CHAPTER 1 INTRODUCTION

Energy may be defined as the ability to do work. Interchangeability between work and heat is an important subject in thermodynamics. When different forms of energy are considered, it is recognized that while all are convertible to heat, some are more easily convertible to work than others. The convertibility to work is measured by engineers and thermodynamicists by the concept of availability and entropy. Figure 1.1 shows the various forms of energy that occur in flow systems . It is interesting to note that the various forms of categorical divisions are all binary. In thermodynamics, when various systems are considered, energy as such is an extensive property. That is the one that depends on the extent of the mass considered. When energy balances are performed on a steady-state flow system, on the other hand, the energy quantities are regarded on a per mass basis, which is an intensive property. 1.1 EARTH'S ENERGY RESOURCES The energy resources of the earth may be broadly classified into two categories; the fossil fuels and the 1 geophysical energy resources (Figure 1.2) . The fossil fuels are, in general, found in liquid, gas (or vapor), or solid phases. If they are liquid, they are called crude oil. If gaseous, they are called natural gas. When solid, they are called coal. The fossil fuels sometimes occur in a semi-solid state or an extremely viscous and heavy liquid form embedded in the porous matrix of sand and shales. These are called oil shale and tar sands. 1.1.1 What is Natural Gas ? Natural gas occurs in subsurface rock formations in association with oil (associated gas) or on its own (non-associated gas). Roughly 60 percent of the natural gas reserves is non-associated. The main constituent of natural gas is methane. The remainder may contain various amounts of the higher hydrocarbon gases (ethane, propane, butane, etc.) and non-hydrocarbon gases such as carbon 2 dioxide, nitrogen, hydrogen sulfide, helium, and argon. Table 1.1 lists the components of a natural gas 3 whereas Table 1.2 shows the composition of Hamitabat and Degirmenky natural gas fields of TPAO . Although natural gas occurs under pressure in porous rock beneath the earth's surface, often it is in solution with crude oil or condensate. Then it may be described as the volatile portion of petroleum. Natural gas is primarily used as fuel for industrial and residential applications. An increasing share of the natural gas production, however, is being used as feedstock for the chemical industry. The proven world gas reserves at the end of 1999 are estimated at about 146.43 trillion cubic meters (5171.8 trillion cubic feet) which corresponds to 131.79 thousand million tonnes oil-equivalent (mtoe). (Proved oil reserves at the end of 1999 are estimated about 140.4 thousand million tonnes) By comparison, the reserves/production (R/P) ratio of the proven world reserves of gas is higher than oil`s 4 R/P ratio (Figure 1.3) . It is expected that in the decades to come natural gas will gain prominence among the world's energy 4 resources. Higher energy prices of oil (Figure 1.4) will stimulate exploration activities and permit exploitation of gas accumulations that are currently non-commercial. Figures 1.5 - 1.8 show reserve 4 and trade statistics of natural gas at the end of 1999 . 1
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Table 1.1 Components of typical natural gases . HYDROCARBON NON-HYDROCARBON Component Mole % Component Mole % Methane 70 - 98 Nitrogen trace - 15 * Ethane 1 - 10 Carbon dioxide trace - 1 * Propane trace - 5 Hydrogen sulfide trace - occasionally Butane trace - 2 Helium up to 5 (usually none) Pentane trace - 1 Hexane trace - Heptane+ trace (usually none) * Occasionally natural gases are found which are predominately carbon dioxide or hydrogen sulfide. Table 1.2 Chemical composition of Hamitabat Natural Gas (mole %) . Component Nitrogen Carbon dioxide Methane Ethane Propane i-butane n-butane i-pentane n-pentane HAMITABAT 0.77 0.08 95.48 2.39 0.72 0.17 0.21 0.08 0.10 DEGIRMENKY 1.58 0.18 89.47 5.39 1.89 0.40 0.62 0.28 0.19
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The natural gas industry may be divided into five main subdivisions. Drilling and discovery of petroleum deposits. Production from reservoirs. Surface separation or processing plants. Transportation and distribution of natural gas to market. Underground storage of natural gas near the market. The natural gas engineer requires data on the behavior of natural gas and associated liquids so that he can predict the properties, such as density, viscosity, thermal conductivity, and heat capacity, needed in the design of pipelines, gas wells, meters and processing equipment. Vapor-liquid phase separations among the constituents become complex because of the multicomponent systems involved, and study of these is important background for process design. The flow of gas through porous media governs the recovery of natural gas from reservoirs and controls the capacity of individual wells. Water-hydrocarbon phase relations are specific to the natural gas industry, because natural gas and water may form solid hydrates above 0 C. Knowledge of the behavior of natural gas under pressure is basic to engineering in the five areas just described. 2

1.2 THE GAS SITUATION AND NATURAL GAS MARKETS IN TURKEY In general, the economy of Turkey is heavily dependent on imported fuels, particularly oil. Until 1987, the role of natural gas in the primary energy consumption of Turkey was not worth mentioning, accounting for only 0.5-1.0 %. In 1986, the total primary energy consumption of Turkey was about 39.3 million tonnes oil equivalent of which almost 35 million tonnes of oil equivalent was commercial energy. Approximately 52% of the total commercial energy consumption was oil origin while the share of natural gas in the total primary energy consumption was about 0.9 %. Figure 1.9 shows the change in primary energy consumption of 4 Turkey . The share of the natural gas in primary energy consumption of Turkey reached to a value of 4 14.2 % by the end of 1999 (Figure 1.10). The natural gas reserves of Turkey, located basically in Thrace and southeast regions, have rather 3 limited capacities and annual output is about 450 million m . The natural gas fields of Turkey in 1996 5 are given in Table 1.3 . Table 1.4 illustrates the original gas in place and recoverable gas of these 5 reserves at the end of 1996 . The Turkish Government signed in 1984 a frame agreement with the USSR for the import of natural gas for a period of 25 years. After that, in 1986, a contract between SOYUZGASEXPORT (USSR) and BOTAS was signed providing for natural gas purchases beginning in 1987. In 1986, the contract for the construction of a natural gas transmission system consisting of a main pipeline from the Bulgaria border to Ankara through Hamitabat, Ambarli, Istanbul, Gemlik, Bursa, Bozyk, and Eskisehir and the first compressor station was awarded. The transmission pipeline reached in Ankara in the summer of 1988. The total length of the pipeline on the Turkish territory is about 850 km. Figure 1.11 shows gas imports of Turkey in 1999. Approximately 9 billion m of natural gas were 3 imported from the Russia through the transmission line. Turkey also imported 3.18 billion m of natural 3 gas in the form of Algeria (3.10 billion m ) and Nigeria and the share of the natural gas in primary energy consumption of Turkey has reached to14.2 %. The change in natural gas consumption of 4 Turkey between 1986 and 1999 is shown in Figure 1.12 . REFERENCES 1. Tek, M.R., Underground Storage of Natural Gas, Gulf Publishing Company-Book Division, Houston 1987. 2. McCain, W.D. Jr., The Properties of Petroleum Fluids, PennWell Books,1990 3. Personal Communication, TPAO. 4. ---, BP Statistical Review of World Energy, June 2000. 5. ---, PIGM, Petroleum Activities in 1996, T.C. Petrol Isleri Genel Mdrlg Dergisi, No 41.
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Table 1.3 Natural Gas Fields of Turkey . Field Discovery date Specific gravity TPAO Dodan(CO2) 1965 1.360 Dodan(CO2) 1969 1.270 Dodan(CO2) 1969 1.406 Hamitabat 1970 0.590 Kumrular 1970 0.601 amurlu 1975 0.646 amurlu (CO2) 1977 G.Diner 1982 0.859 Umurca 1984 0.625 G.Hazro 1986 K.Marmara 1988 0.603 Karacaoglan 1989 0.615 Degirmenky (S) 1994 0.630 Karaali 1995 0.628 Degirmenky (O) 1996 0.591 SHELL Katin 1972 0.740 Barbes D. 1984 0.750 POLMAK Kandamis 1985 0.573 Bayramsah 1987 0.809 THRACE B. Hayrabolu 1990 Table 1.4 Natural Gas Reserves of Turkey at the End of 1996 (thousand cum) Companies Original gas in Recoverable gas Cumulative Remaining place production recoverable gas TPAO 13 862 520 9 125 852 2 713 804 6 412 048 N.V. Turkse Shell 1 808 175 1 248 205 1 284 205 POLMAK 189 723 126 179 126 179 Thrace Basin 1 139 750 980 187 4 398 975 790 17 000 168 11 480 423 2 718 202 8 762 221 TOTAL
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70 Oil Gas 60

50

40

R/P
30 20 10 0 1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 1999

Years

Figure 1.3 World years of reserve remaining

6

LNG (Japan) NG (EU) Oil (OECD)

Price (USD/MMBTU)

All prices are cif prices cif = cost+insurance+freight

0 1984

1986

1988

1990

1992

1994

1996

1998

2000

Years

Figure 1.4 Energy prices of oil and natural gas .

Distribution of Reserves 1999

0.032 0.221 0.028

0.024

0.329

0.031 0.041 0.040 0.058 0.021 0.020 0.157

USA Iran UAE

Venezuela Iraq Algeria

Russian Federation Qatar Nigeria

Turkmenistan Saudi Arabia Rest of the World

Figure 1.5 Reserve distribution at the end of 1999 .

Main Gas Exporters by Pipeline (1999)

0.072 0.093 0.263

0.097 0.348 0.126

Canada Russian Federation

Netherlands Algeria

Norway Rest of the World

Figure 1.6 Main gas exporters by pipeline (1999) 7

Main LNG Exporters (1999)

0.014 0.165

0.013 0.017

0.065 0.057

0.207

0.312 0.081 0.068 USA Australia Trinidad Tobago Brunei Qatar Indonesia UAE Malaysia Algeria Others

Figure 1.7 Main LNG exporters (1999)

Main LNG Importers (1999)

0.014 0.049 0.042 0.037 0.095 0.026 0.066

0.029

0.640

USA Turkey

Belgium Japan

France South Korea

Italy Taiwan

Spain

Figure 1.8 Main LNG importers (1999) .

90

80

76.2 70.8 73.2 67.6 61.5 58.6 54.8 48.4 45.2 39.3 49.6 49.5 50.1

Primary energy consumption (mtoe)

70 57.5

60

50

40

30

20

10

0 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999

Years

Figure 1.9 Primary Energy Consumption of Turkey (1999) .

Hydro 0.039 Oil 0.381

Coal 0.438

NG 0.142

Figure 1.10 Primary Energy Consumption of Turkey by Fuel (1999) .

Gas Imports of Turkey-1999 (Billion cum)

3.18

8.82

Pipeline

LNG

Figure 1.11 Gas imports of Turkey (1999) .

14 12 12

Gas consumption (billion m 3)

10 9 8 6.5 6 5 4.4 4 2.9 2 0.4 0 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 0.7 3.4 4.5 6.8

9.9 9.4

1.1

1997

1998

1999

Years

Figure 1.12 Natural gas consumption of Turkey .

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