DNV-RP-J203 is a generic guideline document that is designed to facilitate the alignment of CO2 storage projects with the stage-gate capital-value process that is used in the upstream sector. While differences do exist between major operators, the basic principles of financial risk management, iterative cycles of uncertainty reduction and stagegates with pre-determined criteria are common. This guideline was developed through Joint Industry Projects with leading IOCs, NOCs and power utilities from around the world. Regulators from Canada, USA, UK and Australia were involved as observers, interviewees and through the process of peer review. The content of DNV-RP-J203 is broadly similar to that of other guidelines and standards for CO2 storage (such as Canadian Standard CSA-Z741), but the major contribution that this document can make in Guangdong is by providing a peer-reviewed framework around the project development that makes sense to industrial partners. The stage-gates and criteria that are described in the document will allow key stakeholders to verify the progress and maturity of the CO2 storage project at each step and ensure that undue financial risk may be avoided. A model for this exists in the form of DNV Service Specification 402 (DSS-402), which describes the verification steps that can be applied at each key step.The generic stage-gate model that is used in DNV RP-J203 breaks down the life-cycle of a CO2 storage project into 7 phases, as shown in Figure 1. The scope of these phases will be different for CO2EOR due to the operating experience of a greater a prior knowledge of an operating field, but since the basic stage-gated process originates from the upstream sector many features will remain the same. Indeed the Screening phase may be adapted to assist with Concept Selection during field development planning, for example aquifer storage vs. CO2-EOR. For aquifer storage the site screening and appraisal phases represent the technical work required to be able to make a Final Investment Decision at Stage Gate 4. The Permitting phase represents the legal and regulatory work required.. It may take an estimated 3-10 years to conduct the pre-operation works together with commercial factors evaluations. Once the a suitable site is selected and permit is granted, infrastructure construction could can begin – or modification in the case of re-using existing pipelines or offshore platforms. In the hydrocarbon reservoirs, the some infrastructures inplace could be re-used. This recommended practice gives a suggestion on the workflow of site screening, and appraisal and permitting phases that may be applied to offshore CO2 storage activities in Guangdong. The basic workflow is based on the recommended procedure from DNVRP-J203, with some modifications to make it more suitable for Guangdong off-shore CO2 storage. The screening and selection criteria is are athe combination of IEA (2009) (Green house R& D programme: CCS characterisation criteria), Bachu (2003) and Chadwick et al. (2008). The storage capacity calculation is from the calculation formulas given by USGS (2009) (Development of a Probabilistic Assessment Methodology for Evaluation of Carbon Dioxide Storage). The criteria for CO2-EOR is after Pershad et al. (2012), coupled with the CO2 property requirements according to Shen et al. (2007). The geotechnical requirements used in appraisal phase is from the the project of CASSEM (CO2 Aquifer Storage Site Evaluation and Monitoring). The sites ranking method is suggested to use Screening and Ranking Framework by Bachu (2003). In this method the properties of attributes are assigned with weight and uncertainty, so that a total score of can be calculated to enable ranking quantitatively. Researchers from South China Sea Institute of Oceanology, Chinese Academy of Sciences (SCSIO) (Pro Zhou Di and her colleagues) and the University of Edinburgh (Pro Stuart Haszeldine) have done some work on CO2 storage and CO2-EOR potential for Guangdong near sea. Dr Bill Senior helped to give valuable recommendations and reviewed the reports.
|Number of pages||35|
|Publication status||Published - 2014|
|Publisher||UK-China (Guangdong) CCUS Centre|
- CO2 Storage
- Best Practice
- Site Characterisation