(546o) Water Impact of a Gas Shale Production and Distribution System in Mexico

Maria G. Laguna-Martinez^a, Vicente Rico-Ramirez^a* and Jose M. Ponce-Ortega^b

^aTecnologico Nacional de Mexico en Celaya, Departamento de Ingenieria Quimica, Av. Tecnologico y Garcia Cubas S/N, Celaya, Guanajuato, Mexico 38010

*Corresponding author: vicente@iqcelaya.itc.mx

^bUniversidad Michoacana de San Nicolas de Hidalgo, Departamento de Ingenieria Quimica, Morelia, Michoacan, Mexico, 58060

Abstract

The US Energy Information Administration (EIA) estimated that Mexico has technically recoverable shale gas resources of 545.2 trillion cubic feet; around 343 trillion cubic feet are located in the Burgos Basin, which is connected to the Eagle Ford shale play in Texas. Based on this information, it is fair to consider Mexico at the top world places concerning shale gas resources in its territory (7th largest reserve). However, the exploitation of shale gas in Mexico still requires further study regarding its impacts on environmental (water footprint, in particular), technical and social aspects.

This paper provides a mathematical programming formulation for the optimal planning of a gas shale production and distribution system in Mexico. The model includes an integrated natural gas production and distribution network and the relevant issues related to the optimal management of the available water resources. The analysis considers a time horizon of 15 years divided into 60 time periods. The case study uses real information provided by the Mexican national oil company (PEMEX) database and the geographic information system ESRI ArcGIS. The case study includes 7 existing natural gas processing plants (Arenque, Poza Rica, Matapioche, La Venta, Cactus and Cd Pemex) and 6 potential shale Basins (Chihuahua, Burro-Picachos, Sabinas, Burgos, Tampico-Misantla and Veracruz) recognized in Mexico. The resulting formulation is an MILP involving 12600 binary variables, 85213 continuous variables and 122719 constraints, which we solved through the GAMS-CPLEX framework. Among the results, a water impact assessment is provided for various scenarios, involving either maximum NPV or minimum fresh water consumption.

Keywords: Shale gas production, shale gas distribution network, mathematical programming, water footprint.