Associated Petroleum Gas management in the south of Iraq

Abstract: Iraq is considered as the second largest oil producer in organization of petroleum exporting countries (OPEC) with oil production average of 3.2 MMbbl/day. Iraq has very ambitious plans to increase oil production in the coming few years, which means rapid increase of the associated petroleum gas (APG) which has dissolve form in crude oil and consider as a common by-product with crude oil extraction. This study aims to give more understanding about APG management in the south of Iraq and highlight the most important reasons standing behind utilize failure of a huge amount of APG instead of flare it and what the consequences of flare option in the environmental, economic and political perspectives. Natural gas featuring as a cleanest fossil fuel with less emission comparing with other types of fossil fuels. In addition, natural gas is considered as an important source for thermal, electrical and mechanical energy and can be used in very wide branches such as transport, industry, electricity and in the housing sector. Furthermore, it is considered as a raw material for petrochemical, fertilizer industries and for the productions of pesticides. In this study, APG flaring from economic and environmental perspectives were studied. This study has produced three different scenarios for the future gas production. Three different scenarios were studied (business as usual (BAU), new processing facilities (NPF) and gas to grid (GTG)). BAU scenario depends on rehabilitate the entire infrastructures which are old, unsufficient and it is platform capacity is very small to capture and process a huge amount of APG which expected to be produced in the coming years. NPF means build new capturing and processing facilities to treat the total expected amount of APG and the GTG scenario depend on the same assumptions of the second scenario but, all the produced dry gas will destined to the power plant to produce electricity. Most promising results (economic and environment results) gained by adapting GTG scenario. These results, however, might explain and justify the economic investment that should be used in the Iraqi gas industry will give more revenue, improve Iraqis people life conditions and reduce the global environmental degradation. As a result of that the imported gas, electricity and natural gas liquids (NGL) will be stopped after three to five years. So it is recommended that the produced dry gas should utilize in the power plant as a feedstock instead of crude oil and diesel and after the increasing of provide dry gas can Iraq stop import gas and electricity as well. More involved by adopting gas to grid scenario because the produced dry gas used as feedstock in the power generations to cover the domestic and industry demand for electricity. More investment needs to apply this scenario but also more benefit will be gain due to replacing oil and diesel which are currently used in the power plants by using natural gas. Iraq has to take rapid steps toward changing all the existing fuel fire generators to cover the shortage of electricity supply and guaranteed the domestic and the industrial sectors of stable providing of electricity. Iraq is facing a real problem at the moment because of the burning of Iraqi gas, which causes to accumulate of 20 million tons per year of carbon dioxide emissions, the equivalent of three million tailpipe emissions car. Accompanied with the increasing in crude oil production during the past few years an increase in the production of APG, which means an increase in the quantities of burned gas and that needs to evolution of energy installations of gas collection and treatment in the same period. In addition, increase the quantities of liquid petroleum gas and light naphtha for domestic demand, will be an urgent need for the establishment of appropriate facilities for the storage and export in the south harbors to export the surplus for the local need. The implementation of these scenarios beginning in 2015 requires speeding up the construction of the assembly plants, pressure, treatment and the related infrastructures at the level of the oil fields production. The construction of the necessary pipelines infrastructure needs to connect the centers of demand treatment plants, power plants and the oil wells. It is also required to raise the capacity of the gas filling facilities near centers of domestic consumption. Preparation of technical plans for the gas system, gas industries, electricity generation and all the investment possibilities will be very important and it should be ready by 2015 to exploit the total gas production in Iraq and its treatment, so that it becomes available to transfer it to the local and international markets. At that point, gas flaring may reach to the lowest level, and then will meet all the requirements of the local gas demand, local electricity demand and contributing with international efforts to protect the global environment.