Using innovation to lower gas gathering costs for unconventional projects

Abstract

Moving from conventional to unconventional gas project development requires a significant shift in approach. This presents challenges for operators making this transition, including standards and specifications being mis-matched to functional requirements, the need for robust surface and subsurface field development planning, lack of infrastructure, high construction and procurement costs and the scarcity of supply chain and logistics support. In their need to prove up sufficient reserves in time for downstream LNG plant operations, coal seam gas (CSG) players have neglected the development of appropriate standards, specifications and contracting and procurement strategies that consider how upstream costs can be minimised.

This can impact project viability in a high-cost, low-productivity environment. The requirement of shale gas development for continual expansion also presents challenges compared to conventional project development.

Adopting a factory approach can ensure a smooth and economic transition through the phase of continual shale gas production across the life of individual wells and through field expansion.

Using case studies, this extended abstract describes how innovation can be applied across the gas-gathering development phase of unconventional projects to achieve significant cost savings.

Key innovative opportunities include:

1. Maximising modularise construction and operation to reduce the construction schedule and maximise onsite productivity.

2. Relocatable, interchangeable, standardised skid designs (design kit approach).

3. Standard modules sized to maximise container volumes (and they minimise freight costs).

4. Low-cost design Asian and Australian fabrication.

5. Fit-for-purpose technology and packages to lower operating costs.

6. Design and fabrication to minimise environmental impacts.