Modeling of Underground Gas Storage Project

Abstract

As underground gas storage becomes one of the important and effective methods for supplying natural gas, modeling such system would help any individuals who own storage facilities plan their project and optimize their resource. Using tool like excel spreadsheet will handle all complicated mathematical calculation with minimal errors occur if it was done properly. We present simple but specific way to ultimately obtain net present value base on various logical assumptions such as periodic gas consumption or facilities design. The model itself is the combination of reservoir and flow model for dry gas reservoir which in this thesis uses Carthage Gas Area in Oklahoma as reservoir description. All relevant costs have been included. The model predicts large positive net present value in the cases where price profile is seasonal or gradually increases. Optimizing adjustable facility input such as number of well or choke position would increase final NPV with considerable amount even if the method of optimizing is mainly trial and error with concepts. Project opportunity to continue further has also been discussed in term of cumulative gas in place that increased. Lastly, constructed model is verified by various measurements to ensure the correctness of the model.