Financing Solutions to Reduce Natural Gas Flaring and Methane Emissions

Page 39

Gas Flaring and Methane Emissions Facts and Trends

TABLE 1.7

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19

Countries that included flaring reduction in their Nationally Determined Contributions

COUNTRY

YEAR

FLARING REDUCTION COMMITMENT

Algeria

2016

Reduce the volume of gas flaring to less than 1 percent by 2030.a

Angola

2021

Reduce flaring—295 mmscf/d (42 percent of unconditional commitments) or 370 mmscf/d considering conditional commitments compared to 2015 levels.

Bahrain

2021

Undertake projects that reduce CO2 emissions, including flaring and associated gas compression projects. However, no specific emissions reduction target is provided.

China

2021

Enhance the recovery and use of vented and associated natural gas. However, no specific measure or target is provided.

Congo, Rep.

2021

Flaring is estimated to account for 23 percent of direct GHG emissions from the energy sector in 2000. The first NDC refers to various measures of flaring being taken over the years, and a policy to encourage its productive use when reinjection is not possible. However, no specific emissions reduction target is provided.

Ecuador

2019

Reduce gas flaring and use associated gas in power generation. However, no specific emissions reduction target is provided.

Egypt, Arab Rep.

2017

Undertake GHG emissions reduction in the oil and natural gas sector, including venting and flaring through the use of advanced locally appropriate and more-efficient fossil fuel technologies, which emit less. However, no specific emissions reduction target is provided.

Gabon

2016

Over 2010–25, policies will reduce GHG emissions from flaring by an estimated 17,341 GtCO2e, or 41 percent of emissions (63 percent in 2025). Actions toward this goal include investments in reinjection, gas flare to power, and compression units.

Iraq

2021

Reduce the levels of burning associated gas and invest it in oil and natural gas extraction processes. Conduct regular detection programs for methane leaks at oil and gas facilities for repair. However, no specific emissions reduction target is provided.

Mexico

2020

Actions that will promote the optimization of the processes of the refining and processing systems have been identified for the oil and gas sector, including the implementation of the Methane Emissions Reduction Policy. However, no specific sectoral target has been proposed.

Oman

2019

Oman would reduce its expected GHG growth through several mitigation contributions, including the reduction of gas flaring from oil industries. However, no specific emissions reduction target is provided.

Qatar

2021

Qatar committed to Zero Routine Flaring by 2030, with a long-term goal to reduce flaring in onshore facilities to the absolute minimum. Technically feasible nonroutine flaring is also covered. CCS will be another pivotal measure for reducing the sector’s GHG emissions. Qatar commissioned the largest CO2 recovery and sequestration facility in the MENA region at Ras Laffan in 2019 with a design capacity of 2.2 MTPA of CO2 capture and storage. CCS is included for new LNG facilities and concepts, for remaining LNG facilities will be developed and implemented considering the economic, safety and environmental concerns. However, no specific emissions reduction target is provided.

Saudi Arabia

2021

Zero flaring by 2030. Reduce global methane emissions by 30 percent by 2030 relative to 2020 levels.

United Arab Emirates

2020

Having adopted Zero Routine Flaring policies, the country’s oil and gas companies are adopting measures to avoid flaring, use recovered gas in operations, and develop CCUS. In its second NDC submitted in 2020, the country noted the Abu Dhabi National Oil Company’s target to decrease its GHG emission intensity by 25 percent by 2030. In 2016 the region’s first commercial-scale network for CCUS was developed in Al Reyadah. Advanced techniques are also deployed to measure and control methane leaks. No specific sector level target is proposed.

Venezuela, RB

2015

The country’s oil and gas industry is working toward minimizing gas flaring and venting. These measures were estimated to reduce emissions by 538.2 ktCO2e/year for the period 2016–19.

Source: NDC Registry, United Nations Framework Convention on Climate Change (https://www4.unfccc.int/sites/NDCStaging/Pages/All.aspx), last accessed November 9, 2021. Note: CCS = carbon capture storage; CCUS = carbon capture, utilization, and storage; CO2 = carbon dioxide; GHG = greenhouse gas; GtCO2e = gigatons of CO2 equivalent; ktCO2e = kilotons of CO2 equivalent; LNG = liquefied natural gas; MENA = Middle East and North Africa; mmscf/d = million standard cubic feet per day; MTPA = million tons per annum; NDC = Nationally Determined Contribution. a. Baseline year missing from Algeria’s NDC submission.


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Risks of FMR investments and mitigating factors

6min
pages 127-130

A.1 Selected companies that offer flaring and methane reduction solutions

4min
pages 131-132

Financial attractiveness of flaring and methane reduction investments

4min
pages 125-126

References

1min
page 124

Galileo

5min
pages 110-111

4.4 Flared gas volume in Nigeria, 1992–2019

4min
pages 113-114

Notes

2min
page 123

phases

5min
pages 115-116

Crusoe Energy Systems

5min
pages 118-119

The Nigerian Gas Flare Commercialisation Programme

2min
page 112

4.1 Termo Mechero Morro

1min
page 109

Mechero Energy

2min
page 108

4.2 Aggreko’s installed capacity, by geography

6min
pages 102-104

4.3 Sacha Central flare-to-power business model

4min
pages 106-107

Hoerbiger

2min
page 105

Methodology and general assumptions

2min
page 71

Aggreko

2min
page 100

Highlights

1min
page 69

Summary takeaways

1min
page 99

Notes

2min
page 65

gas sector

3min
page 56

reduction financing

3min
page 64

Financing instruments

2min
page 58

2.1 Banking on Climate Change 2021’s bank policy scoring

2min
page 51

2.2 The European Union Green Bond Principles: Overview

5min
pages 60-61

2.3 Transition bond guidelines: Summary

2min
page 62

and Development, 2014–20

2min
page 57

Categories of investors

1min
page 47

reduction

4min
pages 32-33

1.2 Examples of countries’ regulatory approaches to gas flaring

2min
page 38

Contributions

3min
page 39

Regulatory developments

4min
pages 36-37

References

4min
pages 45-46

1.8 Emission reduction commitments and targets of selected companies

2min
page 43

Notes

2min
page 44

1.3 Reasons for routine flaring and venting (upstream

3min
page 27
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