Maximizing value by NGL capture or exclusion Ajay Badhwar, Manager, Natural Gas Technologies Dow Oil & Gas January 2014

Agenda

•  Dow’s comprehensive options across the oil and gas value chain

•  Options to remove natural gas liquids (NGLs) and tradeoffs

•  Recovery of NGLs from flared gas, generating a truckable product

•  Concentrating NGLs in pipelines when gas pipeline or compression capacity is limited

•  Protecting equipment, such as compressors and engines, from NGLs

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Options Across the Oil and Gas Value Chain Solutions for:

•  Drilling •  Cementing •  Stimulation

•  Phase separation •  Asset integrity •  Flow assurance

•  Gas injection •  Chemical flooding •  Thermal recovery

applications

•  Offshore flow assurance

•  Gas recompression

•  Gas dehydration •  Gas compressor

engines •  Gas pipeline line

heaters

•  Onshore and offshore gas processing

•  LNG •  Gasification •  Acid gas

enrichment/sulfur plants

•  Ammonia synthesis

•  Acid gas removal •  LPG treating •  Isomerization and

reformer regeneration

•  Heat transfer

Our brands: •  EMBARK™ •  CELLOSIZE™ •  ANTISOL™ •  POLYOX™

•  DEMTROL™ •  ROMAX™ •  ACCENT™ •  AQUCAR™

ELEVATE™ ROMAX™ DOW FILMTEC™ DOW IntegraPac™

•  NEPTUNE™ •  HYPERLAST™ •  NORKOOL™ •  DESITHERM™

•  UCARSOL™ •  SELEXOL™ •  NORKOOL

DESITHERM™ •  DOWTHERM™ •  SYLTHERM† •  SulFerox®

•  UCARSORB™

•  AMINE MANAGEMENTSM Program

•  UCARSOL™ •  SELEXOL™ •  UCARSEP™ •  ISOFORM™

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Adsorption Problems for Bakken

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The Problem Pipelines for natural gas are limited on capacity in certain geographies. The pipelines transport mainly methane, with ethane and some heavier components.

Natural gas is used as fuel for various combustion engines. When the feed gas contains too much C2, C3, C4+, the engine exceeds emissions ratings. Also when natural gas is compressed, heavy hydrocarbons can drop out.

Flared gas from producing reservoirs may still have valuable hydrocarbons that can be trucked and easily transported.

Options to Remove NGLs and Tradeoffs

Technology When to Use

Pressure Drop

Tradeoff Advantage

Cryogenic Large scale > 100 MMSCFD

Medium

Requires upstream treatment to remove CO2, longer delivery times (C2+)

Proven technology

Refrigeration Large scale > 50 MMSCFD

Low-High Less upstream treatment (C3+)

Proven technology, easy operation, shorter delivery times

Membranes Small scale < 50 MMSCFD

High 1,000 psi

Some upstream treatment for condensables, acid gases

Short delivery times, skid design, proven technology, small footprint

Adsorption Small scale < 10 MMSCFD

Low 5 psi

Developing technology

No upstream treatment required, small footprint, short delivery times

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Adsorption Problems for Bakken

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The Problem

Adsorption Option

Install an NGL adsorbent bed on the flare gas stream to: •  Produce an NGL

stream •  Enable easy storage/

trucking •  Recover value of NGLs

Install an NGL adsorbent bed upstream of engine feed to: •  Remove heavy NGLs •  Control feed BTU value •  Prevent knock-out of

heavy NGLs •  Prevent need for post-

combustion controls

Pipelines for natural gas are limited on capacity in certain geographies. The pipelines transport mainly methane, with ethane and some heavier components.

Install an NGL adsorbent bed for existing pipelines to: •  Transport higher-value

NGLs •  Transport less methane •  Maintain pipeline specs

Natural gas is used as fuel for various combustion engines. When the feed gas contains too much C2, C3, C4+, the engine exceeds emissions ratings. Also when natural gas is compressed, heavy hydrocarbons can drop out.

Flared gas from producing reservoirs may still have valuable hydrocarbons that can be trucked and easily transported.

Recovery of NGLs from Flared Gas

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Recovery of NGLs from Flared Gas

•  Small skid(s), unattended operation •  Class I, Div 2 suitable

•  Recovers NGL product as a gas phase that can be sent to chiller and bullet tank

•  Requires electricity, no steam, no external heat source

•  Pressure drop 5 psig

•  May want to run the operation at higher pressure to reduce equipment size

•  Suitable for variable inlet gas flow and composition

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Concentrating NGLs in Pipelines

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Concentrating NGLs in Pipelines

•  Designed to handle variations in inlet gas composition

•  Produces gas phase NGL-rich stream that can be sent to pipeline

•  Useful if plant is planning shutdown or when pipeline capacity is limited

•  Unattended operation

•  Can be tuned to operate at a flow rate or a composition of product gas

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Protecting Compressors or Engines from NGLs

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600 psi 0.03 MMSCFD

Protecting Compressors or Engines from NGLs

•  Reduces the amount of NGLs combusted in the engine, NGLs bypass the combustion

•  Can reduce C2+ or just C3+

•  Useful to manage emissions or improve equipment reliability

•  Limits the NGLs dropping out in compression

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Summary

•  Many choices for NGL recovery

•  Each choice has advantages and disadvantages

•  One option is for portable skid adsorbents

•  Adsorbents can be used for:

–  Recovery of NGLs from flare gas

–  Concentrating NGLs in pipelines

–  Excluding from combustion or compression

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Thank You

®™Trademark of The Dow Chemical Company (“Dow”) or an affiliated company of Dow SMService mark of The Dow Chemical Company †Dow is a distributor of SYLTHERM, a registered trademark of Dow Corning Corporation

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Options Across the Oil and Gas Value Chain Solutions for:

•  Drilling •  Cementing •  Stimulation

•  Phase separation •  Asset integrity •  Flow assurance

•  Gas injection •  Chemical flooding •  Thermal recovery

applications

•  Offshore flow assurance

•  Gas recompression

•  Gas dehydration •  Gas compressor

engines •  Gas pipeline line

heaters

•  Onshore and offshore gas processing

•  LNG •  Gasification •  Acid gas

enrichment/sulfur plants

•  Ammonia synthesis

•  Acid gas removal •  LPG treating •  Isomerization and

reformer regeneration

•  Heat transfer

Our brands: •  EMBARK™ •  CELLOSIZE™ •  ANTISOL™ •  POLYOX™

•  DEMTROL™ •  ROMAX™ •  ACCENT™ •  AQUCAR™

ELEVATE™ ROMAX™ DOW FILMTEC™ DOW IntegraPac™

•  NEPTUNE™ •  HYPERLAST™ •  NORKOOL™ •  DESITHERM™

•  UCARSOL™ •  SELEXOL™ •  NORKOOL

DESITHERM™ •  DOWTHERM™ •  SYLTHERM† •  SulFerox®

•  UCARSORB™

•  AMINE MANAGEMENTSM Program

•  UCARSOL™ •  SELEXOL™ •  UCARSEP™ •  ISOFORM™

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