GAS CCUS IN MEXICO Abigail González Díaz José Miguel González-Santaló Instituto de Investigaciones Electricas (IIE) Mexico

Gas CCS Meeting Brighton, UK June 25, 2014

1. Why CCS and CO2 for EOR in Mexico? • Growth in electricity production • Electricity generation • Natural gas and oil production • CO2-EOR Potential

2. Current status of CO2-EOR in PEMEX-CFE 3. Future plant on CCUS

Outline

MAIN SOURCES OF INFORMATION

1. Estrategia Nacional de Energía 2013-2027 Prospectiva del Sector Eléctrico 2013-2027 Secretaría de Energía, México www.sener.gob.mx/portal/publicaciones.html

2. R. Lacy et al. Initial assessment of the potential for future CCUS with EOR projects in Mexico using CO2 captured from fossil fuel industrial plants, International Journal of Greenhouse Gas Control 19 (2013) 212–219

3. Fernando Rodríguez de la Garza, CO2 – EOR program in Mexico, Gas networking meeting , Cuernavaca Morelos, Mexico 11-12 February 2014

The two major energy companies in Mexico are state owned 1. The Mexican oil company Petróleos Mexicanos (PEMEX) is

the second most profitable company in Latin America 2. The Utility Company Comisión Federal de Electricidad (CFE) Mexican oil has been controlled exclusively by the state-owned Pemex for more than 75 years MEXICO OPENS UP ITS ENERGY MARKETS On December 12, 2013, Mexican legislators approved controversial reforms to the country’s energy sector

Why CCS and CO2 for EOR?

• Fast growth. Installed capacity of 62 GW in 2009, 113 GW in

2028 • Natural gas is and will be the dominant energy source in 2028 • The oil industry will require large amounts of CO2 for EOR

Mexico ‘s mitigation target “reduce GHG emissions by 50% below 2002 levels by 2050”

Growth in electricity production

Values in TW-hr

Electricity generation 2012-2028

2/ Nueva generación limpia (NGL): Nuclear, carboeléctrica o ciclo combinado con captura y confinamiento de CO2, o renovable

2012real 60,459 MW

2028 113,708 MW

POISE 2014-2028

Geotermoeléctrica1.3%

Ciclo combinado31.2%

Termoeléctrica convencional

19.7%Turbogás

5.6%

Combustión interna0.5%

Eoloeléctrica1.8%

Hidroeléctrica19.3%

Carboeléctrica8.9%

Nucleoeléctrica2.7%Solar

0.0% Coque0.9%Biomasa

0.1%

Autoabastecimiento local7.9%

Geotermoeléctrica1.0%

Ciclo combinado45.2%

Termoeléctrica convencional

1.7% Turbogás1.9%

Combustión interna0.3% Eoloeléctrica

10.9%

Hidroeléctrica13.8%

Carboeléctrica4.2%

Nucleoeléctrica1.2%

Solar1.6%

NGL11.5%

Coque0.8%

Biomasa0.3%

Autoabastecimiento local5.5%

2/

In 2013 . In construction Total: 3,522 MW → NGCC 1,934 MW Capacity authorized for public service Total: 9,679 MW → NGCC 7,283 MW Aditional capacity between 2016 – 2022 Total: 14,795 MW → NGCC 10,704 MW Aditional capacity between 2023 – 2028 Total: 26,955 MW1 → NGCC 11,013 MW

POISE 2014-2028

Total: 3,522 MW

Centrales terminadas y en proceso de construcción, en 2013. Servicio público

1/ Agua Prieta II (operación de una TG en ciclo abierto 134 MW) en Julio de 2014

MW

1,934

3,522

Ciclo combinado

Total

Eoloeléctrica 103

Geotermoeléctrica 107

Combustión interna 58.6

Turbogás-cogeneración 521

Termosolar 14

Baja California II TG Fase I (139 MW)

Guerrero Negro III (12 MW)

Baja California Sur IV

(Coromuel) (44 MW)

Humeros II Fases A y B (2x27 MW )

Salamanca Fase I (382 MW )

Azufres III Fase I (53 MW)

Sureste I Fase II (103 MW)

Centro (658 MW)

Termosolar Agua Prieta II (14 MW)

Agua Prieta II 1/ (404 MW)

Piloto Solar (5 MW)

Norte II (Chihuahua) (445 MW)

Santa Rosalía (2.6 MW)

Aura Solar (30 MW)

La Yesca U1 y U2 (750 MW)

Manzanillo I rep U2 (427 MW)

Solar 35

Hidroeléctrica 750

4. POISE 2014-2028

Total: 9,679 MW

capacidad en licitación autorizada y condicionada para Servicio Público

Hidroeléctrica

Ciclo combinado

Turbogás

Geotermoeléctrica

Total

MW

480

7,283

86

29

9,679

Eoloeléctrica 1,688

Combustión interna 109

Las Cruces (240 MW

(203 MW) Sureste I Fase I

Solar 4

Rumorosa

(3x100 MW) I,II y III

Santa Rosalía Ciclo binario (2 MW)

Santa Rosalía (FV) (4 MW)

Santa Rosalía II (15 MW) Noroeste y Topolobampo III

(847 y 700 MW)

(2 x 735 MW) Guaymas II y III

(43 MW) Baja California Sur VI

La Paz (117 MW)

Noreste (Escobedo) (1,034 MW)

Lerdo (Norte IV) (990 MW)

Valle de México II (601MW)

Chicoasén II (240 MW)

(1,185 MW) Surestes II, III IV V

Baja California II (276 MW)

Baja California II TG Fase II (86 MW) Norte III (Juárez) (954 MW)

(43 MW)

Baja California Sur V (Coromuel)

Guerrero Negro IV (8 MW)

Baja California III (La Jovita)

(294 MW)

Humeros III (Fase A) (27 MW)

4. POISE 2014-2028

1/ Las cifras están redondeadas a números enteros, por lo que los totales podrían no corresponder exactamente 2/ No incluidos en el mapa

Total: 14,795 MW1/

Hidroeléctrica

Ciclo combinado

Solar 2/

Turbogás

Geotermoeléctrica Total

MW

1,133

10,704

790

432

135 14,7951/

Manzanillo II rep. U1 y U2

(2 x460 MW)

Francisco Villa (Norte V) (958 MW)

Todos Santos (137 MW)

Central Tula (1,162 MW )

Angostura II

Eoloeléctrica 1,600

Mexicali I (27 MW)

La Parota U1 y U2 (455 MW)

Mérida (526 MW)

Tamaulipas (3 x 200 y 300 MW)

(136 MW)

I, II, III y IV

Aguascalientes (872 MW)

(1,088 MW) Monterrey IV

Centro II (660 MW )

Baja California IV (SLRC) 522 MW

San Luis Potosí (862 MW)

Guadalajara I (908 MW)

Mazatlán (867 MW)

Eólica I (200 MW)

Cerritos Colorados Fase I y II (2x27 MW)

Paso de la Reina (543 MW)

Mérida TG (169 MW)

Eólica II (200 MW)

Los Cabos I TG (94 MW)

Salamanca 680 MW Valladolid IV

(542 MW)

Coahuila I y II (300 MW)

Azufres III Fase II

(27MW) Humeros III Fase B

(27 MW)

Cancún TG (169 MW)

capacidad requerida adicional Servicio público 2016 – 2022

4. POISE 2014-2028

1/ Las cifras están redondeadas a números enteros, por lo que los totales podrían no corresponder exactamente

Total: 26,955 MW1/

Hidroeléctrica

Ciclo Combinado

Nueva Generación limpia

Total

MW

1,180

11,013

12,775

26,955 1/

Eoloeléctrica 1,200

Turbogás 94

Noroeste II y IV (2X1400 MW)

Valladolid V (542 MW)

Baja California VI (Ensenada)

Pacífico II y III (1x700 MW)

Oriental l, II, III, IV, IX Y X (3x1225 MW)

(565 MW)

Salamanca II (680 MW)

Mérida V (540 MW)

Norte VI y VII (Chih.) (2x968 MW)

Valle de México III (601 MW) Tenosique

(422 MW)

Central II (Tula) (1,162 MW)

Baja California V (Mexicali) (522 MW)

Todos Santos II (123 MW)

Sistema Pescados (La Antigua) (121 MW)

Xúchiles (54 MW)

La Paz II (117 MW)

Tamazunchale II y III (2x1,121MW)

Omitlán (231 MW)

Madera (352 MW)

Todos Santos III (123 MW)

Occidental I y II (1400MW)

Los Cabos II TG (94 MW)

Cd. Constitución

(137 MW)

Eólica III, VI,

(4X200 MW)

Santa Rosalía III (11 MW)

Solar 600

Solar V (100 MW)

Geotermoeléctrica 81

Cerritos Colorados Fase III (27 MW)

Sabinas I y II (2X700 MW)

Eólica IV (200 MW)

Solar VI (100 MW)

San Luis Potosi II (862 MW)

Eólica V (200 MW)

Geotermoeléctrica I y II (2X27 MW)

Solar VII (100 MW)

(1x1400 MW)

Solar VIII (100 MW)

Solar X (100 MW)

Aguascalientes II

(872MW)

VII y VIII

Combustión Interna 11

Oriental V y VI (1400 MW)

Solar IX (100 MW)

capacidad requerida adicional Servicio público (2023 – 2028)

4. POISE 2014-2028

EOR IN OIL PRODUCTION

Mill

ions

of b

arre

ls p

er d

ay EOR

Oil production

The world's largest nitrogen-injection EOR project, led by PEMEX in Cantarrell

GAS PRODUCTION IN ENE. INCLUDES SHALE GAS bc

f Natural gas production (bcf)

EOR

• 600 trillion cubic feet of shale gas. Ranks 6th largest in the world • 13 billion barrels of recoverable shale oil resources . Ranks 8th largest in the world. http://oilprice.com/Energy/Energy-General/Mexico-Shale-Gas-Industry-and-Energy-

Reform.html

LOCATION OF SHALE GAS RESERVES IN MEXICO Localization of Shale gas in Mexico

1. The large Mexican oil fields, that are candidates for EOR, is expected to need up 50 million tons of CO2 per year

2. The largest emitter region of CO2 (20.1 million tons per year)

CO2-EOR Potential

The Gulf of Mexico is

R. Lacy et al. / International Journal of Greenhouse Gas Control 19 (2013) 212–219

CO2 sources in the Gulf of Mexico 2013

R. Lacy et al. / International Journal of Greenhouse Gas Control 19 (2013) 212–219

It is to increase oil production by CO2-EOR from 659 to 1,758 MMB

CO2-EOR Potential

Potential CO2 - EOR

Anthropogenic sources of CO2 Federal comission of Electricity

Natural sources of CO2

Quebrache (260 MMSCFD / 13 MTonne/D)

Ogarrio

Coyotes San Andrés

Carmito

Cosoleacaque: CPQC (80 MMSCFD / 4 MTonne/D)

CFE Tuxpan (390 MMSCFD / 19.5 MTonne/D)

Tres Hermanos (5 MMSCFD / 250 Tonne/D)

Maloob

Copy right by Fernando Rodríguez de la Garza, CO2 – EOR program in Mexico, Gas networking meeting , Cuernavaca Morelos, Mexico 11-12 February 2014

CO2 can be capture from Tuxpan power station to inject on Chicontepec fields. Pilot testing will be necessary in order to confirm oil recovery using CO2

19

• In 2008 CFE started several actions related to CCS • 2009 CFE contracted to the Mario Molina Center and IIE to

do preliminary studies for a demostrative CO2 capture plant • 2010 a pilot test of CO2 continuous injection was performed

in the Coyotes field • In 2012 the Mexican Congress approved the General Climate

Change Law to reduce greenhouse gas emissions One of its strategies to reach this objective is the application

of CCS on fossil fuel power plants and in the oil industry for EOR

Current status of CO2-EOR in PEMEX-CFE

Future plans on CCUS CCS project funded by The global CCS institute and U.S. DOE 2014 • Workshop on storage in Mexico City IPN in August- Focus on Burgos and Sabinas

basins. Geologists from industry and academy • Workshop in Mexico City CFE in September –Students including chemists &

engineers from industry, academia and research institutions • Workshop Hermosillo CFE and will be directed at undergraduate students in the

earth sciences area IEAGHG Summer school 2016 will be hosted by IIE Cuernavaca Morelos CCUS-EOR project of PEMEX funded by Mexican government (start 2015

a period of 3 years) • Design and implement a CO2-EOR pilot test at the Cinco Presidentes field by using

the high purity CO2 to be captured in the ammonia plants in Petrochemical Center of Cosoleacaque, CPQC.

• Full scale CO2-EOR implementation in the selected field will allow for elimination of current CO2 emissions from CPQC, of about 100-120 MMSCFD.

• ( 5,000 a 6,000 ton/d)

• It is expected that 60-70% of the injected CO2 will remain sequestered in the reservoir. It will be confirmed by the pilot results

Long term SENER- SEMARNAT before 2018 (SENER, Enero 2014, SEMARNAT) • Pilot plant 50 MW to provide 5 MMSCF/d CO2 for a EOR project • Demostration plant 250 MW to provide 25 MMSCF/d CO2 for EOR

project in a big reservoir CCS SENER – WORLD BANK Pilot plant 2 MW in Poza Rica Veracruz

• SENER-PEMEX-CFE–SEMARNAT: Currently defining the

Technology Route Map for CCUS-EOR of Mexico. Implementation will start later in 2014.

Future plan on CCUS

•CCS in NGCC will be needed due to the large participation of this technology in Power Generation

•There are several projects in CCS that are being promoted and carried out

•PEMEX will need CO2 for its EOR projects that exceeds the natural sources available

•PEMEX needs to assess the effectiveness of CO2 EOR in the Mexican oil fields

•Resources are limited and are slowing down some projects •EOR is one on the main drivers for CCS in Mexico because

CO2 for EOR provides a positive immediate economic benefit, as well as helping to mitigate long-term environmental impacts.

Conclusions