Perspectives on Upstream, Midstream and Greenstream Integration

Transcription

1 Perspectives on Upstream, Midstream and Greenstream Integration Maximising Recovery, Utilisation and Green Values in the Transport Systems Søren Juel Hansen

2 Maximising the entire gas value chain from production to consumption Having successfully integrated the North West European midstream gas markets We need to look at the next integration challenges in the gas transport value chain: 1. What is best practice for North Sea upstream fossil recovery maximisation and integration with midstream? 2. How do we secure green gas to the more and more climate conscious market segments? 2

3 Who is? +700 employees 1.5 billion EUR/y Non-profit Danish Electricity TSO State-owned Independent board Exchange co-owner Renewables PSO Gas TSO Gas storages Renewable Gas and Electricity Certificate body

4 Upstream integration Maximising EU welfare, SoS and market development means Maximising EU fossil Gas Recovery Søren Juel Hansen

5 Who is? +700 employees 1.5 billion EUR/y Non-profit Danish Electricity TSO State-owned Independent board Exchange co-owner Renewables PSO Gas TSO Gas storages Renewable Gas and Electricity Certificate body

6 Energinet.dk Gas Aims According to the gas supply act: 1. Security of Supply 2. Market Development 3. Climate and Environment 28 May 2014 Offshore Forum 6

7 Energinet.dk Gas Aims According to the gas supply act: 1. Security of Supply 2. Market Development 3. Climate and Environment Implicit aims: 4. Maximise the socio economic values in the Recovery (follows from the decision making Danish Energy Agency report on Ellund-Egtved from the Spring 2010) 5. Support the always current energy policy (follows from Energinet.dk s 100% state ownership) 28 May 2014 Offshore Forum 7

8 Energinet.dk Gas Aims Upstream Integration According to the gas supply act: 1. Security of Supply FOCUS OF TODAY 2. Market Development 3. Climate and Environment Implicit aims: 4. Maximise the socio economic values in the North Sea (follows from the decision making Danish Energy Agency report on Ellund-Egtved from the Spring 2010) 5. Support the always current energy policy (follows from Energinet.dk s 100% state ownership) 28 May 2014 Offshore Forum 8

9 Danish Climate & Energy Minister Rasmus Helveg Petersen on the Danish Energy Policy Oil Gas Summit, Oil and Gas Denmark, Copenhagen, Denmark, 2014 Denmark has an ambitious plan to transform our energy supply to be green. But oil and gas have a very important role to play in our energy supply in many years to come In the long run oil and gas produced in Denmark can be exported to the benefit of society and companies alike Jobs and income from the sector are important for the Danish economy. That is why the government has initiated the process for a new Danish oil and gas strategy with the view of optimizing the recovery from the Danish oil and gas fields 28 May 2014 Offshore Forum 9

10 Former Climate & Energy Minister Martin Lidegaard on the Danish Energy Policy Oil Gas Summit, Oil and Gas Denmark, Copenhagen, Denmark, September 10, In Denmark we have broad political backing for using the Danish resources of oil and gas to the largest possible extent. Denmark is an oil and gas producing country and we will use that to benefit the Danish society and the green transition we have begun. we will make a strategy for oil and gas. It is still too early to say anything about the content of the strategy, but I can elaborate on my thoughts at the moment. Infrastructure; we need to look at the old facilities with increasing maintenance in a time of decreasing production. We have to look at energy efficiency. We need to make sure that we focus on technology development to increase the recovery factor of oil and gas. 28 May 2014 Offshore Forum 10

11 Feasibility studies on Off/Onshore Infrastructure Optimisation Date - Doc. no. 2

12 Focus of the 2014 Feasibility Study Dato - Dok.nr. 12

13 Gas Infrastructure related to North Sea gas export to shore March 2015 #13

14 Relevant interfaces/boundary conditions DUC / Mærsk Oil & Gas is considering future compressor and treatment configurations offshore DONG Energy s onshore Nybro HC dew point process in Nybro is a HCFC (Freon) driven chilling system commercial use of HCFC is banned from 2015 DONG is currently investigating a suitable replacement Energinet.DK has recently constructed a highly efficient and flexible compressor station in Egtved page 14

15 Tyra Focus of the Feasibility Dato - Dok.nr. 15

16 Part of a Bigger Puzzle 25 March 2015 #16

17 Focus of the 2014 Feasibility Study Dato - Dok.nr. 17

18 Nybro infrastructure challenges and possibilities Danish Upstream Transportation System Harald South-Arne Tyra East Nybro Aerial view of Nybro 18

19 Focus of the Feasibility Dato - Dok.nr. 19

20 Dato - Dok.nr. 20

21 A typical compressor station

22 Compressor units og header in Egtved North West South/ East Header North +West East South Unit

23 Results of the feasibility study: Compression of DUC gas in Egtved Dato - Dok.nr. 23

24 Scenario 1 No re-design in Egtved, i.e. no CAPEX Pressure requirement ab Nybro can go from 78 to 54 bar OPEX: Approximately DKK 40 million per year. Dato - Dok.nr. 24

25 Conclusions Reducing pressure ab Tyra and ab Nybro is possible Compressor cost & emission savings are likely Lower pressure in Nybro may make onshore treatment more attractive? DUC/MOG, DONG Energy and other gas explorers can base further studies Energinet.dk needs to conduct further studies How to handle lower pressure and variations in real life? Can Energinet.dk assist with gas quality conversion? Dato - Dok.nr. 25

26 Highlights from Energinet.dk s comparative studies Date - Doc. no. 2

27 UK Recovery Maximisation Policy United Kingdom UK expects growth but seems to have passed its peak recovery UK s infrastructure is in private ownership and softly regulated Like Denmark, UK expects to be able to recover more oil and gas with a new national strategy Sir Ian Wood s (politically well received) 2014 report recommends: A new shared strategy for maximising economic recovery Creation of the new arm s length Oil Gas Authority Greater collaboration by industry in areas such as development of regional hubs, sharing of infrastructure and reducing the complexity and delays in current legal and commercial processes 28 May 2014 Offshore Forum 27

28 NL Recovery Maximisation Policy Netherlands Like UK and DK, NL seems to have passed its peak recovery but seems to have a success with marginal production due to a clear strategic focus NL s offshore infrastructure is in private ownership and softly regulated (Energinet.dk has not been able to obtain public netcodes) NL has a proactive North Sea state fund (EBN) which participate up to 40% and seems to go actively into the commercial aspects Although NL off/onshore infrastructure is clearly separated, NL focus on maximisation of field production, marginal field production, treatment and separation seems to be much more optimised than in e.g. UK and Denmark 28 May 2014 Offshore Forum 28

29 N Recovery Maximisation Policy Norway Norway s production seems to be near its peak In 2003 Norway made a successful change of strategy from sub-optimisation to super-optimisation N s infrastructure is merged into one regulated system for gas and gas treatment, Gassled, which is owned by users and pension funds and controlled, developed and offered to the North Sea players by a Norwegian non-profit state ISO, Gassco Like NL and DK, N has a state North Sea fund, Petoro The Norwegian oil and gas authority is very active both in policy and in the individual recovery licenses Gassco perform annual processes for super optimisation of the infratructure for all producers 28 May 2014 Offshore Forum 29

30 Highlights from comparative offshore study Gassled DONG Naturgas Balancing period Daily Hourly Balancing info Daily Hourly Balance settlement In kind Reduced flow / 50% of TTF price Balance and maintenance Lineflex if planned maintenance Possibility to purchase gas at GTF if unplanned maintenance Gas quality blending Specified Possible Gas quality treatment Specified Possible Gas quality separation Specified NA Wet gas Possible NA Gas quality liability Operator/collective Shipper (same as onshore in DK) Onshore coord. capacity NA Yes Flex capacity products Within Day + Opflex Within Day Transparent and regulated processes Plans, studies, open season, etc. NA 28 May 2014 Offshore Forum 30

31 Highlights from comparative onshore study GTS / Gasunie * Energinet.dk ** Balancing period Hourly + ongoing balance Daily + cashed out daily Balancing info Hourly Partly Hourly / Partly Daily Balance settlement Market price +/- 0,4% Market price +/- 0,5% Liquid hub TTF is EU top-liquid Less liquid, follows TTF Gas qual. blending Possible NA Gas qual. treatment Possible NA Gas qual. separation Possible NA Wet gas Possible NA Gas qual. liability Shipper Shipper Offshore coord. capacity NA Yes Flex capacity products NA Within-Day Transparent and regulated processes Plans, studies, open season, etc. Plans, studies, open season, etc. * GTS balancing regime as of June , ** Energinet.dk balancing regime as of October May 2014 Offshore Forum 31

32 Baltic-Polish- Norwegian perspectives Date - Doc. no. 2

33 A Possible Norwegian-Polish transit route? 33

34 The tariff pancaking death RIP 34

35 The market zone alternative 35

36 Key Upstream Integration Messages Maximising Recovery = Making it easy and economic for all potential stakeholders Making it easy and economic for all potential stakeholders = Easing transparency, physical and commercial access Easing transparency, physical and commercial access = Making simple and flexible integrated stakeholder solutions

37 Greenstream integration Making Gas Part of the EU Energy Future means Making a Green Gas Market Søren Juel Hansen sjh@energinet.dk

38 Who is? +700 employees 1.5 billion EUR/y Non-profit Danish Electricity TSO State-owned Independent board Exchange co-owner Renewables PSO Gas TSO Gas storages Renewable Gas and Electricity Certificate body

39 Greenstream Integration Energinet.dk Gas Aims FOCUS OF TODAY According to the gas supply act: 1. Security of Supply 2. Market Development 3. Climate and Environment Implicit aims: 4. Maximise the socio economic Recovery (follows from the decision making Danish Energy Agency report on Ellund-Egtved from the Spring 2010) 5. Support the always current energy policy (follows from Energinet.dk s 100% state ownership) 28 May 2014 Offshore Forum 39

40 Energinet.dk's role in the green transition We integrate more wind, sun and biogas while maintaining the security of supply

41 Maximising Green Transition Means Maximising the Green Value for Green Gas Producers and Green Gas Consumers

42 How to make gas green We have a CH4+ gas system not just a natural gas system CH4 Biogas is now mature technology and is subsidised and injected into many gas systems Gasification of e.g. wood is on the way back and based on more and more sophisticated technologies (Examples are AU-VUT (Güssing+Oberwart), F-GAYA, D-ZSW and Blue Tower, NL-ECN (Milena+Olga), US- Great Point Energy, SF-Carbona, S-Chalmers, GOBIGAS, CORTUS-WoodRoll and E.ON-Bio2G, US-GreatPoint Energy, DK-Pyroneer and Haldor Topsoe) Next is power2gas from renewable electricity (H2) and the CO2 we remove from biogas or from CCS demonstration is ongoing (D-RH2-WKA, Audi, E.ON, Power2Gas Werlte, Power2Gas Morbach, juwi, Solarfuel, Fraunhofer IWES, ZSW, EWE, Enertrag Hybridkraftwerk, Total, Vattenfall, Deutsche Bahn, H-tec, DVGW, IOLITEC, Outotec, Engler- Bunte-Institut, EnBW Energie, US-Electrochaea, DK-Electrochaea.DK, Haldor Topsoe, HIRC, DTU, GreenHydorgen) Adding pure Hydrogen (H2) is also possible demonstration is ongoing and it can make gas more low-cabon (Nl-Greenpeace-Gasunie, F-GRTGaz, DK-Energinet.dk )

43 How to make gas green We have a CH4+ gas system not just a natural gas system CH4 Biogas is now mature technology and is subsidised and injected into many gas systems Gasification of e.g. wood is on the way back and based on more and more sophisticated technologies (Examples are AU-VUT (Güssing+Oberwart), F-GAYA, D-ZSW and Blue Tower, NL-ECN (Milena+Olga), US- Great Point Energy, SF-Carbona, S-Chalmers, GOBIGAS, CORTUS-WoodRoll and E.ON-Bio2G, US-GreatPoint Energy, DK-Pyroneer and Haldor Topsoe) Next is power2gas from renewable electricity (H2) and the CO2 we remove from biogas or from CCS demonstration is ongoing (D-RH2-WKA, Audi, E.ON, Power2Gas Werlte, Power2Gas Morbach, juwi, Solarfuel, Fraunhofer IWES, ZSW, EWE, Enertrag Hybridkraftwerk, Total, Vattenfall, Deutsche Bahn, H-tec, DVGW, IOLITEC, Outotec, Engler- Bunte-Institut, EnBW Energie, US-Electrochaea, DK-Electrochaea.DK, Haldor Topsoe, HIRC, DTU, GreenHydorgen) Adding pure Hydrogen (H2) is also possible demonstration is ongoing and it can make gas more low-cabon (Nl-Greenpeace-Gasunie, F-GRTGaz, DK-Energinet.dk )

44 How to make gas green We have a CH4+ gas system not just a natural gas system CH4 Biogas is now mature technology and is subsidised and injected into many gas systems Gasification of e.g. wood is on the way back and based on more and more sophisticated technologies (Examples are AU-VUT (Güssing+Oberwart), F-GAYA, D-ZSW and Blue Tower, NL-ECN (Milena+Olga), US- Great Point Energy, SF-Carbona, S-Chalmers, GOBIGAS, CORTUS-WoodRoll and E.ON-Bio2G, US-GreatPoint Energy, DK-Pyroneer and Haldor Topsoe) Next is power2gas from renewable electricity (H2) and the CO2 we remove from biogas or from CCS demonstration is ongoing (D-RH2-WKA, Audi, E.ON, Power2Gas Werlte, Power2Gas Morbach, juwi, Solarfuel, Fraunhofer IWES, ZSW, EWE, Enertrag Hybridkraftwerk, Total, Vattenfall, Deutsche Bahn, H-tec, DVGW, IOLITEC, Outotec, Engler- Bunte-Institut, EnBW Energie, US-Electrochaea, DK-Electrochaea.DK, Haldor Topsoe, HIRC, DTU, GreenHydorgen) Adding pure Hydrogen (H2) is also possible demonstration is ongoing and it can make gas more low-cabon (Nl-Greenpeace-Gasunie, F-GRTGaz, DK-Energinet.dk )

45 How to make gas green We have a CH4+ gas system not just a natural gas system CH4 Biogas is now mature technology and is subsidised and injected into many gas systems Gasification of e.g. wood is on the way back and based on more and more sophisticated technologies (Examples are AU-VUT (Güssing+Oberwart), F-GAYA, D-ZSW and Blue Tower, NL-ECN (Milena+Olga), US- Great Point Energy, SF-Carbona, S-Chalmers, GOBIGAS, CORTUS-WoodRoll and E.ON-Bio2G, US-GreatPoint Energy, DK-Pyroneer and Haldor Topsoe) Next is power2gas from renewable electricity (H2) and the CO2 we remove from biogas or from CCS demonstration is ongoing (D-RH2-WKA, Audi, E.ON, Power2Gas Werlte, Power2Gas Morbach, juwi, Solarfuel, Fraunhofer IWES, ZSW, EWE, Enertrag Hybridkraftwerk, Total, Vattenfall, Deutsche Bahn, H-tec, DVGW, IOLITEC, Outotec, Engler- Bunte-Institut, EnBW Energie, US-Electrochaea, DK-Electrochaea.DK, Haldor Topsoe, HIRC, DTU, GreenHydorgen) + Adding pure Hydrogen (H2) is also possible demonstration is ongoing and it can make gas more low-cabon (Nl-Greenpeace-Gasunie, F-GRTGaz, DK-Energinet.dk )

46 How to make gas green We have a CH4+ gas system not just a natural gas system CH4 Biogas is now mature technology and is subsidised and injected into many gas systems Gasification of e.g. wood is on the way back and based on more and more sophisticated technologies (Examples are AU-VUT (Güssing+Oberwart), F-GAYA, D-ZSW and Blue Tower, NL-ECN (Milena+Olga), US- Great Point Energy, SF-Carbona, S-Chalmers, GOBIGAS, CORTUS-WoodRoll and E.ON-Bio2G, US-GreatPoint Energy, DK-Pyroneer and Haldor Topsoe) Next is power2gas from renewable electricity (H2) and the CO2 we remove from biogas or from CCS demonstration is ongoing (D-RH2-WKA, Audi, E.ON, Power2Gas Werlte, Power2Gas Morbach, juwi, Solarfuel, Fraunhofer IWES, ZSW, EWE, Enertrag Hybridkraftwerk, Total, Vattenfall, Deutsche Bahn, H-tec, DVGW, IOLITEC, Outotec, Engler- Bunte-Institut, EnBW Energie, US-Electrochaea, DK-Electrochaea.DK, Haldor Topsoe, HIRC, DTU, GreenHydorgen) Adding pure Hydrogen (H2) is also possible demonstration is ongoing and it can make gas more low-cabon (Nl-Greenpeace-Gasunie, F-GRTGaz, DK-Energinet.dk ) + +H2? Dato - Dok.nr

47 Green Gas Value Maximisation is all about Access to EU Gas Market Prices Grid access Certificate Green Value Maximisation 47 r

48 Access to EU Gas Market Prices Grid access Securing grid access secures that green gas can be stored and utilised in a market based optimal way Certificate... without loss of energy Green Value Maximisation

49 Access to EU Gas Market Prices Grid access Securing EU gas market access to green gas production secures that Certificate a liquid spot gas market price Green Value can be obtained by Maximisation green gas producers and consumers

50 Access to EU Gas Market Prices Grid access Securing EU recognised green gas certificates can maximise the additional green value Certificate Green Value Maximisation

51 Green Gas Value Maximisation is all about Access to EU Gas Market Prices Grid access Certificate Green Value Maximisation

52 We all know how to maximise gas value for producers, consumers and society But how about maximising the green value?

53 Issuance of Green Gas Certificates Energinet.dk s it system handles the metered data received 1 MWh = 1 certificate Biogas producer Upgrading plant Distribution company Certificate account holder

54 Structure of a Green Gas Certificate Example of the electronic identification ENDK Year Month Day Producer Number

55 Biogas producer Life Cycle of Green Gas Certificates Certificate account holder A Certificate transfer Certificate account holder B Certificate transfer Certificate account holder C Cancellation - Export - Denmark Expiry Consumer Request for registration Opening of account and issuing of certificates Information about transfer to certificate register Information about cancellation to certificate register Certificate register

56 Biogas producer Green Gas Challenge 1 Certificate account holder A Certificate transfer Certificate account holder B Certificate transfer Certificate account holder C Cancellation - Export - Denmark Expiry Consumer Green Gas Certificate Recognition: Industries can use certificates for quota requirement recognition and CSR purposes But certificates can not be used to fulfil e.g. EU renewable transport fuel requirements and e.g. local requirements to renewable energy supply for heating

57 Biogas producer Green Gas Challenge 2 Certificate account holder A Certificate transfer Certificate account holder B Certificate transfer Certificate tradability and market value: Can be traded bilaterally Can be traded over some borders but not all Certificate account holder C Cancellation - Export - Denmark Expiry Consumer No multilateral trading facility in EU - Producers and consumers do not know the market value of the green certificates

58 Key Greenstream Integration Messages Making Gas Part of the EU Energy Future = Converting Gas from Fossil to Green Converting Gas from Fossil to Green in a Market Based Way = Making a Green Gas Market Making a Green Gas Market = Recognising the Green Value + Making it Tradable

59 Read more at energinet.dk Søren Juel Hansen