Associated Gas Management in The Gulf of Suez: Maximizing Profitability And Conserve The Environmental Quality
Authors: El-Ghamry A.M. , Shaheen S.E. , Nour M.H. 
Published: December 2007

The offshore oil fields located in the Gulf of Suez (G.O.S.) and operated by 12 companies produce more than 80% of the total oil production in Egypt. Since 1980's gas associated with the Gulf of Suez of production is being fully utilized. Several gas projects are constructed at the GOS area to optimally utilize the associated gas, rather than flaring it into atmosphere. This has reduced to great extend, the atmospheric emission, This paper shows in a systematic way how the GIS companies achieved a harmonized system to minimize the atmospheric emission through a number of Environmental Investment Projects (EIPs) based on the following pollution prevention mechanisms:Gathering & processing of the associated gas to produce sales gas, condensate and LPG.Reuse the gas as a clean fuel instead of conventional fuels.Gas recycling through oil gas lifting projects.Re-inject the gas for reservoir pressure maintenance, where the production profile of several reservoirs was highly improved.

The results of implementing such mechanisms provide the following results:

The associated gas in the GOS shares in production of 230 MMSCF/D sales gas, 6660 BBL/D condense and 14800 BBL/D LPG.

The atmospheric emission was highly reduced.

It has been concluded that these projects are a typical and applicable Environmental Investment Project. The authors will present data for the processes utilized and its environmental and economic profiles.

Introduction

One of the major environmental issues facing E&P operations is the associated gas produced with oil. In particular, natural gas was "dirt cheap" at the well head. In fact, associated natural gas was routinely flared and/or vented and did not have an assignable value. The relative contribution of methane and carbon dioxide to enhanced greenhouse effect has been recently recognized and shows a clear incentive to flare rather than vent gas which must be disposed. This is particularly relevant over a short time period (20 years), during which time a precautionary approach has been recommended to minimize the emissions of greenhouse gases, pending the outcome of ongoing research into the possible future consequences of increased concentrations of such gases in the atmosphere. Little attention has been paid to the combustion efficiency of flare in the past and the industry should encourage flare manufacturers to supply equipment with demonstrated high combustion efficiency over the full operating range. The remaining 5% methane emitted from a flare burning with 95% efficiency, may effectively double the contribution of carbon dioxide produced to the enhanced greenhouse effect; when considered over 20 years time period.

The longer term objective remain however to minimize and eventually eliminate all gas disposal. A number of possible technical solutions are given below:

Create an energy intensive consumer I the vicinity of the surplus gas.

Liquefy gas and export LNG.

Convert gas into a liquid which is more easily stored and transported than gas.

Re-inject the gas into the producing reservoir where suitable reservoir conditions exist and conserve the reservoir for future use.

Where full use or conservation of the gas cannot be achieved, wastage can be minimized by extraction of the maximum amount of NGL's which can be transported on an established market.

Egypt's Natural Gas Policy

The Egyptian gas industry has rapidly developed, since its start in mid seventies. Growth in Egypt's primary energy demand through the seventies and eighties was the major factor behind the emergency of the Egyptian gas industry. As Egypt's oil industry developed competition emerged for the use of the Egyptian General Petroleum Corporation (EGPC) share of oil.

On one hand, Egypt and EGPC wishes to maximize the quantity of exported oil to obtain foreign exchange. But on the other hand, EGPC is charged with the responsibility of meeting the petroleum requirements for the Egyptian economy.