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Life Cycle Analysis of ONE Future’s Supply Chain Methane Emissions Final Project Summary

2018Presented by: Timothy J. Skone, PE ONE Future Methane & Climate Strategies Event, Houston, TX: May 15,

Discover, integrate and mature technology solutions to enhance the Nation’s energy foundation andprotect the environment for future generations

Mission

EFFECTIVE RESOURCE DEVELOPMENT

EFFICIENT ENERGY CONVERSION

ENVIRONMENTAL SUSTAINABILITY

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• Materials Performance• Alloy Development/Manufacture• Geospatial Data Analysis

• Process Systems Engineering• Decision Science• Functional Materials• Environmental Sciences

• Energy Conversion Devices• Simulation-Based Engineering• In-Situ Materials Characterization• Supercomputer Infrastructure

Oil and Gas Strategic Office

Oil and Gas Strategic Office

NETL Competencies by SiteMultiple Sites Operating as 1 LAB System

OREGON

ALASKA

TEXAS

WEST VIRGINIA

PENNSYLVANIA

3

Energy Life Cycle AnalysisCradle -to-grave environmental footprint of energy systems

Extraction Processing Transport Conversion Delivery Use

Mfg.

Constr.MissionDevelop and utilize the LCA framework and methods to support the evaluationof sustainable energy systems both in and outside of the Department of Energy

VisionA world -class research and analysis team that integrates results which inform and recommend sustainable energy strategy and technology development

• e n e r g y s u s t a i n a b i l i t y •

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Collaboration Between DOE and industry• NETL supports DOE’s mission to advance U.S. energy security

and conducts a broad spectrum of research anddevelopment programs

• ONE Future is a group of leading natural gas companiesfocused on reducing methane (CH ₄) emissions a cross thesupply chain

• Study objective: Characterize ONE Future’s supply chain greenhouse gas (GHG) emissions and evaluate opportunities for improvement

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ONE Future’s Data Representativeness

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• 2016 operations• Full supply chain

(production through delivery)

• 11 production basins

• 5% to 12% of U.S. supply chain c apacity(depending on stage)

• Includes facilities below EPA’s reporting threshold

Emission Inventories vs. LCALCA allows direct comparisons between U.S. and ONE Future

6,985

270

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

kilo

ton

CH₄/

yr

OTHER

PRODUCTION/Vented and Combusted/Blowdowns

PRODUCTION/Vented and Combusted/Liquids Unloading

DISTRIBUTION/Fugitives/Pipeline Leaks

GAS PROCESSING PLANTS/Vented and Combusted/Compressor Exhaust

PRODUCTION/Vented and Combusted/Compressor Exhaust

PRODUCTION/Fugitives/Well Pad Equipment

TRANSMISSION AND STORAGE/Vented and Combusted/Compressor Exhaust

PRODUCTION/Vented and Combusted/Pneumatics

PRODUCTION/Fugitives/Gathering and Boosting

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0%

10%

20%TRANSMISSION AND STORAGE/Vented and Combusted/Transmission Stations

30%

40%

50%

60%

70%

80%

90%

100%

U.S. ONE Future U.S. ONE Future

• Inventory does not facilitate comparisons per unit of delivered fuel (e.g., 1 MJ delivered natural gas)• LCA is necessary to model an integrate ONE Future’s assets into a balanced supply chain

0.30%

8

0.46%0.52% 0.54% 0.54%

0.67%

0.02 0.20%

0.01 0.10%

0.00 0.00%

0.03 0.30%

0.42%0.04 0.40%

0.05 0.50%

0.06 0.60%

0.07 0.70%

PRODUCTION GATHERING & PROCESSING TRANSMISSION STORAGE PIPELINE DISTRIBUTION BOOSTING

Cumulative CH₄ Em

issionRate

g CH

₄/M

J NG

Deliv

ered

• 0.10 g CH₄/MJ delivered natural gas (can be as high as 0.20 g CH ₄/MJ )• 0.67% CH₄ emission rate (can be as high as 0.92%)• 2015 U.S. average emission rate is 1.62%; equivalent to a 240 Bcf /yr reduction

ONE Future’s Life Cycle CH₄ EmissionsRepresentative of a hypothetical, vertically integrated ONE Future supply chain

0.10 1.00%

0.09 0.90%

0.08 0.80%

0.12

0.10

0.08

0.06

0.04

0.02

0.00PRODUCTION GATHERING &

BOOSTINGPROCESSING TRANSMISSION STORAGE PIPELINE DISTRIBUTION

gCH

₄/M

J

ONE Future U.S.

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• ONE Future total CH ₄ emissions are lower than U.S.• Distribution is only stage where ONE Future has higher emissions than U.S.• Greater uncertainty for ONE Future a function of data representativeness and stage

connectivity

ONE Future Comparison to U.S. Average2015 U.S. average natural gas compared to 2016 ONE Future operations

• Mitigation options available to ONE Future are different than for the entire natural gassupply chain

• Low cost opportunities result in1.1 Bcf in annual CH 4 emission reductions

• Most opportunities haverecovery costs that exceed natural gas market value

Marginal Abatement CostsUsed as a companion analysis tool that represents assets within ONE Future’scontrol

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Findings and Recommendations

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• Compressors- A significant emission source represented by all supply chain stages- More data and analysis could give us a mechanistic understanding

of compressor emissions• Episodic emissions

- Liquids unloading variability is a top driver of uncertainty- Further research and analysis on episodic variability could inform

the discussion on top -down vs. bottom -up emissions• MAC

- Complements LCA with a cost and scale perspective- Further development of MAC method could lead to regional and

operator -specific recommendations for emission reductions

• Value- Cost effective methane reduction opportunities vary by

region and industry sector – one-size-fits-all nationalperspectives can over and underestimate real world methane reduction opportunities

- Improved transparency of both methane emissions andmarket viable reduction opportunities to investors/shareholders

- Ability to benchmark and report methane emissionsperformance on an equivalent delivered unit of gasbasis while appropriately acc ounting for the movement of gas from production to delivery to the end customer

• Keys to Success- Phase II private -public partnership between ONE Future

and NETL to inform regional differences by operator- Company results blinded and reported at the basin -

level by industry sector- Combined LCA and MAC analysis to inform future

methane reduction potentials- Comparison to U.S. regional averages by sector to

benchmark and communicate methane reduction opportunities

Potential Next StepsMoving from national and aggregated ONE Future perspectives to regional and sector assessments

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Acknowledgments• DOE Office of FossilEnergy

- Tim Reinhardt - HQ Director of Supply & Delivery- Christopher Freitas - HQ Senior Program Manager

• ONE Future- Fiji George- Richard Hyde

• AECOM- Terri Lauderdale- Matt Harrison

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Report Access

https://netl.doe.gov/research/energy -analysis/search-publications/vuedetails?id=2637

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Contact InformationTimothy J. Skone, P.E.Senior Environmental Engineer • Strategic Energy Analysis(412) 386-4495 • timothy.skone@netl.doe.gov

James LittlefieldSenior Engineer • KeyLogic(412) 386-7560 • james.littlefield@netl.doe.gov

netl.doe.gov/LCA LCA@netl.doe.gov @NETL_News

• e n e r g y s u s t a i n a b i l i t y •

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Supporting Material: InventoryPerspectiveGa

s Wel

lFug

itive

s

GasW

ells

Wel

lPad

Equi

pmen

t

Gath

erin

g and

Boos

ting

Blow

dow

ns

Chem

. Inj

ectio

nPu

mps

Com

pres

sorE

xhau

st

Dehy

drat

orVe

nts

Drill

ing,

Wel

l Com

plet

ion,

and

Wel

lWor

kove

r

Kim

ray

Pum

ps

Liqu

ids

Unl

oadi

ng

Nor

mal

Ope

ratio

ns

Pneu

mat

ics

Prod

uced

Wat

er fr

omCB

M

Prod

uced

Wat

er fr

om C

oal B

edM

etha

ne

Ups

ets

Wel

l Cle

anU

ps

Drill

ing,

Com

plet

ion,

or W

orko

ver

Flar

es

Com

pres

sorS

eals

Plan

tFug

itive

s

Reci

p.Co

mpr

esso

rs

AGR

Blow

dow

ns/V

entin

g

Com

pres

sorE

xhau

st

Dehy

drat

ors

Pneu

mat

ics

Pipe

line

vent

ing

Stor

age

Tran

smiss

ion

Com

pres

sor S

tatio

ns (T

rans

miss

ion)

M&

R

Pipe

line

Leak

s

Stor

ageS

tatio

ns

Tran

smiss

ionS

tatio

ns

Wel

ls(S

tora

ge)

Com

pres

sorE

xhau

st

Dehy

drat

orVe

nts

Nor

mal

Ope

ratio

n

Pneu

mat

ic D

evic

es T

rans

miss

ion

Stor

ageP

neum

atic

s

Tran

smiss

ion

Pneu

mat

ics

Cust

omer

Met

ers

Cust

omer

Met

ers

Met

er/R

egul

ator

Met

er/R

egul

ator

(City

Gate

s)

Pipe

line

Leak

s

Rout

ine

Mai

nten

ance

Ups

ets

Fugitives Vented and Combusted Fugitives Vented and Combusted Fugitives Vented

PRODUCTION

Fugitives Vented and Combusted

GAS PROCESSING PLANTS TRANSMISSION AND STORAGE DISTRIBUTION

kilo

ton

CH₄/

yr

Greenhouse Gas Inventory (GHGI) shows emissions on an annual basisU.S. ONEFuture

2,500

2,000

1,500

1,000

500

0

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• Comparisons- Within ONE Future- ONE Future vs. U.S.

• Level of detail- Supply chain stages- Specific emission sources

• Metrics- Mass of CH 4 and other GHGs- Emission rate of CH 4

• Magnitude• Uncertainty

- Variability- Data gaps

Supporting Material: Multi-faceted ResultsInterpretations can be made from more than one perspective

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Supporting Material: Compressor CH₄

PROCESSING / Vented & Combusted / Combustion Exhaust (compressor-drivers)

PRODUCTION / Vented & Combusted / Liquids Unloading (adder)

GATHERING&BOOSTING / Vented & Combusted / Combustion Exhaust (compressor-drivers and other combustion of NG)

PRODUCTION / Vented & Combusted / Liquids Unloading (Plunger)

DISTRIBUTION / Fugitives / Distribution Mains & Services

PRODUCTION / Vented & Combusted / Hydraulic Fracturing Completions & Workovers (flaring)

PRODUCTION / Vented & Combusted / Pneumatic Device (Intermittent Bleed)

PRODUCTION / Fugitives / Equipment leaks

PRODUCTION / Vented & Combusted / Liquids Unloading (Manual)

STORAGE / Vented & Combusted / Combustion Exhaust (engine)

TRANSMISSION / Vented & Combusted / Combustion Exhaust (engine)

TRANSMISSION / Fugitives / Reciprocating Compressors

STORAGE / Vented & Combusted / Station Venting

TRANSMISSION / Vented & Combusted / Blowdowns

GATHERING&BOOSTING / Vented & Combusted / Pneumatic Device (Intermittent Bleed)

PRODUCTION / Vented & Combusted / Combustion Exhaust (compressor-drivers and other combustion of NG and diesel)

-0.008 -0.006 -0.004 -0.002 0.000 0.002 0.004 0.006 0.008g CH₄/MJ NG delivered

All supply chain stages have compressor systems with fugitive and exhaust CH ₄.

CH₄ Emission Contributions CH₄ Emission Uncertainties

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Supporting Material:Liquids Unloading & Distribution MainsSome ONE Future emission sources are significant drivers of total emissions and are significantly different than the U.S. average.

• Liquids unloading adder- 18% of ONE Future CH 4- 29% lower than U.S. CH 4- Driven by regional differences in

reported and simulated liquids unloading

• Fugitives from distribution mains- 14% of ONE Future CH 4- 86% higher than U.S. CH 4- ONE Future has more cast iron pipe in its infrastructure (a known issue being

addressed by pipe replacement programs)

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