Gas costs

Improve heat recovery processes to capture waste gases cost-effectively. 

Typically, the contractor carries the cost of exploration, appraisal and development, later claiming these costs form a tranche of the produced oil or gas ( cost oil ). If the cost oil allowance is insufficient to cover the annual costs (capex and opex), excess costs are usually deferred to the following year. After the deduction of royalty (if applicable) the remaining volume of production (called profit oil ) is then split between the contractor and the host government. The contractor will usually pay tax on the contractor s share of the profit oil. In diagrammatic form the split of production for a typical PSC is shown in Figure 13.11. 

The gas costs 5 cents / fb in small quantities, and about 15/ton in large quantities. 

Because of safety concerns, all combustible and/or toxic gases must be used in outdoor test loops or in a special indoor test building with the required safety monitoring equipment. The gas cost factor makes the problem even more difficult. The problem of known gas properties adds another complication. Despite all the negative aspects just mentioned, most performance tests are closed-loop tested. 

Preliminary studies indicate gas costs could be competitive with other SNG sources. 

Sure a car like mine will save you money, but not that much. A tank of gas costs 28.00 and lasts one week, that s 1,456 a year ... 

The models for the above reservoir conditions indicate that economical hydrate production can be achieved at a gas cost of US 9 per MMBTUs in 2005 economics. 

Electric motor drives are preferred if the power cost is low, since electric packages are less costly than turbine drives, and motors generally have lower maintenance requirements. Turbine drives are preferred if the fuel gas cost is more attractive than the cost of electric power. Turbines can also provide process heat for the pre-treatment system and may, thus, reduce the need for heating equipment. In many installations, gas turbine fuel is provided from flash gas in the main process. 

Monitoring such operations implies specific measures and modelling tools which correctly handle gas mixing phenomena. When such conditions are obtained the total saving is estimated at 20 % of the cushion gas cost. 

Required load factor of pipeline to assure acceptable upstream mid midstream NPV must be achieved shortly after commissioning any delays have profoundly negative effects on the project. Affects wellhead cost of gas cost increase flows down through entire gas chain and may reduce demand to unacceptable levels. 

Fully exploit Middle Eastern "stranded gas" cost advantage... 

C02 costs have been more or less stable during the last quarter of 2005 (or even declined slightly as far as gas costs are concerned), peak power prices continued to increase to 84/MWh in late December 2005. 

Note that if the DG produced when using corn as a feedstock is dried, the natural gas cost rises to 0.310/gal and the total variable cost becomes 0.599/gal. The cost of natural gas was calculated using the following tariff structure for large commercial customers of the Pacific Gas Electric Company (11) summer rates (April 1-October 31) 0.77888 per therm for the first 4000 therms, 0.68719 per therm for additional therms winter rates (November 1-March 31) 0.84189 per therm for the first 4000 therms, 0.72810 per therm for additional therms. 

C. F. Braun presented a fine reference paper (9) on gasification plant sizing using one process from their Western sub-bituminous coal study of processes as an example. A table was presented, dated Sept. 1978, which presented average 20-year gas costs in January 1976 dollars. C. F. Braun presented another... 

The author stated that gas cost would be less than 5/MMBtu on a utility-financing basis with 12% return on equity (13). 

For catalytic gasification, we believe that the potential for cost reduction is greater. For example, for the SNG process that we are now developing with DOE for bituminous coal, and for a pioneer plant, we estimate a potential reduction in gas cost over existing technology of about two times our estimated reduction for the thermal processes. In this regard, we have not had the opportunity to evaluate other newer processes that involve... 

The environmental aspects of coal gasification plants could become a major issue, both technically and politically. Technically, the environmental requirements and water availability and consumption could play major roles in determining where SNG plants will be located and what the gas cost will be. 

Figure 3.17. Ammonia costs compared to natural gas costs - US Gulf Coast153. (Reprinted by permission of Fertecon)...

Figures 6.18 and 6.19 illustrate how production location and natural gas cost can have an impact on ammonia production costs ...

M Gas Cost Othef Cash Cost Freight to Port S Freight to US Gulf... 

The future attractiveness of the coal-based process will depend upon the availability of natural gas or oil at a reasonable cost. If the coal cost rises to 1.50/106 Btu from the 1.00 level, then the cost of natural gas must rise to 3.10/106 Btu for hydrogen by the Steam-Iron Process to compete with reforming if by-product power sells at 4c/kWhr. At 2c/kWhr by-product power, natural gas cost must rise to 4.65/106 Btu for the Steam-Iron Process to be competitive. 

At a gas cost of 2.50 per 1000 ft3, and power costs of 3 /kWhr, the hourly energy cost of the system for the solvent paint will be ... 

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