Innovative Solutions

While oil and gas will continue to be fundamental to PDO’s energy mix, it is developing innovative renewable solutions to create new growth opportunities for the company as well as for the nation. This gradual transition to a fully-fledged energy company also means leveraging new technology and greater collaboration as well as improving its overall energy efficiency and water management

Petroleum Development Oman has said the transition to renewables will help address growing climate change realities, free up huge quantities of natural gas that can be used for Omani industry or for export and to establish the Sultanate as a hub of “green” energy expertise, creating new jobs and localised supply chains.

According to PDO’s Sustainability Report for 2018, PDO has conducted detailed studies which have identified great business potential in three areas:

• Electricity to replace gas-fired power plants

• Power-to-x to supply areas that have so far been covered by burning of gas or liquids such as steam, heat or hydrogen generation

• Industrial growth that focuses on attracting new demand based on low cost energy

In 2018, PDO awarded the contract to the Japanese-Omani Marubeni consortium to build and operate the country’s first solar photovoltaic (PV) independent power producer (IPP) at Amin field. It will also be the world’s first utility-scale solar project to have an oil and gas company as the sole wholesale buyer of electricity. The desert facility will consist of more than 335,000 solar PV panels, producing enough energy to power 15,000 homes, and span an area equivalent to 480 football pitches. The project will be structured as an IPP under the terms of the power purchase agreement for a period of 23 years from the scheduled commercial operation date, which is planned for

May 2020. The consortium will build, own and operate the facility and then transfer it back to PDO.

The plant is expected to introduce an equivalent fuel saving of 70.5 million cubic metres of gas annually, resulting in a total saving of $17 million a year through the use of solar power as an alternative to natural gas. It will also reduce overall carbon dioxide emissions by around 137,121 tonnes annually, the equivalent of taking 23,000 large cars off the road.

The project includes the design, procurement, construction, commissioning, financing, operation and maintenance of the solar photovoltaic plant with a 100MW capacity and associated infrastructure.

With partners GlassPoint Solar, PDO also launched the new SolaRISE technology centre near the giant Miraah project in Amal which it is building and operating to generate solar steam for use in thermal enhanced oil recovery as an alternative to burning gas. The first 100 MWt of Miraah came on stream in 2017 and the installation is meeting all performance targets.

SolaRISE (standing for Solar Research, Innovation and Sustainability in

Energy) is a joint initiative formed to develop and test next-generation solar technologies in an oilfield environment. The centre will focus on continuous cost reduction, including new concepts and designs to reduce material costs, ease oilfield integration and automate operations. It will also pilot and evaluate solutions for using solar energy for other industrial processes in Oman and around the world.

OTHER SOLAR VENTURES INCLUDE: MINA AL FAHAL CAR PARK

PDO has embarked on the second phase of the Mina Al Fahal solar project to cover a wider area and increase renewable energy penetration in the grid. A further 12,500 solar PV modules are being fitted and, once completed, the car park will have a total capacity of 10.3 MWp (megawatt installed peak) and be one of the largest in the world. The generated power will be fed into the local grid, meeting most of PDO’s power demand at the Coast.

The second phase is being directly managed by PDO through its established contractors and it is expected that up to half of the project’s total contract value for goods and services will be retained in country.

MINISTRY OF OIL AND GAS CAR PARK

PDO is managing a similar installation for solar parking at the Ministry of

Oil and Gas to further showcase the ministry’s commitment to renewable energy and energy efficiency initiatives. The project consists of converting around 500 car parking lots to generate power and involves a number of Omani SMEs specialising in renewable energy.

AWIFIYA WATER WELL

PDO installed a solar system to power a water well serving a rural community of 200 people. The work on the 10 kilowatt (kW) scheme was carried out by an Omani company Nafath Renewable Energy LLC in Awifiya, Bahla.

A total of 42 PV panels were installed and the system has been connected to the grid, meaning the green electricity can be fed into the network or the well can draw on additional power if required.

The project marked another step on its renewable energy journey to extend the concept of eco-friendly power into the community. PDO is now considering whether to expand the scheme to power a reverse osmosis plant.

RAS AL HAMRA

PDO also installed a 10 kW capacity for 10 villas in Ras Al Hamra to showcase the residential contribution that can be made to renewable energy.

ENERGY EFFICIENCY

Improving energy efficiency is a key focus of PDO’s Gas Conservation Strategy. In addition to flare reduction, a number of initiatives have been implemented, including the use of energy-efficient power generation turbines, the deployment of electric submersible pumps to replace gas lift technology and power station waste heat (co-generation).

Power generation efficiency has improved significantly. In 2010, 320 m³ of gas was required to generate 1 MWh, but this has been reduced to 301 m³/MWh, with the further aim of cutting it to 275 m³/MWh by 2021, once all the planned combined cycle gas turbine units are commissioned.

Energy benchmarking of all PDO facilities has now been completed to improve understanding of their performance and identify gaps in terms of power and fuel gas consumption.

Additionally, an Energy Efficiency Surveillance Tool has been deployed in six assets after a successful trial in Marmul and Lekhwair. The tool indicates any inefficient use of power or fuel gas, which helps operators to take corrective action.

PDO has also started energy assessments at Fahud Station, one of the high-energy consumers, to identify improvement opportunities.