Statoil, GE and Ferus NGF unveil flare gas expansion project

A joint-venture (JV) of Statoil, GE and Ferus Natural Gas Fuels (Ferus NGF) has unveiled a flare gas expansion project.

The flare gas will be used to power Statoil’s six drill rigs and one frac fleet in North Dakota, US.

Statoil is expanding the pilot of the JV’s Last Mile fueling solution, which is expected to reduce emissions and offer cost-savings for the company’s Bakken oilfield operations.

The project is currently capturing natural gas, which will be used to assist in powering Statoil’s oil and gas operations.

The new commercial expansion is expected to increase its flare gas capture to between three million and five million standard cubic feet per day by the end of 2014.

Statoil said the natural gas that it captures and is not able to use in its own operations will be compressed and sold to ancillary markets.

Statoil Bakken development and production vice-president Lance Langford said: "By using this captured natural gas in place of diesel in our drilling and hydraulic fracturing operations, we are further reducing emissions and costs."

Last Mile is a JV solution between GE Ventures and Ferus NGF. Both firms are in negotiations with other companies in the Bakken region regarding use of the system for their operations.

Statoil is working with authorities and industry through the North Dakota Flaring Task Force with an aim to capture 90% of flaring in the area by 2020.

---

Image: Statoil using captured flared gas to power a rig. Photo: courtesy of Jay Pickthorn AP.