Status and Prospect on CO2 Capture and Sequestration in China Hongen Dou, PhD Research institute of petroleum Exploration and Development, PetroChina Valencia, Oct. 24-26 2016

Outline CCS Projects in China CO2-EOR Projects in China Prospect on CO2-EOR Conclusions

National major science and technology projects CCS Projects in China Chinese government concerns greatly on CCS In 2006,China Ministry of Science and Technology(MOST) approved CNPC to undertake a National Fundamental Research Program—Research on Utilizing Greenhouse Gas as a Resource for EOR and Storage In 2008,the Chinese government approved a Major national program— CO2 Capture and Storage for EOR Since 2011, Chinese National Fundamental Research Program (973 program) and Chinese National Major Science and Technology Project have approved by government National major science and technology projects 2011-2020

CCS Projects in China

CO2-EOR Projects in China CO2-EOR Pilots in China Oilfiled Time Depth/m K/md φ/％ γ/g/cm3 T/oC Injectors SaNan Daqing 1988 1140 1628 27.6 0.868 2 F14 JiangSu 1998 3051 7.5 11.8 0.832 102.5 1 Block228 Jilin 2000 1500 0.35 12.3 0.787 70 F48P Daqing 2003 1742 1.4 14.5 0.805 86 Caoshe JiangSu 2005 3065 241 21.3 0.822 110 H87-2 Jilin 2006 2300 0.36 10 0.737 108.5 H59Jilin 2007 2400 2.65 11.44 0.762 97 5 F48 Daqing 15 S101 Daqing 2120 1.06 10.65 0.79 108 8 G89-1 Shengli 3000 4.7 13 0.739 B14 Daqing 2009 1730 1.12 13.5 0.777 Sha-I ZY(Sinopec) 2008 690 22 0.76 12 H79 Jilin 0.77 103 18 YYT JL(Sinopec) 2010 5-10 >40 Jingbian (Yanchang) 2012 1600 0.858 80 16

CO2-EOR Projects in China CO2-EOR pilot in block Hei-59 in Jilin oilfield Hei-59: Low permeability reservoir Porosity: 13% Permeability: 3 mD Injector: 6 Producer: 24 Target Zone: Qing-1 Member Reservoir depth: 2445 m Injection Rate: 40t/d per well (liquefied CO2) Maximum injecting pressure at wellhead : 22 MPa Average oil production: 3.3 t/d, more than 1.8 t/d of water flooding Cumulative CO2 injection: 341.1 thousand tons Storage efficiency: 90%

CO2-EOR Projects in China Sinopec’s CO2-EOR pilot G89-1: Low permeability reservoirs Porosity: 13% Permeability: 4.7 mD Gas Injection time: January 2008 Producer : 14 wells Gas injection: 11 wells Injection pressure: 6-19.5 MPa Injection rate: 19.6-63 tons/well Oil production: 5.2 t/d (central well) Bottom flow pressure of producer: 15 MPa Bottom flow pressure of injector: 23.3 to 27.4 Cumulative CO2 injection: 128 thousand tons

CO2-EOR Projects in China Sinopec’s CO2-EOR pilot G89-1 is performing CO2 flooding, recovery percentage will arrive 26.1% after 15 years, recoverable oil incremental 17.2% more than primary oil recovery

CO2-EOR Projects in China Yanchang’s CO2-EOR pilot Jingbian’s CO2-EOR project began in Sep., 2012, Permeability: 1mD Porosity: 12% Reservoir Pressure：13MPa Injector well depth, 1600m Injector pressure, 8 MPa Injection rate：18 t/d/well Cumulative CO2 injection 14,000 tons by June of 2014, the project will be extended to 16 injection well groups by this end of the year, estimating injection CO2 will be 200,000 tons, CO2 will be stored 120,000 tons

Distribution of main oil and gas basins in China Prospect on CO2-EOR Developing coal chemical industry will be able to capture the high purity CO2, which has a big capture potential in western China PetroChina has low permeability oilfields in western China, the oilfields can provide great potentials for CO2-EOR and storage Also, Petrochina will plan to implement CO2-EOR projects in the Erdos basin and Sungar Basin in future five year Distribution of main oil and gas basins in China Xinjiang oilfield Changqing oilfield

Prospect on CO2-EOR According to Sinopec report, CO2-EOR technology covers low permeability reserves 300 million tons in Shengli Oilfield, enhanced oil recovery 1.5% per year, CO2 needs are 4.35 million tons from Shengli Power Plant Sinopec’s original plan will built up two CCUS demonstration projects, one is 1 million tons per year with flu gas from Shengli coal-fired power plant, and the another is 500 thousand tons per year for CO2-EOR with coal gas from Sinopec Qilu Petrochemical plant Transportation distance: 74-80 km Pressure: 4 MPa The project forced stopping because the low oil price started from end of 2014 to now Yanchang’ original plan will extend CO2-EOR pilot in Wuqi in the end of 2015, estimating CO2 injection will be 300,000 tons, CO2 stored will be 180,000 tons

Prospect on CO2-EOR 13 billion tons oil reverse can be suitable for CO2-EOR Estimated EOR is 10-15%, and 1.92 billion tons oil can be recovered CO2 storage capacity can reach 4.7-5.5 billion tons CO2-EOR and storage Capacity Evaluation in China（Billion tons） OOIP Enhanced Oil CO2 Storage Capacity Miscible Reserves 7.0 0.72 1.7-2.0 Immiscible Reserves 6.0 0.48 3.0-3.5 Total 13.0 4.7-5.5

Conclusions CO2 Capture and injection into oil reservoirs for EOR is a good practical and economical way for reducing CO2 emissions A certain potential CO2 storage capacity lies in China, along with oil production growth through the application of CO2-EOR China’s companies have developed a set of CO2-EOR technology in the recent years, however, China’s companies and research institutes are still willing to join international efforts in CCUS to make due contribution for dealing with global climate change

Thank you! douhongen@petrochina.com.cn P.O.Box 910, Beijing, 100083, China