LOW BTU POLISH GAS TO BE STUDIED FOR DEVELOPMENT

Feb. 16, 1993
Gas/condensate fields in western Poland, undeveloped because of high nitrogen and hydrogen sulfide contents, are to be studied for development as part of a novel power generation project. Drake Resources Ltd., London, in collaboration with Polish Oil & Gas Co., Warsaw, will study the feasibility of producing more than 400 bcf of low BTU gas and about 50 million bbl of condensate. Drake estimated capital outlays of at least $50 million in a project designed to supply at least 50,000-75,000 kw

Gas/condensate fields in western Poland, undeveloped because of high nitrogen and hydrogen sulfide contents, are to be studied for development as part of a novel power generation project.

Drake Resources Ltd., London, in collaboration with Polish Oil & Gas Co., Warsaw, will study the feasibility of producing more than 400 bcf of low BTU gas and about 50 million bbl of condensate. Drake estimated capital outlays of at least $50 million in a project designed to supply at least 50,000-75,000 kw of electrical power from a central generating plant.

Target reserves lie in 12 fields in two groups southwest and west of Poznan, and 10-90 km east of the German border. Enough wells have been drilled, tested, and suspended in all the fields to begin development.

The gas has nitrogen contents of 58-90% and hydrogen sulfide levels ranging from a trace to about 1%.

DEVELOPMENT PLAN

Drake bases its development plan on three key features:

  • Use of combined cycle gas turbines to generate electricity from produced gas without the need for nitrogen removal.

  • Multiple field development projects to yield economies of scale and enable separation and selective blending of gas components to improve heating value with further enrichment, if necessary, by blending in methane from a local trunk line carrying high BTU gas.

  • Environmental benefits, in comparison with Poland's largely coal based power generation, which include improved efficiency and reduced emissions.

Power generation in Poland at present is fueled 70% by hard coal, 10% brown coal, 13% imported oil, and 7% by natural gas, half of which is imported.

Drake reckons its project will show up to 45% gas conversion efficiency, compared with 30% efficiency at best for existing coal based plants. Ash handling and airborne particulates will not be a problem, and sulfur dioxide emissions will be minimized. Carbon dioxide emissions will be only 25-35% of those from existing coal fired plants generating the same amount of power.

The feasibility study is scheduled for completion in first half 1993. The fields have been split into two groups to stage the development.

Total production from the seven fields in Phase I is estimated at 40-80 MMcfd of gas and 700-1,700 b/d of liquids.

If the study reveals that further hydrocarbons must be added to the produced gas to meet fuel gas standards, the study will be expanded to include development of other fields.

If the gas still falls short of requirements, methane could be imported from the Polish gas trunk line network.

Once the study has been completed-and if the project proves commercially viable-power generation could follow within 2 years, Drake said.

Polish Oil & Gas is discussing sales of electricity with local industrial customers.

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