AN OVERVIEW OF NATURAL GAS CONDENSATE SCENERIO IN BANGLADESH MD. MIZANUR RAHMAN MASTER OF ENGINEERING IN PETROLEUM ENGINEERING DEPARTMENT OF PETROLEUM & MINERAL RESOURCES ENGINEERING BANGLADESH UNIVERSITY OF ENGINEERING & TECHNOLOGY DHAKA-1000, BANGLADESH OCTOBER 2013 AN OVERVIEW OF NATURAL GAS CONDENSATE SCENERIO IN BANGLADESH A Project Submitted to the Department of Petroleum and Mineral Resources Engineering in Partial Fulfilment of the Requirements for the Degree Of MASTER OF ENGINEERING IN PETROLEUM ENGINEERING By MD. MIZANUR RAHMAN ROLL NO.: 1007132013 DEPARTMENT OF PETROLEUM & MINERAL RESOURCES ENGINEERING BANGLADESH UNIVERSITY OF ENGINEERING & TECHNOLOGY DHAKA-1000, BANGLADESH OCTOBER 2013 RECOMMENDATION OF BOARD OF EXAMINERS The project entitled as “An Overview of Natural Gas Condensate Scenario in Bangladesh” submitted by Md. Mizanur Rahman, Roll No: 1007132013(P), Session: October 2007, has been accepted as satisfactory in partial fulfillment of the requirements for the degree of Master of Engineering in Petroleum Engineering on October 30, 2013. Chairman (Supervisor) : ___________________________ Afifa Tabassum Tinni Assistant Professor Department of Petroleum & Mineral Resources Engineering BUET, Dhaka-1000 Member : ___________________________ Dr. Mohammad Tamim Professor and Head Department of Petroleum & Mineral Resources Engineering BUET, Dhaka-1000 Member : ____________________________ Dr. Mohammad Mahbubur Rahman Associate Professor Department of Petroleum & Mineral Resources Engineering BUET, Dhaka-1000 Date: October 30, 2013 Declaration It is hereby declared that this project or any part of it has not been submitted elsewhere for the award of any degree or diploma. Md. Mizanur Rahman ABSTRACT Bangladesh Oil Gas and Minerals Corporation short named Petrobangla operates oil and gas exploration, development, transmission, distribution and conversion together with development and marketing of minerals in Bangladesh. Bangladesh gas sector started its journey in the 60s, but its rapid expansion and integration started to accelerate in the early 70s spurred by the rising of the oil prices. Till now, 24 gas fields have discovered. Total recoverable proven and probable gas reserve is about 26.84 TCF and recoverable reserve is 20.70 TCF. Up to June 2013 about 11.2 TCF gas has been produced, leaving only 9.5 TCF recoverable proved gas. On the other hand, up to June 2013 about 30.27 MMBBL condensate has been produced so far. Eastern Refinery Limited (ERL) plays a vital role in supplying around 40% of the country’s current petroleum products demand. ERL processes crude oil imported by BPC and delivers the finished petroleum products to the other subsidiaries of BPC for marketing and distribution. ERL also processes natural gas condensate as crude mix. Besides ERL, Petrobangla companies like SGFL and BGFCL are fractionating condensate into different products like motor spirit (MS), kerosene, diesel and octane. And also some private entrepreneurs are fractionating condensate into different products like MS, kerosene, diesel, SBPS and MTT. So, these fractionation plants producing different products and marketed by Bangladesh Petroleum Corporation (BPC) are playing a big role reducing import to meet the national demand of Bangladesh. SGFL installed a fractionation plant to fractionate condensate into MS, Kerosene at Haripur in 1960. At present there are twelve fractionation plants are in production a total capacity of 11,000 BBL/Day in Bangladesh. These fractionation plants both by government and private organization are contributing in the national economy reducing imports of finished petroleum products. i ACKNOWLEDGEMENT I would like to thank Afifa Tabassum Tinni, Assistant Professor, Department of Petroleum and Mineral Resources Engineering, For assigning such an important and practical topic “An Overview of Natural Gas Condensate Scenario in Bangladesh” and for supervision and proper guidance throughout this study. I am grateful to Dr. Mohammad Tamim, Professor and Head, Department of Petroleum and Mineral Resources Engineering, for his distinguished lectures and demonstration during class period which helped me a lot in completing this work. I would like to thank Dr. Mohammad Mahbubur Rahman, Associate Professor, Department of Petroleum and Mineral Resources Engineering, for his thoughtful guidance and valuable lectures during classes and throughout this study. I would like to thank Md. Anisul Haque Sarker, General Manager, Development & Production Division, Petrobangla, Engr. Jibon Santi Sarker, Manager, Drilling Project, SGFL, Engr. Md. Kamruzzaman, Assistant Engineer, ERL and Engr. Touhid Ahmed Siddique, Assistant Manager, RCFP, SGFL for co-operating and contributing a lot to complete this work. I also express my gratitude to the staff of Department of Petroleum and Mineral Resources Engineering for their cooperation. ii Table of Contents i Acknowledgement ----------------------------------------------------------------- 1 Chapter 1 Introduction ------------------------------------------------------------------------- 1 1.1 Background-------------------------------------------------------------------------- 2 1.2 Objectives and Methodology------------------------------------------------------ 3 Chapter 2 Condensate Handling, Transportation and Storage---------------------------- 3 2.1 Condensate Handling-------------------------------------------------------------- 4 2.2 Condensate Transportation-------------------------------------------------------- 6 2.3 Condensate Storage---------------------------------------------------------------- 8 Chapter 3 Natural Gas Condensate and its Properties------------------------------------- 12 Chapter 4 Condensate Recovery and Fractionation Process Description--------------- 12 4.1 Condensate Recovery Process Description------------------------------------ 19 4.2 Condensate Fractionation Process Description------------------------------- 22 Chapter 5 Condensate Chain in Bangladesh----------------------------------------------- 22 5.1 Condensate Production----------------------------------------------------------- 26 5.2 Condensate Processing----------------------------------------------------------- 29 5.3 Uses of Petroleum Products------------------------------------------------------ 31 Chapter 6 Condensate Production and Fractionation Data ------------------------------ 42 Conclusions and Recommendations-------------------------------------------- 45 References-------------------------------------------------------------------------- 46 Appendix--------------------------------------------------------------------------- iii Chapter 1 Introduction Natural gas condensate is a low density mixture of hydrocarbon liquids that is present as gaseous state at reservoir condition, but condenses out at surface condition. Condensate is composed mostly of saturated hydrocarbons in the light gasoline range (butane, pentane and hexane) and generally has API gravity higher than 55. It is a valuable product which is fractionated to produce LPG, motor spirit, diesel etc [1-5]. During the early days of natural gas production in Bangladesh, amount of condensate was small. With current production rate at about 7,000 barrels per day, the scenario has changed significantly. The major condensate producing fields of Bangladesh are Kailashtila, Rashidpur, Beanibazar, Jalalabad, Moulavibazar, and Bibiyana [6-21]. Until recently, all produced condensate was sent to Eastern Refinery Limited (ERL), the sole state owned refinery [22]. However, over the recent years a number of public and private enterprises got involved in fractionation. Due to the value addition opportunities, some of the gas field operators are considering measures to maximize liquid recovery [23]. Condensate is now an important issue with both technical and economic implications. It is therefore very important to gain a good understanding of the condensate value chain. The proposed project aims to make a systematic study of the condensate value chain. This will be helpful for all parties concerned, including the policy makers. 1 1.1 Objectives: The objectives of the study are to: 1. Create a database of condensate production and condensate properties 2. Give an overview of condensate handling, transportation and storage system in Bangladesh. 3. Give an overview of condensate fractionation business in Bangladesh, along with the statistics of end products. 4. Identify the trends and make suggestions for future developments. 1.2 Methodology The following methods will be adopted to achieve the above objectives: 1. Collection of condensate production and property data 2. Collection of data and information regarding condensate handling, transportation and storage 3. Collection of data and information related to the refinery/fractionation business in Bangladesh 4. Compilation and analysis of the data and information 5. Identify trends, and scope of improvements, where necessary. 6. Suggest measures for coping up with the trends, such as efficient handling of increasing production, etc. 2 Chapter 2 Natural Gas Condensate Properties Definition: Natural Gas Condensate Condensate is colorless or light yellow liquid hydrocarbons which come out as associated liquids with natural gas during its production. Most condensates are composed of saturated hydrocarbons in the light gasoline range (butane, pentane and hexane). [2] Natural-gas condensate is a low-density mixture of hydrocarbon liquids that are present as gaseous components in the raw