Economic Feasibility of Carbon Sequestration with Enhanced Gas Recovery (CSEGR)

Prior reservoir simulation and laboratory studies have suggested that injecting carbon dioxide into mature natural gas reservoirs for carbon sequestration with enhanced gas recovery (CSEGR) is technically feasible. Reservoir simulations show that the high density of carbon dioxide can be exploited to favor displacement of methane with limited gas mixing by injecting carbon dioxide in low regions of a reservoir while producing from higher regions in the reservoir. Economic sensitivity analysis of a prototypical CSEGR application at a large depleting gas field in California shows that the largest expense will be for carbon dioxide capture, purification, compression, and transport to the field. Other incremental costs for CSEGR include: (1) new or reconditioned wells for carbon dioxide injection, methane production, and monitoring; (2) carbon dioxide distribution within the field; and, (3) separation facilities to handle eventual carbon dioxide contamination of the methane. Economic feasibility is most sensitive to wellhead methane price, carbon dioxide supply costs, and the ratio of carbon dioxide injected to incremental methane produced. Our analysis suggests that CSEGR may be economically feasible at carbon dioxide supply costs of up to $4 to $12/t ($0.20 to $0.63/Mcf). Although this analysis is based on a particular gas field, the approach is general and can be applied to other gas fields. This economic analysis, along with reservoir simulation and laboratory studies that suggest the technical feasibility of CSEGR, demonstrates that CSEGR can be feasible and that a field pilot study of the process should be undertaken to test the concept further