Abstract Electrification is one of the main levers for the massive reduction in GHG emissions in LNG and oil and gas production sites. Many electrification projects have already been implemented and are currently under development. To enable more electrification projects, it is important to optimize their costs. The overall cost and net technical cost (in /tCO2) of dozens of electrification projects for onshore and offshore oil and gas production sites and LNG assets were analyzed. The projects were categorized based on their scope and net technical cost. A detailed cost analysis for each electrification scope was performed and the major cost contributors were identified. Based on this analysis a merit ranking of electrification scopes was established. Ten levers to optimize the cost were identified: 1. Prioritize power reserve optimization 2. Electrification readiness 3. Competition 4. Qualification of more adequate equipment 5. Design specifications and redundancy 6. Standardization 7. Investment in R&D 8. Insurance and warranty 9. Project organization and 10. Minimize electrical infrastructure scope. Each lever has been detailed for major electrification projects. This paper presents novel insights on cost analysis and cost reduction related to electrification projects for LNG and oil and gas sites. These insights are essential to enable the implementation of electrification projects and thus massively reduce GHG emissions.
Meyer et al. (Mon,) studied this question.