- Global Energy Ventures (GEV) has begun a study into the potential of using compressed natural gas to commercialise gas resources for an oil and gas field offshore Brazil
- The aim of the study is to validate the CNG opportunity displays suitable technical viability and commercial value to each party that participates
- First oil and gas production is expected in late 2023 via a floating production storage and offloading vessel
- Global Energy has ended the day down 6.45 per cent with shares trading for 14.5 cents apiece
Global Energy Ventures (GEV) has begun a study into the potential of using CNG to commercialise gas resources for an oil and gas field offshore Brazil.
CNG (compressed natural gas) is mainly composed of methane and is condensed to just one per cent of its usual volume by passing through a compressor.
It remains in the form of a gas and is stored under high pressure in gas cylinders.
It differs from LNG (liquefied natural gas) which is predominantly methane with some ethane and has been cooled down to liquid form for ease and safety of non-pressurised storage or transport.
The commencement of the CNG commercialisation study follows the successful completion of a high-level technical and economic analysis using the CNG Optimum ship to transport gas from the in-development pre-salt field to onshore markets.
The specified area is situated in the Santos Basin in Brazil approximately 200 kilometres from Rio de Janeiro and 350 kilometres from Sao Paulo.
"Brazil represents a wonderful opportunity for GEV's Optimum CNG ships," Executive Director and Chief Development Officer Garry Triglavcanin said.
"Whilst the country is currently reinjecting 1 Bcf of gas each day, equivalent to five CNG Optimum ships, the amount of gas to be reinjected is expected to increase more than three times as new oilfield projects are developed in the Brazilian pre-salt," he added.
First oil and gas production is expected in late 2023 via a floating production storage and offloading vessel which is designed for up to 8.5 million metres cubed of natural gas per day.
A financial investment decision and awarding of contracts is scheduled for the later part of 2020.
The aim of this study is to prove the CNG opportunity confirms the suitable technical viability and commercial value to each party.
GEV has defined the scope of work and will target completion by the end of March 2020. The work undertaken will be delivered to the selected Brazilian oil field operator.
Global Energy has ended the day down 6.45 per cent with shares trading for 14.5 cents apiece in a $59.50 million market cap.