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

APPENDIX A

Sample of Service Companies that Offer Flaring and Methane Reduction Solutions

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

COMPANY PROJECT EXAMPLES

Generon

No projects given, but the company seeks to offer economical alternatives to flaring, including flare gas power generation, flare gas reinjection, flare gas used as feedstock in petrochemicals, and compressed natural gas. Capterio No project examples given, but the company aims to partner with energy companies to deliver flare monetization projects and to bring together assets, methods, and financing to do so. Capterio delivers on-the-ground abatement projects for clients. Projects include reinjection, raw gas sent to the nearest export pipeline, power generation, and the recovery of liquids or conversion of gas to liquids for sale. Baker Hughes No project examples given, but the company has an entire business line dedicated to methane monitoring and management. It advertises technology to reduce venting, flaring, and fugitive emissions in the oil and gas industry. However, upon further inspection, its offering appears to reduce flaring by just making it more efficient, rather than eliminating it, but is still possibly worth investigating. Pioneer Energy Provider of mobile flare gas capture solutions and modular gas processing plants. Pioneer Energy’s flare gas capture and processing systems turn raw associated and nonassociated gas and oil tank vapors from waste streams into resources. Systems are skid-mounted, modular, autonomous units that are remotely monitored and controlled, which enables flexibility in equipment deployment and superior uptime while minimizing required capex and opex. Alphabet Energy Alphabet Energy’s Power Generating Combustor (PGC™) for oil and gas flares has seen strong commercial traction in helping oil and gas operators mitigate permitting risk and meet remote power needs. The product helps expedite or eliminate permitting processes by transforming gas flares or combustors into power generators. Caterpillar In 2012, three engineers with decades of experience in the energy industry founded GTUIT with the goal of reducing natural gas flaring in North America and around the world. GTUIT’s mobile, modular gas capture and natural gas extraction units are about the size of a semitrailer and easily connect to an engine or generator set. They significantly decrease the volume of flared gas at the wellhead and reduce the volume of volatile organic compounds released into the atmosphere. The units also remove valuable NGLs and produce a dry, consistent, high-Btu gas. Energy companies can conserve and sell the NGLs on the market for later use, and they can use the conditioned gas as free fuel to power on-site gas or dual-fuel engines and generator sets.

SoEnergy International SoEnergy has a flare gas recovery system that converts flared gas into fuel for upstream operations. SoEnergy’s flare gas recovery systems are customized from beginning to end. Treatment and conditioning systems transform even the toughest flare gas compositions into power-generation-ready fuel. For operations in a remote or harsh environment, SoEnergy leverages extensive logistics and engineering support to simplify, and solve, the challenge. SoEnergy has deployed this technology in projects in Colombia and Ecuador.

TABLE A.1, continued

DNV GL

Crusoe DNV GL has proposed alternatives to gas flaring. DNV GL has developed a methodology that uses gas flowrate and distance to market to select the most appropriate technical solutions on a case-by-case basis. The methodology could present new revenue opportunities, particularly for smaller-scale applications for operators, while helping them to reduce emissions and stay ahead of regulatory requirements. Though some solutions might be immature for near-term implementation, current applications—such as micro LNG, compressed natural gas, NGHs, and conversion methods—can deliver significant benefits, and are proving to do so in some cases in certain markets like North America. Crusoe Energy Systems provides oil and gas companies with a fast, low-cost, and simple solution to natural gas flaring. As the energy industry struggles with pipeline constraints and increasing regulations around flaring and combusting, Crusoe’s service lets operators preserve or regain regulatory compliance, maintain existing production, and facilitate future development. Crusoe’s Digital Flare Mitigation™ (DFM) systems convert otherwise wasted natural gas into electricity to power energy-intensive computing right at the wellsite.

Mitsubishi Corporation Basra Gas Company, 2013 (Iraq): Since operations began, the company has been recovering and refining flare gas from the three oil fields in southern Iraq (Rumaila, West Qurna 1, Zubair), and selling gas for power generation, LPG, and condensates both in Iraq and abroad. Sakhalin 2 Project (Russia): An integrated oil and gas development business that produces crude oil from the oil field in the north of Sakhalin and also liquefies natural gas produced from the gas fields in the north of Sakhalin.

Montney shale gas development project (Canada): “Building a natural gas value chain in Canada,” the project stretches from upstream resource development to LNG production, export, and sales. In terms of upstream businesses, the company works with Ovintiv Inc. on developing and producing shale gas from Montney Formation in the area near Dawson Creek, British Columbia.

Source: Based on company websites. Note: Btu = British thermal unit; capex = capital expenditures; LNG = liquefied natural gas; LPG = liquefied petroleum gas; NGH = natural gas hydrate; NGL = natural gas liquids; opex = operating expenditures.