Status of SINOPEC CCUS Technology

Li Yang, Deputy chief engineer Wang Rui, Senior engineer

5th November, 2014

OUTLINE

Introduction

CO2 EOR and Storage for SINOPEC

Plans for SINOPEC CCUS

Introduction

Exploration &Development Refinery

Sale

SINOPEC Group is the largest integrated energy and petrochemical company in China.

Chemical

As a responsible national company, green environmental protectionand low carbon development have been the strategy ofsustainable development. In 2014, SINOPEC Group ranked the third inFortune 500, the highest of all Chinese companies on the list.

Introduction

Resource strategy

Integration strategy

Differentiation strategy

Low carbon strategy

Internationalization strategy

Market strategy

In 2012, Sinopec reduced 5.60 million tons CO2 emission. In 2013, Sinopec carriedout 803 projects for environmental protection. In June, 2014, Sinopec launched themultiplication plans of energy efficiency, which is planning for promoting 1250environmental projects and reducing 7.50 million tons CO2 emission by 2015, andimprove the efficiency of 100% by 2025.

Introduction

UN Climate Summit 2014

—Adjust industrial structure, improve theutilization efficiency of energy resources

—Save energy resource, and reduce CO2 emission

—develop low carbon energy, and optimize energy structure

—promote R&D, enhance the ability to respond to climate change

—transfer the modes of production, life and consumption

OUTLINE

Introduction

CO2 EOR and Storage for SINOPEC

Plans for SINOPEC CCUS

CCUS is the abbreviation of Carbon Capture, Utilization and Storage, a method to combine CCS and the utilization of CO2. SINOPEC has formed an integrated technology of carbon capture, transport, EOR and storage.

CO2 EOR and Storage for SINOPEC

CO2 capture—Zhongyuan Refinery in 2003Targets：Reduce CO2 emission and provide CO2 source.Source gas：flue gas containing 16.6% CO2. Capacity：20,000 tons/a.

Mono Etobaccool Amine (MEA) has strong adsorbability for acid gas, good stability and small thermal degradation.

The application of corrosion inhibitor can control corrosion phenomenon and the loss of absorbent.

CO2 EOR and Storage for SINOPEC

MEA method

Target：produce clean natural gas, provide CO2 source.Source gas：natural gas containing 23% CO2.Capacity：500,000 tons/a.

The technology of one sectionabsorption and the half deficient liquid hassaving energy performance.

The quality of natural gas can becontrolled. The purity of CO2 is high.

The technology is mature and theinvestment is low.

CO2 capture—Songnan natural gas in 2009

CO2 EOR and Storage for SINOPEC

MDEA method

10/41

Absorbability increases by 30%, and energy consumption reduces by 20%.

Oxidative degradation rate reduces by 3.08% ~0.52%.

Corrosion rate reduces by 2.2~0.003mm/a.

Silica gel dehydration and drying can reduce energy consumption.

Freon refrigeration R-22 is efficient.

CO2 capture—Shengli power plant in 2010Target: develop advanced flue gas capture technique, provide CO2.Source gas：flue gas containing 14% CO2.Capacity：30,000 tons/a, extended to 1,000,000 tons/a.

CO2 EOR and Storage for SINOPEC

MSA method

CO2 transportation

Skid-mounted truck for small scale pilot tests

Pipeline and compression station for large scale tests

CO2 EOR and Storage for SINOPEC

Diesel plug isolatesCO2 and water to avoid freezing and block

Water injection lines

Gas injection lines

Check valve

Injection pump

Feedpump

Water tank

methanol

CO2 EOR and Storage for SINOPEC

CO2 EOR technologies—laboratory

PVT Capillary viscometer

Multipoint Long core holder

Phase behavior

Multiphase flowInterfacial tension and diffusion

Miscibility and Micro-visualization

Micro-physical simulation system Slim-tube device

Interfacial tension

Foam flooding systemDiffusion coefficient Interfacial tension device

CO2 EOR and Storage for SINOPEC

Laboratory Phase behavior match

Geological modelling

Reservoir engineering

design

CO2 EOR technologies—reservoir engineeringA complete technique of reservoir engineering design: mechanisms, phase behavior match, geological modelling and numerical simulation etc.

FGO

R

CO2 EOR and Storage for SINOPEC

CO2 EOR technologies—mobility control

Low inj. rate

High inj. rate

High Pwf

low Pwf

0 1 2 3 4 5 60

20

40

60

80

100

注 气注 液

阻力

系数

注 入 孔 隙 体 积 ， PVInjection PV

resis

tanc

e co

effic

ient

Injection scenario with high injection rate and high BHP

WAG

CO2 foam

CO2 EOR and Storage for SINOPEC

CO2 EOR technologies—inj. & prod. engineering

Gas injection string

Y221M‐115GF

tip

artificialbottom hole

HTKG

Bleeder+pump

screwed plug

gas anchor

artificialbottom hole

Production string

CO2 EOR and Storage for SINOPEC

CO2 EOR technologies—corrosion prevention & monitoring

Injection system

Production system

add preservatives for injection well Stainless steel anti-corrosion pipes

corrosion monitoring of the coupons in prod. well add preservatives for stock tank

CO2 EOR and Storage for SINOPEC

CO2 EOR technologies—CO2 recycle & utilizationProduced gas separation and recycling technology of couplingrectification and low temperature stripping were developed, which canachieve zero CO2 emission.

Flowchart of coupling rectification and low temperature stripping

Separation & recycling plant for produced gas

SINOPEC has been committed to integrate CO2 EOR and storage,mainly including water flooded abandoned reservoirs, low permeabilityreservoirs, tight oil and so on. Nowadays, there are 12 pilot testsimplementing CO2 EOR and storage.

CO2 EOR and Storage for SINOPECCO2 EOR pilot test

0 160 320 480 640km

油 田 气 田 “九五”评价勘探 “九五”圈闭勘探 “九五”区域勘探

盆地边界线 构造分区线 含油气区分界线 国内招标区 国外招标区

新区事业部项目 国界线（陆上） 国界线（海岸） 省界线 铁 路

古生界未变质区 海 洋 湖泊、河流 地 名区域断裂

图 例

中国石油化工股份有限公司油气田分布图

黄

河

长

江

日

本

菲

律

宾

XBBL

DB

HBPB

SL

ZY JSHD

HN

SHJHXN

CF

NM

SINOPEC Oil & Gas Field

CO2 EOR and Storage for SINOPECCO2 EOR pilot test—WAG miscible flooding

Pilot tests for three well groups show good prospects, which have been extendedto large scale with ten injectors. Up to now, accumulative injection amount is119.1thousands tons, incremental oil is above 18.8 thousand tons, and CO2 dynamicstorage factor is 90%. In future, the test will be enlarged to 22 injectors and 38producers, with 6% of ultimate incremental recovery factor.

85

87

89

91

93

95

97

99

0

4

8

12

16

20

wate

r cu

t（%）

oilr

ate(

t/d)

80828486889092949698100

0

4

8

12

16

20

08/06/01 09/03/28 10/01/22 10/11/18 11/09/14 12/07/10 13/05/06 14/03/02

Water cut（

%）

Oil rate(t/d)

70

80

90

100

0

2

4

6

8

13/06/01 13/06/28 13/07/25 13/08/21 13/09/17 13/10/14 13/11/10 13/12/07 14/01/03 14/01/30 14/02/26 14/03/25 14/04/21

含水（%）

日产油(t/d

)

日产油 含水

Oil

rate

(t/d

)

Wat

er c

ut (%

)

CO2 EOR and Storage for SINOPECCO2 EOR pilot test—Near miscible flooding

Pilot tests for four well groups have been implemented, including 15 producersand 11 injectors. Accumulative injection amount is196 thousands tons. Recoveryfactor for is 12.7%, and CO2 dynamic storage factor is 90%. Recently, it would beindustrialized application stage.

0

20

40

60

80

100

日油

（t/d）

増油新井老井

PF G89-4G89S1

Overall well group

Incre. oilNew wellsold wells

2005-7

2006-102006-22005-7

2007-6

CO2 EOR and Storage for SINOPEC

CO2 EOR pilot test—Miscible flooding

0

20

40

60

80

100

年 月 年 月 年 月 年 月 年 月 年 月 年 月 年 月 年 月 年 月 年 月 年 月 年 月

新井注气增油(t/d)

新井投产产油（t/d)

老井CO2增油(t/d)

压裂+深抽增产(t/d)

无措施递减预测(t/d)

waterflooding

Side injection Overall injection

Fracturing & deepening

Incremental oil for old wells

Incremental oil for new wells

Pilot tests for four phases have been completed, with 15 producers and 5injectors. Accumulative injection amount is 179.8 thousand tons, incremental oilis 79.7 thousand tons, and incremental recovery factor is 7.89%. The storagefactor is 90%. The tests have been extended to four blocks, and to be ready forindustrialized application stage.

CO2 EOR and Storage for SINOPEC

CO2 EOR pilot test—Immiscible flooding

South region

Injector: 6,

producer: 17

Current cycle: water

North region

Injector: 6,

producer: 22

Current cycle: gas

Pilot tests for north region and south region have been carried out, including 39producers and 12 injectors. Accumulative CO2 injection is 289 thousand tons, andincremental oil is 62.7 thousand tons. Ultimate incremental recovery factor isestimated to 6.27%. CO2 dynamic storage factor is 94.5%. The tests will beextended to whole block.

87-3 91-5 7-10

1-12

7-17

1-19

7-24

1-26

7-30

32-1 38-6 42-8 8-13

100

200

300

400

500

water production(m3/d)

20406080

100120

oil production(t/d) 0

3000

6000

9000

12000

gas injection(m 3)

gas production(m3)

70

75

80

85

90

water cut（

%）

0

100

200

300

400

0

100

200

300

400

water injection(m 3) Water flooding CO2 flooding WAG

OUTLINE

Introduction

CO2 EOR and Storage for SINOPEC

Plans for SINOPEC CCUS

• CO2 microalgae oil• CO2 mineralization by solid waste phosphogypsum

• bio-refinery• CO2/CH4 dry

reforming

• refinery capture• natural gas process• plant capture

EOR Chem.

BiologyMineral.

Plans for SINOPEC CCUS

CO2 Sequestration

• Be constructing two large demonstration projects: Shengli Power Plant (1.0 million tons/a), Qilu petro-chemical coal gas (0.5million tons/a)

• Be planning for building four large gas flooding industrial bases to carry out CO2EOR and storage, including Shengli, Zhongyuan, Huadong, Dongbei.

CO2 EOR demonstration project

Shengli Power Plant(project appraisal)

Qilu petrochemical coal gas(partial implementation

CO2 EOR Pilot Tests

0 160 320 480 640km

油 田 气 田 “九五”评价勘探 “九五”圈闭勘探 “九五”区域勘探

盆地边界线 构造分区线 含油气区分界线 国内招标区 国外招标区

新区事业部项目 国界线（陆上） 国界线（海岸） 省界线 铁 路

古生界未变质区 海 洋 湖泊、河流 地 名区域断裂

图 例

中国石油化工股份有限公司油气田分布图

黄

河

长

江

日

本

菲

律

宾

HONGHE-SINOPECGAO 89-SINOPEC

PUCHENG-SINOEPC

CHUJIANGLOU-SINOPECCAOSHE-SINOPEC

)

CO2 PILOT TESTS

YAOYINGTAI-SINOPEC

FUMING-SINOPEC

Plans for SINOPEC CCUS

CO2 chemical utilization

• Bio-refinery and CO2 utilization

-Biomass+CO2 succinic acid, butanediol, et. -Every 1kg succinic acid generates, 0.37kg CO2can be sequestrated.-Succinic acid, butanediol can be utilized to produce biological engineering plastics.

• Research on CO2/CH4 dry reforming

-Primary reaction：CO2+CH4——2CO+2H2-Secondary reaction：H2+CO2——CO+H2O

Plans for SINOPEC CCUS

CO2 mineralization utilization

• A series of techniques on

CO2 mineralization have been

proposed, including solid

waste phosphogypsum, tail

gas CO2 mineralization

phosphogypsum.

• SINOPEC is cooperating

with Sichuan University.

Plans for SINOPEC CCUS

• CO2 microalgae oilIn 2009, the study on microalgae oil was launched. In 2010, microalgae cultivation laboratory was established, and some researches on microalgae-cultivation-oil were carried out .

• CO2 emissions demonstration unit in refinery

CO2 emissions demonstration unit in Shijiazhuang refinery with 500m3 of microalgae was completed, and put into trail operation.

CO2 biology utilization

Plans for SINOPEC CCUS

Sinopec is committed to green and low carbondevelopment, and has contributed to the planning anddeployment of CCS/CCUS in China.

Plans for SINOPEC CCUS