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16. Making the most of what we’ve got

Wednesday, May 22, 2024
1:45 PM - 3:15 PM
Riverside Theatre, Level 2



Overview

Meeting emission reduction targets will require all the levers to be pulled and this session will look at some novel solutions coming to the fore.

Presentations

Brownfield modifications to convert existing gas production facilities for CCS operations
Christopher Jones* (Kent)
Optimising CO2 Storage Resource Utilisation: Insights from the Otway Stage 4 Field Program
Max Watson*, Hadi Nourollah, David Bason & Scott Higgs (CO2CRC), Sally Benson (Stanford University), Peter Cook (University of Melbourne), Yong-Chan Park (Korea Institute of Geoscience and Mineral Resources), Mitch Allison (CO2CRC), Ziqiu Xue (RITE)
Building a carbon storage portfolio for the Barrow-Dampier sub basins – A national resource
David Barlass*, Kiran Ferguson, Leo Leon & Nigel Seymour (SLB), Paul Phythian & Adam Vonk (Chevron Australia), Merrie-Ellen Gunning (Geoscience Australia)
Accelerating industrial decarbonisation through Common User Infrastructure
Amy Lomas* & Dan Demilew* (PwC Australia)
Decarbonising LNG value chain using carbon capture and storage: why, where, how much and what are the limitations?
Zlata Sergeeva* & Colin Ward (King Abdullah Petroleum Studies and Research Center)


Speakers

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Mr Christopher Jones
Principal Process Engineer
Kent

Brownfield modifications to convert existing gas production facilities for CCS operations

1:47 PM - 2:01 PM

Abstract

In recent years, traditional oil and gas operators have found novel means of extending the life of their assets and deferring onerous decommissioning costs by converting their facilities from gas production into CO2 injection. Whilst the task of designing for CO2 may sound simple, CO2 injection works in counter-intuitive ways, with previously established heuristics derived from years of experience in gas-condensate systems being quickly challenged as potentially dangerous. The world of CO2 injection is back-to-front compared with hydrocarbons; it isn’t simply a case of a change in flow direction.
Some of the design challenges explored in this paper are:
• Large density variability in CO2 systems and catering for the sensitive nature of changes to ambient temperatures that can impact the pressure of a shut-in system.
• Optimal pressure ratings of the vent and drains systems and how previous safety margins may be unsafe.
• Pipeline hydraulic modelling focused on new areas outside of the traditional suite of analysis, such as dense phase flow assurance and strange behaviours in depressuring operations.
• Understanding liquid water dropout being more of a concern than ice and hydrate formation.
• Injection wells counterintuitively flowing from low pressure to high pressure.
• Where to safely vent CO2 in an offshore facility: above or below the platform? In a loss of containment event, CO2 is non-flammable and therefore protection against jet impingement is no longer required. Or is it?
• Optimal storage vessel conditions and vessel safeguarding for liquefied CO2.

Biography

Chris has 12 years of experience in process engineering. He underwent an accelerated Honours (First Class) program at university in chemical engineering and then completed an internship in Germany working in the research and development of areas in fluid processing. To date, Chris has been exposed to large collection of projects of varying scopes and therefore has developed a sound technical proficiency and unique approach when tackling challenges in traditional oil and gas and emerging new energy industries.

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Dr Max Watson
Senior Manager - Technology Development
CO2CRC

Optimising CO2 Storage Resource Utilisation: Insights from the Otway Stage 4 Field Program

2:02 PM - 2:16 PM

Abstract

The optimised utilisation of identified storage resources and accelerated commercial CO2 storage development is vital for CCS to play its important role in reducing emissions.
CO2CRC addresses this challenge through the Otway Stage 4 field program. This collaboration, involving multiple international partners, will demonstrate a suite of cost-effective reservoir management techniques that improve CO2 storage potential, particularly in lower-quality reservoirs, maturing them for commercial readiness. By demonstrating enhanced injectivity, improved sweep, higher resolution modelling, and effective performance monitoring, Otway 4 will substantially improve CO2 storage resource usage, furthering CO2 storage as an economically viable solution.
Otway 4 includes:
• Acquisition and analysis of CO2 saturation and chemical data during plume migration and trapping, combined with an investigation on fine-scale geological heterogeneity’s role in CO2 flow dynamics, to refine modelling workflows, ultimately developing strategies for optimising commercial CO2 storage.
• Demonstrating that CO2 microbubbles, owing to their smaller size, lower buoyancy effect and enhanced dissolution properties, significantly increase storage efficiency compared to standard CO2 injection, thereby unlocking previously untenable CO2 storage reservoirs.
• Enhancing seismic monitoring to comprehensively assess storage performance and microbubble behaviour, including quantitative derivation of CO2 saturation.
• Demonstrating the capability of Distributed Strain Sensing (DSS) to measure geomechanical changes associated with CO2 injection quantitatively.
In addition to Otway 4’s forward plans, this paper discusses laboratory and modelling work, including core flood analysis to understand CO2 microbubble behaviour at pore scale, dynamic modelling of CO2 flow through heterogeneous reservoir and selecting suitable injection intervals at the Otway site.

Biography

Max Watson is the Senior Manager for Technology Development at CO2CRC Ltd. and is Australia's Delegate for the Carbon Sequestration Leadership Forum, a Ministerial-level international climate change initiative. Max has over 22 years' of experience in developing industry-relevant, low-emission technologies, including carbon capture & storage (CCUS) and, more recently, hydrogen storage. Max has worked in academia, industry, and R&D management sectors, gaining insights from a variety of countries and business types. He completed his PhD at The University of Adelaide.

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Mr David Barlass
Exploration Lead - APG
SLB

Building a carbon storage portfolio for the Barrow-Dampier sub basins – A national resource

2:17 PM - 2:31 PM

Abstract

The Australian government has recently legislated a 43% emissions reduction target for 2030 to drive net zero ambitions for 2050. The government plans for Carbon Dioxide Capture and Storage (CCS) to play a significant role in achieving this through Greenhouse Gas storage license rounds. Rapid screening of Australia’s carbon storage opportunities is necessary to position future acreage release and ultimately identify and mature carbon storage sites.
An industry collaboration between Geoscience Australia & SLB has conducted a basin scale carbon storage assessment project for the Barrow and Dampier sub basins. The project has built and modernized a subsurface database fit for CCS screening. The dataset was used as the foundation to create a carbon storage opportunity portfolio and storage resource assessment for the basin.
The project has three major streams:
1. CCS focused reprocessing, depth imaging and merging of 29 legacy seismic surveys covering 26,150 sqkm – focus on detailed image resolution for containment analysis
2. A basin wide audit of 1600+ wells and databasing of available log data. 140 wells were carried through for petrophysical and rock physics analysis relevant to CCS.
3. A portfolio of carbon dioxide storage opportunities and associated capacity assessment for the Barrow Dampier sub-basins including saline aquifers and depleted fields ranked on storage capacity, reservoir and seal properties and integrity.
The results of this study will be released via NOPIMS as a public resource to expediate CCS implementation for the region.

Biography

David is a geoscientist with a background in seismic interpretation and basin assessment. His current role is Exploration Lead with SLB in Australia leading exploration and carbon storage screening assessments for the multiclient team. David has broad international experience working across numerous basins and geological regimes in Europe and Africa. David holds a Geology BSc. From the University of Edinburgh and an MSc. in Structural Geology with Geophysics from the University of Leeds.

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Mr Dan Demilew
Director
PwC

Accelerating industrial decarbonisation through Common User Infrastructure

2:32 PM - 2:46 PM

Abstract

Common user infrastructure (CUI) is crucial to accelerating industrial decarbonisation at the rate required to secure first mover advantages in the global market.​
Transitioning to a low-carbon economy presents tremendous economic opportunities. However, it also requires significant front-end risk and capital to bridge critical supply chain gaps, such as transporting carbon between capture and storage locations, or connecting manufacturing facilities to ports to enable lucrative export market access for our low-carbon goods. Any delay in bridging these gaps impedes upstream development investment decisions, which in turn slows the pace of transition. ​
CUI has been engaged before to overcome similar challenges, such as the tolling infrastructure model deployed for LNG; the recent government commitment to developing common Pilbara user electricity infrastructure to catalyse transition to renewable energy; as well as the government contributing finance to a common user rare earths processing facility in Eneabba.​
CUI reduces complexity, harnesses efficiencies of collaboration, captures economies of scale, and maximises asset capacity utilisation. In doing so, it becomes key to unlocking a network of upstream green industrial development underpinning the energy transition. ​
Our extended abstract paper and oral presentation (with accompanying slide show) will discuss key opportunities and challenges, drawing on examples including from WA, resonating with the conference emissions reduction themes of integrated energy and innovation & commercializing at scale. This will be of interest to energy industry leaders, including investors, developers and legislators. The scope of discussion will include ​​
- The critical role of common user infrastructure in decarbonisation​​
- Different development and operating models​
- Current and potential challenges​​
- Relevant case study insights​​

Biography

Dan Demilew is a Director in PwC's Energy Transition practice in Perth, with more than 20 years capital project development and delivery experience in Asia-Pacific, Europe, the Middle East, and Africa. He is a thought leader in the renewables sector, both as author of the popular Green Hydrogen Insight newsletter (over 4,000 subscribers) and as former Special Advisor to the CEO of Fortescue Future Industries. Dan is also a decarbonisation strategist with a particular focus on commercialising waste, the circular economy and conceptualising bankable decarbonisation projects.

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Ms Amy Lomas
Partner, Energy Transition
PwC

Accelerating industrial decarbonisation through Common User Infrastructure

2:32 PM - 2:46 PM

Abstract

Common user infrastructure (CUI) is crucial to accelerating industrial decarbonisation at the rate required to secure first mover advantages in the global market.​
Transitioning to a low-carbon economy presents tremendous economic opportunities. However, it also requires significant front-end risk and capital to bridge critical supply chain gaps, such as transporting carbon between capture and storage locations, or connecting manufacturing facilities to ports to enable lucrative export market access for our low-carbon goods. Any delay in bridging these gaps impedes upstream development investment decisions, which in turn slows the pace of transition. ​
CUI has been engaged before to overcome similar challenges, such as the tolling infrastructure model deployed for LNG; the recent government commitment to developing common Pilbara user electricity infrastructure to catalyse transition to renewable energy; as well as the government contributing finance to a common user rare earths processing facility in Eneabba.​
CUI reduces complexity, harnesses efficiencies of collaboration, captures economies of scale, and maximises asset capacity utilisation. In doing so, it becomes key to unlocking a network of upstream green industrial development underpinning the energy transition. ​
Our extended abstract paper and oral presentation (with accompanying slide show) will discuss key opportunities and challenges, drawing on examples including from WA, resonating with the conference emissions reduction themes of integrated energy and innovation & commercializing at scale. This will be of interest to energy industry leaders, including investors, developers and legislators. The scope of discussion will include ​​
- The critical role of common user infrastructure in decarbonisation​​
- Different development and operating models​
- Current and potential challenges​​
- Relevant case study insights​​

Biography

Amy Lomas is an economist and Partner in PwC's Energy Transition practice based in Perth. She specialises in energy, infrastructure, and major project development, including support in navigating regulatory and policy settings, strategic project approvals, business case development, decision support, project development and project management. Amy's clients include private sector energy project proponents (including CCS, hydrogen, ammonia and large-scale renewable energy), port proponents and government trading enterprises. Amy has more than 20 years’ experience in various consulting and public sector roles. She was Executive Director Strategic Policy for the former WA Government's Department of State Development, where she was responsible for a range of State Development policies relating to LNG and domestic gas, energy security, economic infrastructure, competition, royalties, and resource development.

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Miss Zlata Sergeeva
Senior Research Associate
King Abdullah Petroleum Studies and Research Center

Decarbonising LNG value chain using carbon capture and storage: why, where, how much and what are the limitations?

2:47 PM - 3:01 PM

Abstract

In the frames of our research project devoted to carbon-neutral LNG, we concluded that the market has been facing credibility-related challenges due to lack of standards and transparency.
This year’s work focuses on the possibility, advantages and consequences of implementing carbon capture, utilization and storage (CCUS) technologies along the LNG value chain. We address the following questions :
- What level of emissions along the LNG value chain could be managed using only CCUS technologies?
- What elements of the LNG value chain is it feasible to manage using CCUS
- What is the price difference between decarbonizing the LNG value chain through CCUS in different regions?
- What is the optimal ratio between managing emissions with CCUS and compensating with carbon offsets?
Based on the data by NETL, we conduct a preliminary analysis of CCS CAPEX. We apply the cost estimation method (class 5) based on the US DOE Classification, to estimate the costs of using CCUS for emissions management in different countries (Qatar, USA, Australia and Russia) which were selected according to the database of carbon-neutral LNG cargoes delivered in 2019-2023, which the authors collected.
The study demonstrates:
- Due to the economic, geographical and infrastructural limitations, it is more feasible to implement CCUS on the producer's side.
- Such projects remain capital-intensive, which limits their applicability. As a result, we discuss what levels of combining CCUS with carbon offsets are feasible for the industry.
- What level of CCUS implementation is economically feasible for market participants

Biography

Zlata leads “The Future of Hydrocarbons in a Carbon-Managed World” project, aimed at estimating the consequences of international carbon regulation for hydrocarbon markets, with producers starting to offer carbon-neutral LNG and carbon-neutral oil cargos. Previously, Zlata worked in the Energy Center of the Skolkovo Business School, where she researched natural gas and LNG markets and organized the international Energy Summer School for several hundred participants from all over the world. Later, she joined the Business Strategy Department in NOVATEK, Russia’s leading independent gas producer, where her main focus was on strategic forecasting and international cooperation in LNG, hydrogen and CCUS. Since 2020, Zlata has also been a member of the Future Energy Leaders Programme of the World Energy Council.

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Mr Nathan Parker
Exploration Manager
Origin Energy

Session Chair

Biography

Nathan Parker is currently Exploration Manager at Origin Energy. He is an accomplished explorer with over 20 years’ global experience in a diverse range of plays, from deepwater to unconventionals. With a B. Sc. in Applied Geology from The University of New South Wales and an MBA from Curtin University, Nathan has worked with Woodside, Shell, BG Group (QGC) and Origin Energy in a wide range of technical and management roles. Prior to joining Origin Energy, Nathan led tight gas sand exploration programs in the Bowen Basin at QGC resulting in drilling of a series of play opening wells in the deep basin centre. Nathan is co-Chair of the Technical Program Committee for the Australian Energy Producers Conference & Exhibition and is an active member of PESA serving on State and Federal Committees, including as Federal President, he is also the 2024 QUPEX President.

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