The first integrated approach for CO₂ capture and enhanced oil recovery in China

As the only company which owns the right for coal mines and oil and gas production in China, Yanchang Petroleum Group has the unique advantages to implement integrated CO₂ capture and enhanced oil recovery (EOR) in Ordos Basin. This area is also one of the largest CO₂ emission areas in China. The coal to chemicals plant was built to efficiently co-utilize coal, oil and natural gas. The energy efficiency is about 8.9% higher than the world average level. Two corresponding CO₂ capture plants were built with the capacity of 50,000 and 360,000 tonnes per year. The cost for CO₂ capture is as low as $17.5/tonne, much cheaper than most of the other CO₂ capture project in the world. By optimizing the distance between CO₂ capture plants and EOR sites, the shortest distance, the shortest distance for CO₂ transportation is only 10 kilometers. It is estimated that the cost for CO₂ transportation is $2.58/tonne. Meanwhile, the CO₂ is used for enhanced oil recovery in Yanchang oil fields. Extensive research has been done to investigate the suitable geological conditions for CO₂-EOR. Experiments have also been conducted to study the behaviors of CO₂-crude oil mixture. Two pilot tests including Qiaojiawa 203 block and Wuqi Yougou are now in operation with well production being doubled or tripled. In addition, more than 87% of reservoirs in Yanchang oil field in Ordos Basin are suitable for CO₂-EOR with estimated billions of CO₂ storage capacity.