Table 2.11 Processing Location AlternativesAlternative Technical Suitability Cost Commercial RiskTechnically and ConceptEconomically Feasible DeliverabilitySafetyFull Offshore Best technical Lower cost than No specific concerns Yes Equivalent Deals with H 2 S at sourceProcessing solution (H 2 S and onshore processingthereby minimizing safetycondensate removalrisk related to pipelineat source to producetransport of gas to shorenatural gas)OnshoreProcessing(with minimaloffshoreprocessing fortransportation)OnshoreProcessing(Long subseatieback)Higher risk thanoffshore processingassociated withpipeline integrityTechnically notfeasibleHigher cost thanoffshore processingRisk to <strong>Project</strong>economics shouldpipeline corrode and beout of service for anextended period of timeIncreased risk to projecteconomics due topipeline integrityconcernsYes Equivalent Transports H 2 S from offshoreto populated area (increasedsafety risks)Environmental ImpactDeals with H 2 S at source, therebyeliminating risks to the onshoreenvironment.Fewer sensitive environmental receptorsand greater acid buffering capacity in theoffshore marine environmentA greater number of sensitiveenvironmental receptors and thereforepotential impacts onshore with regard toH 2 S emissionsIncreased corrosion risk associated withtransmission of H 2 S in a 176 km pipelineincreases risk of gas releaseOffshore/Onshore(IntermediateCase)Duplication of somefacilities onshore andonshoreHighest – mustduplicate elements ofprocessing offshoreand onshoreNo specific concerns NoOffshore/Onshoreusing SOEPSubsea Tie-inTechnically feasible Yet to be determined Yet to be determined Yes Marginal increasedrisk when compared tofull offshoreSame as offshore processing Marginal increased advantage over fullprocessing by reduction of benthicdisturbance resulting from a shorterpipeline<strong>Deep</strong> <strong>Panuke</strong> Volume 4 (Environmental Assessment Report) • November 2006 2-68
Onshore Processing with Minimal Offshore FacilitiesOnshore processing with minimal offshore processing was based on minimally treating the gas such thatthe gas and the condensate could be transported, in a common pipeline, for processing onshore. Onshoreprocessing involves some processing offshore including dehydrating the gas and separating the waterfrom the condensate so that the pipeline may be operated free of water. The removal of water isnecessary for corrosion control and hydrate prevention. The offshore facilities for the onshoreprocessing alternative include separation, TEG dehydration, condensate treatment, produced waterhandling and a multiphase export pipeline for the combined gas and condensate streams. The associatedonshore facilities include a slugcatcher, separation, gas sweetening, sulphur recovery, TEG dehydration,gas compression, gas dewpointing, condensate treatment, and sour water handling. Onshore processingis more expensive than the offshore processing due to the duplication of facilities at both the offshoreand onshore locations including separation, TEG dehydration, condensate treatment, compression, andsour water handling. Due to economic reasons, the onshore processing case was rejected.Full Onshore Processing with Long Subsea Tie-BackAnother alternative for providing full onshore processing would be to use a “long subsea tie-back”. Thisalternative involves using only the reservoir pressure to push reservoir fluids to shore via a 176 kmcorrosion-resistant pipeline. An offshore subsea gathering system, with a subsea manifold, collects allthe fluids produced from the subsea wells and transports them to shore via a multiphase pipeline. Theonshore plant provides full processing of the reservoir fluids and contains all the process equipmentsimilar to the offshore processing alternative plus a slugcatcher, sulphur recovery plant and sour waterhandling equipment.Onshore processing creates additional safety and human health risk associated with handling sour gasonshore near populated areas. The probability of a large-scale accidental release of sour gas from aprocessing facility, albeit remote, is a serious concern. While the oil and gas industry has proven capableof handling sour gas in populated areas, EnCana submits that the most prudent approach is to minimizerisk by locating sour gas facilities away from populated areas.While proven and effective mitigation measures exist to address safety/occupational health andenvironmental concerns, EnCana’s preferred approach for this <strong>Project</strong> is to deal with the sour gas atsource to minimize overall risk. While population density in the onshore project area is low, therewould nevertheless be some added risk to the public with an onshore compared to offshore acid gashandling site. In general, there are many more environmental receptors onshore and acidic bufferingcapacity is far greater in the marine environment.<strong>Deep</strong> <strong>Panuke</strong> Volume 4 (Environmental Assessment Report) • November 2006 2-69