Posted on: 11. 10. 26
When determining the ROI of portable gas processing equipment, you have to analyze several factors. Speed to revenue, asset flexibility and asset performance management. If you have high decline rates or fluctuating wellhead pressures, a permanent facility can be a poor use of capital. With portable gas processing, you can get your initial sales stream online much faster. This increases revenue and reduces the risk of overcapitalizing on your asset.
What are the ROI Benefits of Portable Gas Processing Equipment?
Portable gas processing equipment can help you achieve a higher ROI by reducing time to first gas and lowering on-site civil engineering costs.
With permanent installations, you spend significant capital to build the facility before you even get a single cubic foot of gas to your pipeline. You are spending money on concrete, engineering and construction to build these facilities, which can take 18-24 months to deploy. With portable units, you can get them on location and skid-mounted to start production in days or weeks.
This lets you start making money sooner and reduce your capital cost. Even with lease payments and shipping of your modular units, you will see a faster return on investment.
Efficiency Tip – Review your wellhead decline curves and determine how long you need to lease your skids. If you know your wells will decline quickly, you can lease for a shorter period and move them to a new wellhead.
Efficiency Tip — Review your wellhead decline curves and determine how long you need to lease your skids. If you know your wells will decline quickly, you can lease for a shorter period and move them to a new wellhead.
What are the Risks of Using Permanent Installations? Flaring and Testing Wells
You can run into problems when deciding to install permanent gas processing equipment. If your well declines or you have to flare at a high rate, your permanent facility will not be able to scale to meet those needs.
If you install a permanent facility and your well pressure begins to drop, you will be left paying operating costs for a facility that is not at full capacity. If your well produces higher than what you anticipated, you could run into flaring issues or have to choke your well.
With temporary processing equipment, you can test your wells longer and keep your flare under control while gathering fluid data.
| Portable Gas Processing Equipment | Permanent Installations | |
| Cost to Install | Lower (Most cases will be leased) | Very High (Up front CapEx) |
| Time to Install | Can be on location in 2-6 weeks | Up to 12-24+ months |
| Civil Engineering | Little to no civil work required | Requires concrete, pilings and piping |
| Ability to Move | Can be moved to another wellhead | Once installed, it is permanent |
| Expandability | Can add on more modules as needed | Must expand facility to increase capacity |
How Can Modular Gas Processing Help Your Project Engineers? Less Site Engineering
Modular gas processing helps your project engineers by providing pre-engineered skids that can be easily deployed to your site.
Your project engineers will need to know how to interface your equipment with your existing lines. Pre-engineered skids can reduce equipment installation time. Your equipment will come pre-tested and ready to hook up to your facility.
Using modular gas processing can also help with permitting. Since your equipment is already built and has standard dimensions, your engineers will have an easier time getting permits approved.
Standard Operating Procedure | Installing Your Portable Skids
- Know your wellhead chemistry.
- Make sure your concrete pad can support your skid’s weight.
- Hook up your utilities to your skid.
- Test your skid prior to commissioning.
Use Cases for Temporary Processing Equipment | Overcoming Throughput Issues
There are many reasons why you may want to use temporary processing equipment on your site. One reason is to address throughput issues.
If your gathering line or central facility can’t process the amount of gas you are producing, you can install portable units at remote locations to keep your gas moving. This can help you maintain your gas quality and prevent shutdowns due to high water content or other impurities.
Another reason to use temporary processing equipment is to support seasonal throughput. If you know your gas production will increase during certain times of the year, you can lease additional units to help process your gas.
How can you tell if portable equipment is right for you? Ask yourself these questions:
- Are your wellhead pressures declining quickly?
- Do you have throughput issues with your gathering line or central facility?
- Could you generate more revenue by processing your gas for 90 days?
If you answered yes to any of these questions, then portable gas processing equipment may be a good option for you.
Portable Gas Equipment – A Long-Term Investment
There are many reasons to choose portable gas equipment as a long-term investment. One of the biggest reasons is tax benefits.
When you purchase portable gas processing equipment, you can write it off as an operating expense. This allows you to save money on taxes and keep more money in your pocket. Learn more on our blog.
Another benefit to using portable gas processing equipment is that you can move it to a new location if your current field dries up. This allows you to keep your investment working for you instead of sitting idle.
Work With Pro-Gas LLC To Increase Your Asset Yields
You have many factors to consider when it comes to your gas processing assets. Pro-Gas LLC can help you manage your assets and provide you with the best equipment to meet your needs. We offer top-of-the-line processing equipment and can help you optimize your assets to increase your yields.
FAQ
Q. What is the ROI of portable gas processing equipment?
Portable gas processing equipment can improve ROI by letting you start production sooner and reduce capital costs. You can also move your equipment to new wellheads as your current ones decline.
Q. How can I use modular gas processing to my advantage?
By using modular gas processing, you can reduce the amount of time it takes to install your equipment on site. You can also expand your facility by adding more modules as needed.
Q. What are some benefits of using temporary processing equipment?
Temporary processing equipment can help with throughput issues and allow you to process gas for shorter periods. You can also use it to help with seasonal throughput.
