P1254325958AcUjP

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WP4 Assessing capacity for CO2 storage in
selected regions of China Jonathan Pearce 23rd
October 2008
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Outline

• Introduction to WP4
• Objectives
• Regional studies
• Site assessments
• Outputs

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WP4 Partners

• UK
• British Geological Survey (BGS)
• BP
• Heriot Watt University
• Shell

• China
• China University of Petroleum (CUP) Beijing and
  Huadong
• Institute of Geology and Geophysics, Chinese
  Academy of Sciences (CAS)
• China United Coalbed Methane Co Ltd (CUCBM)
• Jilin Oilfield
• PetroChina

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WP4 Storage Options

• Objectives
• Build capacity in China for evaluating storage
  potential and performing appropriate first stage
  site characterisation for site selection.
• Estimate the future potential for CO2 storage.
• Mapping of CO2 sources and potential sinks will
  be carried out.
• Tasks
• Regional basin assessments of storage potential
  for EOR, ECBM and saline formations
• Site-selection and assessments for demonstration
  of storage.
• GIS-based decision support tool will be developed.

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Storage Options

• Saline formations
• Songliao Basin
• As part of enhanced oil recovery operations
• Songliao Basin (Jilin and Daqing oilfields)
• Subei Basin (onshore only, Jiangsu oilfield)

• As part of enhanced coalbed methane production
• Qinshui Basin

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WP4 Progress

• WP4 launch meeting in January 2008
• Agreed timetable for project
• Agreed basins for assessment
• Basin methodologies workshop in May 2008
• Agreed methodologies for regional basin
  assessments
• Reviewed initial results for all regions
• Basin Assessment Conference in July 2008
• Joint meeting with COACH and GeoCapacity
• Reviews of preliminary results for all current
  projects estimating storage capacities in China.
• Interim report completed August 2008

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Resource-Reserve pyramid
Carbon sequestration leadership forum (CSLF) 2007
Theoretical Capacity Assumes entire space is
accessible and utilised to its full capacity.
This is the maximum upper limit for storage
potential. Effective Capacity (previously
known as realistic capacity) Similar to
theoretical capacity, but with a number of
geological and engineering limitations applied.
Practical Capacity subset of effective capacity
which is gained by considering non-geological
components (e.g. economics, regulation, legal
infrastructure). Matched Capacity subset of
practical capacity and is obtained by matching
sources to suitable sites.
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Daqing oilfield estimated capacities
Note No net to gross ratio applied Note No net to gross ratio applied Note No net to gross ratio applied Field-specific estimate1 (Mt)
CSLF effective capacity (Mt) CSLF effective capacity (Mt) CSLF effective capacity (Mt) Field-specific estimate1 (Mt)
Oil field 1 2 10
Lamadian 11 22 109 149
Saertu 16 31 157 226
Xingshugang 5 10 50 72
Gaotaizi 0.1 0.1 0.6 1
Taipingtun 0.3 0.6 2.6 4
Putaohua 0.4 0.5 4.4 6
Aobaota 0.1 2.6 0.7 1
total 32 65 324 459

1CUP methodology - Assumes volumetric replacement
for oil and dissolution in both oil and formation
water
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Jillin Oilfields estimated capacities
Note No net to gross ratio applied Note No net to gross ratio applied Note No net to gross ratio applied
CSLF effective capacity (Mt) CSLF effective capacity (Mt) CSLF effective capacity (Mt) Field-specific estimate1 (Mt)
Oil field 0.01 0.02 0.10
Hongang 0.30 0.60 3.00 3.7
Xinli 0.63 1.25 6.25 8.2
Mutou 0.19 0.39 1.95 2.7
Qianan 1.35 2.70 13.50 18.4
Yingtai 1.09 2.18 10.92 14.9
totals 4 7 36 47.9
1CUP methodology - Assumes volumetric replacement
for oil and dissolution in both oil and formation
water
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CUP methodology assumptions

• Assumptions
• Closed oil reservoir, sealed by faults and
  impermeable layers
• When CO2 is injected, oil and water are produced
  at the wells and the pressure is maintained
• Pore volume of aquifers is equal to that of
  overlying oil field (data on aquifers is often
  not available publicly)

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Binhai Uplift
Troughs
? Jinhu ? Gaoyou ? Qintong ? Hai'an ? Baiju ?
Yancheng ? Funing ? Liannan ? Lianbei ? Hongze
Yanfu Depression
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?
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Jianhu Uplift
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Dongtai Depression
Caoshe Oilfield
--Oilfield
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Jiangsu Oilfield

• Jiangsu oilfield is operated by Sinopec, with
  light to medium oils, good for near-miscible CO2
  flooding
• There are 34 proved big oilfields in Jiangsu
  Oilfield, most oil reservoirs are 2000-3000
  meters deep
• Cumulative proven OOIP is 196.24 Million tons
• Proven OGIP is over 8 billion m3
• Developed and producing reserves is 186 Million
  tons.
• Several CO2 miscible displacements have been
  tried in the field with good EOR response.

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Assessment results

• 108 oil reservoirs of Jiangsu Oilfield have been
  assessed.
• Total CO2 storage potential is 20.4614 Mt .
• 75 reservoirs are suitable for CO2 EOR.
• Calculation assumes CO2 trapping during EOR
  process only
• Storage capacity of 15.76 Mt during the EOR
  process
• 33 reservoirs are suitable for CO2 storage.
• Based on volume of recoverable reserves
• Storage capacity of 4.70 Mt

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Assessment results

• For all the 108 reservoirs in Jiangsu oilfield,
  the total OOIP is 132.37 Mt, and
• For the 75 reservoirs suitable for CO2 EOR, the
  OOIP is 84.32 Mt, and the CO2 storage potential
  during EOR process is 15.76 Mt. the incremental
  oil production is 4.67 Mt, and the incremental
  recovery factor is 5.71. That is equivalent to
  0.3t oil due by 1t CO2 injection .
• For the 33 reservoirs unsuitable for CO2 EOR, the
  OOIP is 48.05 Mt, the CO2 storage potential in
  depleted reservoirs is 4.70 Mt.

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Based on OGIP of 8x109 m3 we can further estimate

• If we assume
• OGIP equates to a useable pore volume and gas is
  produced
• The OGIP figure is at surface conditions and
  therefore is corrected for volume in reservoir (a
  gas expansion factor is assumed to be 200 based
  on North Sea experience)
• A recovery factor of 70 (based on North Sea
  experience) and700 kgm-3 CO2 density
• Then total storage volume is 20 Mt
• This may refined if further site-specific data
  becomes available.

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Stratum of Songliao Basin
well1
well3
well2
K2n
K2y
K2qn
K2q
main saline aquifer Qingshankou Fm
The stratigraphic sequences are dominated by
Cretaceous fluvial and lacustrine strata with
volcanic and volcaniclastic rocks. 5
hydrostratigraphic units classified from bottom
to top JD, K2q, K2qn, K2y, K2n
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Effective storage capacity of Deep saline
aquifers in Songliao Basin

• Songliao Basin (260,000 km2)
• Average height 380m
• Average reservoir porosity 10
• CO2 density at reservoir conditions 700 kg/m3
• Total regional effective storage capacity
  

Note No net to gross ratio applied Note No net to gross ratio applied Note No net to gross ratio applied
CSLF effective capacity (Mt) CSLF effective capacity (Mt) CSLF effective capacity (Mt)
1 2 10
69160 138320 691600
(Storage coefficient of 1210 applied)
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Next steps

• Finalise basin reports
• Site assessments and reports
• Recommended sites for feasibility studies in
  Phase 2

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Conclusions

• Jilin, Daqing and Jiangsu oilfields offer
  variable potential for CO2 storage
• They provide some storage potential as niche
  opportunities for CO2-EOR especially in Jilin
  and Daqing
• Small pilot CO2-EOR projects are already being
  undertaken
• As such may provide incentives for a small-scale
  pilot demonstration of CCS.
• Theoretical calculations for a selected saline
  aquifer suggests that the Qingshankou Formation
  could offer very large storage capacities
• However, this is based on very low data density
  (concentrated around oilfields)
• Further primary data acquisition is necessary to
  refine this estimate.
• Comparisons with underlying reservoirs suggest
  specific field geology likely to be equally
  complex.

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Jonathan PearceBritish Geological Survey,
United Kingdom.Email jmpe_at_bgs.ac.ukTel 44
(0)115 9363222