AGX Solutions - Associated Gas and Field Gas Purification
From AGX Solutions
Displacing diesel fuel with natural gas provides huge cost savings for drilling and frac pump operators. Xebec's mobile solution enables diesel displacement for significantly lower operating costs, longer engine life and environmental compliance.
Cost and environmental compliance are critical concerns for today’s drilling operators, particularly those focused on unconventional sources of energy like shale oil and gas.
- Diesel fuel costs continue to rise
- Environmental legislation is becoming more restrictive
- Transporting fuel is increasing costly
Industry-wide collaboration has identified natural gas conversion of diesel-powered engines as a viable solution, utilizing the fuel from the wellhead. However, the high heating value (HHV) of liquid-rich shale gas or associated gas does not allow for immediate use in diesel displacement. The gas must first be conditioned.
Xebec provides a proven, cost-efficient, flexible, containerized solution. Its AGX line of conditioning systems removes heavier hydrocarbons from the field gas. This lowers the HHV making it useable on converted drilling rigs and with frack pumps.
Oil and gas drillers and frac pump operators can displace up to 60% of their diesel fuel
- Average cost of diesel fuel is $ 3.84/gal  in the US, or $ 27.69/MMbtu. However, diesel is not always readily available in large quantities near drill sites, adding hauling cost. Therefore, fuel FOB drill sites can go up to $4.95 $/gal , or $35.69/MMbtu.
- Comparatively, the cost to obtain field gas is approximately $2.00/MMbtu . It can be sold at the wellhead for $2.20-2.60/MMbtu , or at the processing hub (Henry Hub) for $ 3.43/MMbtu .
The exhaust stream from Xebec’s field gas conditioning unit is rich in ethane, propane, butane, and pentane. This group of hydrocarbons is called NGL's (Natural Gas Liquids). These liquids have a marketable value and with Xebec’s solution they are captured and can be turned into revenue.
Improved Environmental Performance
A significant benefit is the ability to address increasing restrictions imposed by environmental legislation.
- The Xebec solution reduces carbon dioxide, particulate matter (PM), and nitrogen oxide (NOx) emissions. Plus, natural gas engines run quieter than their diesel counterparts and the emissions are odourless
- There is reduced flaring and improved productivity as extraction need not be turned down because of flaring quota restrictions
- NGL’s can be condensed on site and transported to a gas treatment plant
Note: Recent regulations indicate that by January 1, 2015, no flaring will be accepted in the US.
Plug and Play Flexibility
Mobility is important as drilling rigs move to new sites. A unique and important advantage of the AGX system is its ability to facilitate these field deployments.
- Xebec’s containerized solution is completely mobile, compact and transport-ready
- The AGX system is simple to install
- Xebec’s PSA uses rotary valves that are highly reliable, less wearing and have been proven to perform well in critical operations in refinery environments