The Latrobe Formation in the Gippsland Basin \(SE Australia\) As a Potential Reservoir for Underground CO2 –Storage- a Lite

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The Latrobe Formation in the Gippsland Basin \(SE Australia\) As a Potential Reservoir for Underground CO2 –Storage- a Lite 33.5324.00/05/03 Confidential REPORT The Latrobe Formation in the Gippsland Basin (SE Australia) as a potential reservoir for underground CO2 –storage - A literature-based evaluation drawing on experience from the North Sea Sleipner case Peter Zweigel & Erik Lindeberg SINTEF Petroleum Research August 2003 REPORT TITLE The Latrobe Formation in the Gippsland Basin (SE Australia) as SINTEF Petroleumsforskning AS a potential reservoir for underground CO2 –storage SINTEF Petroleum Research - A literature-based evaluation drawing on experience from the North Sea Sleipner case N-7465 Trondheim, Norway Telephone: +47 73 59 11 00 AUTHOR(S) Fax: +47 73 59 11 02 (aut.) Peter Zweigel & Erik Lindeberg Enterprise no.: NO 936 882 331 MVA CLASSIFICATION CLIENT(S) Confidential Statoil, SACS consortium, NFR-KLIMATEK REPORT NO. 33.5324.00/05/03 REG. NO. DATE PROJECT MANAGER SIGN. 2003.034 4 August 2003 Peter Zweigel Peter Zweigel NO. OF PAGES NO. OF APPENDICES LINE MANAGER SIGN. 45 2 Torleif Holt Torleif Holt SUMMARY The Gippsland basin offshore southeast Australia is a large petroleum province close to major onshore CO2 point sources. Based on publicly available literature, this study investigates the technical suitability for storage of anthropogenic CO2 underground in the Gippsland basin as a potential means to reduce CO2 emission to the atmosphere. The evaluation is based on experiences from the underground storage project at the Sleipner field (North Sea). The main reservoir system in the Gippsland basin consists of siliciclastic rocks of the upper Latrobe Group as the reservoir and the carbonaceous deposits of the Seaspray Group as the seal. Efficacy of this system is proven by the existence of large hydrocarbon accumulations. Reservoir parameters indicate that the system is likely to be suitable for underground CO2 storage. For a pilot phase, storage in strongly or partly depleted oil fields is suggested. Already produced oil corresponds to an available pore 6 space for storage of approximately 250·10 tons CO2, which is around five times the annual CO2 emissions from use of coal for electricity and heat production in the adjacent state of Victoria. Underground CO2 storage in the Gippsland basin is therefore rated as a major option to reduce emissions considerably. Prior to start of injection of CO2 into the Latrobe Group, technical investigations will be necessary. These need especially address the effect of CO2-brine mixtures on the reservoir and seal rocks, and potential adverse consequences for site stability and long-term seal efficacy. KEYWORDS ENGLISH KEYWORDS NORWEGIAN Gippsland basin Gippslandbassenget Australia Australia Underground CO2 storage Underjordisk karbondioksidlagring Literature study Litteraturstudie 3/99 \\Boss\ik23428500\latrobe\Latrobe report_wfig_final.doc\PZ\1\04.08.2003 - 2 - Table of Contents 1. Executive summary................................................................................................3 2. Background and purpose of the study .................................................................4 3. Requirements for underground CO2 storage sites..............................................7 4. The Latrobe Group/Gippsland basin reservoir system......................................9 4.1 Geological overview.......................................................................................9 4.2 Geological reservoir properties of the Latrobe Group..................................13 4.3 Temperature and pressure at storage site level.............................................15 4.4 Seal properties ..............................................................................................18 4.5 Traps .............................................................................................................21 4.6 CO2 properties at reservoir conditions..........................................................23 5. Discussion..............................................................................................................28 5.1 Reservoir formation suitability.....................................................................28 5.2 Seal efficacy .................................................................................................28 5.3 Storage capacity............................................................................................29 5.4 Monitoring....................................................................................................31 5.5 Additional precautions..................................................................................35 5.6 Use of CO2 for enhanced oil recovery (EOR) ..............................................35 6. Conclusions and recommendations ....................................................................37 7. References.............................................................................................................39 \\Boss\ik23428500\latrobe\Latrobe report_wfig_final.doc\PZ\2\04.08.2003 - 3 - 1. Executive summary Power production based on local coal deposits in Victoria (SE Australia) generates large amounts of CO2 which are emitted to the air. The neighbouring, offshore Gippsland basin is a mature hydrocarbon province in which the existence of large hydrocarbon fields proves efficacy of the reservoir-seal system. This literature-based study investigates the technical suitability for storage of anthropogenic CO2 underground in the Gippsland basin as a potential means to reduce CO2 emission to the atmosphere. Major technical conditions for feasibility of underground CO2 storage are the availability of sufficiently large storage volumes, high density of CO2 at reservoir conditions, high permeability of the reservoir formation, and the absence of negative effects due to reactions of the CO2-water brine with the host and seal rock. Further, seal efficacy must be ascertained prior to injection, and it may be desirable to be able to monitor the distribution of CO2 in the underground. In the Gippsland Basin, the reservoir system consists of the Cretaceous to Oligocene, siliciclastic Latrobe Group as the reservoir and the Oligocene to recent, carbonaceous Seaspray Group as the seal. Especially the top parts of the Latrobe Group exhibit very good reservoir properties and host large hydrocarbon accumulations. These accumulations document excellent seal efficacy. The seal rock is carbonaceous and the reservoir rocks contain locally significant amounts of carbonate minerals. Potential reactions of CO2-containing brine with these rocks may have adverse effects on storage site safety and must be addressed adequately prior to start of any potential CO2 injection. Hydrocarbon fields in their final stages of production are suggested here as the prime targets for pilot underground CO2 storage projects in this basin. This is because these sites have demonstrated seal efficacy and because relevant on-site infrastructure exists. Furthermore, injected CO2 may help to enhance oil recovery from these fields, therefore generating an economic value for the CO2. Typical net storage volumes per trap have been estimated here to be in the order of 0.1 9 3 – 0.5·10 m for the larger traps. CO2 density at reservoir conditions is expected to vary as a function of geothermal gradient from approx. 350 kg/m3 in the western, proximal fields to approx. 600 kg/m3 in the eastern, distal fields. The typical storage capacity in the large traps is thus estimated to be approx. 100·106 tons per trap, which is 5 times the quantity planned to become injected in the Sleipner case. Production of hydrocarbons from the Gippsland basin until now provides pore space for 6 approximately 250·10 tons CO2. This corresponds to 5 times the annual CO2 emissions from use of coal for electricity and heat production in Victoria. Underground CO2 storage in the Gippsland basin could thus contribute significantly to reduce annual emission rates over a period of a few 10s of years. Economics have not been considered quantitatively here, but we note that costs for pipelines may provide a hurdle for the economic feasibility of underground CO2 storage in the Gippsland basin. \\Boss\ik23428500\latrobe\Latrobe report_wfig_final.doc\PZ\3\04.08.2003 - 4 - 2. Background and purpose of the study Australia contributes approximately 1.5% of global total anthropogenic greenhouse gases, its per capita emission of 33.3 tons/year (1990 data) being the highest of all OECD countries (Durie 1998 after Samarin 1999). Stationary electricity and heat 6 production accounts for 171·10 tons CO2 emissions per year (1999 data), which is approximately 55 % of all CO2 emitted annually in Australia (AGO 2001). Increased energy demand in this sector caused a rise of greenhouse gas emissions by 1.9% from 1998 to 1999 in spite of declining average emission intensity. Approximately 93% of the CO2 emitted from the stationary energy production sector come from firing of brown and black coal (AGO 2001). Victoria, as the Australian state onshore of the Gippsland basin (Figure 2.1), has extensive coal production. Much of this coal production is located directly onshore of the Gippsland basin, because the Latrobe Group, which is the main source rock for Gippsland basin hydrocarbon accumulations (e.g. Rahmanian 1990), contains abundant coals that are exploited onshore. Several power plants, predominantly utilising locally mined brown coal, are situated in southeastern Victoria (Figure 2.2a) and additional such plants are planned (Figure 2.2b) to meet increasing energy demands. In 1995, CO2 emissions
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