ExxonMobil commences reinjection of gas in Liza Phase 1

…EPA says problems with gas compressors solved, no more flaring

By Jarryl Bryan

Kinks in their gas compressors resulted in ExxonMobil flaring more gas than expected, but according to Environmental Protection Agency (EPA) Director, Dr Vincent Adams, these challenges have since been resolved.

Dr Adams explained in an interview with this publication that the Liza Destiny Floating Production Storage and Offloading (FPSO) vessel being used by ExxonMobil has started reinjecting gas.
He acknowledged that in normal circumstances, ExxonMobil is not allowed to routinely flare gas during production. However, he noted that the flaring done by ExxonMobil is still catered for in their permit.
“The permit says they’re not allowed to flare routinely during production, except in cases of emergency and startup. They are in the startup mode here now.”
“And what had happened is that the equipment was assembled onshore. It was tested on a different type of gas. So when they brought it offshore, they had to test it with the gas that is going to be produced,” he explained.
Adams also explained that ExxonMobil had to flare the gas anyway because, at the startup, all the gas and accompanying pressure could not be reinjected.
“You have to produce gas, so you can test the compressor on that produced gas. While you’re testing the equipment, you have to be flaring. It happened that when they were going through that routine, they found that the seals on the compressor were not compatible with the gas. So they had to redesign, and the valves were causing problems. So this year was a start-up.”
According to Adams, going forward, flaring will not be allowed once the project gets past this startup phase. However, he was confident that ExxonMobil now has the right design for its equipment.
Dr Adams chalked it up to a lesson learnt. Moreover, he noted that ExxonMobil kept and continues to keep the EPA updated with their flaring and reinjection levels.
“Of course, we’ve had some very serious conversations with them. And this will be a onetime thing. We all understand what the problem was and by going through this, at least we understand a problem that was fixed. We learned the hard way.”

Gas reinjection
Gas reinjection is a common process used by oil and gas operators to maintain pressure and enhance oil production by reinjecting gas back into the reservoir. In contrast, gas flaring is the burning of excess gas. However, gas flaring has been cited as a source of greenhouse gas emission, not to mention the toxins that it releases, which are harmful to humans.
There has meanwhile also been talk about bringing excess gas to shore as a greener substitute for the Heavy Fuel Oil (HFO) Guyana currently depends on to generate energy.
The Government had previously announced that there were plans to establish a 188-megawatt power plant. There are also plans to land the pipeline necessary for the transfer of the gas at a site on the East Coast of Demerara.
Part of a US$20 million loan that Guyana had signed with the World Bank had also gone towards funding a study to examine the merits of bringing natural gas onshore for the local energy market.
Meanwhile, Exxon has said that around 30 to 35 million cubic feet of natural gas would be required for a gas-to-shore project.
Data from Norwegian research company Rystad Energy had indicated that less than 20 per cent of the 1.8 billion Barrels of Oil Equivalent (BOE) Exxon discovered last year offshore Guyana was gas.
The Haimara discovery made by Exxon last year was found to have 207 feet of high-quality gas condensate sandstone reservoirs.
The Liza Phase 1 project meanwhile accounts for roughly 75,000 and 80,000 barrels of oil per day. Moreover, production is expected to be ramped up to 120,000 barrels per day by next month.
In addition, Exxon has its Liza Phase Two project, which will contain approximately 30 wells and which has already received the requisite approval from the EPA.
But the onset of coronavirus, also known as COVID-19, has had a serious impact not just on lives but also the global economy and specifically, oil. Exxon has already announced that it is downsizing its operations in order to mitigate against the pandemic.