NATURAL GAS

ENGINEERING
 INTRODUCTION

What Is Natural Gas?

 Natural gas is a subcategory of petroleum that is a naturally occurring,

complex mixture of hydrocarbons, with a minor amount of inorganic
compounds.
Table 1-1 shows composition of a typical natural gas.
Natural Gas Value Chain
The conversion of natural gas into a liquid has been an elusive
objective for a long time. Some parts of the produced gas – propane,
butane, and the natural condensate, can be shipped as LPG or
natural gasoline. If it is available in sufficient quantity, the ethane can
be split out and converted into petrochemicals (ethylene and its
derivatives). The big question has always been what to do with the
methane.

The chart shows the overall picture for natural gas monetization
options. The methane, or C1, portion can be transported by pipeline
or by liquefaction and shipping, or it can be chemically converted to a
liquid as methanol or by using the Fischer-Tropsch reaction.
Figure 1: Chart foe Natural Gas Value line
Table-1.2
Gas Reserves in India

India has a bright long term natural gas supply outlook. Certified reserves of
over 28 BCM on a deepwater block in the Krishna/Godavari basin is a
conservative figure with respect to significant potential for future discoveries
in the basin and the Bay of Bengal. More than 9 big discoveries have been
made in less than 3 years and a further multi-million deepwater exploration
program was kicked off recently.

The very first exploratory venture by RIL in this block has resulted in world’s
largest gas discovery for the year 2002. In addition, there is a high
probability of success based on the data available is expected for the
unexplored deeper targets. These targets are expected to yield new
discoveries and consequently the resources from the field are expected to
grow with time. It is anticipated that through sustained exploratory drilling in
the next few years, the reserves are likely to increase and may range from
23 - 30 tcf.
Miscellaneous Activities for New Opportunities to
Petroleum Specialists

 ONGC signed an agreement with L.N. Mittal group to form two 51:49
% joint venture companies - OMEL (ONGC Mittal Energy Ltd) and
OMESL (ONGC Mittal Energy Services Ltd) for exploration,
production and shipping activities abroad

 OMEL has entered into an MOU with Nigeria under which the later
will allocate deep water exploration blocks in Nigeria that are
expected to yield 32.5 million tones of oil every year for 25 years.
The right of PSC has been obtained by offering Abuja a $ 6 billion
“capacity build up” package. OMEL will build or get Indian
companies to build power plants, railway system, refining capacity
and training institutes in Nigeria, in return of equity oil
 ONGC Videsh will hold 50 % stake, Engineers India 25 %,
Indian Oil Corporation 15% and Oil India the remaining 10 %
in the US $ 750 million refinery revamp and petroleum
products pipeline projects in Sudan.

 ONGC has offered 26 % partnership in to Coal India Ltd

(CIL) in its Underground Coal Gasification projects. CIL is
also likely to join ONGC in its CBM projects.

 ONGC board has approved setting up of a new company

Opal (ONGC Petro-additions Private Ltd) to implement the
C2-C3 extraction plant at Dahej from rich LNG to be supplied
by Petronet LNG Ltd.
 ONGC Videsh has signed a MOU with Ghana National Petroleum
Corporation GNPC) to study and evaluate data of Central basin so as
to enter an agreement for exploration, development and production
agreement.

 GAIL and EIL (Engineers India Ltd) have signed a MOU for gas
processing and transportation projects abroad.

 IOC (Indian Oil Corp) and STATOIL, Norway have formed into a
SPV (Special Purpose Vehicle) for acquisition of prospective
exploration acreage and producing properties. They have also
entered into a agreement for the formation of joint venture SPV
towards securing service business in oil and gas industry
internationally.
 ONGC Videsh and Norsk Hydro have signed a MOU under which
the companies will make opportunities available for each other’s
consideration on nonexclusive basis.

 ONGC has entered into an MOU with ENI for exchanging

information in a wide range of exploration opportunities in India
and overseas and be a strategic partner with state of art
technology, specially in deep water exploration and development.

 OILEX of Australia has acquired 30 % stake in onshore

Cambay gas field in Gujarat from GSPC
GAS PRODUCTION ENGINEERING FUNDAMENTALS

Introduction
The role of a production engineer is to maximize oil and
gas production in a cost-effective manner.

Fig. 4.1,shows a complete oil or gas production system consists

of a reservoir, well, flowline, separators, pumps, and
transportation pipelines. The reservoir supplies well-bore with
crude oil or gas.
 Figure 4.1 A sketch of a Oil or Gas
_
production system.
Pwf = flowing bottom hole pressure p = average reservoir pressure
 Reservoir

Hydrocarbon accumulations in geological traps can be classified

as reservoir, field, and pool. A ‘‘reservoir’’ is a porous and
permeable underground formation containing an individual bank
of hydrocarbons confined by impermeable rock or water barriers
and is characterized by a single natural pressure system. A
‘‘field’’ is an area that consists of one or more reservoirs all
related to the same structural feature. A ‘‘pool’’ contains one or
more reservoirs in isolated structures.
Hydrocarbon accumulations are classified as oil, gas
condensate, and gas reservoirs. Reservoir Condition is shown
in Fig. 4.2
Figure 4.2a A typical hydrocarbon phase diagram.
An oil that is at pressure above its bubble point pressure is
called an “unsaturated oil” because it can dissolve more gas at
the given temperature.

An oil that is at its buuple point pressure is called a “saturated

oil” because it can dissolve no more gas at the given
temperature.

Single phase flow prevails in an undersaturated oil reservoir,

where as two-phase (liquid oil and free gas) flow exists in a
saturated oil reservoir.

The reservoirs at and above dew point are classified as gas

reservoirs.
 Gas Reservoirs

In general, if the reservoir temperature is above the critical

temperature of the hydrocarbon system, the reservoir is classified as a
natural gas reservoir. On the basis of their phase diagrams and the
prevailing reservoir conditions, natural gases can be classified into
four categories:
• Retrograde gas-condensate
• Near-critical gas-condensate
• Wet gas
• Dry gas
Retrograde gas-condensate reservoir: If the reservoir
temperature T lies between the critical temperature Tc and
cricondentherm Tct of the reservoir fluid, the reservoir is
classified as a retrograde gas-condensate reservoir. This category
of gas reservoir is a unique type of hydrocarbon accumulation in
that the special thermodynamic behavior of the reservoir fluid is
the controlling factor in the development and the depletion
process of the reservoir. When the pressure is decreased on these
mixtures, instead of expanding (if a gas) or vaporizing (if a liquid)
as might be expected, they vaporize instead of condensing.
Consider that the initial condition of a retrograde gas reservoir is
represented by point 1 on the pressure-temperature phase diagram
of Figure 4.2b.
Because the reservoir pressure is above the upper dew-point
pressure, the hydrocarbon system exists as a single phase (i.e.,
vapor phase) in the reservoir. As the reservoir pressure declines
isothermally during production from the initial pressure (point
1) to the upper dew-point pressure (point 2), the attraction
between the molecules of the light and heavy components
causes them to move further apart further apart. As this occurs,
attraction between the heavy component molecules becomes
more effective; thus, liquid begins to condense.
Figure :4.2b A typical phase diagram of a retrograde system.
This retrograde condensation process continues with decreasing
pressure until the liquid dropout reaches its maximum at point
3. Further reduction in pressure permits the heavy molecules to
commence the normal vaporization process. This is the process
whereby fewer gas molecules strike the liquid surface and
causes more molecules to leave than enter the liquid phase. The
vaporization process continues until the reservoir pressure
reaches the lower dew-point pressure. This means that all the
liquid that formed must vaporize because the system is
essentially all vapors at the lower dew point. In most gas-
condensate reservoirs, the condensed liquid volume seldom
exceeds more than 15%–19% of the pore volume.
 This liquid saturation is not large enough to allow any liquid
flow. It should be recognized, however, that around the
wellbore where the pressure drop is high, enough liquid dropout
might accumulate to give two-phase flow of gas and retrograde
liquid. The associated physical characteristics of this category
are:
• Gas-oil ratios between 8,000 to 70,000 scf/STB. Generally, the gas-

oil ratio for a condensate system increases with time due to the
liquid dropout and the loss of heavy components in the liquid.
• Condensate gravity above 50° API • Stock-tank liquid is usually
water-white or slightly colored.
There is a fairly sharp dividing line between oils and
condensates from a compositional standpoint. Reservoir fluids
that contain heptanes and are heavier in concentrations of
more than 12.5 mol% are almost always in the liquid phase in
the reservoir. Oils have been observed with hep-tanes and
heavier concentrations as low as 10% and condensates as high
as 15.5%. These cases are rare, however, and usually have
very high tank liquid gravities.
Near-critical gas-condensate reservoir. If the reservoir temperature
is near the critical temperature, as shown in Figure 4.2c, the
hydrocarbon mixture is classified as a near-critical gas-condensate.
The volumetric behavior of this category of natural gas is described
through the isothermal pressure declines as shown by the vertical line
1-3 in Figure 4.2c. Because all the quality lines converge at the
critical point, a rapid liquid buildup will immediately occur below
the dew point as the pressure is reduced to point 2

This behavior can be justified by the fact that several quality lines
are crossed very rapidly by the isothermal reduction in pressure. At
the point where the liquid ceases to build up and begins to shrink
again, the reservoir goes from the retrograde region to a normal
vaporization region.
Figure :4.2c A typical phase diagram for a near-
critical gas condensate reservoir.
Wet-gas reservoir. A typical phase diagram of a wet gas is
shown in Figure 4.2d, where reservoir temperature is above the
cricondentherm of the hydrocarbon mixture. Because the
reservoir temperature exceeds the cricondentherm of the
hydrocarbon system, the reservoir fluid will always remain in
the vapor phase region as the reservoir is depleted isothermally,
along the vertical line A-B. As the produced gas flows to the
surface, however, the pressure and temperature of the gas will
decline. If the gas enters the two-phase region, a liquid phase
will condense out of the gas and be produced from the surface
separators.
This is caused by a sufficient decrease in the kinetic energy of
heavy molecules with temperature drop and their subsequent
change to liquid through the attractive forces between
molecules. Wet-gas reservoirs are characterized by the
following properties:

• Gas oil ratios between 60,000 to 100,000 scf/STB

• Stock-tank oil gravity above 60° API
• Liquid is water-white in color
• Separator conditions, i.e., separator pressure and temperature,
lie within the two-phase region.
Figure :4.2d Phase diagram for a wet gas.
Dry-gas reservoir: The hydrocarbon mixture exists as a gas
both in the reservoir and in the surface facilities. The only
liquid associated with the gas from a dry-gas reservoir is
water. A phase diagram of a dry-gas reservoir is given in
Figure 4.2e. Usually a system having a gas-oil ratio greater
than 100,000 scf/STB is considered to be a dry gas. Kinetic
energy of the mixture is so high and attraction between
molecules so small that none of them coalesce to a liquid at
stock-tank conditions of temperature and pressure. It should
be pointed out that the classification of hydrocarbon fluids
might be also characterized by the initial composition of the
system.
Figure :4.2e Phase diagram for a dry gas..
From the foregoing discussion, it can be observed that
hydrocarbon mixtures may exist in either the gaseous or liquid
state, depending on the reservoir and operating conditions to
which they are subjected. The qualitative concepts presented
may be of aid in developing quantitative analyses. Empirical
equations of state are commonly used as a quantitative tool in
describing and classifying the hydrocarbon system
Wells in the same reservoir can fall into categories of oil,
condensate, and gas wells depending on the producing gas–oil
ratio (GOR).Gas wells are wells with producing GOR being
greater than 100,000 scf/stb; condensate wells are those with
producing GOR being less than 100,000 scf/stb but greater
than 5,000 scf/stb; and wells with producing GOR being less
than 5,000 scf/stb are classified as oil wells.
Well
Oil and gas wells are drilled like an upside-down
telescope. The large-diameter borehole section is at the
top of the well. Each section is cased to the surface, or
a liner is placed in the well that laps over the last
casing in the well. Each casing or liner is cemented
into the well
The ‘‘wellhead’’ is defined as the surface equipment set
below the master valve. As we can see in Fig. 4.3, it includes
casing heads and a tubing head. The casing head (lowermost)
is threaded onto the surface casing. This can also be a flanged
or studded connection. A ‘‘casing head’’ is a mechanical
assembly used for hanging a casing string (Fig. 4.4).
Depending on casing programs in well drilling, several casing
heads can be installed during well construction.
Figure 4.3 A sketch of a wellhead.
Figure 4.4 A sketch of a casing head.
Most flowing wells are produced through a string of tubing
run inside the production casing string. At the surface, the
tubing is supported by the tubing head (i.e., the tubing head is
used for hanging tubing string on the production casing head
[Fig. 4.5]).

Figure 4.5 A sketch of a tubing head.

The equipment at the top of the producing wellhead is
called a ‘‘Christmas tree’’ (Fig. 4.6) and it is used to
control flow. The ‘‘Christmas tree’’ is installed above the
tubing head. An ‘‘adaptor’’ is a piece of equipment used
to
join the two. The ‘‘Christmas tree’’ may have one flow
outlet (a tee) or two flow outlets (a cross).
Figure 4.6 A sketch of a ‘‘Christmas tree.’’
A Christmas tree consists of a main valve, wing valves, and a
needle valve. These valves are used for closing the well when
needed. At the top of the tee structure (on the top of the
‘‘Christmas tree’’), there is a pressure gauge that indicates the
pressure in the tubing. The wing valves and their gauges
allow access (for pressure measurements and gas or liquid
flow) to the annulus spaces (Fig. 4.7).
Figure 4.7 A sketch of a surface valve.
‘‘Surface choke’’ (i.e., a restriction in the flowline) is a piece
of equipment used to control the flow rate (Fig. 4.8). In most
flowing wells, the oil production rate is altered by adjusting
the choke size. The choke causes back-pressure in the line. The
back-pressure (caused by the chokes or other restrictions in the
flowline) increases the bottomhole flowing pressure.
Increasing the bottom-hole flowing pressure decreases the
pressure drop from the reservoir to the wellbore (pressure
drawdown). Thus, increasing the back-pressure in the well-
bore decreases the flow rate from the reservoir
Figure 4.8 A sketch of a wellhead choke.
Surface vessels should be open and clear before the well is
allowed to flow. All valves that are in the master valve and
other downstream valves are closed. Then follow the following
procedure to open a well:
1. The operator barely opens the master valve (just a crack),
and escaping fluid makes a hissing sound. When the fluid no
longer hisses through the valve, the pressure has been
equalized, and then the master valve is opened wide.
2. If there are no gas/oil leaks, the operator cracks the next
downstream valve that is closed. Usually, this will be either
the second (backup) master valve or a wing valve. Again,
when the hissing sound stops, the valve is opened wide.
3. The operator opens the other downstream valves the same
way.

4. To read the tubing pressure gauge, the operator must open the
needle valve at the top of the Christmas tree. After reading
and recording the pressure, the operator may close the valve
again to protect the gauge.

The procedure for ‘‘shutting-in’’ a well is the opposite of the

procedure for opening a well.
 Flow Regimes

When a vertical well is open to produce gas/oil at production rate

q, it creates a pressure funnel of radius r around the wellbore, as
illustrated by the dotted line in Fig. 4.9a. In this reservoir model,
the h is the reservoir thickness, k is the effective horizontal
reservoir permeability to gas, μg is viscosity of oil, Bg is gas
formation volume factor, rw is wellbore radius, pwf is the flowing
bottom hole pressure, and p is the pressure in the reservoir at the
distance r from the wellbore center line. The flow stream lines in
the cylindrical region form a horizontal radial flow pattern as
depicted in Fig. 4.9b.
Figure 4.9 A sketch of a radial flow reservoir model: (a)
lateral view, (b) top view.
 Transient Flow

‘‘Transient flow’’ is defined as a flow regime where/when the

radius of pressure wave propagation from wellbore has not
reached any boundaries of the reservoir. During transient
flow, the developing pressure funnel is small relative to the
reservoir size. Therefore, the reservoir acts like an infinitively
large reservoir from transient pressure analysis point of view.
 Steady-State Flow

‘‘Steady-state flow’’ is defined as a flow regime where the

pressure at any point in the reservoir remains constant over time.
This flow condition prevails when the pressure funnel shown in
Fig. 4.9 has propagated to a constantpressure boundary. The
constant-pressure boundary can be an aquifer or a water
injection well. A sketch of the reservoir model is shown in Fig.
4.10, where pe represents the pressure at the constant-pressure
boundary.
Figure 4.10 A sketch of a reservoir with a constant-pressure boundary.
 Pseudo–Steady-State Flow

‘‘Pseudo–steady-state’’ flow is defined as a flow regime where

the pressure at any point in the reservoir declines at the same
constant rate over time. This flow condition prevails after the
pressure funnel shown in Fig. 4.9 has propagated to all no-flow
boundaries. A no-flow boundary can be a sealing fault, pinch-out
of pay zone, or boundaries of drainage areas of production wells.
A sketch of the reservoir model is shown in Fig. 4.11, where pe
represents the pressure at the no-flow boundary at time t4.
Figure 4.11 A sketch of a reservoir with no-flow boundaries.
Thank You