Energy: This company is studying the merits of compressed gas in Brazil
Global Energy Ventures (ASX:GEV) has kicked off a study into the potential of using compressed natural gas (CNG) to commercialise gas resources for an in-development oil and gas field offshore Brazil.
CNG is compressed using high pressure into a liquid with less than 1 per cent of its normal volume, which contrasts with liquefied natural gas which is supercooled into a liquid.
While LNG has greater energy density that allows for better transport of gas resources over longer distances, CNG is a mature technology that’s considerably less expensive and could provide a commercial option for delivering gas for domestic consumption.
The company’s high level technical and economic analysis has indicated the commercial benefits of using CNG Optimum ships to transport associated gas from selected offshore Brazilian oil fields to onshore markets.
This will allow gas resources that would otherwise be reinjected into the reservoir to be commercialised.
“Brazil represents a wonderful opportunity for GEV’s Optimum CNG ships. Whilst the country is currently reinjecting 1 billion cubic feet of gas each day, equivalent to five CNG Optimum ships, the amount of gas to be reinjected is expected to increase more than three times as new oilfield projects are developed in the Brazilian Pre-Salt,” executive director Garry Triglavcanin said.
The selected oil field is expected to start production in 2023 using a floating production, storage and offloading vessels that could process up to 300 million cubic feet of natural gas per day.
ADX Energy (ASX:ADX) and its partner Reabold Resources have contributed a further $540,000 and $3.65m respectively to funding appraisal and development activities in the Para sole risk area in Romania. Work will focus on commericalising the IMIC-1 gas well and further resource development.
Global Oil and Gas (ASX:GLV), formerly Global Vanadium, could receive up to $4m from the sale of its Southern Georgina project in the Northern Territory to Westmarket Oil and Gas under a revised agreement. This is due to the improved market interest for helium projects.