International Symposium on Natural Gas and Sustainable Development

Transcription

1 International Symposium on Natural Gas and Sustainable Development Global Gas Flaring Reduction : Status, lessons learnt and data tool François-Régis Mouton, Adviser Doha, Feb 7,

2 Background of Global Flaring GGFR estimates that global flaring is around 150bcm/year equivalent to 1/3 of EU consumption! 80% of global venting and flaring occurs in fewer than 10 countries Reliability of available data varies widely Global level has stayed relatively constant for the last 20 years 2

3 700 Gas Consumption vs Global Flaring in 2004 bcm EU bcm gas flared USA Source: CEDIGAZ EU25 Asia Latin America Africa 3

4 bcm per year Top 20 Countries: Flared Gas 2004 Data 4 Qatar Algeria Equatorial Guinea Indonesia USA Kazakhstan UK Cameroon Canada Iran Iraq Venezuela Libya Russia excl KM Azerbaijan Mexico Brazil Gabon 5 1 Partners Other Partners (OPEC) Others Nigeria Angola Khanty Mansiysk (KM)

5 Some Figures in Perspective Africa flares >45bcm/y This flared Gas: could add more than 50% to the African continent s total power generation! 5

6 Some Figures in Perspective Flaring intensity 10 m 3 /bbl oil production Russia IOC average 6

7 European Gas imports from Russia Bcm 2004 Some Figures in Perspective Russia is officially flaring 15bcm/y Flare intensity suggests that actual figures could be as high as 50% of 2004 EU15 imports! EU15 imports in 2004 : 90.9 bcm (source Cedigaz) 7

8 Global flaring levels constant at around 150 BCM per year Governments and companies have made significant investments in gas flaring reduction projects, but Two key factors limit the impact of these efforts: Global oil production increase leads to associated gas production increase, offsetting efforts to reduce gas flaring Development of gas markets, gas infrastructure, and flaring reduction projects often requires collaborative rather than individual action It needed a forum enabling cooperation between stakeholders 8

9 Collaborative Action: GGFR August 2002 : GGFR Partnership was formed at the World Summit on Sustainable Development in Johannesburg GGFR Objective : to support governments and the petroleum industry in their efforts to reduce flaring and venting A growing partnership including governments, stateowned and IOCs, OPEC, and the WBG, now extended to end 2009 Access to 80% of the sources of global flaring 9

10 Current GGFR Public and Countries/NOCs Private Partners IOCs Algeria (Sonatrach) BP Angola ChevronTexaco Cameroon (SNH) ENI Chad ExxonMobil Ecuador Norsk Hydro Equatorial Guinea Shell Indonesia Statoil Khanty Mansiysk (Russia) Total Nigeria Marathon Oil Kazakhstan Qatar Donors Canada Norway UK (Foreign Commonwealth Office) USA Multilateral Organizations The World Bank OPEC 10

11 Typical barriers to gas sector development Underdeveloped domestic market for gas and gas products (LPG, CNG, fuel methanol, power etc) Limited institutional, legal and regulatory framework for gas, including associated gas Gas terms (or absence thereof) in existing oil development agreements Fiscal system with no gas incentives Domestic gas and gas product pricing Infrastructure constraints and access Funding constraints 11

12 Work Program Overview: From Global deliverables to Country and Local PPPs Phase I Standard Flaring and Venting Reduction Activities Regulations 2003 Commercialization Carbon Credits Phase II Country Deliverables and Demo projects Today Phase III Sustainable Gas Flaring Reduction

13 GGFR Partners demonstration projects Partner Countries Projects Carbon credit options? Potential Gas flare reduction Algeria 3 fields yes 4.5 bcm Nigeria 2 types : Gas pipeline Power projects yes >1.5 bcm per year Angola 1: LNG yes 7 bcm per year Cameroon 1 gas pipeline - 3 bcm Equatorial Guinea (EG) 1 gas pipeline - 13 bcm Gulf of Guinea Regional gas collection and transport to LNG bcm per year Chad Small scale - Khanty Mansiysk (Russia 2 fields yes 6.5 bcm 13

14 International Symposium on Natural Gas and Sustainable Development The GGFR Data Tool 14

15 Uncertainty in flared volumes 250 Flared Gas (bcm) ? 50 0 Cedigaz GGFR reported 2004 GGFR estimated Projected from average IOC data 15

16 The GGFR Data Tool There is still great uncertainty in the reported data, with a need to gather consistent data better understand flared and vented gas volumes per country report data track flaring reduction versus forecasts 16

17 The GGFR Data Tool Tool Selection : A web-based tool was selected as the simplest to use, administer and maintain Construction/testing : The web-based tool has been tested in 3 countries: Cameroon (July), Algeria (September) and Qatar (October). Roll out : Launch the tool in GGFR partner countries in 2006 Next step: reporting 2005 flaring and venting data by Q3/

18 Country Administrator (CA) Information Flow IOCs NOC Local Players flaring data input Assets & Operators Country Owned Database Subject to CA Approval flaring data reporting General Public Government In-country Oil & Gas Industry Users 18

19 ROLL ROLL OUT OUT from from Q1 Q

20 International Symposium on Natural Gas and Sustainable Development GGFR - Sharing Knowledge 20

21 GGFR-OGP Flaring Best Practices Workshop 3 Day Workshop planned in Paris, Dec 2006 Objectives: Sharing of Best Practices, Success Stories Raising Technology and Regulatory awareness Opportunity identification Barrier busting To be followed by demo projects identified during the workshop 21

22 Best Practice Exchange Workshop Target Areas of Cooperation: Technical solutions - hardware Management practices process improvement Standards and guidelines - regulations Monitoring and measurement Reporting methodologies 22

23 International Symposium on Natural Gas and Sustainable Development Thank you for your attention! Doha, Feb 7,