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Recovery of Associated Gas for independent power generation The Kwale – Okpai Project Nigeria Paolo LINZI Safety, Environment and Quality VP Eni E&P Division.

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Presentation on theme: "Recovery of Associated Gas for independent power generation The Kwale – Okpai Project Nigeria Paolo LINZI Safety, Environment and Quality VP Eni E&P Division."— Presentation transcript:

1 Recovery of Associated Gas for independent power generation The Kwale – Okpai Project Nigeria Paolo LINZI Safety, Environment and Quality VP Eni E&P Division

2 Agenda Background: Flaring down in Nigeria The Kwale - Okpai Project overview

3 Eni‘s Action Plan on Kyoto Protocol Eni Action Plan for Flaring / Venting reduction R&D activities: CCS Project and GTL pilot project Development of a sustainable energy model and definition of the transition path

4 Flaring Down in Nigeria View of Nigerian flares as seen from the satellite An unusual brightness in the dark of the African continent Nigeria produces 2.3 M Bopd of oil and 6 BScf/day of associated gas. About 45% of produced gas is presently flared. Gas reserves in the country are estimated to be 180 Tcf The government through fiscal incentives has opened new markets The exportation of liquefied natural gas (N-LNG) started in 1999

5 History of Eni in Nigeria (1) 1962 Establishment of “Nigerian Agip Oil Company” NAOC starts exploration activities 1973 First jv with Nigerian government (60% NNPC) 1976 Electric power supply to Brass community 1980Establishment of AENR ltd 1985 Gas re-injection in Obiafu-Obrikon plant 1989 NAOC acquires 5% of the Shell assets (increase of about 60,000 bopd equity) 1989 Establishment of Nigeria LNG ltd (Agip 10.4%)

6 History of Eni in Nigeria (1) 1994First NGL supply to Eleme petrochemical 1996Establishment of NAE Ltd 1997Renewal of NOAC jv OMLs until year 2027 1999NAOC provides first gas for N-LNG plant 2000NAOC defines a plan to reach “zero flaring” 2001 NAOC signs the first electric power sale agreement for the IPP at Okpai 2003 Start up of Abo field (first off-shore deep water in Nigeria) 2003Establishment of “Brass LNG Ltd” (Eni 17 %) 2005Start-up of Okpai IPP (first IPP in Nigeria)

7 Relationship With Local Communities 1976: 1st social project – Power supply to Brass Community 1985: Reducing gas flaring through gas re-injection 1987: Green River social project 2000: Start of “zero gas flaring” project 2001: Social projects - Roll-back malaria, Burma Rice Social and Environmental commitment <5% 2009 Target

8 Nigerian Zero Flaring Gas Master Plan GAS INJECTION - Kwale field - Ob/Ob field INTERNAL CONSUMPTIONS Fuel Gas - power generation - gas turbines drivers GAS SUPPLIES (existing and planned) to N-LNG: - Trains 1 & 2 - Train 3 - Trains 4 & 5 - Train 6 to Brass LNG to IPP: - Okpai – Phase 1 - Okpai – Phase 2 (planned) to Rivers State Gov. Power Plant to Eleme Petrochemical: - Fuel Gas - NGL

9 IPP project P/ HARCOURT OBAMA Rumuji BRASS OB/ OB FORCADOS BENIBOYE CLOUGH CREEK TEBIDABA BONNY TIE-IN POINT NAOC/NLNG GTS SPDC’s ROW (Nun river-Kolo creek- Rumuekpe) NAOC’s ROW (OB/OB-Brass) ROW GTS - 1 (N-LNG) IRRI/ISOKO KWALE AKRI EBOCHA OSHIE IPP IDU ROW GTS -4 (N-LNG) T6 Legend: Raw Gas Gas Line to Bonny LNG Terminal Oil Terminal NGL Gas Parallel Line OGBAINBIRI Flowstation Upgrading New pipelines TUOMO SAMABRI NAOC Gas Configuration Land & Swamp Area ELEME

10 Agenda Background: Flaring down in Nigeria The Kwale - Okpai Project overview

11 The Project Concept PURPOSE/ACTIVITY Utilization of previously flared associated gas produced in the Kwale Oil-Gas Processing plant Transportation of the gas through a 14 km long pipeline Use as fuel in plant and in ad hoc built Combined Cycle Gas Turbine Independent Power Plant

12 On-grid energy installed capacity in Nigeria

13 Project Description IPP PROJECT PARTNERS – NNPC (60%); NAOC (20%); PONL (20%) TECHNOLOGY – Gas dehydration, taking up ullage at the existing Kwale OGPP; – Gas compression – 14 km pipeline inter-connector from the Kwale OGPP to the IPP at Okpai – A 480 MW combined cycle gas turbine power plant

14 Methodology Overview Approved Methodology AM0009 version 02 Recovery and utilization of gas from oil wells that would otherwise be flared

15 Baseline and Monitoring Plan BASELINE CO 2 equivalent emissions from flaring of associated gas, less: – Volume of dry gas exported from Kwale plant to OB/OB gas plant – Volume of dry gas used for reinjection at OML 60 MONITORING Ex post monitoring of various carbon flows across the gas recovery, processing, export, and emergency relief (flares) systems, plus any accidental releases through plant or pipeline failure

16 Boundaries and Crediting Period BOUNDARIES The project boundaries are the Kwale Oil-Gas Processing Plant and the pipeline inter-connector between Kwale OGPP and the IPP CREDITING PERIOD A crediting period of 10 years (2006-2015) has been chosen OVERALL CREDITS 14.97 Miln tones CO 2 eq

17 Additionality assessment

18 Project Emissions Emissions from the Kwale gas processing plant that are attributable to the gas trains exporting to the Okpai IPP Fugitive and accidental emissions from the transportation of gas to the Okpai IPP Emissions related to the flaring of blow down from the IPP pipeline The Emissions Reductions are equal to the emissions related to the recovered gas less the project emissions Emission Reductions over the crediting period: 14,969,337 tonnes CO2eq

19 Project Emissions

20 Conclusions The Clean Development Mechanism A help for the Oil &Gas sector in the economic efforts to: – Cut flaring and venting emission – Deploy Efficient Technologies in developing countries The Kwale – Okpai Project A contribution to sustainable development. Its benefits: – A significant step to Eni "Zero Gas Flaring" Plan – Climate change mitigation – Deployment of sustainable technology in Nigeria – Boosting CDM projects development in Nigeria – New opportunities to implement flaring down projects worldwide


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