BP plans to spend approximately $1.3 billion to build a massive network of pipes and infrastructure to collect and capture natural gas produced as a byproduct of oil wells in the Permian Basin.
The company said the new Grand Slam facility near Orla, Texas, will mark a significant step in its aims to reduce emissions and enhance production while improving the reliability of its Permian operations.
BP also will announce its plans to eliminate routine flaring of natural gas in the Permian Basin by 2025, according to its website.
Grand Slam, reportedly the largest infrastructure project to date for BP’s US onshore business, BPX Energy [formed after BP completed a $10.5-billion acquisition of BHP’s American shale assets], and a leading design concept, is an electrified central oil, gas, and water-handling facility that uses a separation and compression system to recover gas that would typically be flared at the wellsite. This allows BP to commercialize the gas instead of flaring it. The facility is also highly automated, enabling the status of operating conditions to be reported in near-real time to reduce the number of operational upsets.
“We see a future in which our Permian production is a highly commercial and low-carbon energy resource that uses a combination of technologies such as continuous methane monitoring, electrification, and block-chain applications to support and accelerate the energy transition. Embracing these technologies goes well beyond a fractional improvement, as we look to these resilient hydrocarbons to help fuel BP’s transition to a net zero company,” said Dave Lawler, chairman of BP America.
BP anticipates that more than 75% of its Permian-operated wells will be electrified by the end of 2021 and more than 95% by 2023.
Kim Krieger, VP operations, BPX Energy, said, “Electrification of the field has been a gamechanger. We are cutting emissions while significantly increasing the reliability of our field operations enabling a 20% uplift in production.”
The company is also actively improving its methane detection and monitoring programs. Along with drone and aerial monitoring surveillance—including high-resolution and infrared camera coverage—it is piloting continuous methane monitoring technologies.