Unpacking the Technical and Financial Challenges of Carbon Capture and Storage in Depleted Gas Fields for a Sustainable and Economically Viable Energy Future: Insights from the Egyptian Nile Delta

Abstract

Abstract Carbon capture and storage (CCS) technologies are increasingly seen as a promising solution to the challenge of meeting rising energy demand while reducing greenhouse gas emissions. However, CCS projects face significant initial costs, and their viability depends on their ability to offer a return on investment. In addition, the unique characteristics of CCS projects, such as containment, capacity, phase behavior, sustained injectivity, and regulatory permissions, pose distinct challenges that require fresh analytical methods. To address these challenges, this paper provides a comprehensive assessment of the technical and financial aspects of applying CCS in depleted gas fields operated by Dana Gas in the Egyptian Nile delta. The assessment covers a range of technical and financial aspects, including the evaluation of subsurface resources and wells, assessment of surface facilities and infrastructure, analysis of market demand, and financial and commercial viability. Using extensive data obtained from the gas fields and industry best practices, our analysis explores infrastructure repurposing opportunities, including pipeline CO2 capacity, CO2 compression scenarios, and CO2 processing requirements, with insights into the CCS value chain and market analysis. Our findings demonstrate that the implementation of CCS in Dana Gas's depleted gas fields can be viable from both technical and financial perspectives. The estimated CO2 capture and transportation costs range from USD$16-17.5 per tonne of CO2 storage, depending on the emitter, making the project economically feasible for a reasonable range of estimated tariffs. The paper also highlights the importance of considering regulatory permissions, long-term verifiable containment, capacity, phase behavior, and sustained injectivity in the implementation of CCS projects. By providing a clear and detailed assessment of the technical and financial aspects of implementing CCS in depleted gas fields, our paper contributes to the literature on CCS technologies and informs future decision-making. Our findings also highlight the potential benefits and impact of implementing CCS in depleted gas fields, and the importance of advanced analytical methods in assessing such projects. Our detailed analysis, which is based on extensive data obtained from the gas fields and industry best practices, provides valuable insights that can help to de-risk actual CCS project applications and facilitate informed decision-making. Our findings also contribute to the literature on CCS technologies, highlighting the potential benefits and impact of implementing CCS in depleted gas fields, and the importance of advanced analytical methods in the assessment of such projects.