Selection of Design Parameters Based On Economic Evaluation Of Offshore Combined Cycles
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Abstract:As of Jan 1 2011,as per The Oil and Gas Journal (OGJ) Norway had 567 billion barrels of proven reserves most of which are located in the Norwegian continental shelf offshore, Apart from oil Norway is also a major producer of natural gas. Norway is the second largest exporter of natural gas after Russia, and ranks fifth in world natural gas production. According to OGJ, Norway had 72 trillion cubic feet (Tcf) of proven natural gas reserves as of January 2011. Despite the maturation of its major natural gas fields in the North Sea, Norway has been able to sustain annual increases in total natural gas production by continuing to develop new fields.The domestic markets for gas is good for the platforms in the Norwegian continental shelf and even the emission regulations and flaring limitations are very rigid there by rendering the overall production process in the NCS to be very complex and different from the ones that are already existing all over world. The energy conservation offshore plays a very major role and the combined cycle are under discussion for local power production in the oil extraction processes.In this scenario the economic analysis of the offshore combined cycle is carried out by developing the cost model for platform development which would give the costs in $/kg of the equipment weight and also the overall capital costs in $/kW. In this model the fuel consumed is priced at the market retail price and also the analysis is considered with two escalation rates on the fuel prices. For the capital cost , two interest rates are considered and results are analyzed. The simulations are all carried out in GT-Pro. The overall result is then derived in LCOE(levelised cost of energy ) given in $/kWh. This LCOE is the main characteristic of each of the cycle, with different technical parameters, different interest rates and escalation rates. the overall objective is always to reach the most minimum possible value for LCOE there by pointing it as the desired design point.