Nitrogen gas plays a crucial role in the Oil & Gas industry due to its inert, non-reactive nature. From blanketing to pressure testing, the use of nitrogen spans across several critical operations that ensure safety, efficiency, and cost optimisation. In this guide, we address common questions and key aspects surrounding the use of nitrogen gas in the Oil & Gas sector.
Where is Nitrogen Used in the Oil & Gas Industry?
- Blanketing: Prevents flammable substances (oil or fuels) from reacting with oxygen (or contaminants in air) by covering them with an inert gas, typically nitrogen. It is used for blanketing in oil storage tanks.
- Purging: Nitrogen is used to purge the equipment, pipelines and vessels before usage to remove any contaminants, oxygen, hazardous gases or moisture to prevent unwanted reactions. Please refer to our blog titled Application of Nitrogen in Purging for more details.
- Pressure Testing: Nitrogen is used in pressure testing of equipment and pipelines at the time of installation and commissioning, or a restart after a long break. In short, it helps in detecting leakages in equipment and pipelines during commissioning. Please refer to our blog titled Application of Nitrogen Gas in Pressure and Leak Testing for more details.
- Enhanced Oil Recovery (EOR): Nitrogen is used to increase the pressure inside a reservoir to extract oil from aged reservoirs. Nitrogen, being a non-reactive gas, is used at high pressure and high volumes. With an increase in pressure inside the reservoir by injection of nitrogen gas, oil extraction is improved.
Why is Nitrogen Preferred?
- Inert, non-reactive, and dry
- Abundantly available (78% of atmosphere)
- Low cost of production via PSA technology
Apart from Nitrogen, can we use other inert gases in the oil & Gas Industry?
The right answer is yes. Theoretically, inert gases like argon and helium can also be used. The differences lie in the cost of production of these gases.
Cost of production of Nitrogen ~ 100 times < Cost of production of Argon
Cost of production of Nitrogen ~ 1000 times < Cost of production of Helium
Therefore, Nitrogen becomes the best solution. The reason for the low cost of production of nitrogen is the availability of abundant nitrogen (78%) in the atmosphere.
To understand more about the cost of production of nitrogen via PSA nitrogen generators, please read our blog titled Understanding Nitrogen Purity in PSA Nitrogen Generators .
What is the purity of Nitrogen required oil & Gas industry?
The purity of nitrogen gas in the Oil & Gas Industry varies between 95.0 to 99.9%, where these purities of nitrogen signify the oxygen content in nitrogen.
Nitrogen gas purity required in the oil & Gas Industry
| Sr. No. | Application | Nitrogen Purity (%) |
| 1 | Blanketing | 95.0 – 99.0 |
| 2 | Purging | 99.0 – 99.5 |
| 3 | Pressure Testing | 99.0 – 99.9 |
| 4 | Enhanced Oil Recovery | 99.0 |
To get more clarity about the purity of nitrogen gas, please read our blog titled Understanding Nitrogen Purity in PSA Nitrogen Generators .
How much Nitrogen is used in the Oil & Gas Industry?
The volume of nitrogen requirement in the oil & gas industry varies depending on the application and equipment. So, consult the OEM of the equipment before deciding the quantity of nitrogen required.
What is the Nitrogen pressure required in the Oil & Gas Industry for leak testing?
Nitrogen at a pressure of 0.2 – 50 Barg is required in the Oil & Gas Industry.
Required Nitrogen Pressure in the oil & gas industry
| Sr. No. | Application | Pressure Range (Barg) |
| 1 | Blanketing | 0.2 – 2 |
| 2 | Purging | 0.2 – 2 |
| 3 | Pressure Testing | 5 – 30 |
| 4 | Enhanced Oil Recovery | 35 – 50 |
What are the different sources of nitrogen in the Oil & Gas Industry?
Traditionally, liquid nitrogen tanks or nitrogen cylinders were used as a source of nitrogen gas in Oil & Gas Industry applications, but with advancements in technology, Nitrogen is nowadays produced on-site via PSA nitrogen generators, which separate nitrogen from atmospheric air.
The cost of nitrogen reduces drastically when produced via a PSA nitrogen generator. The table below shows the cost of Nitrogen from different sources:
| Sr. No. | Source | Cost (₹/Nm³) | Pressure of Nitrogen (Barg) |
| 1 | Nitrogen Cylinders | 75-100 | Up to 200 |
| 2 | Liquid Nitrogen | 15-30 | Up to 20 |
| 3 | PSA Nitrogen Generator | 2.65 | up to 250* |
*Note: Nitrogen from the PSA Nitrogen Generator is produced at a pressure of around 8 Barg. It is then pressurised via a booster to the required nitrogen pressure. The cost of boosting is comparatively low compared to the generation cost, so we have ignored the cost in the above table.
To read more about the cost of different sources of nitrogen, please read our blog titled How to calculate the ROI (Return on Investment) of PSA Nitrogen Generator compared to Liquid Nitrogen or Nitrogen Cylinders
Can high-purity nitrogen of 99.99 or 99.999% be used in the Oil & Gas Industry?
In most cases, 95 to 99.9% nitrogen gas is used in the Oil & Gas Industry. This will cost you around ₹2.6/- per cubic meter when produced via PSA Nitrogen Generator.
The cost of nitrogen production via PSA technology varies significantly as we move from lower to higher purity. This is mainly because producing higher-purity Nitrogen requires more energy (A high amount of compressed air).
For example, generating nitrogen at 95% purity requires significantly less power than producing nitrogen at 99.9990% purity, since removing the final traces of oxygen from the gas mixture is an energy-intensive process.
The table below shows how electricity consumption affects the cost of production of nitrogen at different purity levels, assuming the cost of electricity as ₹8/- per unit, as per our blog titled Understanding Nitrogen Purity in PSA Nitrogen Generators
Cost of Nitrogen Based on Purity (PSA Generator)
| Nitrogen Purity | Power Consumption (kW/Nm³) | Cost of Nitrogen (₹/Nm3/hr) |
| 95.0000% | 0.22 | 1.76 |
| 99.0000% | 0.3 | 2.4 |
| 99.9000% | 0.33 | 2.64 |
| 99.9900% | 0.6 | 4.8 |
| 99.9950% | 0.8 | 6.4 |
| 99.9990% | 1.06 | 8.48 |
| 99.9995% | 1.32 | 10.56 |
As the table shows, the power consumption, and consequently, the cost, increases as nitrogen purity rises.
For instance, producing nitrogen at 95% purity costs ₹1.76 per Nm³, whereas producing 99.9995% purity nitrogen costs ₹10.56 per Nm³. This significant difference highlights the need to carefully match the nitrogen purity level to the application requirements to optimise costs.
Why are PSA Nitrogen Generators the preferred choice in the Oil & Gas Industry application?
Compared to the traditional sources of nitrogen gas like cylinders or liquid tanks, PSA nitrogen generators are far more beneficial in the oil & gas industry. Below are the benefits of the PSA Nitrogen generator over traditional sources like cylinders or liquid nitrogen:
- Compact and Portable: Compact nitrogen generators are help in saving a lot of space compared to liquid tanks. For the oil & Gas industry, these PSA nitrogen plants are installed inside transportable containers of 20 to 40 feet for easy installation and movement to different sites according to the usage.
- Fully Automatic Systems: As advanced PSA nitrogen generators are fully automatic with auto stop and IDLE features, these systems prove to be a boon in Oil & Gas Industry applications, as nitrogen usage is not constant and varies with time. PSA nitrogen generators go into IDLE mode during low usage of nitrogen to save energy.
- Nitrogen Production: As Nitrogen is produced on-site in PSA nitrogen generators from compressed air, there is no dependency on 3rd party vendors and logistics for refilling of gas, as in the case of cylinders or liquid tanks.
- Reduction in Carbon Footprint: As nitrogen is produced onsite in PSA nitrogen generators, there is no logistics involved, hence carbon emission is negligible.
- Low cost of Nitrogen: Nitrogen produced by the PSA nitrogen generator is at least 5 times cheaper than other sources.
Conclusion
Oil & gas is a critical industry where safety is a necessity. Nitrogen’s inert nature, dryness, cost-effectiveness, and availability make nitrogen the preferred choice over other inert gases like argon and helium.
While traditional nitrogen sources like liquid nitrogen and cylinders are still used, on-site PSA nitrogen generators have emerged as a cost-effective and sustainable alternative. Understanding the specific requirements of nitrogen in the Oil & Gas Industry allows industries to optimise operations and reduce expenses. For tailored solutions and cost-efficient nitrogen in Oil & Gas Industry setups, please schedule a consultation with us.
Consult Us
For tailored solutions and expert advice on Nitrogen usage in the Oil and Gas Industry, contact us:
- Email: [email protected]
- Phone: 1800 3010 3394
- Website: www.absstem.com
References
- Absstem Technologies. (2024). Application of Nitrogen in Purging
- Absstem Technologies. (2024). Application of Nitrogen Gas in Pressure and Leak Testing
- Absstem Technologies. (2024). Understanding Nitrogen Purity in PSA Nitrogen Generators
- Absstem Technologies. (2024). How to calculate the ROI (Return on Investment) of PSA Nitrogen Generator compared to Liquid Nitrogen or Nitrogen Cylinders
