Creation and Application of Multidisciplinary Teams in the Regulated Natural Gas Storage Business

Abstract

Summary Union Gas Ltd. is Canada's largest operator of underground natural gas storage facilities, with more than 126 Bcf of working capacity in southwestern Ontario. Recent advancements in E&P technology (3D seismic, reservoir simulations) have been applied successfully to storage. This technology has revealed a high degree of complexity in storage reservoirs that previously were considered relatively simple systems. Critical to the success of this technology transfer was the creation and management of multidisciplinary teams. Teams were small initially but have grown to include service companies and consultants from the planning stages through final project evaluation. Evolution of the team approach has resulted in faster, more cost effective and detailed projects. This paper presents specific team projects and case studies illustrating the difficult transition to the team approach in an extremely traditional, conservative environment. Introduction The establishment of multidisciplinary team environments has been common and successful within the upstream oil and gas industry for many years. Over the past 10 years, utility companies in Canada and the U.S. have experienced significant changes in terms of deregulation. In this changing marketplace, gas utilities have become more aware of their environment, developing markets external to their franchise areas and more aggressively developing transportation and storage projects. These challenges make multidisciplinary teams a necessity in the new and expanded market. Multidisciplinary teams have evolved to become the vehicle of choice for achieving a time-efficient and cost-effective position in a competitive market. Union's storage reservoirs are all Silurian Age pinnacle reefs of the Guelph formation in Lambton County (Figs. 1 and 2). The areal extent of the reservoirs ranges up to several hundred acres. Well spacing ranges from 1,500 to 300 ft. The high well density, unlike production reservoirs, is necessary to ensure complete seasonal inventory turnover and to meet high peak daily demands in the winter at relatively low inventory levels. These reefs are ideal for storage because of their high permeability and porosity and a "super caprock" top seal.