AbstractAbstract
[en] Stranded gas currently makes up between 30 and 80 per cent of proven and potential natural gas reserves. Stranded gas is too remote from markets to be transported via pipeline, and is too small to justify costly liquefied natural gas (LNG) or gas-to-liquids infrastructure. However, emerging gas-to-wire technology may monetize an oil and gas discovery owned by Canadian Imperial Venture Corporation that is secluded on the west side of Newfoundland. Gas-to-wire technology involves generating power at the point of extraction to eliminate transportation costs. The wellsite is located within half a kilometre of the electricity grid. The gas-to-wire solution was proposed by ENEGI, a company that has developed software capable of analyzing multiple development options for stranded gas fields; probabilisitically estimating the risks and returns of a potential investment; and selecting the development plan that maximizes the value of a project. Factors such as recoverable reserves, gas flow rate, price of electricity, the distance to the nearest grid entry-point and the type of generating technology are considered to assess whether a field or group of fields may be suitable for gas-to-wire technology. The software provides detailed analysis of the key economic decision-making criteria through cash-flow analysis and the effect of different financing strategies on future balance sheets. The ENEGI knowledge base has a number of associated models consisting of a collection of algorithms with associated sets of data. ENEGI intends to use its scoping capability to identify suitable stranded gas assets and to demonstrate the value that may be added through a gas-to-wire solution. A recent detailed study conducted by the company has suggested that gas-to-wire may be a profitable option for many stranded gas fields. 2 figs
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