Study reveals four potential electrification paths for oil and gas assets

Study reveals four potential electrification paths for oil and gas assets
Study reveals four potential electrification paths for oil and gas assets

A study, undertaken by the Net Zero Technology Centre, Cygnus JV – comprising Neptune Energy and Spirit Energy – and Sealand Projects Ltd to assess potential pathways for electrification of oil and gas rigs, has found four options to achieve this. However, the commercial viability of electrification presents a challenge.

The Net Zero Technology Center, in collaboration with Cygnus JV and Sealand Projects, announced the findings of its study on the electrification of oil and gas assets in the southern North Sea on Thursday, explaining that it explores the potential of electrification of an offshore platform with electricity from offshore windusing the Neptune Swan Complex in the Southern North Sea in the UK as a case study.

The Cygnus field started its first gas production in 2016 and it has a lifespan of more than 20 years. The land hosts two platforms – Alpha Swan and swan well done – and the first consists of three platforms connected by bridges while the second is an unmanned satellite platform. Cygnus’ partners are Neptune Energy (operator, 38.75%) and Spirit Energy (61.25%).

Mungo McLeishDirector of Global Operations and Electrification at Neptune Energy, said: “We continue to explore opportunities to reduce emissions as part of our commitment to store more carbon than is emitted by our operations and the use of our sold products by 2030. oil, gas and renewables can improve our understanding of the opportunities and challenges associated with the electrification of assets in the southern North Sea.

According to these industry players, the Southern North Sea is home to many planned and existing offshore wind farms, increasing potential sources of energy for platform electrification. Therefore, there will be 6.8 GW of wind power within 50 km of Cygnus by 2030, increasing to 14.1GW within 100 km of the asset, making it a suitable case study for studying offshore wind electrification.

Kenneth CunninghamSenior Project Engineer, Sealand Projects Limited, said: “In seeking to achieve industry decarbonization goals, the electrification of platforms has a key role to play. Tying up with a wind farm is an innovative and challenging opportunity, however, the level of engagement from regulators and industry was extremely encouraging, and we remain grateful for the support and guidance. It is through this collaboration that the opportunities for electrification, and ultimately the path to net zero, can be realized. »

Additionally, four electrification options were identified during this study and an assessment of each was undertaken using the technical rather than economic life of the asset. The four options examined that offer a potential route to electrification include local offtake with a power purchase agreement; local levy with an offshore transport owner; reassignment of turbines; and dedicated offshore wind farms serving a platform.

Graeme RogersonSenior Project Manager, Net Zero Technology Centre, commented: “The size of the prize is important if we can establish a viable way to leverage existing infrastructure to supply power to offshore oil and gas assets. We have a number of hurdles to overcome, including regulatory challenges and establishing a way to make one of the four proposed options economically viable. However, levels of stakeholder engagement have been extremely promising and there is a definite appetite to maximize the opportunity for electrification of oil and gas assets.

As the North Sea Transition Agreement (NSTD) has set a target of reducing offshore generation emissions by 50% by 2030, the majority of these emissions result from offshore electricity generation from open-cycle gas turbines (OCGT), thus supplying this energy. of offshore wind has the potential to deliver a large portion of the emissions savings targeted under the NSTD. Although, “a big challenge” commercial viability of electrification remains based on high CAPEX costs and a direct impact on the Levelized Cost of Energy (LCOE).

Malcolm OffordUK Government Minister for Scotland, said: “The electrification of offshore platforms will help reduce emissions and facilitate the North Sea’s transition to a net zero economy. With its wealth of expertise and experience, the North East of Scotland is leading the world in decarbonising the energy industry while creating new jobs and investment. The UK Government is investing £90million in the Net Zero Technology Center to support this and improve communities across Scotland with over £2billion.

Regarding recent developments related to wind-powered oil and gas production facilities, it should be noted that an oil and gas operator and a green energy and infrastructure developer signed a new agreement last month, enabling the creation of one of the UK’s first wind-powered oil and gas production facilities.

As explained at the time, the supply of wind energy will remove up to 20,000 metric tons of CO2 annual emissions from the offshore generation facility and demonstrate the use of floating offshore wind to decarbonize oil and gas production.

. study reveals four ways potential delectrification for active oil gas

. Study reveals potential electrification paths oil gas assets

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