MAKING SENSE OF OUR GAS

Momade, F. W. Y. and Ankudey, E. ADAAD-IMRE Alumni Conference

KNUST 2010

Introduction

Previous activities in search of oil (Saltpond, Keta Basin, ( p , ,Tano Basin, Voltaian Basin?), Current announcement of discovery of oil and gas in

i l titi commercial quantities, Estimates of 650 million to 2 billion of barrels light crude and 800 billion cubic feet gas given, but may increase as and 800 billion cubic feet gas given, but may increase as exploration intensifies,Actual reserves may change as conditions in the reservoir may turn out to be different,Expected gas production at Jubilee – 120 msft3/day (in the first 18 months 240 msft3/day thereafterfirst 18 months, 240 msft /day thereafter.

What are the benefits of the oil and gas discovery?

Revenue to support development and to ensure future pp psecurity of the country,Growing knowledge in gas and oil, and future export of th t k l dthat knowledge,Investment in oil and gas and related industry, therefore growth in the economy,growth in the economy,Job opportunities,…

Expected Revenue from Crude ($ million)

Year IMF World Bank

2011 752 900

2014 1326 1484

2019 1553 1213

2023 1176 759

2028 330 519

Total 20 269 19 390Total 20,269 19,390

What can natural gas be used for?

N l i f o Natural gas is one of the cheapest forms of energy available.

Natural Gas Use By SectorSource: EIA - Annual Energy Outlook 2002http://www.naturalgas.org/overview/uses.asp

What can natural gas be used for? (cont.)

Power generation,g ,Industrial usage (multitude industrial usage)Residential (heating and cooking, cooling?)Commercial (similar to residential)Other

Industrial usage of Natural gasg g

Provides the base ingredients for such varied products as g pplastic, fertilizer, anti-freeze, and fabrics. Primarily consumed in the pulp and paper, metals, chemicals,

t l fi i t l d l l ti d f d petroleum refining, stone, clay and glass, plastic, and food processing industries.As fuel for waste treatment and incineration, metals As fuel for waste treatment and incineration, metals preheating (particularly for iron and steel), drying and dehumidification, glass melting, food processing, and fueling industrial boilers industrial boilers. Natural gas may also be used as a feedstock for the manufacturing of a number of chemicals and products. g p

Important chemicals based on methane, synthesis gas ammonia and methanolsynthesis gas, ammonia, and methanol

Industrial usage of Natural gas (cont.) -Synthesis Gas and Ammonia/ Fertilizer

Produced by steam reforming of natural gas (catalytic reaction):

Synthesis Gas and Ammonia/ Fertilizer

CH4(g) + H2O(g) = CO(g) + 2H2 (g)

CH4(g) + 2H2O(g) = CO2(g) + 4H2 (g)4(g) 2 (g) 2(g) 2 (g)

Synthesis gas is a major source of hydrogen, which is used for producing ammonia:

N ( ) 3H ( ) 2NH3 ( ) ΔH° 46 1 KJ/ lN2 (g) + 3H2 (g) = 2NH3 (g) ΔH° = –46.1 KJ/mol

Ammonia is the host of many chemicals such as urea, ammonium nitrate, and hydrazine.

Other compounds based on ammonia include nitric acid, hydrazine, ammonium sulphate, ammonium nitrate, …

Carbon dioxide, a by-product from synthesis gas, reacts with ammonia , y p y g ,to produce urea

Industrial usage of Natural gas (cont.) –Synthesis gas and Methanol

It is a building block for methanol, which in turn has

Synthesis gas and Methanol

g ,many industrial applications:CO(g) + 2H2(g) = CH3OH(1) ΔH° = –128 KJ/mol

CO2(g) + 3H2(g) CH3OH(l) + H2O

Methanol (or Methyl Alcohol) in turn is used to produce such substances as formaldehyde acetic acid and MTBE such substances as formaldehyde, acetic acid, and MTBE (methyl tertiary butyl ether) that is used as an additive for cleaner burning gasoline. Other compounds from methanol include, methyl amine, dimethyl carbonate, methylamines, gasoline MTG products products, …

Industrial usage of Natural gas (cont.)Fuel Cells - promising technology

• Fuel cells have the ability to generate electricity using

p g gy

y g y gelectrochemical reactions to generate electricity.

• Streams of fuel (usually hydrogen) and oxidants over electrodes that are separated by an electrolyte electrodes that are separated by an electrolyte.

• The chemical reaction generates electricity without requiring the combustion of fuel.

h h d d l d d• When pure hydrogen is used as fuel, and pure oxygen is used as the oxidant, the reaction that takes place within a fuel cell produces only water, heat, and electricity. p y , , y

• In practice, fuel cells result in very low emission of harmful pollutants, and the generation of high-quality, reliable electricity electricity.

Fuel cell from natural gas

• Natural gas can be used as it is in fuel cells or after gconversion to hydrogen before use:

CH4(g) + H2O(g) = CO(g) + 2H2 (g)

CH4(g) + 1/2O2 (g) = CO(g) + 2H2 (g)

Th f t l g d f l ll h b f • The use of natural gas-powered fuel cells has a number of benefits, including:

clean electricityyDistributed generationDependabilityEfficiency

MAKING SENSE OF OUR GAS

Overview Overview -- Ghana Offshore TimelineGhana Offshore Timeline

North and South Tano have proven Gas reserve.

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pExpected production rate of 80 MMscfdJubilee FPSO operational by 4Q 2010 with a peak Gas Processing /Export capacity of 120 000 bopd and 120 Processing /Export capacity of 120,000 bopd and 120 MMscfd (70 - 100 MMscfd to Shore)Jubilee field is envisioned to have a second FPSO with similar capacity by 2012similar capacity by 2012.Odum discovery may produce up to 15-20 kbopdTweneboa exploratory wells suggests Gas Condensate p y ggfield with Production likely by 2012-2013Sankofa – gas filed

SubSub--sector Strategysector StrategyN fl i V i f N l G i h Gh P jNo flaring or Venting of Natural Gas in the Ghana Project

17 Addresses Environmental Issues of Oil & Gas Environmental Issues of Oil & Gas ProjectsSustainability concerns

Economic  Economic, Social and Resource

Gas UtilizationGas Utilization18

(Installed : 380 MW)

(Installed: 126 MW) (Installed: 300 MW)(Proposed: 250 MW)

(Installed : 380 MW)(Proposed : 1,970 MW)

Mahogany-1 Hyedua-1Odum-1

Gas Commercialization Project Gas Commercialization Project –– ConceptConcept

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Gas Plant

LPG Buoy

Gas Plant

Jubilee Fields Jubilee Fields –– Development PlanDevelopment Plan

Phased Production of Field

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Phase 1 production starts in 4th Quarter 2010Exploit 278 Million Barrel Reserve120,000 Barrel/Day Oil Production120 MMSCF/D G P d i120 MMSCF/Day Gas ProductionGas – to –oil ratio: 1000MMscfDrill 17 wells (9 production wells, 3 gas injection wells, 5 waterinjection wells)injection wells)Wells tied back via subsea infrastructure to FPSO moored in the Field

Phase 2 production starts in 2013Phase 2 production starts in 2013Additional infrastructure required

240,000 Barrel/Day Oil Production240 MMSCF/Day Gas Production

Produced Gas will be piped to Shore or injected

Average Gas composition

Component Mole percent

North Tano South Tano 3-AX Structure SaltpondN2 0.00 0.25 0.39 2.63

CO 1 08 1 40 1 61 0 15CO2 1.08 1.40 1.61 0.15H2S 0.00 0.00 0.00 0.00CH4 89.08 83.09 89.75 78.66C H 4 68 3 41 3 63 10 45C2H6 4.68 3.41 3.63 10.45C3H8 2.07 2.71 2.22 4.85

i-C4H10 0.33 0.43 0.37 0.79C H 0 60 0 96 0 66 1 44n-C4H10 0.60 0.96 0.66 1.44

i-C5H12 0.49 0.32 0.21 0.35n-C5H12 0.20 0.32 0.22 0.35C H 0 25 0 37 0 25 0 22C6H14 0.25 0.37 0.25 0.22

C7H16+ 1.21 0.75 0.69 0.13

What sense of our gas? (cont.)

Gh ’ il d it h l t f i t dGhana’s oil deposits have a lot of gas associated,Oil needs to be treated to separate the gas,Gas transport and storageGas transport and storage,Immediate uses of the Ghanaian gas- Power generation to improve industrial and domestic usage, g p g ,- Improvement in LPG supply for domestic/commercial use

across the country (decrease in rate of deforestation)- Compressed Natural Gas (CNG) for vehicle use, cooking

and cooling?

What sense of our gas? (cont.)

Options for Medium- and Long-Term Development Security for p g p yGhana (only my views):1. Produce LPG, sell and invest money for future use,2. Generate power and sell to neighbours (WAPP), invest proceeds

for future use,3 Convert the gas wholly or partially to other products of economic 3. Convert the gas wholly or partially to other products of economic

importance (synthesis gas to fertilizer, methanol, plastics ... )4. Use gas to add value to the natural resources (integrated

aluminium industry, steel industry, …)5. Invest money (from 1, 2, 3 and 4) in the acquisition of, research

and development of high end technology converting the country and development of high-end technology, converting the country to a high-tech knowledge-based country in the sub-region and Africa,

A few questions at the end!!

Can we make sense of our gas?Can we make sense of our gas?

Who makes the decision and when as to how we Who makes the decision and when, as to how we can make sense of our gas? (Remember, the gas starts flowing and cannot wait for us!!!)g )

Can we leave a legacy for our generations to Can we leave a legacy for our generations to come?

REFLECT ON THESE

THANK YOU AND GOD BLESS