Gas and Oil Company – Palo Azul

A mixture of hydrocarbons and flared gas is released when crude oil comes to the surface. Carbon dioxide (CO2) emissions from flaring gas and methane from ventilation contribute to climate change and create environmental and health problems for nearby communities. Methane is a greenhouse gas 21 times more potent than CO2.

Gas and Oil Company – Palo Azul
Customer
Gas and Oil Company - Palo Azul
Location
Euador, Amazonas
Solution
Flare gas
Ability
17,5 MW

Challenges

A mixture of hydrocarbons and flared gas is released when crude oil comes to the surface. Carbon dioxide (CO2) emissions from flaring gas and methane from ventilation contribute to climate change and create environmental and health problems for nearby communities. Methane is a greenhouse gas 21 times more potent than CO2. However, the composition and quantity of the associated gases varies greatly from reservoir to reservoir, and very often this gas lacks the composition and quality for commercial exploitation. In this context, our client recognized the health and environmental risks associated with gas flaring .

At the same time, our client was looking for a new power generation strategy at its oil production facilities. The diesel power plants and the fuel they required were becoming more difficult to manage. The company was struggling to manage the logistics of a jungle location, which required transportation along poor quality roads and even the use of barges to bring fuel to the site.

Considering the environmental costs of gas flaring, our client realized they needed a more efficient and lower cost power generation solution. This solution would require burning a poor quality gas to produce a gas meeting the high standards and regulations when flaring gas at a power plant : 75% to 80% CO2; no sulfur dioxide or hydrogen sulfide; 450 Btu per LHV standard cubic foot; and a minimum pressure of 30 psig.

Carbon dioxide (CO2) emissions from flaring gas and methane from ventilation contribute to climate change and create environmental and health problems for nearby comm

Solution

We provided an environmentally friendly solution for power generation that transformed flared gas into power and steam used for oil pumping and processing, for water injection and in the company’s fields.

We did this during a medium to long-term contract in which our team designed, built, operated and maintained a customized flare gas solution.

This solution not only provided the producer with reliable and cost-effective power, but also delivered benefits to both productivity and the planet. With our flare gas solution, our client qualified for CO2 credits and crude oil savings derived from the cogeneration of steam.

The solution also solved the pollution problems of the communities surrounding the plant. By replacing expensive diesel with flare gas at no cost, the company optimized its power generation costs.

We also provided an integrated power solution with 100% redundant supply. This hybrid power plant has crude reciprocate engine generator sets which are on standby in case the volume of flared gas at the oil wells is reduced.

We did this during a medium to long-term contract in which our team designed, built, operated and maintained a customized flare gas solution.

Results

The customized turnkey solution for flare gas we developed helped our client optimize its power generation thus reducing costs, improving efficiency and eliminating hazards of flared gas for the environment. Thanks to this innovative solution, our client received an environmental award from the Brazilian government for the reduction of pollution in the Amazon rainforest. He achieved this benefit without sacrificing his bottom line and without CapEx.

Gas and Oil Company – Palo Azul