
being mobile, it can be barge concept is available to new consumer segments, and will
easily re-located giving it a introduced by Wärtsilä. benefit both utilities and end-users. Most
high resale value” This innovative solution especially, the flexibility of location can bring
provides a flexible clean energy to areas that have only limited or
means of meeting small to medium scale no access to the national electricity grid.
requirements where pure land-based LNG “Wärtsilä’s solutions support the entire
options are limited. Wärtsilä’s Marine gas value chain, from drilling and production,
Solutions and Energy Solutions businesses to delivery, liquefaction, regasification,
have combined their expertise in developing storage, and power generation. This latest
the concept. innovation is one more important step towards
The Wärtsilä Mobile LNG can easily be completing our LNG infrastructure offering.
combined with a barge-mounted power plant Most existing facilities are geared for larger-
having an output capacity of up to 250 MW. scale users, whereas the Wärtsilä Mobile LNG

76 DEW JOURNAL January 2016


Exclusive to DEW dewjournal.com

Floating an idea has


Wärtsilä Marine Solutions never been more apt a
metaphor, as Wärtsilä
proposes an all-in-one
barge that receives
and regasifies LNG for
power generation and
distribution. The
Wärtsilä Mobile LNG
solution could unleash
the economic potential
of many regions
Timo Koponen struggling to reinvent
their energy mix and

unthinkable uptill now lower electricity prices

Wärtsilä Mobile LNG

offers a flexible and mobile option for small to areas where access for larger vessels would
medium requirements,” says Timo Koponen, not be possible without major jetty
Vice President, Flow and Gas Solutions, constructions or dredging operations.
Wärtsilä Marine Solutions. Compared to constructing conventional
The Wärtsilä Mobile LNG has been landbased terminals in difficult soil conditions
developed for challenging locations where and areas with an undeveloped infrastructure,
pipelines and large-scale LNG receiving the barge can represent a significantly lower
terminals are not feasible, or where the capital investment (capex) and faster delivery.
quantities of LNG needed are smaller. It Furthermore, being mobile, it can be easily
represents an ideal solution for shallow water re-located giving it a high resale value.

January 2016 DEW JOURNAL 77


dewjournal.com Face to Face

“The all-in-one solution includes an LNG receiving system,


LNG storage and regasification plant on a barge. The barge
can be used in combination with a fixed or floating power
plant. Its capacity can be ramped up by floating a second
barge next to it. Alternatively, it can be used to supply
conventional land-based power plants”

was that this was something customers need and was missing from the market. When looking
at the conventional solutions, there has been two options, to either build a land based terminal
or go for an FSRU solution. To offer more flexibility than these solutions can provide, Wärtsilä’s
Marine Solutions and Energy Solutions businesses have combined their expertise in
developing a concept that can meet the market need. Our new, innovative solution provides a
flexible means of meeting small to medium scale requirements where pure land-based LNG
options are limited.

For whom is this new Mobile LNG by Wärtsilä of most importance?


The Wärtsilä Mobile LNG has been developed for challenging locations where pipelines and
large-scale LNG receiving terminals are not feasible, or where the quantities of LNG needed
are smaller. It represents an ideal solution for shallow water areas where access for larger
vessels would not be possible without major jetty constructions or dredging operations.
Compared to constructing conventional land-based terminals in difficult soil conditions and
areas with an undeveloped infrastructure, the barge can represent a significantly lower capital
investment (capex) and faster delivery.
The Wärtsilä Mobile LNG could, for example, be of immense benefit to islands, such as
the Caribbean or Indonesia, or otherwise isolated communities. The Caribbean, for example,
currently struggles with high electricity prices which, the World Bank argues, is holding back
the otherwise tourist-magnet islands.
In short, the Wärtsilä Mobile LNG solution will make LNG available to new consumer

The use of natural gas is already strong and will


continue to increase. Wärtsilä’s extensive expertise
across the entire LNG value chain enables it to bundle
together solutions that provide effecient energy
production from gas. Wärtsilä Mobile LNG flexibility can
bring clean energy to isolated communities, locations
The Wärtsilä Mobile LNG can easily be combined with a barge-mounted power plant having an output capacity of up to 250 MW.

78 DEW JOURNAL January 2016


Exclusive to DEW dewjournal.com

segments, and will benefit both utilities and Wärtsilä is a global leader in complete lifecycle
end-users. Most especially, the flexibility of power solutions for the marine and energy markets.
location can bring clean energy to areas By emphasising technological innovation and total
that have only limited or no access to the efficiency, Wärtsilä maximizes the environmental
national electricity grid. and economic performance of the vessels and
power plants of its customers
How does the Mobile LNG concept work?
The all-in-one solution includes an LNG receiving system, LNG storage and regasification plant
on a barge. The barge can be used in combination with a fixed or floating power plant with
installed capacity of up to 250MW, which is ideal for many medium-sized communities that lack
or have limited access to the national grid. Its capacity can be ramped up by floating a second
barge next to it. Alternatively, it can be used to supply conventional land-based power plants.

When will this be put on stream?


We have ongoing discussions, and the first real projects are expected to materialise in one of
the above mentioned areas in the near future.

Wärtsilä’s solutions support ranges for the entire gas value chain. Mobile LNG innovation
is an important step towards completing the company’s infrastructure offering. How?
Most existing facilities are geared for larger-scale users, whereas the Wärtsilä Mobile LNG
offers a flexible and mobile option for small to medium requirements.

“The market is driven by environmental pressures and by the


fact that many countries want to reduce their dependance on
oil. In some places, where policymakers are ready to
diversify the energy mix, LNG could ultimately help to lower
electricity prices, but there are obviously also substantial
environmental gains from weaning away from oil”

The LNG is transferred by a small scale LNG carrier.

January 2016 DEW JOURNAL 79


dewjournal.com Face to Face

Wärtsilä delivers LNG-fired plant to India


Wärtsilä will supply a 40 MW Smart Power Generation
plant to Kerala State Electricity Board Limited (KSEBL) in
Southern India. The LNG-fired plant will be located near
the city of Kochi, and will provide much-needed peaking
power to the state of Kerala. The contract was awarded in June, and
the power station, delivered on a turn-key basis, is expected to be
commissioned by April 2017.
“Wärtsilä engines have very high simple cycle efficiency. They are
ideal for peaking power because they are capable of quick starts and
stops. They provide the operational flexibility we need”, says Susan
Jacob, Chief Engineer at KSEBL. Kerala has a peak power deficit of
approximately 300 MW.
This is the first dedicated peaking power station ordered by a
state utility in India. It will also be KSEBL’s first gas-fired power plant.
The plant will start and stop twice every day and run at full capacity for
two 4 to 5 hour periods, covering the morning and evening peaks in
electricity demand.
The plant will comprise four Wärtsilä 34SG engines running on
natural gas. The gas will be transported by a pipeline from the new
LNG terminal in Kochi. The engines will replace two aged generation
units that run on low sulphur heavy stock oil (LSHS). Switching from
LSHS to natural gas will reduce the CO2-
emissions by approximately 25%. Wärtsilä’s
Wärtsilä’s installed power generation
installed power
base in India is approximately 4000 MW.
Globally the installed capacity is 58 GW in generation
175 countries. base in India is
Wartsila 34SG genset approx. 4000
MW. Globally
the installed
capacity is
58 GW in 175
countries
Will the new Mobile LNG concept be a step forward in reducing
environmental pressures on companies?
Yes, in the past, the LNG infrastructure was huge because of the
necessity to achieve economies of scale. Now, however, the market is
driven also by environmental pressures and by the fact that many
countries want to reduce their dependance on oil. In some places,
where policymakers are ready to diversify the energy mix, LNG could
ultimately help to lower electricity prices, but there are obviously also
substantial environmental gains from weaning away from oil. With a
smaller format than the current LNG infrastructure, a widened
implementation of LNG would decrease environmental pressures
fundamentally. dewjournal.com

80 DEW JOURNAL January 2016


News dewjournal.com

RasGas proactive in
embracing changes;
continue to evolve with
changing trends in LNG
A growth rate
of approx. five
per cent per
D espite some
turbulence, the global
business environment
recent

for
year from liquefied natural gas (LNG)
2015 to 2025 remains strong, and a continuous
is anticipated, growth in demand is expected for
and during this years to come, said Khalid Sultan
period LNG R. Al Kuwari, Chief Marketing &
demand is Shipping Officer of RasGas
expected to Company Limited.
outpace the Presenting his ‘Overview of
overall growth the LNG Industry in the Year Past,
in natural gas the Present and the Future’, Al
demand Kuwari said that a growth rate of
approximately five per cent per
year from 2015 to 2025 is anticipated, and during
this period LNG demand is expected to outpace the “As Asia’s LNG supply has increased
overall growth in natural gas demand. and demand has eased, the traditional
He acknowledged that “As Asia’s LNG supply Asia premium has been challenged.
has increased and demand has eased, the This, combined with the recent drop in
traditional Asia premium has been challenged. crude prices and the resurgence of
This, combined with the recent drop in crude nuclear and coal for power generation,
prices and the resurgence of nuclear and coal for has changed the familiar landscape for
power generation, has changed the familiar LNG in Asia, and brought into question
landscape for LNG in Asia, and brought into economics for some new and some
question economics for some new and some planned LNG projects”
planned LNG projects”. However, new customers - Khalid Sultan R. Al Kuwari
and new markets for LNG are also increasing at an Chief Marketing & Shipping Officer, RasGas Company Limited
ever faster pace.
“LNG is still a business requiring significant joint stock company established in 2001 by Qatar
capital investments in production, liquefaction, and Petroleum and ExxonMobil RasGas Inc. RasGas acts
transportation. As such, LNG requires reliable as the operating company for and on behalf of the
participants, like RasGas with a long term vision owners of the LNG projects RL, RL (II) and RL3
and the resilience to overcome short term (Project Owners). With operations facilities based in
uncertainty… I am still very optimistic that RasGas and Ras Laffan Industrial City, Qatar, RasGas’ principal
the gas industry as a whole will be able to proactively activities are to extract, process, liquefy, store and
embrace change and to continue to evolve the business export LNG and its derivatives from Qatar’s North
to meet the growing needs of our customers and to Field. RasGas, on behalf of the Project Owners,
meet the objectives of our sponsors and exports to countries across Asia, Europe and the
shareholders,” said Al Kuwari while talking to DEW. Americas. It has a total LNG production capacity of
RasGas Company Limited (RasGas) is a Qatari approximately 37 mtpa. dewjournal.com

January 2016 DEW JOURNAL 81


dewjournal.com Special Report

“The world of energy is in Remi Eriksen, Group


transition. Until 2040, the demand DNV GL talks to
for energy is expected to increase
by more than 35 percent. We at
DNV GL believe that gas will play a Group President & CEO, DNV GL
major role in the transition towards overcome the challenges it faces today, says Remi
a safer and more sustainable Eriksen the new Group President and CEO, DNV GL
energy supply. Gas is widely while interacting with Arun Kr. Singhal, Chief Editor,
DEW Journal at the recent showcase of DNV GL’s
recognized as a relatively low- trends and new projects in LNG bunkering, gas
carbon, cost-effective ‘transition’ carrier technology and LNG as a ship fuel in
fuel that can help the industry meet Singapore.
Mr. Eriksen added, the world of energy is in
carbon dioxider-reduction goals. transition. Until 2040, the demand for energy is
And itexists in abundance. The expected to increase by more than 35%. We at DNV
rapid expansion of LNG and the GL believe that gas will play a major role in the
increase of unconventional gas transition towards a safer and more sustainable
energy supply. Gas is widely recognized as a
production have revolutionized the relatively low-carbon, cost-effective ‘transition’ fuel
industry in recent years, bolstering that can help the industry meet CO2-reduction goals.
supply prospects and transforming And itexists in abundance. The rapid expansion of
LNG and the increase of unconventional gas
the natural gas market” production have revolutionized the industry in recent

Trends and new


years, bolstering supply prospects and transforming
the natural gas market.
However, falling oil prices have rattled the gas

projects showcased and particularly the LNG sector in the last 15 months.
As long as the price of oil stays low, the existing
downward price pressure on gas projects will
increase. In addition, the sector has to cope with
rising operating costs.
But in the face of this rather bleak situation my
message is: “Let’s not waste a good crisis!”
By this I mean that now is a great opportunity to
get rid of inefficiencies in the value chain, in order to
create a simpler, more transparent industry
structure. This calls for more common standards

D uring the last year, the oil & gas market has
changed significantly. We are all feeling the
effects of the nose dive in the oil price. After a long
and enhanced industry collaboration.
Mr. Eriksen broadly talked about overcoming
today’s challenges in the LNG sector through
period of escalating cost levels, the drop is particularly increased collaboration, standardization and
painful. The shipping market is also seeing oversupply technical foresight.
in many of the segments resulting in fierce competition Over the years I have learned that an effective
and pressure on charter rates. So let me take this approach to staying ahead of the game is to combine
opportunity to give you a brief market update and expertise from different stakeholder groups across
outline how technical foresight, standardization and industries. The challenges we face cannot be solved
increased collaboration can help the industry by the knowledge within one industry alone, so we

82 DEW JOURNAL January 2016


Special Report dewjournal.com

President & CEO


DEW Journal

talks to DEW
must tap into the expertise
from many industries.
One good example of
our systems thinking is
deploying battery-hybrid
technologies on complex
offshore supply vessels –
incorporating knowledge
from many disciplines and
applying it where you can
create value – offering
reduced operating costs,
reduced emissions to air
and improved functionality.

LNG bunkering,
It’s about connecting the
dots.
As a company that
works across the maritime, gas carrier
oil & gas and renewable
energy sectors, DNV GL
technology and
will continue to foster such
c r o s s - i n d u s t r y
LNG as ship fuel
collaboration, in order to
drive innovation in the gas
to significantly
sector. Every year we run increase in the
coming years:
about 60 Joint Industry
Projects and receive great

Group President
support from our partners
because they create
significant impact on the
industry’s development.
& CEO, DNV GL
The LNGreen: Next-
generation LNG carrier concept by DNV GL, HHI, GTT performance of equipment and appliances, but also
and Gaslog can be classed as the LNG carrier of the transmission and distribution systems. LNG
future, Mr. Eriksen emphasised. compositions may also vary substantially depending
The gas industry also needs to put the right on their geographical origin due to differences in
regulatory and political frameworks in place to ensure natural gas sources, production technologies and the
fair and robust commercial value for LNG and other target market.
types of gases. The industry needs to work together to develop a
Let me give you an example: Typically, gas derived set of common standards, to create a level playing
from LNG has a higher calorific value than pipeline field for gas.
gas found in gas networks. This not only affects the Many of you know that DNV GL has been in the

January 2016 DEW JOURNAL 83


dewjournal.com Special Report

LNGreen: Next-generation
business of setting standards for 151 years. We focus
on standards that add value. And standardization that
unlocks value. This builds trust between businesses
DNV GL recently completed the LNGreen joint
and between businesses and society.
industry project with specialists from GTT, Hyundai
A good example is our updated Recommended
Heavy Industries (HHI), and shipowner GasLog to
Practice for the development and operation of LNG
develop a state-of-the-art next-generation LNG carrier.
bunkering facilities which will be presented to you
The resulting concept vessel has exceeded initial
in more detail in just a few minutes. Our revised RP
expectations and has generated a lot of interest from
is the first document providing guidance on how to
the industry. Using existing technology the project
perform quality measurements and quantity
partners developed a ship with an improved
metering of LNG fuel from bunkering, something I
am very proud of.
Another example from DNV GL is the recently
introduced class notation for gas bunkering operation
from ship to ship, which ensures safe fuel transfer
operations. Until now, the development of standards
for gas fuel transfer operations in ports has lagged
behind the standards for gas-fuelled ships. The class
notation closes this regulatory gap and addresses
safety concerns in this field.
I would like to end with some reflections about
LNG as ship fuel. The question is: What stands in the
way of a quicker implementation of liquefied natural
gas in the maritime industry?
As I just said, the lack of regulations in this field
has been the most important challenge, paired with
local scepticism to bunkering LNG close to cities.
The financial constraints most shipowners and
managers face today have also slowed down
intended investments into the LNG sector. Finally, the
dramatic change in the relative price difference
between LNG and Heavy Fuel Oil make the General arrangement: Machinery options
commercial case more difficult.

LNG-fuelled, turbine-powered mega box ship study


GTT, CMA CGM (and its subsidiary CMA Ships)
and DNV GL released a technical and feasibility
study for a new mega box ship today – the Piston
Engine Room Free Efficient Containership
PERFEC(T). The concept vessel is LNG-fuelled,
powered by a combined gas and steam turbine,
and is electrically driven. Exploring this novel
configuration resulted in the partners identifying
and analyzing a propulsion concept that has the
potential to offer a more efficient, more flexible
and greener box ship design than current
20,000 TEU two-stroke diesel engine driven
ultra large container vessels.

84 DEW JOURNAL January 2016


Special Report dewjournal.com

LNG carrier concept by DNV GL, HHI, GTT and GasLog


environmental footprint, a higher level of energy As LNGreen utilizes existing technology it is
efficiency, as well as an improved boil-off rate and important to stress that this concept design could be
cargo capacity – making the concept much better ordered today”. The project has been so successful
suited to future trading patterns than current vessels. that it has generated significant interest from other
LNGreen investigated the improvement of industry players across the world. Tutturen adds: “We
efficiency and performance of liquefied natural gas are keen to take this concept and develop it further.
(LNG) carriers by considering actual operational DNV GL is currently discussing potential future
conditions and optimisation in terms of hydrodynamics, projects of this kind with industry partners in Asia.”
machinery and system configuration. These
developments were based on DNV GL’s integrated
systems engineering approach COSSMOS, state-of-
the-art computational fluid dynamics calculations
(CFD), and a containment system design, tailored to a
specific operational profile and anticipated trades.
The total efficiency was assessed using an
integrated systems approach. LNG carrier machinery
systems are highly complex featuring tightly integrated
sub-systems and components, like the BOG
compression trains, gas management system, LNGreen Comparison
reliquefaction (if any), propulsion and/or generating
engines, exhaust gas economisers and boilers. The
primary fuel, i.e. boil-off gas, has variable properties
depending on LNG cargo type and in-voyage boil-off
rate conditions. In addition, the ships usually operate
on a number of trading routes. Their operating profiles
vary in terms of speed, propulsion, electrical and heat
demand. The above features require a rigorous model-
based approach, using DNV GL COSSMOS, to assess
the integrated machinery system under realistic
operating conditions as experienced by GasLog.

We still believe that LNG will play a significant


role as an alternative fuel in the maritime industry.
However, the mix of applied technologies will be
broader. Vessels will use other low-flashpoint fuels
and battery- hybrid propulsion systems. Also
measures are being taken to reduce emissions
through scrubbers, or even implementing completely
new concepts.
One such example is a LNG-fuelled combined
cycle gas and steam turbine electric power plant
which will also be presented to you later in this
briefing.
Orders for LNG-fuelled ships are not only
confined to Norwegian waters, which was the case
until 2013. Nowadays, I am glad to see LNG
newbuildings for US waters and in the North and

January 2016 DEW JOURNAL 85


dewjournal.com Special Report

LNG bunkering
Baltic Sea. LNG
projects in the Middle
DNV GL with first guidance East and Asia are
on fiscal and quality expected to be
measurements for LNG realized soon. In
bunkering addition to short-sea
Until now, there has been no ferries and platform
international standard supply vessels we
describing the methods for also see tugs, large
fiscal measurements and cruise ships, and
suitability for LNG as a containerships
marine fuel, despite the growing international market for small scale LNG bunkering. coming into operation.
DNV GL’s updated Recommended Practice (RP) is the first industry guidance on At the same time,
how to perform quality measurements and quantity metering of LNG fuel supply. bunker facilities and
In order to continue meeting and supporting the market in its growing demand bunker vessels are
for cleaner fuels and versatile LNG applications, DNV GL has updated its RP for being constructed,
Development and operation of LNG bunkering facilities (DNVGL-RP-G105). The creating the vital
RP now includes a section dedicated to determining LNG quantity and its properties. infrastructure this
The objective is to assist operators in addressing the large spread in properties, industry needs.
density and the calorific value among the available LNG sources globally. A further push
This update is a key driver for the monetization of the LNG small scale towards clean fuels is
distribution and infrastructure, helping to develop a more transparent and expected to come from
compatible market and to safeguard sustainable growth. the SOx limits in
The RP focuses on four main elements: safe design and operation, safety European waters from
management systems, risk assessments and now also includes coverage on 2020.
gas quality and quantity metering. The RP is in accordance with, but further But LNG as ship
elaborates on the ISO/TS 18683 Guidelines for systems and installations for supply fuel is not only seen as
of LNG as fuel to ships, with focus on bridging the gap between the rules for the a means to cope with
receiving ship and the bunker supplier, such as national or port regulations and emission control
rules for LNG bunker vessels. areas! I know that
DNV GL class notation for gas bunkering operations from ship to ship today the shipping
DNV GL recently launched a new class notation for gas bunker vessels that ensures community has
safe fuel transfer operations from one ship to another. In the past, the development realized that LNG
of standards guiding gas fuel transfer operations in ports lagged behind, as the enables the
maritime industry focussed on developing standards for gas-fuelled ships rather implementation of
than bunkering arrangements. DNV GL has also developed a GAS READY notation new propulsion
for owners looking to prepare their vessel for a potential conversion to LNG concepts that can
operation at the newbuilding stage. The notation helps owners ensure that their increase a vessel’s
vessels are verifiably in efficiency, reduce fuel
compliance with all safety consumption and
and operational therefore offer a
requirements to meet the c o m m e r c i a l l y
applicable global as well as interesting solution.
class standards for gas- This makes me
fuelled operations. It also confident that the
supports owners in using LNG as ship
specifying and quantifying fuel will increase
the level of investment they significantly over the
need to make. next years. dewjournal.com

86 DEW JOURNAL January 2016


dewjournal.com

January 2016 DEW JOURNAL 87


dewjournal.com CSR Initiative

oil fields are located in the Barmer district


in Western Rajasthan, where Cairn
produces over 175,000 barrels of oil per
day (bopd).
Background to the project
Cairn’s intervention to provide safe
drinking water to the community focuses
on the Barmer district, part of the Thar
Desert, said to be the most densely

JeevanAmrit
populated arid zone in the world with a
population density of ~90 people per
square km. Temperatures can reach more
than 50oC during summer.
Accordingly, Cairn India initiated the

H undreds of villages in the desert district of Barmer


in Rajasthan, India got what they needed the
most, clean and safe drinking water. A MoU was
JeevanAmrit pilot project in collaboration with PHED,
GoR, to ensure safe drinking water to the communities
in the districts of Barmer and Jalorethrough the
signed recently between the Public Health and establishment of RO facilities. Due to the extremely
Engineering Department (PHED) of Government of positive community feedback, Cairn is now
Rajasthan and Cairn Enterprise Centre Society. As substantially increasing the scale and scope of our
per the MoU, water purification plants will be project. In partnership with PHED, GoR, Cairn will
established and maintained to provide clean and safe establish as many as 333 water purification units
drinking water to more than 800 villages in Barmer. across the district over three years; this would make
The MoU was signed in presence of Principal our intervention one of the largest in the country,
Secretary PHED, J C Mohanty and Manoj Aggarwal impacting as many as a million-plus people.
the Head of CSR, Cairn India. Given that the Barmer At present, for the pilot project, Water Committee
district has an acute shortage of quality drinking water is responsible for collecting all user charges and
with available underground water being unsuitable operations and maintenance of the RO facility. The
for drinking (highly saline total dissolved solids (TDS) model Cairn has adopted ensures widespread
content >3,000 with high fluoride content), there are distribution at the point of consumption. Water ATW
several prevalent water borne diseases that impact (Any-time Water) kiosks have been established at a
the quality of life. These also lead to a high incidence number of access points; the community is provided
of diarrhoea, which in turn leads to a high Infant with pre-paid smart cards with which they can access
Mortality Rate as well as Maternal Mortality in the area, water at their convenience in a manner similar to the
besides widespread incidence of fluorosis, etc. access provided by bank ATM machines.
Cairn has therefore planned a major CSR In addition, Cairn has partnered with a few local
intervention to support the Government of Rajasthan entrepreneurs to run a ‘water on wheels’ system
(GoR) on water treatment to make the available water (called jalrath). Power availability remains unreliable
safe for drinking and ensuring delivery of the safe in some areas in Barmer; to address this issue, Cairn
drinking water to households. The initiative will involve is providing for solar-powered RO plants in this project.
setting up of 333 small scale Reverse Osmosis (RO) These plants allow for remote monitoring in which
plants (1,000 to 3,000 litres per hour capacity) over the health of the plant and quality of water can easily
the next three years to provide safe drinking water to be monitored though SMS alerts or through the
a large number of people (estimated in excess of 1 Android™ platform. This provides real-time access of
million) living in ~800 villages. crucial parameters such as TDS levels, input and output
Cairn India Limited is one of India’s largest water quality and flow rates etc., ensuring quick action
private oil and gas companies. The company’s major can be taken in case of any issue. dewjournal.com

88 DEW JOURNAL January 2016

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