The utilization of depleted gas reservoirs for carbon storage offers substantial advantages. However, it raises concerns related to the geomechanical effects of historic gas extraction on the CO2 sequestration operation. In this study, a coupled thermo-hydro-mechanical investigation is conducted on a multi-layered sedimentary system that includes sealed bounding faults. Our simulations exhibit various levels of reservoir compaction during gas extraction under different pre-consolidation conditions of the sediments, highlighting the pivotal role of reservoir compaction in geomechanical analysis. The results demonstrate the occurrence of strain-hardening compaction behavior in the reservoir during post-yield depletion. This compaction is accompanied by a significant reduction in porosity and permeability, as well as irreversible surface subsidence. Hysteresis in the stress state is induced by the aforementioned irreversible reservoir compaction through two primary mechanisms: poro-elastoplastic stressing and differential compaction on each side of the sealing fault. These mechanisms alter the magnitude and orientation of stress inside and outside the depleted reservoir. Moreover, caprock compaction is impeded and delayed by the irreversible reservoir compaction owing to poro-elastoplastic stressing. This implies that conventional methods relying on the poro-elasticity theory alone may overestimate pressure required to fracture the caprock by approximately 2 MPa. When considering the combined effect of poro-elastoplastic stressing and differential compaction, neglecting irreversible reservoir compaction may lead to underestimation of the critical pressure for inducing fault slip by up to 4.9 MPa. Additionally, regardless of whether plastic void compaction is considered, we recommend increased attention be focused on the sub-vertical faults to mitigate the risk of significant slip that potentially could also lead to upward CO2 leakage. In scenarios where a slip event occurs in a fault during reservoir depletion, the results show that a subsequent CO2 injection operation tends to stabilize the faults. Nevertheless, it is crucial to consider that fault stability could deteriorate rapidly over time, potentially leading to a second slip event during carbon sequestration.
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