Valorization of Stranded Natural Gas

Swai, Elitumaini

Student Work

Valorization of Stranded Natural Gas

Public Deposited

Tight oil extraction has boosted natural gas production (NG), whose main component is methane (CH4), and it accounted for 11% of the U.S. greenhouse gas (GHG) emissions as of 2020. Companies that do not have a system to use the NG, flare it to maintain safe production, and for regulation purposes. Flaring is only 91% efficient, which wastes energy and causes toxic environmental and health effects. Fuel switching from coal to NG is one of the ways adapted to reduce CH4 emissions, but leakages during NG transportation to power plants limit its effectiveness. M2X Technology offers a simple, scalable, and modular Gas to Methanol (GTM) unit that converts gas to methanol at the point of extraction. This study aims to analyse the economic and environmental impacts of deploying the technology to all USA flare sites. The methodology involves adapting GTM units to wells of different sizes, analyzing carbon dioxide equivalents (CO2eq) abatement costs, and the net present value of the investment. Results show that the deployment could reduce U.S. GHG emissions by 3.3% while making profits. The M2X technology’s CO2eq abatement costs outshine other technologies, especially after accounting for the learning rate. The profit margin increases with the size of the well, and the overall NPV would be $2.8 billion with a 21% error, which is insignificant, considering NPV will still be positive. Computer-coded calculations can be used in future works instead of manual Excel probabilities, to reduce the error.

This report represents the work of one or more WPI undergraduate students submitted to the faculty as evidence of completion of a degree requirement. WPI routinely publishes these reports on its website without editorial or peer review.

Creator