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Conventional and offshore upstream oil and gas sector best available technology and best management

Request For Proposals

General Information
Country:   Canada
City/Locality:   National Capital Region
Notice/Contract Number:   can:185695
Publication Date:   Nov 11, 2009
Deadline:   Nov 30, 2009
Buyer:   Environment Canada / Environnement Canada
Original Language:   English

Contact Information
Address:   Neil Charbonneau
1040 St. Joseph Blvd.
Gatineau, QC J8Z 1T3
Canada
Telephone:   819-953-8235
Fax:   819-953-8235
Email:   Click here

Goods, Works and Services

 

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Conventional and offshore upstream oil and gas sector best available technology and best management

OBS NOTICE

Requisition Number K2A15-09-0005

Conventional and offshore upstream oil and gas sector best available technology and best management practices facility analysis


All enquiries concerning this solicitation must be submitted in writing to the Contracting Authority named below as early as possible within the bidding period. Enquiries should be received by the Contracting Authority no later than five (5) calendar days prior to the bid closing date specified herein to allow sufficient time to provide a response.

Intellectual Property

The Crown has determined that any intellectual property arising from the performance of the Work under the Contract will vest in Canada, on the following grounds:

6.4 Where the main purpose of the Crown Procurement Contract, or of the deliverables contracted for, is:

6.4.1 To generate knowledge and information for public dissemination.


Requirement

Environment Canada has a requirement for consulting and professional services. The Contractor is required to compile information on best available technology (BAT) and best management practices (BMP) as they relate to the processes, emission sources, cost considerations and emission intensities in specific conventional and offshore upstream oil and gas facilities.


Background

A variety of processes in the conventional and upstream oil & gas industry contribute to substantial GHG and air pollutant emissions including venting, flaring, fugitives, and stationary fuel combustion. Carbon dioxide (CO2), nitrous oxide (NO), and nitrogen oxide (NOx) emissions are largely due to combustion of fuel to generate energy, or controlled flared releases while methane (CH4) and volatile organic compound (VOC) emissions are largely due to venting and fugitive releases. Particulate matter (PM) emissions are largely due to flaring and fuel combustion.

The upstream oil and gas sector is a significant contributor to Canadian national GHG and air pollutant emissions. A comprehensive list of best available technologies and best management practices, their associated expected achievable emission reductions and associated costs for identified facility types, will support the understanding of emission reduction opportunities in the upstream oil and gas sector.


Statement of Work

Facilities

The study shall focus on the following facility types as they apply to the conventional upstream oil and gas sector (excluding oil sands):

a) Individual production well sites
b) Batteries
c) Gas gathering systems
d) Injection facilities

See full RFP for complete breakdown of sub-facility types to be covered under this study.

Emission Sources

Emission sources to be considered for this study include venting, flaring and stationary fuel combustion. Fugitive emission sources are to be excluded from this study.

Substances

As part of this study, the Contractor shall consider the following substances:
a) Greenhouse gases: CO2, CH4 and N2O
b) Air pollutants: VOCs, SO2, NOx , PM (2.5, 10 and TPM), and Benzene

Tasks

Without limiting the scope of work, the Contractor shall carry out the following tasks as they apply to well sites, batteries, gas gathering systems and injection facilities from the conventional upstream oil and gas sector and as described herein:

1. The Contractor shall identify typical unit operations for each facility type identified above. The Unit operations shall include (but not be limited to) compressors, heaters, dehydrators, engines and pipes. The Contractor shall provide a brief description of each unit operation (including the various sizes or ranges of equipment), the facility type where the unit operations occurs, the typical configuration (for example size of engine) and application of the unit operation for each facility type and any other information to accurately characterize the unit operation.

2. The Contractor shall compile a comprehensive list of best management practices (BMP) and best available technologies (BAT) for the detection, prevention, control, monitoring and quantification of GHG and air pollutant emissions in identified conventional upstream oil and gas facility types:
• The Contractor shall ensure complete coverage of substances, emission sources and facility types identified above.
• To compile the list, the Contractor shall identify the most appropriate approach to proceed with the analysis. The approach could include (but not be limited to) facility type level (e.g. gas gathering system, batteries) and/or unit operation level BAT and BMP. The use of other innovative approaches is encouraged (pending Departmental Representative approval).
• The Contractor shall consider all relevant sources, such as (but not limited to), the US EPA’s Natural Gas STAR Program Recommended Technologies and Practices, the Canadian Environmental Technology Advancement Corporation West (CETAC-West) Fuel Gas Best Management Practices (2008), the Petroleum Technology Alliance Canada (PTAC), the Technology For Emission Reduction And Eco-Efficiency (TEREE) and Natural Resources Canada (NRCan), as well as the Methane to Markets Partnership nodal analysis tool for oil and gas systems.

3. For each BMP and BAT, the Contractor shall carry out a comprehensive analysis of the practice and technology, which shall include:
• A detailed description of each BMP or BAT identified, description of the advantages, limitations, effectiveness, accuracy, effort required to implement, degree of adoption (% of facilities/output, extent of current use in the sector), , market applicability, applicability/application in new vs. existing facilities, components or equipment, annual consumption of fuel and energy (by energy form and electricity), technical life (if applicable) in number of years, availability in Canada at competitive prices for average/typical facility configurations, compatibility and complementarity of technologies, processes or approaches with each other, and any other aspects that should be taken into consideration.

4. For each BMP and BAT, the Contractor shall assess the emissions or achievable emission reductions and associated emission reduction efficiencies for GHGs and air pollutants for an average facility/unit operation/equipment in the sector. A detailed description of the methodologies and basis of estimation must be provided. The Contractor shall consider the impact of technologies on other technologies and substances (synergism and antagonism).

5. For each BMP and BAT, a detailed cost analysis shall be completed:
• Cost analysis shall include the following considerations: capital costs to purchase, annual operating costs (excluding energy costs, where applicable), annual fuel and energy costs, licensing costs, return on investments such as estimated payback period, costs to implement and costs to maintain operational.

6. The Contractor shall develop an approach and calculate typical or average emission intensities for each facility type, which must include the following:
• The Contractor shall propose a typical or average facility configuration based on the unit operations identified in Task #1 for each facility type.
• The Contractor will assume the application of BAT or BMP (identified in Task #3) that will result in the lowest possible emissions (identified in Task #4) for each facility type (cost considerations and feasibility of implementation should also be considered (e.g. BATEA)).
• For the configuration and application of the identified BAT and BMP, the Contractor shall propose an approach (pending Departmental Representative approval) to calculate typical or average emission intensities for each facility type. Considerations in developing an approach should include identifying reasonable emission intensity metrics which may include, but not be limited to, production/throughput, fuel use, number of compressors/engines, gas to oil ratio or other metric associated with the resources and length of pipe. The approach may include developing an equation based on unique variables for specific unit operations at a facility type. For example, the equation for gas gathering systems could be based on the number of compressors at a given facility multiplied by a factor (to be determined by the Contractor).

7. Prepare a draft outline, draft report and a final report presenting the information described in this Scope of Work and according to the Schedule, Deliverables & Reporting Format section.
• Tables and diagrams should be used to facilitate summarizing key findings and data analysis.
• Methodologies and calculations must be described in full or referenced and are subject to approval by the Departmental Representative. A complete list of referenced material is required for all elements of this study.

Deliverables

Deliverables required under this Contract are described in the Terms of Reference and summarized as follows: progress reports (minimum frequency of once per month), draft outline of project report, draft report, presentation of results, final report.

All deliverables shall be provided electronically in English. All deliverables shall be provided no later than 16 weeks following the award of this contract and prior to March 31, 2010, whichever comes first.

Travel

No travel will be required.

Selection Criteria

For a proposal to be technically acceptable it must receive a minimum score of 50/65 points for criteria #1, #2, #3 and #4 and 32/40 points for criteria #5 and #6 identified in the Terms of Reference. The contract will be awarded to the firm obtaining the lowest compliant cost per point proposal (determined by dividing the bid price by the total points achieved in the evaluation of the bidder’s proposal).

If no acceptable bids are received, Environment Canada has the right to not award this contract.

Project Budget

Environment Canada has established funding for this project at a maximum amount of $71,200.00 CAN, excluding GST and broken down as follows:

Administrative Expenses: Up to a maximum cost of $1,000.00 excluding GST.

Professional Fees: Up to a maximum cost of $70,200.00 excluding GST.

The total value of this contract shall not exceed $ 71,200.00 excluding GST.

This covers the period from date of award to March 31, 2010.


Estimated value: < $100,000
Original notice
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