Flared and Stranded Gas Solutions: Mini LNG Plant

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Flared and Stranded Gas Solutions: Mini LNG Plant

First, there was horizontal drilling, then massive multistage hydraulic fracturing. Then "smart oilfield" with factory drilling and remotely operated operations dramatically improved productivity.<br /><br /><div class="MsoNormal">This was good, except that production outstripped pipeline capacity, especially for gas. It also glutted already saturated markets, resulting in a price collapse. The best thing to do with gas was either to flare it or not produce it all, and neither option was good for companies that counted on cash flow from operations to pay for their capital expenditures and private equity financing. </div><div class="MsoNormal"><br /></div><div class="MsoNormal">Martin was in a bind. He raised money for two different projects. One was a plan to go into the Panhandle Gas Field and drill horizontal wells to liberate the gas left behind by vertical drilling. </div><div class="MsoNormal"><br /></div><div class="MsoNormal">"Fish in a barrel," he gloated inwardly. And, it worked.<span style="mso-spacerun: yes;"> </span>What he had not counted on was the terrible condition of the 40-year-old pipelines that had weathered price collapses and negligent owners.<span style="mso-spacerun: yes;"> </span>He had "stranded gas" unless he wanted to pay the midstream company to update the system. </div><div class="MsoNormal"><br /></div><div class="MsoNormal">"Good grief," he said.<span style="mso-spacerun: yes;"> </span>"I might as well buy my own midstream company." But, buying a pipeline did not make sense. After all, he did not know how long the gas production would hold up. or at what production volume. </div><div class="MsoNormal"><br /></div><div class="MsoNormal">Martin's other project was equally challenging. He drilled horizontal wells in the Antrim Shale in Michigan, which was really close to the hungry market of Chicago. But, the field was not huge, and there were no nearby pipelines. Given that the wells had a productive life of about 36 months, he could continue to time the development of the new wells to compensate for the depleting ones for at least 5 or 6 years. But, after that, unless they found another field, there would be nothing to produce into a pipeline.<span style="mso-spacerun: yes;"> </span>Given those conditions, no midstream companies would touch him. </div><div class="MsoNormal"><br /></div><div class="MsoNormal">Martin found a solution:<span style="mso-spacerun: yes;"> </span>small-scale, portable LNG facilities</div><div class="MsoNormal"><br /></div><div class="MsoNormal">He decided to contact the company and find out how to put in portable LNG solutions, and instead of putting the produced gas into a pipeline, the produced gas would go to the LNG plant, and then they'd put the liquid natural gas in bottles to sell or put in a warehouse (rather than flaring or not producing at all). </div><div class="MsoNormal"><br /></div><ul style="margin-top: 0in;" type="disc"><li class="MsoNormal" style="mso-list: l0 level1 lfo1;">Texas and Oklahoma Panhandles (old Panhandle Gas Field) </li><li class="MsoNormal" style="mso-list: l0 level1 lfo1;">Marcellus (remote parts of West Virginia and Pennsylvania)</li><li class="MsoNormal" style="mso-list: l0 level1 lfo1;">New Mexico stranded gas</li><li class="MsoNormal" style="mso-list: l0 level1 lfo1;">Utica (remote parts of New York and Ohio) </li><li class="MsoNormal" style="mso-list: l0 level1 lfo1;">Antrim (Michigan)</li><li class="MsoNormal" style="mso-list: l0 level1 lfo1;">New Albany (Indiana)</li><li class="MsoNormal" style="mso-list: l0 level1 lfo1;">Mancos (remote parts of Colorado</li><li class="MsoNormal" style="mso-list: l0 level1 lfo1;">Haynesville (Louisiana, East Texas) </li><li class="MsoNormal" style="mso-list: l0 level1 lfo1;">Fayetteville (remote parts of Arkansas)</li><li class="MsoNormal" style="mso-list: l0 level1 lfo1;">others... </li></ul><div class="MsoNormal">Now Martin is looking for more available gas fields.<br />Contact me him if you'd like to explore the economics of getting a mini-LNG plant on your property.<br /><br /></div><div class="MsoNormal"><br /></div><div class="MsoNormal"><br /></div><div class="MsoNormal"><br /></div><div class="MsoNormal"><br /></div>

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Published on April 01, 2019 10:53

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