FIELD DEMONSTRATION OF A MEMBRANE PROCESS TO SEPARATE NITROGEN FROM NATURAL GAS

The original proposal described the construction and operation of a 1-MMscfd treatment system to be operated at a Butcher Energy gas field in Ohio. The gas produced at this field contained 17% nitrogen. During pre-commissioning of the project, a series of well tests showed that the amount of gas in the field was significantly smaller than expected and that the nitrogen content of the wells was very high (25 to 30%). After evaluating the revised cost of the project, Butcher Energy decided that the plant would not be economical and withdrew from the project. Since that time, Membrane Technology and Research, Inc. (MTR) has signed a marketing and sales partnership with ABB Lummus Global, a large multinational corporation. MTR will be working with the company's Randall Gas Technologies group, a supplier of equipment and processing technology to the natural gas industry. Randall's engineering group has found a new site for the project at a North Texas Exploration (NTE) gas processing plant. The plant produces about 1 MMscfd of gas containing 24% nitrogen. The membrane unit will bring this gas to 4% nitrogen for delivery to the pipeline. The system has been installed in the field and initial startup activities have been completed. The system has not yet produced the flow rate required for continuous stable operation. NTE, the company hosting this test site/pilot plant, will drill additional wells to increase the inlet flow rate. The system is expected to be in full continuous operation by May 2004