World Bank Global Gas Flaring Reduction
Gas STAR International and GGFR Mutual Goals
Roger FERNANDEZ
U.S. EPA Natural Gas STAR
Team Leader
Presentation Agenda
• Introduction
– Methane to Markets partnership and goals
– Interrelationship with Global Gas Flaring Reduction
(GGFR) Partnership
• Natural Gas STAR International program
• Natural Gas STAR International projects that
compliment GGFR goals
– Case Study: Colombia
– Russian Associated Gas Flaring
• Summary
Methane to Markets
Program Overview
• The Methane to Markets Partnership is an international
initiative that advances cost-effective, near-term methane
recovery and use as a clean energy source. Four main
sectors:
– Coal Mines
– Landfills
– Oil and Gas Systems
– Agriculture (manure waste management)
• 18 Partner countries
Argentina
Australia
Brazil
Canada
Colombia
China
Ecuador
Germany
India
Italy
Japan
Korea
Mexico
Nigeria
Russia
Ukraine
United Kingdom
United States
Methane to Markets
Opportunities
• Methane to Markets encourages the
development and implementation of projects
that result in:
– Direct methane emissions
reductions in member countries, or
– Capacity building and technology transfer
• Partners and Project Network members seeking
technical support, financial support, or
consultation are invited to submit project ideas
and activities
Natural Gas STAR
International Program
• Under the Methane to Markets partnership, Gas
STAR International is a U.S. led initiative aimed
at voluntarily reducing methane emissions from
international oil and natural gas operations
Oil and Gas
Subcommittee
Natural Gas STAR
International Program
• Natural Gas Star International launched September 26, 2006
– U.S. initiative under the Methane to Markets O&G Subcommittee
• Benefits Include:
– Technical documents on technologies and practices to reduce
methane emissions (English, Spanish, Russian languages)
– Technology transfer workshops
– Project identification and technical assistance
– Develop a voluntary record of reductions
• 7 Founding Partners signed the Memorandum of Understanding
Global Gas Flaring Reduction
Program Mission
• The World Bank GGFR partnership facilitates and supports
putting flared gas to beneficial use.
– 150 billion cubic meters (350 million tonnes of CO2 Equivalents
(TCO2E)) of natural gas are being flared and vented annually
– Equivalent to:
•
•
•
•
25% of U.S. consumption, or
30% of EU consumption, or
75% of Russia exports, or
More than Central and South America combined consumption
• The Methane to Markets Partnership has a common objective
with GGFR of putting clean-burning methane fuel to beneficial
use rather than being wasted in flares and vents.
GGFR – Methane to Markets
Common Goals
• GGFR and Methane to Markets share common goals
– Reduce the waste of associated gas resources
– Reduce worldwide Greenhouse Gas (GHG) emissions
GGFR – Gas Flared
M2M – Methane Emissions
Production Processing
CO2
Distribution
CH4
Transmission
Associated gas
wasted in flares
CO2 GHG emissions
Methane wasted in vents/leaks
Unburned
hydrocarbon
from flares
x 21 CO2E GHG emissions
GGFR – M2M
Common solution
• Common solution to flaring and venting gas losses
– Vapor recovery collects vented gas
– Where there are no gas market outlets, opportunities may
include:
OR
Install vapor recovery
on storage tanks
Install Micro
Turbines
Install Industrial Scale
Electrical Generators
– Natural Gas STAR International supports Methane to Markets
by helping companies realize recovery opportunities
Natural Gas STAR International
Reduction Opportunities
• There are significant opportunities globally to reduce methane
emissions cost-effectively1:
• Particularly in Russia, U.S., India, and more
2010 Marginal Abatement Cost Curves for Methane Emissions
• Natural Gas STAR International and Methane to Markets Partner
countries are initiating projects
– Oxy, Colombia is analyzing an opportunity to recover tank vapors and
flared gas to generate electricity potentially saving 159 TCO2E per day
– Mexico’s PEMEX has initiated a compressor seal replacement program and
is looking at many other methane emission reduction opportunities
1Oil
& Gas Journal July 12, 2004, “Upstream Petroleum HSE”
Natural Gas STAR International
Technology Alternatives
• Natural Gas STAR International releases publications
detailing Partner Reported Opportunities (PROs),
Lessons Learned studies, and Partner Updates
– Installing Vapor Recovery Units (VRUs) on Crude Oil
Storage Tanks
• Vapors flashed off of crude in storage tanks are typically
vented to the atmosphere
• VRUs recover such vapors to be used as fuel or sold
– Install MicroTurbine Generators
• Gas that is typically flared or vented to the atmosphere can
be directed to Micro Turbine Generators to produce power.
• Power is backed off the grid, reducing costs
• Methane emissions to the atmosphere and flared gas
wastage can be avoided
• Indirect emissions from grid power-production are averted
Natural Gas STAR International
Case Studies
• Natural Gas STAR International published
technologies are used by its Partners
– Oxy requested a solution proposed for a facility in
Colombia
– Oxy case study demonstrates the use of these
technologies
Case Study: Colombia
Current Practice
• Oxy has oil production facilities in Colombia that currently
operate with the process diagrammed below
– Flashed gas is vented from the water knockout tank
– Associated gas from the gas-liquid separator and condenser is flared
Oxy sought Methane to
Markets and Natural Gas
STAR International’s
assistance to evaluate
options to capture these
gases to reduce emissions
and generate electricity
Case Study: Colombia
Natural Gas STAR International Proposed Project
• Natural Gas STAR International proposed the process diagrammed
below to turn methane emissions and gas waste into electrical energy
– Install VRU to capture vented emissions off water knockout tank
– Install Reciprocating Engine/Generator to burn previously flared gas for
electricity
– Compressor is used as part of a gas treatment to increase gas condensate
to sales while keeping the fuel gas useable in the engines
In this Case
• Flaring avoided
• Venting avoided
• Less power purchased
Natural Gas STAR International
Preliminary Economics
• Flare and Vent Gas Recovery
– 20,000 Mm3 per year flared hydrocarbon
– 1,650 Mm3 per year vented methane
• Power Generated
– 5 Mega Watts (MW) at first site
– 10 MW at second site
• Economics
– 12 months simple payback
– 100% internal rate of return
• Carbon emissions reduction
– 1,650 Mm3 per year methane
– 50,000 TCO2e per year
Case Study
Russian Flaring
• Principles learned in Oxy case study are readily
applied elsewhere
– Eliminate venting
– Eliminate flaring
– Produce power
• Other companies in Latin America and
world-wide can apply these concepts
Conclusions
• Opportunities to reduce flaring and venting methane emissions
are available
– Methane to Markets compliments GGFR
– Natural Gas STAR International is a vehicle for the Methane to
Markets to make progress with GGFR
• Technologies and Practices are available
– Technology documents
– Project identification and assistance
– International workshops
• Calgary
• New Delhi
• China Expo
January 16-17, 2007
February 22-23, 2007
November 2007
• Natural Gas STAR International can collaborate with GGFR to
accomplish complimentary and common goals
Summary
• Natural Gas STAR International can collaborate with the GGFR
Partnership
• Where GGFR typically addresses large stranded gas flaring
solutions
– Cross country pipelines to gas markets
– LNG terminals
– Gas to Liquids processing plants
• Gas STAR International typically addresses technologies to
reduce methane venting and fugitive emissions
– Compressor seals
– Crude oil tank venting
• Both programs seek recovery of wasted natural gas
– Put wasted, associated gas to beneficial use as a
clean burning fuel
– Reduce GHG emissions
Methane to Markets and EPA
Contacts
Roger Fernandez
U.S. EPA Natural Gas STAR Team Leader
U.S. Representative on Methane to Markets Oil & Gas
Subcommittee
+1-202-343-9386
fernandez.roger@epa.gov
www.gasstar.epa.gov