The Challenge
An independent Exploration & Production (E&P) company operating in the Permian Basin region of West Texas sought ways to improve the profitability from its producing operations. The primary objective was to maximize the value of its production stream in a capital efficient way.
A key challenge to this goal has been managing tank vapors, which contain as much as 20 GPM rich in natural gas liquids (NGLs), making it the most valuable gas stream on the well site. This stream was hindered by high oxygen levels exceeding pipeline specification. All too often, contaminated tank vapors had to be flared, burning away profits and generating unwanted emissions from routine tank flaring.
Despite efforts including gas blanketing, a rigorous Leak Detection and Repair (LDAR) program, and using various media to seal pipe connections, oxygen levels persisted above pipeline specification, preventing recovery and leading to flaring and profit loss. Negotiating a relaxed oxygen standard with its midstream partner offered partial relief but still didn’t fully resolve the issue. To mitigate, the operator explored blending tank vapors with associated wellhead gas, effectively lowering oxygen content but at the cost of reducing BTU richness, negatively impacting overall profitability.
The Solution – Capturing the Full Value of the Gas Stream
The company opted for the EcoVapor ZerO2™ oxygen removal system to treat the rich tank vapor gas, ensuring oxygen levels comply with pipeline specifications for direct sale rather than resorting to blending or flaring.
Importantly, they installed a dedicated custody transfer meter for the recovered gas stream, enabling precise measurement of both volume and gas composition, ensuring full capture of the value from heavy hydrocarbons such as propane, butane, pentane, and hexane+ present in the tank vapor.
The operator confirmed that the revenue from the high-BTU captured tank vapor was significantly more valuable than that of the wellhead natural gas sold to the gatherer.
The ZerO2 was instrumental in using this dedicated meter, as continuous compliance with pipeline specifications was essential.
Results
The ZerO2 system combined with a dedicated custody transfer meter for the rich tank vapor stream delivered several benefits:
- Improved economics from capturing BTU-rich tank vapor and selling it at a premium price, even in low commodity price environments.
- Reduced emissions by reliably eliminating routine tank flaring at sites equipped with ZerO2 treating capacity.
- Enhanced economics for brownfield sites, by commingling tank vapor streams from multiple locations into a centralized ZerO2 treating location.
Contact us today to learn how we can help you maximize the value of your operations and minimize emissions by converting waste streams into revenue.
Contact
Joe Hedges
Director of Sales
EcoVapor Recovery Systems, a DNOW Company
7402 N. Elderidge Parkway, Houston, Texas 77041 E: joe.hedges@dnow.com
O: 844-NOFLARE (844-663-5273)
