1. Reducing Emissions When Taking Compressors Off-line Lessons Learned from Natural Gas STAR Transmission Technology Transfer Workshop Duke Energy Gas Transmission, Interstate Natural Gas Association of America (INGAA) and EPA’s Natural Gas STAR Program September 22, 2004

2. Page 2 Reducing Emissions, Increasing Efficiency, Maximizing Profits Taking Compressors Off-line: Agenda p Methane Losses p Methane Recovery p Is Recovery Profitable? p Industry Experience p Discussion Questions

3. Page 3 Reducing Emissions, Increasing Efficiency, Maximizing Profits Methane Losses p There are about 1,600 compressor stations in the U.S. transmission sector u ~8,500 compressors p 49.6 billion cubic feet (Bcf) per year is lost from compressor fugitives p 7.0 Bcf per year is lost from compressor venting Source: Inventory of U.S. Greenhouse Gas Emissions and Sinks 1990 - 2002

4. Page 4 Reducing Emissions, Increasing Efficiency, Maximizing Profits Location and Types of Compressors

5. Page 5 Reducing Emissions, Increasing Efficiency, Maximizing Profits What is the Problem? p Natural gas compressors cycled on- and off- line to match fluctuating gas demand u Peak and base load compressors p Standard practice is to blow down (depressurize) off-line compressors u One blowdown vents 15 Mcf gas to atmosphere on average p Isolation valves u Leak about 1.4 Mcf/hr on average through open blowdown vents

6. Page 6 Reducing Emissions, Increasing Efficiency, Maximizing Profits Basic Compressor Schematic p Depressurized Isolation Valve (Closed) Inlet Gas Outlet Gas Blowdown Valve (Open) 1.4 Mcf/hr leak from isolation valves

7. Page 7 Reducing Emissions, Increasing Efficiency, Maximizing Profits Methane Recovery - Option 1 p Keep off-line compressors pressurized u Requires no facility modifications u Eliminates methane vents u Seal leak higher by 0.30 Mcf/hr u Reduces fugitive methane losses by 0.95 Mcf/hr (68%) Blowdown Valve (Closed) Inlet Gas Outlet Gas Isolation Valve (Closed)

8. Page 8 Reducing Emissions, Increasing Efficiency, Maximizing Profits Methane Recovery - Option 2 p Route off-line compressor gas to fuel u Connect blowdown vent to fuel gas system u Off-line compressor equalizes to fuel gas pressure (100 to 150 pounds per square inch) u Eliminates methane vents u Seal leak higher by 0.125 Mcf/hr u Reduces fugitive methane losses by 1.275 Mcf/hr (91%) Blowdown Valve (Open) Isolation Valve (Closed) Inlet Gas Outlet Gas Fuel Gas

9. Page 9 Reducing Emissions, Increasing Efficiency, Maximizing Profits Methane Recovery - Option 3 p Keep pressurized and install a static seal u Automatic controller activates rod packing seal on shutdown and removes seal on startup u Closed blowdown valve leaks u Eliminates leaks from off-line compressor seals u Reduces fugitive methane losses by 1.25 Mcf/hr (89%) Blowdown Valve (Closed) Isolation Valve (Closed) Outlet Gas Inlet Gas

10. Page 10 Reducing Emissions, Increasing Efficiency, Maximizing Profits Methane Recovery Options p Methane savings comparison

11. Page 11 Reducing Emissions, Increasing Efficiency, Maximizing Profits Calculate Methane Emissions p Blowdown losses = (# blowdowns) x (15 Mcf) 1 p Fugitive losses = (# offline hours) x (1.4 Mcf/hr) 1 p Total losses = blowdown + fugitive savings p Example: u 2 blowdowns/yr x 15 Mcf u 1,752 offline hours x 1.4 Mcf/hr = 2,500 Mcf/yr 1 EPA default values

12. Page 12 Reducing Emissions, Increasing Efficiency, Maximizing Profits Calculate Costs p Option 1: Do not blow down u No capital costs u No O&M costs p Option 2: Route to fuel gas system u Add pipes and valves connecting blowdown vent to fuel gas system u Upgrade costs range from $900 to $1,600 per compressor

13. Page 13 Reducing Emissions, Increasing Efficiency, Maximizing Profits Calculate Costs p Option 3: Do not blow down and install static seal u Seals cost $500 per rod u Seal controller costs $1,000 per compressor u Less cost-effective in conjunction with option 2

14. Page 14 Reducing Emissions, Increasing Efficiency, Maximizing Profits Is Recovery Profitable? p Costs and Savings

15. Page 15 Reducing Emissions, Increasing Efficiency, Maximizing Profits Economic Analysis p Economic comparison of options Assuming $3/Mcf, 5 year life

16. Page 16 Reducing Emissions, Increasing Efficiency, Maximizing Profits Economic Analysis p Peak load options more economical due to more blowdowns and offline time Assuming $3/Mcf, 5 year life

17. Page 17 Reducing Emissions, Increasing Efficiency, Maximizing Profits Industry Experience p One Partner connected blowdown vent to fuel gas system during scheduled off-line maintenance u 3,022 cylinders (577 compressors) u 40% operating factor u 1,580,000 Mcf/yr gas savings

18. Page 18 Reducing Emissions, Increasing Efficiency, Maximizing Profits Lessons Learned p Avoid depressuring whenever possible u Immediate benefits with no investment p Educate field staff about benefits p Identify compressor loads to conduct economic analysis p Develop schedule for installing fuel gas routing systems p Record savings at each compressor

19. Page 19 Reducing Emissions, Increasing Efficiency, Maximizing Profits Discussion Questions p To what extent are you implementing these technologies? p How can the Lessons Learned study be improved upon or altered for use in your operation(s)? p What are the barriers (technological, economic, lack of information, regulatory, focus, manpower, etc.) that are preventing you from implementing this technology?