Gas hydrate has been found both in the permafrost and deep ocean in China. However, due to easier access, much lower well cost and proximity to existing gas pipelines, gas hydrate in the permafrost is more attractive for commercial development. In this paper we examine the published data on gas hydrate exploration in various Chinese permafrosts, identify the key technical challenges and suggest directions for future study.

Our study has identified Qilian Mountain Permafrost, Mohe Basin and Qinghai-Tibetan Plateau as the three permafrosts with highest potential for gas hydrate development. Of the three, only Qilian has confirmed occurrence of gas hydrate by coring. From the perspective of field operations, Qilian ranks highest in potential for development due to its proven hydrate occurrence, thickness of hydrate bearing layer and proximity to existing gas pipelines. Mohe ranks second due to its benign operating conditions. However, it lacks existing gas pipelines. Qinghai-Tibetan Plateau ranks third due to its high elevation which limits access and lack of oilfield infrastructure.

We found that the key subsurface uncertainty is the gas hydrate saturation. There is little information on it for all three permafrosts. Other subsurface uncertainties include the thickness of the permafrost, geothermal gradient beneath the permafrost, porosity, gas hydrate composition and permeability of the hydrate-bearing layer. Future research needs to determine these reservoir properties accurately.

Examination of core samples and logs from Qilian shows that gas hydrate distribution is discontinuous both vertically and areally. Therefore, a better way to quantify the uneven hydrate distribution in the reservoir is needed for reservoir engineering calculations.

Current estimates of well production rate by reservoir simulation are sub-commerical and probably due to the assumption of pure methane hydrate which limits the thickness of the gas hydrate stability zone. Also, the assumption of using horizontal wells for hydrate production may be optimistic due to shallow depths and the discontinuous nature of hydrate distribution. Consequently, new recovery methods besides depressurization and thermal stimulation will be needed to increase the well production rate.

Furthermore, we have identified a number of similarities in production engineering aspects of gas production from hydrate and coalbed methane (CBM) wells. Common challenges include reservoir depressurization by water production, solids production, need for artificial lift and difficulty in drilling long horizontal wells in shallow reservoirs. Therefore, some best practices from CBM production, such as pad drilling, artificial lift and water treatment methods, may be usable for gas hydrate production.

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