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Group 1 Assignment Report (JUNE 18)
Group 1 Assignment Report (JUNE 18)
SEMESTER 02 (2020/2021)
REPORT FOR OPEN-ENDED GROUP PROJECT (SECTION 2 – UTMKL)
PROJECT 1:
HYDROGEN SULPHIDE-FREE DRY GAS PRODUCTION WITH
ELEMENTAL SULPHUR SEPARATION
Title Page
1.0 Introduction 3
2.0 Development Objectives 4
3.0 Development Challenges and Problems 4
3.1 Environment, Health and Safety (EHS) 4
3.2 Operations 5
3.3 Vicinity 7
3.4 Economic 9
4.0 Development Plan 11
4.1 Drilling and Production Site Selection 11
4.2 Risk Assessment 12
4.3 Drilling Considerations 13
4.4 Completions Considerations 15
4.5 Production Considerations 17
4.5.1 Dry Gas 17
4.5.2 Elemental Sulphur 18
4.6 Storage and Transportation 20
4.6.1 Dry Gas 20
4.6.2 Elemental Sulphur 21
5.0 Mind Map 22
6.0 Conclusion 23
7.0 References 24
1.0 INTRODUCTION
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elemental sulphur from the H 2 S gas. The production (both the dry gas and elemental
sulphur) was to be done without sacrificing the AEON’s buildings and infrastructure,
environment and community of the designated area.
This report will strive to highlight challenges and problems facing the
development while making relevant references to academic papers. A mind-map
illustrating the development plan will be presented.
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Secondary Objective: Elemental sulphur production from produced H 2 S .
Both the objectives will need to be achieved with the following considerations:
The drilling and production activity should not pose any serious threat to
life and environment, be it on the vicinity of AEON building and the
designated drilling and production site.
There will be proper prevention, monitoring and control mechanisms in
place to address relevant drilling and production operational hazards.
The existing infrastructure of AEON building and its surrounding vicinity
will not be compromised or vacated to accommodate the drilling and
production activities.
The drilling and production activities should not cause any disturbance to
the socioeconomic affairs and livelihood of nearby residents e.g., noise,
dust, traffic diversion etc.
There are several development challenges and problems associated with the
project. These challenges and problems are highlighted in several sections below:
The objective of the EIA is to minimize the impact of residual effects to as low
as reasonably practical (ALARP). Recommendations are reviewed with reference to
best industry practice, economic, technical, and health and safety considerations to
determine practicability. The severity of consequence is graded according to defined
criteria which consider the nature and scale of sources and effects, the pathways of the
4
effects into the receiving environment and the potential impact or consequence.
(Glasson, J 2012)
5
Figure 2.0: Schematic of Solid Control Management
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onshore drilling operation that negatively influence the reputation of oil and gas
industry. The resulting impacts of these incidences pose a major threat to the future of
the industry due to the potential social, economic, and environmental consequences
associated with the drilling operations (Jong, 2021).
Figure 4.0: Flaring of excess gas that could be dangerous to the community
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Hydrogen sulfide is also considered to be a flammable gas and is explosive under
extreme conditions. Do not allow smoking or hot work in areas where H2S may be
present.
3.3.2 Transportation
Both dynamite and vibriosis activities can lead to noise pollution and an
amount of discomfort for people and a disturbance to local wildlife habitats. In any
explosive handling, the operator is in a weak position and will face both rightful and
ridiculous damage claims to the environment and land access that need to be dealt
with hazardous explosive. During usage of dynamite, if not handle carefully and
pending the quantity at hand can cause havoc if it gets in the wrong hand or
significant damage to the building infrastructure if explosion occurred (Jong, 2021).
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3.4.1 Low Gas Price
Over a decade ago, the based on the economic evaluation, the highest gas price
was 14$/MMBTU but because of the economic crisis in 2008, the gas price was drop
until below 5$/MMBTU. So, the latest gas price based on the past 3 years trend is
around 3.2$/MMBTU and in sensitivity analysis 4$/MMBTU was used in high case
scenario. As forecasted, the gas price in the latest few companies’ official assumption
is 2.7$/MMBTU flat until 2025 and slightly increase to 3.3$/MMBTU in 2030. (IEA,
2019)
9
Figure 7.0: Proposed well location and nearest facilities
Sulphur is one of the most significant agricultural and industrial raw materials
and is considered a strategic product. Sulphur is a nonmetal that is an odourless,
tasteless, and polyvalent which is mostly in the form of yellow crystals and is
obtained from sulphide and sulphate.
As for the sulphur market value is down due to covid-19 pandemic, the
challenge is to sell the sulphur product to the market due to the crisis.
Figure 8.0: Sulphur price market from 2018 to 2020 (Data Intelo, 2021)
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4.0 DEVELOPMENT PLAN
Since the existing AEON building and its surrounding infrastructure cannot be
tampered with for the purpose of the development, an offset, remote location would
have to selected to house the drilling equipment and subsequently, the production site.
For this reason, the following location is proposed as the drilling site:
The proposed drilling site is located 600m northeast in the forest encircled by
the Skudai-Pontian Highway, Jalan Universiti and Jalan Pontian Lama. The selection
of the proposed drilling site can be justified by the following reasons:
The proposed drilling and production site is away from the vicinity of
AEON building and its surrounding residential and commercial estates
(600m displacement northwest). It is in the forest area as shown in Figure
2.0.
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Since Skudai-Pontian highway passes through the forest, there would have
been prior Environmental Impact Assessment (EIA) done to clear away
forest along the highway route. Findings from this EIA could be
complemented with this project’s separate EIA report.
The proposed drilling and production site is close to the Skudai-Pontian
highway. This is advantageous from logistical standpoint as the highway
can be used for transportation of drilling and production equipment, as
well as transportation of dry gas and elemental sulphur.
Once the drilling and production site has been provisionally determined, risk
assessment on various elements of the development will need to be conducted. This
includes risk evaluation from operation, safety, environmental and economic
standpoints. The first two scopes of risk assessment; operation and safety can be done
via Failure Mode and Effects Analysis (FMEA) template. FMEA. FMEA generates a
Risk Priority Number (RPN), which is a product of three ratings for a given risk:
severity, likelihood and effectiveness of present control measure (George et al., 2005).
Higher the RPN number, more pressing the risk is, therefore, adequate mitigation
action should be drafted and acted upon.
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The information on the proposed drilling and production site, along with the
various risk assessment reports, should be provided to the Project Management Office
to aid in the preparation of feasibility study which upon its approval, would call into
action the development plan for the gas and elemental sulphur production.
Drilling a sour gas bearing zone has its own complex challenges in urban
areas. Since the well cannot directly be drilled from the top of the AEON’s building, a
directional well will have to be drilled from the proposed drilling site which located at
600m northeast from the AEON’s building. The diagram below shows the proposed
drilling site positioning and drilling trajectory (J-type well) with plan view:
The proposed drilling site location and drilling trajectory can be updated upon
the availability of geological and subsurface information. Drilling operation in a sour-
gas bearing zone requires considerate planning. as highlighted in API RP 49:
Recommended Practice for Drilling and Well Servicing Operations Involving
Hydrogen Sulfide. Firstly, from the standpoint of operations planning, a thorough
study of the geological and geographical of the pay zone area must be conducted to
obtain vital information about temperatures and pressures (only well depth and
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hydrogen sulphide composition are provided at the time of writing). As hydrogen
sulphide can yield acidic reaction, the drilling mud which will need to be circulated
through the downhole will need to be maintained at alkaline PH level (10.5 to 11) and
treated with upon scavenger reaching the surface to prevent deterioration of quality
(Hossain and Islam, 2018). As the drilling site is located at an offset location from
AEON’s building, wind direction in that location should be considered for quick
dispersion of hydrogen sulphide in the event of leakage from surface equipment such
as shale shakers and mud tanks.
Secondly, from the standpoint of drilling equipment selection, the
metallurgical properties of equipment which comes into the production fluid must be
carefully considered. Blowout Preventer (BOP), a crucial equipment in well control,
must be rated for sour service condition and conform to National Association of
Corrosion Engineers (NACE) specifications such as NACE MR-01-75 and API RP 53
(Hossain et al., 2018). Apart from handling the toxicity of hydrogen sulphide which
would become a grave Health, Safety and Environment (HSE) concern in the event of
leakage, consideration will have to be given to potential hydrogen embrittlement or
sulphide stress corrosion cracking (SSCC) due to direct contact of drill pipe with
hydrogen sulphide in the wellbore (Hyne, 2012). Hydrogen embrittlement can
weaken exposed metal components gradually and result in equipment failure.
Diagram below illustrates drill string fracture due to hydrogen embrittlement:
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and Al-Mejed, 2015). The diagram below shows the classification of CRAs as per
partial pressure of carbon dioxide and hydrogen sulphide (both presently unknown at
the time of writing):
Tubular flow equipment which are exposed to formation fluid under prolonged
exposure such as production casing and tubing string will also need to be given
similar metallurgical considerations as in drilling operations. As the possibility for
hydrogen embrittlement is extremely high, the use of CRAs such as grades T-95 or
SS-110 is greatly advantageous in mitigating severe hydrogen embrittlement issues
(Mitchell and Miska, 2011). The selection of CRA as per NACE Sour Service
Definition is dependent on the formation fluid pH and the partial pressure of hydrogen
sulphide. This is illustrated in the diagram below under Domain 1: Severe Sour
Service (Marsh and Marsh, 2012):
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Figure 14.0: NACE Sour Service Definition
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4.5 PRODUCTION
The production can be segmented into dry gas and elemental sulphur
production as per the Development Objectives.
Absorption on Glycol
Figure
15.0: TEG Dehydration Unit
The most-used glycols are diethylene glycol (DEG) and triethylene glycol
(TEG). In the glycol molecules, hydroxyl groups (–OH) and ether functional groups
(–CH₂-O-CH₂–) are present. These groups give rise to H₂ bonds, which explains
their remarkable hygroscopicity and their desiccant properties. (Steward, M et al,
2011)
Since their molecular weight is greater than water, the glycol molecules boil at
a comparatively higher temperature. Glycols can be easily regenerated by distillation.
It should be observed that both DEG and TEG are subject to thermal degradation;
therefore, the distillation temperatures must be kept below the initial decomposition
temperatures—i.e., 328°F (164°C) and 404°F (207°C), respectively—which are lower
than their normal boiling points. (Steward, M et al, 2011)
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required to be in the 85%–95% range and can be regenerated at relatively low
temperature. TEG is preferred in gas dehydration service.
Thermal step
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Figure 16.0: Clauss Process Unit
The temperature inside Claus furnace is often maintained above 1050°C. This ensures
BTEX (Benzene, Toluene, Ethyl benzene and Xylene) destruction which otherwise
would clog downstream Claus catalyst Usually, 60 to 70% of the total amount
of elemental sulfur produced in the process is obtained in the thermal process step. (L.
Kohl et al, 1997)
The main portion of the hot gas from the combustion chamber flows through
the tube of the process gas cooler and is cooled down such that the sulfur formed in
the reaction step condenses. The heat given off by the process gas and
the condensation heat evolved are utilized to produce medium or low-pressure steam.
The condensed sulfur is removed at the liquid outlet section of the process gas cooler.
(L. Kohl et al, 1997)
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Catalytic step
One suggested mechanism is that S6 and S8 desorb from the catalyst's active
sites with simultaneous formation of stable cyclic elemental sulfur. The catalytic
recovery of sulfur consists of three substeps: heating, catalytic reaction and cooling
plus condensation. These three steps are normally repeated a maximum of three times.
Where an incineration or tail-gas treatment unit (TGTU) is added downstream of the
Claus plant, only two catalytic stages are usually installed. (L. Kohl et al, 1997)
The LNG flows through the pipelines that connect the loading arms on the
jetty to storage tanks. Tanks are usually of double wall construction with the inner
tank constructed of low-temperature alloy. This is surrounded by insulation to reduce
heat gain and an outer tank of conventional steel or pre-stressed reinforced concrete.
In-ground LNG tanks are also used; these are lined or unlined tanks beneath ground
level. The low temperature of the LNG freezes the soil and provides effective
containment. The tank is sealed with an aluminium alloy roof at ground level.
Historically there have been problems with some unlined tanks with the escape of
LNG into fissures, the gradual expansion of extent of the frozen ground, and ice heave
which have limited the operational capability of in-ground tanks. All piping connected
to the LNG tanks, whether above ground or in-ground, are routed through the top of
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the vessel. This mitigates against loss of containment in the event off a piping breach.
Tanks may be situated within a bund wall to contain the LNG in the event of a rupture
of the tank. This is usually a steel or concrete wall surrounding the tank to half the
tank height. (Han Chonghun et al, 2012)
Heat transfer into the tanks causes vaporisation of the LNG. This boil-off gas
is routed to a boil-off gas holder. Gas may be returned to an unloading ship to make
up the vapor space volume. Alternatively, it may be compressed and fed into the local
gas network, or it may be routed to the liquefication plant and returned as liquid to the
LNG storage tanks. (Han Chonghun et al, 2012)
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Figure 18 shows a simplified process flow diagram of a sulfur storage and load
out system. The molten sulfur storage tank has a working capacity in the range of
2000 to 3000 long tons. The tank is low-pressure, cone-top API 650 storage tank
made of carbon steel. It has the total height of around 30ft. Internal heating,
employing steam heating coils, for the tank is used to maintain a temperature in the
tank around roughly 143degC, although external heating can be valid alternative.
(Kenneth et al, 2015)
Below is the mind map for the development plan until the final works. The
mind map encompasses critical steps and components of challenges and
considerations highlighted in this report:
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Figure 19.0: Mind Map
6.0 CONCLUSION
Hence, the development can only be approached with extreme caution due the
high risk of combustible (gas) and toxic (hydrogen sulphide and development waste)
production in the midst of urban environment.
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7.0 REFERENCES
Jong, John & Kessler, Franz-Luitpold & Tan, Tran. (2021). Lessons Learnt from
Environmental Impacts and Social Concerns Associated with Onshore
Petroleum Exploration Activities, NW Sarawak.
George, M., Rowlands, D., Price, M., & Maxey, J. (2005). The Lean Six Sigma Pocket
Toolbook(pp. 375).
Hossain, & Islam. (2018). Drilling Engineering Problems and Solutions-A Field
Guide for Engineers and Students(pp. 627).
Hyne, N. (2012). Non Technical Guide to Petroleum Geology, Exploration, Drilling &
Production(Third ed., pp. 724).
Marsh, Z., & Marsh, J. (2012). Sour Service Assessment for Aging Assets and
Pipelines. Paper presented at the SPE International Conference & Workshop
on Oilfield Corrosion.
McDermott, J. R., & Martin, B. L., III. (1992). Completion Design for Deep, Sour
Norphlet Gas Wells Offshore Mobile, Alabama. Paper presented at the SPE
Annual Technical Conference and Exhibition.
Mcintush E. Kenneth. (2015). Molten Sulfur Storage Tank, Loading, and Vapor
Ejection System Review
Han, C & Lim, Y (2012). LNG Processing: From Liquefaction to Storage. Computer
Aided Chemical Engineering, Vol 31.
L Kohl, A & Nielson, R. B. (1997) Gas Purification Fifth Edition: Sulfur Recovery Process
IEA (2019), Global Energy & CO2 Status Report 2019, IEA, Paris
https://www.iea.org/reports/global-energy-co2-status-report-2019
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Data Intelo (2021). https://dataintelo.com/report/sulfur-market/
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