Conceptual economics of full scale enhanced coalbed methane production and CO2 storage in anthracitic coals at South Qinshui basin, Shanxi, China

This paper describes Phase 1: a Canada–China bi-lateral project in which a single-well micro-pilot test was performed at an existing well at a depth of 500 m in the anthracitic coals of the South Qinshui basin, Shanxi Province, China. A set of reservoir parameters was obtained from the micro-pilot test. This field data was successfully history matched using a tuned reservoir model which accounted for changes in permeability due to swelling and pressure changes. The calibrated reservoir model was used to design and model, a CO2-ECBM multi-well drive process. Prediction of initial performance from CO2 injection and methane production showed significant production enhancement of coalbed methane while simultaneously storing the CO2. This was followed by a “high level” economic assessment of a conceptual full scale ECBM project necessary to evaluate the economic performance of a multi-pattern commercial demonstration. A commercial spacing of 5-spot 160-acre pattern was used for the conceptual full scale operation assessment. The results of this assessment were positive, predicting a payout in 9 years yielding a real rate of return of 12%.