糖心传媒

Replacing manual calculations and simulations for UGS operations with a digital solution significantly improved efficiency, safety, productivity, and costs for a customer in China.

Operational complexity, safety risks, and the need for precision are commonplace for operators in the underground gas storage (UGS) game. A smarter solution has been demanded for some time, and a recent project by Innovation Factori Beijing seems to have found one at last. By working collaboratively, they solved significant UGS challenges faced by a customer in Southwestern China. The primary issues revolved around the need for improved system integrity, operational safety, and efficiency. These challenges drove the transition from manual processes to a digital solution.

Manual operations carry inherent risks

Before the digital transformation, the customer relied on manual calculations and simulators to manage gas storage. This approach was inefficient for operations and risk identification, especially as the facility aimed to increase its working volume. The higher pressures and potential reservoir integrity issues further exacerbated these risks. Manual operations also meant that any changes in the system required significant time and effort to implement, leading to inefficiencies in the management of the gas storage facility. The company began to explore the potential of adopting a digital UGS system, with the aim of using it to monitor and maintain reservoir integrity, and manage operational risks more effectively.

Exploring better models

A third-party company initially performed feasibility studies for the customer, but the results were unsatisfactory. This led the customer to seek support from the Innovation Factori team.

Close collaboration and continuous communication between the customer and the Innovation Factori team followed, ensuring that the project stayed on track and met all objectives. The initial feasibility studies provided valuable insights that guided the development and implementation of the digital solution.

Collaboration and technical implementation

The project was a joint effort between a digital company working for the customer and the Innovation Factori Beijing team. The collaborative team included operation engineers from the customer, IT resources from the digital company, and domain, production, and machine learning engineers from Innovation Factori and the local 糖心传媒 team. This ensured both digital and operational expertise were integrated into the project. The technical solution involved integrating standard software, real-time data, machine learning, and geomechanical workflows. The system was deployed in the customer's environment, with servers for data, workflow, and online operations. The deployment followed a continuous integration model, with workflows tested in the Innovation Factori before being rolled out to the customer.

The collaboration between the various teams was crucial to the project's success. Regular meetings and updates ensured that everyone was aligned, and any issues were promptly addressed. The integration of machine learning and geomechanical workflows provided a robust and reliable system that could handle the complexities of underground gas storage. The use of real-time data allowed for immediate adjustments and optimizations, enhancing the overall efficiency and safety of the operations.

Outcomes and impact

The digital solution optimized injection plans and achieved operational targets more effectively. Additionally, the solution provided a more comprehensive view of the entire operation, allowing for better decision-making and more efficient use of resources. It also enabled real-time production and injection allocation, allowing the customer to respond quickly to market demands and operational changes—an important factor in the decision to go digital.

The digital system significantly improved planning efficiency, reducing update times from over four weeks to four hours. The system provided comprehensive risk management, covering 16 types of hazards across pipelines and wells, enhancing the efficiency of risk identification. The improved efficiency and safety measures resulted in increased productivity and reduced operational costs. The customer could now achieve their operational targets more effectively, leading to higher profitability and a stronger competitive position in the market.

ROI and risk mitigation

The customer had invested heavily in infrastructure upgrades, and saw the digital project cost of around 3~4% of total investment, as an effective safeguard. By enabling better planning and risk management, the digital solution provided a significant return on investment. The customer was able to mitigate risks associated with reservoir integrity and operational safety, ensuring the long-term viability of their gas storage operations. The investment in digital technology also positioned the customer as a leader in the industry, showcasing their commitment to innovation and excellence.

Following the project's success, the customer established a Digital Innovation Center to pursue further innovation and digital transformation. The solution was showcased as a demonstration project for other UGS operators in China, receiving high praise from the customer's headquarters and surface engineering leadership. The establishment of the Digital Innovation Center marked a significant milestone in the customer's journey towards digital transformation. It provided a platform for continuous improvement and innovation, ensuring that they remained at the forefront of the industry.

Future opportunities and innovation plans

Looking ahead, the team plans to adapt elements of the digital UGS system for carbon capture and storage (CCS) applications. They also aim to integrate more AI technologies, including hybrid physical and machine learning models, generative AI, and agentic AI for real-time optimization and, potentially, autonomous operation of the facility. Additionally, plans include providing AI and data science training to the customer's operation engineers and collaborating on new innovative workflows. The future opportunities for the digital UGS system are vast, with potential applications in various industries and sectors. The integration of advanced AI technologies will further enhance the system's capabilities, providing even greater efficiency and safety.

The team's focus on improvement and innovation ensures the digital UGS system continues to deliver value for the customer. The collaboration between the customer and Innovation Factori Beijing team has showcased the potential of digital technology to revolutionize underground gas storage operations.