Figure 1-8 Schematic Diagram of Oatway Project Location
The CO2 storage process of Otway project is as follows: extracting CO2-rich natural gas (CO2 80%; CH4 20%%), after being treated and compressed in the ground workshop, is injected into the new injection well (CRC- 1) through the 2.25 km long stainless steel pipeline underground. Two years later, about 10× 104 t CO2-rich gas will be injected into CRC- 1 well, and it will be injected into a depleted natural gas field (Waarre C oil reservoir) of 2 050 m underground in supercritical state (Figure 1-9). CO2 will move up and down in the sandstone reservoir with the thickness of 3 1 m (Belfast mudstone as the cover). According to reservoir numerical simulation, about 6 ~ 9 months after injection, CO2 enters the existing Naylor-1 well (300 meters away from CRC- 1 well), and Naylor-1 well is equipped with geochemical and geophysical underground monitoring sensors to monitor CO2.
Fig. 1-9 schematic diagram of CO2 geological storage of Oatway project.
In order to solve the problem of ownership of project assets, Australia has established CO2CRC Pilot Project Co., Ltd. (CPPL). CPPL is proposed by a consortium of 10 big companies, which has purchased two oil and gas mineral rights (ppl1113), and can use CO2 sources and existing natural gas wells (figure 1-9). CPPL is responsible for the site operation debt, while the main contractor (AGR) is responsible for the day-to-day operation project. CO2 rcr coordinates research activities and transfers any cost of project output to CO2 rcr Business Department (CO2TECH). CO2CRC uses 20 million dollars from government agencies and 654.38 million dollars from industry for project management.
The regulatory approval procedures related to Otway project development provide a new idea for testing existing laws and regulations. Through close cooperation with Victorian regulatory authorities, the project team made a clear summary of the project approval procedures (Table 1- 12).
The Petroleum Law of 2000 promulgated by the Ministry of Primary Industries in 2000 is applicable to all ground activities, including carbon dioxide production and compression. The pipeline construction complies with the Victoria Petroleum Act (VPA). The drilling operation of injecting CRC- 1 well is also carried out under VPA. The Planning and Environmental Law 1987 (Planning and Environmental Law 1987) also allows the project to continue. During the pipeline installation, a cultural heritage survey was conducted according to the Cultural Heritage Law.
Private ownership of land (including production, irrigation and monitoring sites) is agreed with different landowners through compensation agreements or through planning and environmental law 1987.
The approval procedure of grouting is in line with Article 76 of the Water Legislation Act 1989: the underground treatment of drilling holes is adopted uniformly. According to the research, development and demonstration of the Environmental Protection Act 1970, the storage conditions of carbon dioxide have been approved by the Victorian Environmental Protection Agency (EPA). The approval conditions are based on a series of key performance indicators (KPIs). The five stages (before perfusion, during perfusion, after perfusion, after closure and long term) will be determined according to a series of KPIs based on the expected monitoring results of each stage. Key monitoring activities will be determined by detecting CO2 migration in underground, near-surface, surface and atmospheric areas or verifying the performance of prediction behavior. The monitoring emphasis and frequency of each stage are different. The M&V Plan also provides for trigger points and emergency actions.
Table 1- 12 Oatway Project Supervision System
Detailed site information is very necessary for establishing a comprehensive risk assessment and M&V plan, both of which need to be regularly updated and peer reviewed according to the new data in the whole project.
The project also involves the Australian Government's Environmental Protection and Biodiversity Protection Act (EPBC Act) to determine whether it is necessary to assess the potentially significant impact of national environmental significance, such as endangered and migratory species.
It took all the management departments more than two years to approve the project. The problem of long-term responsibility has been solved. For example, CPPL has agreed to adopt a long-term responsibility system under conventional laws, except those related to field operations. Carbon dioxide infusion began in March 2008.
Otway has solved many technical and non-technical challenges through a team of scientists, engineers, business partners, regulators and communities. Through this project, supporters and regulators will gain knowledge about the approval and management of carbon sequestration, which will help to formulate CCS legislation. Otway project monitoring and verification system will provide knowledge and experience, which will help the development and supervision of future commercial projects.