Petroleos Mexicanos Methane to Markets (M2M) Mexico. Oil and Natural Gas Country Profile Tomsk, Russia September 13th., 2005 0
Agenda 1. Mexico.. Oil and Natural Gas Industry Overview 2. Key Barriers and Needs to Reduce Methane 3. Current Projects 4. Project Opportunities 1
1. Mexico.. Oil and Natural Gas Industry Overview 2
México. Oil and Natural Gas Industry Overview Petróleos Mexicanos (PEMEX), a state- owned company, is in charge of the exploration for and extraction of petroleum and the processing and a distribution of oil and gas industry activities in Mexico. PEMEX represents Mexico in the Oil and Natural Gas Industry s Subcomittee for the Methane to Market Initiative, due to the agreement between the t Ministry of Energy and the Ministry of the Environment and Natural Resources. In terms of sales and assets, Petróleos Mexicanos is the most important company in Mexico and Latin America. In addition to its strategic contribution to the economy and national development, its current hydrocarbons production levels place it in an outstanding position at the international level. PEMEX was ranked ninth in the oil and natural gas industry and fifteenth as natural al gas world producer. To carry out its operations, PEMEX has impressive infrastructure facilities for onshore and off-shore hydrocarbons production, an extensive pipeline network, compression stations and gas processing centers throughout the Mexican M territory. 3
Petróleos Mexicanos. Subsidiaries Pemex Exploración y Producción: Oil and gas Production Pemex Refinación: Refining Integrated oil and gas company 9 Oil reserves 9º Gas reserves 28º Crude oil production 3º Gas production 15º Refining capacity 13º PPQ * Petroleum Intelligence Weekly Pemex Gas y petroquímica Básica: Oil and gas Production Pemex Petroquímica:Petrochemicals
México. Oil and Natural Gas Industry Overview Main indicators, 2004: Natural gas production Gas pipelines Gas processing centers 4,573 MMpcd 15,554 Kms. 12 Crude oil production Crude oil processing Gasoline production Fuel oil production Diesel production Ethylene production Ammonia production Aromatic production 3,824 Mbd 1,303 Mbd 467 Mbd 368 Mbd 325 Mbd 1,007 Mt 681 Mt 594 Mt 5
Natural Gas Production by Region 6000 5000 MMPCD 4000 3000 2000 1000 0 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 years Northeast Marine Region Southern Region Southw est Marine Region Northern Region 6
Natural Gas Availability MMPCD 7000 6000 5000 4000 3000 2000 1000 0 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Production PGPB 7
Natural Gas Distribution MMPCD 7000 6000 5000 4000 3000 2000 1000 0 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Ow n Consumption to the atmosphere Net gasket CO2 injected to oil fields Station and Pipeline condensation To Pemex Refinación To PGPB 8
Petróleos Mexicanos: infrastructure PEMEX industrial activities are developed in more than 3 thousand facilities located throughout the national territory. Camargo Monterrey Reynosa Cadereyta 355 5,217 185 12 8 17 6 9,070 9,704 15,554 2,410 77 15 19 9 Producing fields Producing wells Offshore platforms Gas processing centers Petrochemical complexes Liquid gas distribution terminals Refinieries Product pipeline (km) Oil pipeline (km) Gas pipeline (km) Other ppelines (km) Storage and distribution terminals Maritime terminals Own tanker ships Leased tanker ships Madero Producing fields Refineries Petrochemical centers Gas processing centres Sales centers Pipelines Maritime routes Salamanca Guadalajara Poza Rica Tula Matapionche Cd. México Pajaritos Morelos San Martín Texmelucan Cosoleacaque Minatitlán N. Pemex Cactus Cangrejera Salina Cruz Cd. Pemex 9
México. Oil and Natural Gas Industry Overview Methane emissions in the oil and natural gas infraestructure (MMTCO2e) Country Russia United States Ucrania 1990 335.3 147.6 71.6 2000 252.9 138.2 60.2 2010 273.5 144.8 39.4 In 2000, estimates in Mexico for methane emissions from oil and natural gas infrastructure were 15.4 MMTCO2e* (1.2 % of world emissions), and may increase to 22.1 MMTCO2e* in 2010. Venezuela 40.2 52.2 68.0 Uzbekistán 27.2 33.7 42.9 India 12.9 24.4 54.9 Canadá 17.1 23.3 23.8 México 11.1 15.4 22.1 Argentina 8.0 13.7 30.5 Thailand 2.9 8.6 15.9 China 0.9 1.5 4.9 *Source: US EPA 10
2. Key Barriers and needs to reduce methane 11
2. Key Barriers and needs to reduce methane PEMEX suffers budget restrictions that delay projects to save methane gas in his facilities. We assume that the Methane to Market Initiative can help to addresses this barrier by providing economic and technical resources. 12
III. Existing Projects 13
GHG reductions. Opportunity areas in PEMEX 2005-2008 PEMEX has identified projects in each opportunity area: PEP PR PGPB PPQ Cogeneration 2 2 1 CO2 injection 3 2 1 Energy efficiency 39 12 16 11 Total 75 Fugitive emissions reductions Gas flairing reductions Fuel substitution 2 20 3 1 10 3 Hermanos 3 3 1 7 Vapours 4 4 Carbon sequestration 1 1 Total projects 75 22 15 18 20 Estimated reduct. MtCO 2 /year 5,814 3,794 447 84 1,519 14
IV. Project Opportunities 15
IV. Project Opportunities To improve the current methodology to estimate methane emissions in gas processing facilities and pipelines. (SISPA/AP-42) Methane emissions measurement to identify sources of emissions and leakages Implementation of specific projects devoted to eliminate emissions and leakages. Natural Gas Star Program implementation 16
1 Fugitive emissions opportunity Region RN Opportunity name Optimization of Compression Station Burgos 17
Upgrading of compression stations RN Location Compression facilities in Burgos, located at Tamaulipas state. Objective To reduce fugitive emissions from measurement, control valves and operation processes in the stream gas of the compression stations. Annual Reduction Emission reduction range MtCO2e* 91-62 Investment MMpesos 80 Starting date 2007 Emission estimates and analysis *Thousand tons of carbon dioxide equivalent 18
4 Vapour opportunities Region RS RS RMSO RS Opportunity name Batería a Iride optimization Batería a Samaria II optimization Low pressure motocompressors installation for vapour handling Batería a Giraldas vapour recovery 19
Batería Iride optimization Location Batería Íride is located in the Southern region, in Cunduacán municipality at the ejidos area of Santa Isabel, Los Cedros, Dos Ceibas and Gregorio Mendez, in the state of Tabasco. Objective To properly separate and stabilize oil production through the operation of a tower with plates operated at atmospheric pressure to minimize vapour releases during the atmospheric tanks storage stage that are vented to the atmosphere. Anual Reduction Emission reduction range MtCO2e* 172-117 Investment MMpesos 80 Starting date 2007 Project Idea Note in Process *Thousand tons of carbon dioxide equivalent 20
Batería Iride s stability crude oil tanks 200 000 BLS capacity 21
Batería Samaria II optimization Location It is located in the Southern region in the Ranchería Cumuapa of Cunduacán municipality, in Tabasco state, 17 kilometers west of Villahermosa city. Objective To porperly separate and stabilize oil production through the operation of a tower with plates operated under empty pressure, to minimize vapour releases during the atmospheric tanks storage stage. Anual Reduction Emission reduction range MtCO2e* Investment MMpesos Starting date Project Idea Note in 150-102 90 2007 Process *Thousand tons of carbon dioxide equivalent 22
Batería Samaria II stability crude oil tanks 200 000 BLS Capacity 23
Low pressure motocompressors installation for vapour handling Location Compression station at the hydrocarbons transport and distribution office of the Southeast Marine Region. Objective To avoid flaring of vapours that produce black smoke due to high liquid content. Anual Reduction Emission reduction range MtCO2e* 210-143 *Thousand tons of carbon dioxide equivalent Investment MMpesos 186 Starting date 2006 Emission estimates and analysis 24
Batería Giraldas vapour recovery Location It is located near Giraldas field from Activo Integral Muspac, at Reforma Chiapas municipality. Objective To have a stability crude oil system through elevated tanks and vapour recovery operated at operation pressure. To have vapour recovery and compress it to send it to the compression station. Anual Reduction Emission reduction range MtCO2e* Investment MMpesos Starting date Costs update and validation 168-114 90 2007 *Thousand tons of carbon dioxide equivalent 25
Batería Giraldas vapour recovery 26
Potential CO 2 emission reduction projects Pemex Gas y Petroquímica Básica LPG Description Operation start up Investmentt otal (MM$) Benefits CO2 reduction (thousands ton/year year) Matapionche Amina heater upgrade.- Substitute the actual heater for a more efficient one, avoiding NOx and COx emissions to the atmosphere to comply with current regulation. 2006 6.1 2 MM$ anual from fuel consumption 1.63 Matapionche Purchasing of elevated and pit burners.- Substitute the pit and elevated burner to make more efficient the hydrocarbon flaring and thus reducing NOx and Cox emissions to the atmosphere. 2007 10.0 1 MM$ anual from fuel consumption 0.72 Pipelines Industrial Safety, Physical and Environmental Protection.- Evaluate the fugitive emissions from organic compounds, quantitative and qualitative analysis from internal combustion gases of compression equipment. 2005 4.8 To updtate the universe of possible emission sources, to establish inspection plans, monitoring, corrective maintenance and prevention and update the statistics SISPA control. 4.40 27