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As part of the project funded under the Carbon Utilization and Storage Partnership (CUSP) of the Western United States, this paper demonstrates a workflow including site characterization and numerical simulation efforts of proposing a Monitoring, Reporting, and Verification (MRV) plan to the U.S. Environmental Protection Agency (EPA) for approval according to 40 CFR 98.440 (c)(1), Subpart RR of the Greenhouse Gas Reporting Program (GHGRP) to qualify for the tax credit in section 45Q of the federal Internal Revenue Services (IRS) Code. In this project, the injectors and treated acid gas (TAG) plant are located at the northern margin of the Delaware Basin, a highly productive hydrocarbon basin in southeastern New Mexico. The target injection zones are the Permian-aged Cherry Canyon Formation for the acid gas injection (AGI) #1 well and Siluro-Devonian formations for the AGI #2 well, storage zones above and beneath active hydrocarbon pay zones respectively. The storage zones and caprocks are characterized through well log examinations, formation fluid chemistry evaluation, faults identification and interpretation. Reservoir models were constructed and simulation performed to predict the extent of the TAG plume after 30 years of injection with 5 years of post-injection site care monitoring. The reservoir mapping and cross sections interpreted from well logs indicate that the area around AGI #1 does not contain visible faulting or offsets that might influence fluid migration, suggesting that injected fluid would spread radially from the point of injection with a small elliptical component to the south. In the Siluro-Devonian formation, where AGI #2 is planned to be completed. The induced-seismicity risk assessment shows that the operation of the proposed injection combined with the historic volume contributions of the regional saltwater disposal (SWD) wells is not anticipated to contribute significantly to injection-induced fault slip. This result demonstrates that acid gas can be injected as proposed while maintaining the minimal risk of induced seismicity. The water sample collected from a nearby well indicates that the formation waters are highly saline (180,000 ppm NaCl) and compatible with the proposed injection. The reservoir simulation results indicate that the TAG plume is predicted to extend a maximum of 1.2 km from the injector wellbore when the identified faults are treated as non-transmissive and 0.90 km when they are treated as transmissive. The pressure profiles demonstrate the strong potential for safe injection into both target formations. In December 2021, the United States Environmental Protection Agency (EPA) approved the Monitoring, Reporting, and Verification (MRV) plan, permitting Lucid Energy to sequester acid gas from its Red Hills gas processing complex in Lea County, New Mexico. This paper provides the industry with a critical roadmap for converting existing injectors into CO2 or TAG sequestration wells that may qualify for 45Q tax certification to comply with the current administrative regulations. As part of the project funded by Carbon Utilization and Storage Partnership (CUSP) of the Western United States, published data from this project is invaluable.
As part of the project funded under the Carbon Utilization and Storage Partnership (CUSP) of the Western United States, this paper demonstrates a workflow including site characterization and numerical simulation efforts of proposing a Monitoring, Reporting, and Verification (MRV) plan to the U.S. Environmental Protection Agency (EPA) for approval according to 40 CFR 98.440 (c)(1), Subpart RR of the Greenhouse Gas Reporting Program (GHGRP) to qualify for the tax credit in section 45Q of the federal Internal Revenue Services (IRS) Code. In this project, the injectors and treated acid gas (TAG) plant are located at the northern margin of the Delaware Basin, a highly productive hydrocarbon basin in southeastern New Mexico. The target injection zones are the Permian-aged Cherry Canyon Formation for the acid gas injection (AGI) #1 well and Siluro-Devonian formations for the AGI #2 well, storage zones above and beneath active hydrocarbon pay zones respectively. The storage zones and caprocks are characterized through well log examinations, formation fluid chemistry evaluation, faults identification and interpretation. Reservoir models were constructed and simulation performed to predict the extent of the TAG plume after 30 years of injection with 5 years of post-injection site care monitoring. The reservoir mapping and cross sections interpreted from well logs indicate that the area around AGI #1 does not contain visible faulting or offsets that might influence fluid migration, suggesting that injected fluid would spread radially from the point of injection with a small elliptical component to the south. In the Siluro-Devonian formation, where AGI #2 is planned to be completed. The induced-seismicity risk assessment shows that the operation of the proposed injection combined with the historic volume contributions of the regional saltwater disposal (SWD) wells is not anticipated to contribute significantly to injection-induced fault slip. This result demonstrates that acid gas can be injected as proposed while maintaining the minimal risk of induced seismicity. The water sample collected from a nearby well indicates that the formation waters are highly saline (180,000 ppm NaCl) and compatible with the proposed injection. The reservoir simulation results indicate that the TAG plume is predicted to extend a maximum of 1.2 km from the injector wellbore when the identified faults are treated as non-transmissive and 0.90 km when they are treated as transmissive. The pressure profiles demonstrate the strong potential for safe injection into both target formations. In December 2021, the United States Environmental Protection Agency (EPA) approved the Monitoring, Reporting, and Verification (MRV) plan, permitting Lucid Energy to sequester acid gas from its Red Hills gas processing complex in Lea County, New Mexico. This paper provides the industry with a critical roadmap for converting existing injectors into CO2 or TAG sequestration wells that may qualify for 45Q tax certification to comply with the current administrative regulations. As part of the project funded by Carbon Utilization and Storage Partnership (CUSP) of the Western United States, published data from this project is invaluable.
San Juan Basin (SJB) is a geologic structural basin located in northwest New Mexico. Comprehensive field-scale reservoir simulation work was performed in finely constructed basin-wide geologic models, targeting sequestering over 120 million metric tons of CO2 for a period of 20 years. Petrophysical properties were populated through well logs and measurements on core samples obtained from nearby wells within the study area. Various critical storage trapping mechanisms were considered. The threshold pressure in delineating AoR is formulated based on guidance provided by the Environmental Protection Agency (EPA) to ensure the safety of underground drinking water sources (USDW). Besides, a complex faulting system identified on the west side of the basin was modeled to preclude risks of CO2 migration. The faulting system at the northwestern SJB was identified through well log stratigraphy. A near-vertical faulting system was mapped that may pose uncertainties to the sealing capacities of the caprock layer. The preliminary structural map shows a relatively flat topography that deepens to the east; and a high area in the west-northwest that is produced by faulting within a Hogback Monocline. The relief on the fault/monocline averages around 4,000 to 4,500 feet. Our simulation results indicate that SJB has the potential to safely contain the proposed amount of CO2 and avoid the impact of faulting systems. Further, pressure build-up in the injection zone is the most influential factor that may endanger the drinking water aquifer through the active injection and post-injection site care phases compared to CO2 plume migration. Controlling the size of AoR will increase the overall storage capacity within the area of interest while cutting down the overhead for corrective action planning and site monitoring. This work employed realistic reservoir characterization data from San Juan Basin CarbonSAFE Phase III project to construct the reservoir simulation model, including 3D seismic, well logs, core analysis, and fluid sampling. As the worldwide commercial CO2 geologic storage projects aiming for soaring storage capacity goals, the processes in this work demonstrated the workflow to manage a large-scale CO2sequestration project in complex geological structured reservoirs.
The Paris agreement in 2015 saw nations agree to a global temperature limit below 2°C above pre-industrial levels. This agreement over time has come under threat as the International Energy Agency reported an increase in global emissions by 0.9%, with Africa contributing only 4% per capita to global emissions, and Nigeria, contributing 0.64 tonnes per capita of the 4%. This explicitly illustrates the imbalance when African countries, who are among the least contributors, have to deal with climate change as they reap its adverse effects. Most African countries, do, however depend on the oil industry, for not just its nations’ economy, but for energy supply. This is why, in ensuring that economies are protected and energy distribution is still held tantamount while protecting the earth, technologies such as CCUS are a necessary option to be considered and incorporated into the energy sector and other heavy industries. CCUS over the years has proven to be the most feasible options for oil producing nations, particularly those with high energy needs. In this paper, the feasibilities of CCUS implementation in Nigeria is explored, its economic and policy implications that follow, in relation to the Paris Agreement in 2015 and the just concluded COP 28. The cost implications for identified sequestration locations such as Port Harcourt and Lokoja and other possible sites in the country, currently hold storage capacities of 100-1000Mt CO2, and an average abatement cost of $42/tonne. This paper explores funding measures for CCUS in-country as well as policy adjustments, utilization of captured CO2 and what this means for multinational and indigenous companies in the country and on the continent, their roles and commitments in the international community and how their investments in emission reductions in Nigeria and other African countries can be a huge step towards achieving the Paris agreement and protecting the earth.
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