GRI's study initiatives target U.S. natural gas

Gas Research Institute, Chi- cago, is soliciting industry participation in a series of studies that bear on exploration and production, transportation, distribution, and other aspects of natural gas in the U.S. GRI expects the Federal Energy Regulatory Commission soon to begin a 7 year transition away from its traditional funding source: a surcharge on gas moved in interstate commerce. GRI is setting up noncore research programs that would be paid for by and benefit only individual consumers,

Feb. 16, 1998

3 min read

GRI expects the Federal Energy Regulatory Commission soon to begin a 7 year transition away from its traditional funding source: a surcharge on gas moved in interstate commerce. GRI is setting up noncore research programs that would be paid for by and benefit only individual consumers, groups of consumers, specific industries, or groups of companies (OGJ, May 12, 1997, p. 37).

GRI launched the noncore program, called GRI Select, in December 1997 by offering companies the opportunity to participate in six studies. A further 10-15 offerings are planned in April.

First initiatives

First of the noncore initiatives involve gas producibility of the Devonian New Albany shale in the Illinois basin; Michigan basin natural gas supply technology; hydrocarbon dewpointing by membranes; helping local distribution companies cut excavation and restoration costs; competitive solutions to utility coal-gas switching issues; and use of gas in commercial food service.

For instance, GRI proposed to develop a producibility model for the New Albany shale. It plans to provide participants with information, techniques, and knowhow to reduce the development and exploration uncertainty and costs in the play.

GRI said New Albany shale contains as much as 86 tcf in place and more than 100 wells have been drilled, mostly in Indiana and Kentucky. It said the play is in danger of abandonment due to highly variable formation characteristics, water handling, gas chemistry, and other factors (see article, p. 70).

GRI proposed a 2 year program that would involve a total of $400,000-$1 million. A steering committee made up of representatives from five producing companies is drafting a definitive work plan.

In another project, GRI hopes to form an alliance of Michigan basin gas E&P companies, pipelines, distributors, and state and federal agencies to identify the five most critical technical issues that must be addressed to enable economic production.

GRI noted that the Michigan basin took nearly 48 years to produce its first trillion cubic feet of gas but that cumulative production grew from 3 tcf to 4 tcf between 1989 and 1994.

In the third project, producers, gatherers, and transmission companies would bring to commercialization the use of membranes for hydrocarbon dewpointing. GRI foresees considerable savings from the systems in offshore and onshore use as compared with conventional straight refrigeration units and absorption chillers.