OAO VNIPIgazdobycha Russia Saratov in underground gas storage

OAO VNIPIgazdobycha «ВНИПИгаздобыча» (Russia, Saratov) in underground gas storage. New solutions for UGS design and maintenance Noviy Urengoy, 2015

Short overview OAO VNIPIgazdozprombycha - Group Gazprom 1948 – establishing the Lower-Volga research expedition (Нижне. Волжской проектно-изыскательской экспедиции) 1956 – transferred to project institution Vostokgiprogaz ( «Востокгипрогаз» ) 1971 – transferred to VNIPIgazdobycha (Всесоюзный научноисследовательский и проектно-конструкторский институт по разработке газопромыслового оборудования) 1993 – privatization, open joint stock company VNIPIgazdobycha. Main shareholder – Gazprom Today Gazprom is the main customer, provides 90% of company`s orders. Some digits (Annual report 2013, www. vnipigaz. ru ): - Staff – 1 711 employees;

Business activities – design and support VNIPIgazdobycha produces projects and consultancy for natural gas and oil fields, transportation, underground storage, processing etc. Today main projects – Power of Siberia, Bovanenkovo-Ukhta pipeline, Tchayanda gas fields, LNG facilities, others For UGS: provides full range of research and design activities - from geological simulation to complex projects of underground and over ground parts. Then supports UGS usage as geology and technology expert. Participation in “Eastern Gas Programm” Source: www. gazprom. ru

The Pioneer in UGS development in the USSR VNIPIgasdobytcha takes part in the first UGS projects in the USSR • 1958 – test injection in Bashkatov depleted gas field • 1958, 1961 – tests in Elshan-Kurdum depleted gas field • 1960 s, 1970 s – start of usage of Elshan-Kurdum and two another UGS in Saratov oblast (province) • 1970 s – UGS in Samara oblast (province) • 1974 – Bozoy UGS in Kazakstan • And some another large UGS projects in USSR/Russia

Gazprom`s UGS - area of responsibility 11 UGSs: Saratov complex (3 UGS); Samara complex (4 UGS); Kanchura-Musino and Udmurt complexes; Shatrov UGS and Bednodemyanov UGS (design and construction) - UGS designed and supervised by VNIPIgazdobycha

VNIPIgazdobycha – full range of service in UGS design, supervising and maintenance • Choosing the place for UGS, technical and economical estimations • Underground part design, calculation of main UGS parameters • Over ground UGS technology design • Automation systems design for UGS • Supervising during UGS construction • Geological support of UGS maintenance

UGS Department of VNIPIgasdobytcha • Analysis, validation and reasoning of geological objects for new UGS • Estimation of main parameters of UGS, including – active gas volume, production (withdrawal/injections) rates for UGS • Source data for over ground technology design • Recommendations for automation systems design • Current UGS usage monitoring (from geological point of view), so called designers inspections (авторский надзор) for UGS usage • Exploring and reasoning of extensions and upgrades of UGS • Supervising of hermeticity (leak proofnes) of UGS • Computer simulation of UGS and software development for UGS design and maintenance support – these topics will be presented in more details

UGS computer simulation – main goals and tasks • Calculation or verification of main UGS parameters; • Optimization of injection (UGS-filling) process; • UGS wells positioning; • Definition of requirements to over ground UGS technology; • Optimal variant of UGS creation and usage; • Operative (current) calculations of UGS mode (wells flowrate); • Long-time calculation and forecasting of UGS mode; Simulators: 2 D or 3 D (geological and hydrodynamic models)

Using 2 D or 3 D simulation during UGS life-circle Tasks are being solved by simulator Geological object selection. Simulator creation Preliminary UGS parameters estimation Design of underground part. Wells location. Source data for design of over ground technology Optimization of gas injection. Monitoring Simulator adaptation. UGS parameters validation UGS modes forecasts. Current modes calculations Calculation of gas withdrawal modes during liquidation The 2 D/3 D simulator should be supported and changed during all UGS life circle Main UGS life steps

Classical approach for UGS usage/maintenance support using 2 D/3 D simulators l l l VNIPIgazdobycha calculates so-called production curves for UGS withdrawal and injection Production curves – today the main tool to forecast and plan the UGS mode The curve indicates dependences withdrawal capacity from the volume of active gas – maximum and optimal Confirmed and approved by Gazprom on so-called CKR meeting every autumn and spring Good for long-time and medium-time usage, not perfect for everyday operation. UGS department keeps permanent contacts with geologists of UGS (onsite geologist service). Curves calculation by VNIPIgazdobycha Feedbacks Approved by CKR Sent to UGS Used in everyday operating

New approach – usage of 3 D simulator on-site (“in situ”) and provide recommendations based on actual data l l l The Task– in Russia UGSs sometimes are being used near critical zone of it`s technological and geological limits. “To take off or inject as much natural gas as possible with the most highest rate”. Only “seasonal” simulations are not suitable. The idea is – to create the system on-site using 3 D simulator and connected to real data. “SUR” - Decision support computer system which helps dispatcher and geologist to estimate UGS capacity (to inject or withdraw natural gas) and distribute total flows between wells. Also – to analyze and optimize ground pipeline network and equipment.

Decision making process and support from SUR Step 1 • Receive DT from Moscow 1. 2. 3. 4. Step 2 • Estimate the capability Step 3 • Find the optimal solution Step 4 • Commands and set points to SCADA Nomination (or Dispatcher task. DT) comes from Central dispatching in Moscow UGS Capability estimation – might UGS perform the task? Yes/No Optimal solution – capacity (flow) distribution between wells, modes for compressor engines and another equipment Finally – to form setpoints and commands and to send them to “lower level”: SCADA and DCS and PLC devices.

Decision making process and support from SUR (2) Need to simulate, estimate and optimize not only underground but also the surface technology part of UGS to have the complete solution VNIPIgazdobytcha designs two releases of SUR computer-aided system: l SUR-1 – just for geological simulation and estimations l SUR-2 – also include surface (“ground”) technology optimization. SUR-1: Optimal distribution of flows between wells SUR-2: additionally: Optimal path of natural gas, optimal modes of compressor etc. UGS capability estimation and modes of wells and surface units calculation l l l Optimization of wells mode according geological safety (to prevent or reduce water and sand extraction and gas losses) Optimization of compressor, coolers, cleaners surface modes Optimal path for gas extraction or injection (in case if have various)

SUR-1 functionality and HMI samples Daily or more often Actualization l l l l Keep 3 D Geo-model “ready-to-use” Application to analyze geo-data Dispatcher task (nomination) receiving Interface in real-time with SCADA Estimate capacities (now and 3 days ahead) Calculate optimal modes for each well Create setpoints and send them to SCADA Decision support

SUR-2 functionality and HMI samples Third-party gas network full-function simulator l l Simplified flows diagram Provides hydraulic and thermal simulation as well as gas flows estimations Static or dynamic what-if simulation and forecasts Optimization: What-if simulation based on calculation and evaluations of different scenarios Specify objective function (costs reduce functions) l Fuel gas for compressors (costs) l Need of methanol (costs)…

SUR technical implementation

ISS – information system for geologists Own software product of VNIPIgazdobycha based on ORACLE– complex of databases and integrated software utilities to provide on-site all-day UGS maintenance and short-time planning and forecasting. First release – 2000; updates and new release – 2014. Everyday UGS support, also for design and analytics. Main functions – 1) Keep and analyze data: l UGS in whole and particular technological units l Wells “passports”, including drawings l Information about wells and surface maintenance l Safety control results l Actual wells conditions l Results of wells logging. . . 2) Reports in specified formats according Russian requirements 3) Calculations

Conclusions l VNIPIgasdobytcha (UGS department) has mastered and uses modern methods and approaches of design and support of UGS, based on 2 D and 3 D computer simulation and information analysis and processing l The most interesting and innovative solutions are SUR decision support and ISS information systems which should be used in UGS site ( «in situ» ) l Solutions give direct economic effect and help to save expensive methanol and fuel gas as well as reduce costs of wells services and reparations l Intelligent property rights for SUR and ISS belongs to VNIPIgazdobytcha. Some software components are provided by “third parties, but in total system solutions and special software for data processing and analyzing developed by VNIPIgazdobytcha l Solutions are being approved in real usage at a particular UGS