84
GMI Oil and Gas Subcommittee Meeting 25-26 March 2019 Geneva, Switzerland
GMI Oil and Gas Subcommittee Meeting
25-26 March 2019Geneva, Switzerland
Adoption of the Agenda
Day 1: 16:00-16:10: Welcome Remarks and Introductions 16:10-16:30: ASG Updates and Global Methane Challenge 16:30-17:10: Partner Country & Partner Organization Updates 17:10-17:55: Discussion: Project Development Barriers 17:55-18:00: Adjourn
Day 2: 10:00-10:05: Welcome, Goals for Day 2 10:05-10:45: Project Development Barriers Discussion (continued) TBD-10:45: Project Network Updates (time permitting) 10:45-11:00: Next steps and adjourn
2
Why Methane Matters
The challenge of methane– Potent greenhouse gas with a strong
influence on warming– Traps 28 times more heat than carbon
dioxide during its 12-year lifetime in the atmosphere
The opportunity– Methane can be captured and
converted to useful energy– Reductions today can make an
immediate impact to slow warming
3
Methane Emissions in the Oil & Gas Sector
Account for approximately 24% of global manmade methane emissions
Result from both normal operations and system disruptions
Emissions can be cost-effectively reduced by:– Upgrading technologies– Upgrading equipment– Improving operations
24%76%
Global Manmade Methane Emissions
All other sources
4
ASG Updates 2019 Global Methane Challenge
25 – 26 March 2019
Monica Shimamura, Director, Administrative Support Group,
Global Methane Initiative
Administrative Support Group Updates
New Co-Chair of the GMI Steering CommitteeMs. Helen RyanAssociate Assistant Deputy Minister of the Environmental Protection Branch,Environment and Climate Change Canada (ECCC)
Upcoming GMI Capstone Event – Planning on the way – First quarter of 2020 – Request your input and participation
6
Administrative Support Group Updates
Enhancement of GMI communications:
GMI website redesigned for new and experienced users
Launch of new social media campaign to promote the Global Methane Challenge –Twitter, YouTube, Facebook, and LinkedIn
Improved GMI Mailing List
7
Update – UNECE/GMI collaboration
Under the auspices of the GMI, US EPA funded UNECE to draft a document presenting Best Practice Guidance for Methane Management in the Oil and Gas Sector
The objectives of the project are to:1. increase capacity of countries and companies2. measure, report, and verify (MRV) methane emissions and
emission reductions along the oil and gas value chain
Please submit comments by 31 May 2019 to [email protected]
8
Announcing the 2019Global Methane Challenge
9
It’s time to take action!
What will the Challenge do?
Raise awareness about methane emissions and encourage reductions around the world
Yield significant short-term impacts, as methane is a short-lived climate pollutant
Provide economic benefits, such as increases to operational efficiency, reduction in air pollution, local air quality improvement, and advances industrial safety
Promote cost-effective technologies to capture and use methane
10
Challenge Overview
Who: The Challenge is open to all public- and private-sector actors interested in showcasing their actions to reduce methane emissions
What: An opportunity to promote your policies and technologies
Goal: Take more ambitious action to reduce methane emissions and showcase policies and technologies being used to reduce methane emissions around the world
When: 2019 calendar year
Show the world what you are doing to reduce methane emissions.
11
Why Participate in the Challenge?
Each Challenge participant will be publicly recognized for actions to reduce methane emissions– Opportunity to highlight new and ongoing efforts– “Challenge” website and GMI social media will showcase actions– GMI, CCAC and UNECE events will provide forum for sharing actions
Collectively, we can make an impact by raising awareness and catalyzing broader action
Challenge participants and actions will be celebrated at a 2020 capstone event
Showcase your efforts to reduce methane.
12
Examples of CROSS-CUTTING actions
Monitor methane emissions and create an emissions inventory Develop an action plan for reducing emissions in one or more sectorsProvide technical or financial support to a methane mitigation projectEducate the public about methane emissions and abatement opportunities Showcase a methane mitigation project or technology
Ideas for participating in the Global Methane Challenge
13
Examples of SECTOR-SPECIFIC actions
Oil & Gas Sector• Install vapor recovery units• Direct use of methane• Reinjection of methane• Plunger lift system• Install leak detection technology and
repair programs (LDAR)• Install green completions at gas
production wells
All Sectors• Monitor methane emissions and
create an emissions inventory• Provide technical or financial support
to a methane mitigation project• Develop or promote implementation
of sector-specific best practices
14
15
Visit globalmethane.org/challenge
16
Click on the pins to learn about Challenge actions
17
GMI Partner Country story
18
GMI Project Network member story
19
Get started by completing an online form
Thank you
Monica Shimamura Global Methane Initiative
Administrative Support [email protected] or +1-202-343-9337
Follow us on social media!
Facebook.com/globalmethane
Twitter.com/globalmethane
Linkedin.com/company/global-methane-initiative-gmi
20
Partner Country Updates
Canada
James Diamond, Environment and Climate Change Canada
Actions
Strategy on Short-Lived Climate Pollutants (5 Year – Published Federal methane regulations for oil and gas
sectors published– Enhance methane and black carbon representation in
climate and air quality models– Canada-U.S. Air Quality Agreement supports collaboration
on oil and gas sector emissions (fugitives)– Initial work to implement consistent national requirements
for the World Bank Zero Routine Flaring by 2030 initiative
Actions
Sub-national regulatory activity for oil and gas methane reductions– British Columbia - the Drilling and Production Regulation is
amended with methane requirements– Saskatchewan - The Oil and Gas Emissions Management
Regulations– Alberta - developed regulatory requirements within Directive
060: Upstream Petroleum Industry Flaring, Incinerating, and Venting, and Directive 017: Measurement Requirements for Oil and Gas Operations.
Colombia
Eduardo José Sánchez, Colombia Ministry of Mines and Energy
26
Climate Change Management Plan –Mines and Energy Sector - CCMPPlan Integral de Gestión del Cambio Climático – PIGCCme
27
Climate Change Management Plan and its contribution to the national goal
• Is expected to avoid 104 Mt of CO2 eq accumulated 2010-2030
• Reduction of11.2 milliontons of CO2 by 2030.
The Plan Will contribute to the 16,8% of the goal
declared by Colombia to the COP
11.266.4
Aporte del PIGCCme Meta Nacional
55,2
Contribution to the National Reduction Goal
Plan Contribution National Goal
CO
2-e
q E
mis
sion
s (M
t)
Base Line and Emissions Reduction
Base Line Reduction escenario
28
Trends(2010, 2012, 2014).
0 20 40 60 80 100 120 140
Deforestación y forestal
Agrícola y Pecuario
Minas y energía
Transporte
Manufacturera y de la construcción
Residencial y saneamiento
Comercio
122.3
66.3
26
25.7
25.6
9
1.3
91
66
25
28
29
15
2
79
52
32
29
28
15
2
Emisiones por sector 2010, 2012, 2014 (Mton CO2 eq)
2010 (TCNCC) 2012 (TCNCC) 2014 (BUR 2)
SubsectoresEmisiones Mton CO2 eq
2010 2012 2014
Eléctrico 11 8 12
Hidrocarburos 12 14 14 Minero 4 4 7
29
Trends(1990-2014).
30
The CCMP is an instrument that allows the incorporation of strategies for CO2 mitigation and adaptation to climate change in sectoral planning
OBJETIVEReduce vulnerability to climate change and promote low carbon development, strengthening and protecting the
Sector competitiveness and sustainabilityAdopted by Resolution
40807 (August 2nd 2018)
Year2030
Reduction of11,2 Mt CO2-eq
Energy Efficiency
Energy Generation
Fugitive Emissions Management
Demand Response Programs
Leak detectioncampaigns
Regulation
Ghana
Joseph Essandoh-Yeddu, Energy Commission
2019 Update of Methane capture
in light of Oil & Gas production in Ghana
Joseph Essandoh-Yeddu, PhDDirector – Strategic Planning and Policy
Energy Commission, Ghana
GMI Oil & Gas subcommittee meeting, 25-27 March, 2019
Ghanamore information available at
www.ghanaweb.com• Location: West Africa• Climate: Tropic-2 seasons;
– Dry and rainy• Official language: English• Population: ̴29 million (24.2
million in 2010 census)• Total area: 92,500 square
miles/ 237,000 square km• 2017 Nominal GDP per capita
(US$,PPP): 4,750 (3,100 in 2010) IMF World Economic Outlook (WEO) Major primary economic resources: Gold and cocoa
• Sports: soccer
GMI Oil & Gas subcommittee meeting, 25-27 March, 2019
Ghana’s exploration activitiesFour sedimentary basins • Three offshore namely: the Tano-Cape Three Points, Saltpond,
Accra-Keta Basins • One onshore which is the Voltaian Basin.
The off-shore basins are fairly well explored with Saltpond as the country’s first commercial oil production field commencing in 1978.
The onshore - Voltaian Basin is the least explored.
The overall goal of the Methane activities is to make Ghana’s petroleum industry sustainable for the benefit of present and future generations. 35
Voltaian Basin Project
• A huge inland sedimentary basin
constituting almost 40% of Ghana’s
land mass and covering an area of
103,600 sq.km. No oil find yet.
• The main project objective is to
determine the presence of a petroleum
system of the basin
• Key contracts have been signed
(seismic survey, data acquisition),
Commenced mobilisation for
acquisition and processing of seismic
and geochemistry data.
• Interested investors invited.
VoltaianBasin
GMI Oil & Gas subcommittee meeting, 25-27 March, 2019
37
GHANA’S OFFSHORE ACTIVITY MAP – LICENSED AREAS
GMI Oil & Gas subcommittee meeting, 25-27 March, 2019
Key issues with the Gas sector
i. High capital intensive and uncertainties associated with investment in gas exploration and development.
ii. Inability of most local companies to meet their minimum contract obligations.
iii. Inadequate capitalisation of the (NOC) to perform its institutional mandate
iv. Potential international boundary disputes could affect cross-border discoveries.
v. Insufficient data covering Voltaian (on-shore) Basin.
38GMI Oil & Gas subcommittee meeting, 25-27 March, 2019
Policy Objectives of the Government
i. Explore & develop the indigenous gas resources of the country. ii. Create favourable environment for investment in the
exploration, production and supply of methane resources. iii. Strengthen and enforce regulatory and fiscal framework of
existing legislative instruments. iv. Ensure adequate capitalisation of the national oil company, to
enable it to perform its institutional mandate. v. Minimise the possibility of international boundary disputes
with neighbouring countries. vi. Promote Ghanaian content and participation in Ghana’s
methane activities.
39GMI Oil & Gas subcommittee meeting, 25-27 March, 2019
AREAS OF COOPERATION AND INVESTMENT –E & P
Onshore - the Inland Voltaian basin
Shelf (offshore) - Tano & Cape Three Points Areas
Saltpond field - in the adjoining areas and south of the Saltpond field
- In the relinquished areas, Open acreages
Existing discoveries- Deep water Tano/Cape Three Points
Farm-in opportunities
Development and production of abandoned
fields
Further Exploration
opportunities
Hub development
concept
GMI Oil & Gas subcommittee meeting, 25-27 March, 2019
AREAS OF CO-OPERATION AND INVESTMENT
Exploration Development & Production
Technology Transfer
Transportation & Disposal
GMI Oil & Gas subcommittee meeting, 25-27 March, 2019
Thank you for your attentionwebsite:
www.energycom.gov.gh
My profound gratitude to the GMI Secretariat and U.S EPA for the invitation and the sponsorship.
Contact details:
Joseph Essandoh-Yeddu, PhD
Email: [email protected]; [email protected]
Tel: +233 208187199; +233 27581097742
Indonesia
Sugeng Riyono, Indonesia Centre for Oil and Gas Technology "LEMIGAS"
Actions
STAR Program: 2012-2016: Vico (East Kalimantan Onshore Field) and Star Energy (Offshore Natuna field)
Capacity Building: LEMIGAS R&D Center for Oil and Gas Technology (2014-2017), Subang-West Java Gas Plant: Annual Field Trip Program. FLIR 320 and HF Sampler.
44
Actions
Monitoring Program: Directorate General Oil and Gas (2016-2018); Upstream: Jambi Jabung Block, Downstream: Palembang Refinary.
International GMI Workshop: Jakarta (2014, 2017), Bandung (2015), Cirebon (2016).
LC Calculator by John Crane (2017)
45
Turkey
Emre Özgür, Ministry of Energy and Natural Resources
Emre Özgür, Ph.D.
Global Methane Initiative Member of Turkish Oil & Gas Subcommittee
GMI Oil and Gas Subcommittee MeetingGeneva, Switzerland25-26 March 2019
General Information About Turkey
Capital City: AnkaraArea: 814,578 km2
Population: 80 millionEnergy Consumption: 135 million toe
48
Upstream Petroleum Sector in Turkey
18 million barrel crude oil production (annual)0,4 billion m3 (1,400 million scf) natural gas production (annual) 49
Characteristics of Turkish Crude Oils
Black Oil Type
Low gas content
Weighted Average Gas/Oil Ratio (GOR): 70 scf/bbl
50
Methane Emission Associated gas is processed through venting at storage tanks in
several of the fields with low gas content and is flared at most ofthe fields
Flared Methane Amount ≈ 33 million m3 (1.1 billion scf)annually resulting from associated gas
Emitted Methane Amount ≈ 3 million m3 (0.1 billion scf)annually resulting from associated gas
51
Evaluations Low greenhouse gas emissions based on the oil & gas sector
(upstream) activities in Turkey
The estimated flared methane amount shows similarity tothe results (26 million m3) of the satellite data of “WorldBank” (NOAA/GGFR, 2017)
52
Emre Özgür, Ph.D.Petroleum & Natural Gas Engineer
Global Methane Initiative Member of Turkish Oil & Gas Subcommittee
www.linkedin.com/in/dremreozgur
Thank you
GMI Oil and Gas Subcommittee MeetingGeneva, Switzerland
25-26 March 2019
United States
Cate Hight, U.S. Environmental Protection Agency
Natural Gas STAR & Methane Challenge Program Overview
Natural Gas STAR program established in 1993 to increase awareness of oil and gas methane emission sources and share innovative ways to reduce emissions– Significant innovation and capacity building
achieved over 25 years
Methane Challenge, created in 2016, expands opportunities for companies – Specific, ambitious commitments– Transparent reporting – Company-level recognition of commitments and progress
Both programs offer technology transfer workshops, webinars and other resources to help Partners learn about new and innovative technologies and practices
55
Natural Gas STAR Highlights
Since 1993, NG STAR Partners have eliminated nearly 1.5 Tcf (approx. 720 MMTCO2e) of methane emissions
96.8 Bcf (approx. 46.7 MMTCO2e) voluntary methane emissions reductions reported by Partners in 2017
Partners who submit an annual report receive a comprehensive summary report that highlights trends and the voluntary cumulative methane emissions reductions achieved by the Partner since they joined the program
Production 89%
Transmission9%
Distribution1%
Gathering & Processing
1%
2017 Partner-Reported Voluntary Methane Emission Reductions by
Segment = 96.8 Bcf
56
Methane Challenge Highlights
Two commitment options for enhanced flexibility:– Best Management Practice (BMP)
Commitment – ONE Future Emissions Intensity
Commitment
Sector coverage: – Onshore oil production – Entire natural gas value chain from
onshore production through distribution
First round of reporting by Methane Challenge Partners is underway; data publication is anticipated later in 2019
Distribution, 51
Transmission and Storage, 15
Gathering and Boosting, 4
Production, 2Processing, 1
Methane Challenge Partners by Industry Segment
57
Program Benefits
Opportunity for partner companies to demonstrate their commitment to improved efficiency and sustainability
Cost-efficient best management practices and technologies reduce product loss and increase operational efficiency and safety
Recognition for innovative approaches to reducing methane emissions
Establishment of a permanent record of volunteer accomplishments in reducing methane emissions
Learn more about what the U.S. EPA is doing athttps://www.epa.gov/natural-gas-star-program
58
Partner Organization Updates
Update from the Climate and Clean Air Coalition Oil and Gas
Methane Partnership (CCAC OGMP)
Manfredi Caltagirone, CCAC OGMP
Climate and Clean Air CoalitionOil & Gas Methane Partnership
Joint Meeting of UNECE and the Oil and Gas Subcommittee of the Global Methane Initiative Manfredi Caltagirone – Geneva, March 2019
Why methane matters
IPCC Special Report “Global Warming at 1.5°C” has some clear messages:
Why methane matters
IPCC Special Report “Global Warming at 1.5°C has some clear messages:
Why methane matters
IPCC Special Report “Global Warming at 1.5°C has some clear messages:
Both the 1.5°C and 2°C limits would also need similar “deep reductions” in non-CO2 emissions, such as methane and nitrous oxide
Climate and Clean Air CoalitionDesigned through broad collaboration
Formed in 2012
Voluntary partnership of over 120 state and non-state partners committed to improving air quality and protecting the climate through actions to reduce short-lived climate pollutants
CCAC Oil and Gas Initiative is focused on accelerating methane and black carbon reductions from oil and natural gas production. 4 components:
1. Oil & Gas Methane Partnership: voluntary reporting framework2. Oil and gas methane science studies3. Technology demonstration: reduce black carbon from gas flares4. Peer-to-peer technical assistance to policy makers and regulators in
developing countries
66
Many CCAC countries envision increased role for gasStakeholders are concerned that methane emissions undermine climate benefits of gas
Ministers gave CCAC mandate to create a voluntary methane emissions reporting mechanism:
meets concerns of stakeholders implementable by companies developed with GMI, US EPA Natural Gas Star, World Bank
CCAC consultations: Oil & gas companies - IPIECA workshops and individually NGOs, investor groups, reporting initiatives
Oil & Gas Methane PartnershipBackground
Oil & Gas Methane PartnershipLaunch of OGMP
Launched at UN Climate Summit, September 2014
Voluntary mechanism to help companies Address emissions in a systematic manner Demonstrate this systematic approach Obtain recognition of leadership
68
Initial focus on nine “core sources,” now broader focusTechnology Application Approach 9 core emission sources*
Identified through US EPA Natural Gas Star experience and company consultations to account for much of upstream methane emissions
OGMP recently revised its reporting framework to focus on more holistic performance reporting and increase recognition of companies’ efforts to reduce methane emissions
Focus moved away from 9 core sources and mitigation concept to overall emissions from all sources
Partners can now report on incomplete combustion from flaring, on cold venting and other relevant CH4 emissions sources
• Well venting of liquids unloading • Fugitive equipment and process leaks
• Centrifugal compressors with wet (oil) seals • Reciprocating compressor rod seal/packing
• Glycol dehydrators • Hydrocarbon liquid storage tanks
• Natural gas driven pneumatic devices, pumps• Casing head gas venting
• Well venting/flaring during well completion for hydraulically fractured wells
69
Important Features
Up-front flexibility Company selects participating assets – No minimum Company decides pace of implementation/addition Reporting begins following first full year
Platform for learningNo membership feeTechnical support & capacity building • surveys• emission calculations• evaluating opportunitiesRecognition of efforts
Oil & Gas Methane Partnership
70
Summary of Commitments (MoU)
Implementation Plan after 6 months (confidential) list of participating assets, expected pace
Survey participating assets for 9 core sources• Determine state of mitigation (ref TGDs)• For “unmitigated” sources
Quantify emissions Evaluate cost-effective control options Implement feasible opportunities
Annual report to CCAC – confidentialRecognition of effortsCompany-specific public version of report
Oil & Gas Methane Partnership
71
Oil & Gas Methane Science Studies
Phase-1: prioritized knowledge gaps to address in methane measurement studies under Phase-2
Build on experience of EDF-led studies in US
$6.6+ million pledged
Invitation to participate
Oil & Gas Methane Science StudiesBackground
1) Led by academic scientists
2) Multiple methodologies
3) Review by independent scientific experts
4) All data public
5) Publish results in peer reviewed journals
Oil & Gas Methane Science StudiesFive Guiding Principles
Oil & Gas Methane Science StudiesMeasurements
Identifying and Addressing Barriers to Oil & Gas Methane
Mitigation Projects in GMI Partner Countries
Eduardo José SánchezMinistry of Mines and Energy, Colombia
Background
The 2018 Action Plan, adopted at the April 2018 Oil & Gas Subcommittee Meeting, was developed to provide a framework for projects and activities of the Oil & Gas Subcommittee
At the July 2018 meeting, the Subcommittee agreed that identifying and addressing key barriers to project development was a priority
Step 1: Compile a list of barriersStep 2: Conduct discussions that focus on
strategies to overcome project barriers
Step 3: Identify financing options and mechanisms
77
Step 1: Compile a List of BarriersUpdate on Progress
At the request of the Oil & Gas Subcommittee co-chairs, GMI surveyed existing literature to compile a list of known barriers to implementation of methane reduction projects in the oil and gas sector
Several Subcommittee members provided additional feedback to help identify key barriers to focus on for today’s meeting– Thank you to Argentina, Colombia, Ghana,
Indonesia, Saudi Arabia, Turkey, and Ukraine for their input
78
Key Barriers Identified by Subcommittee Members
Competing investment priorities
Resistance to implementing change in operations due to:– lack of technical knowledge– perceived costs – potential fines, and – stringent regulations
Access to project financing
Low cost of natural gas
Barriers to Methane Mitigation
Project Development
79
Additional Barriers Identified
Institutions do not give enough attention to environmental issues
Regulatory schemes make project development burdensome
Differences in local climate and regulations affect project implementation
Various regulatory agencies control different areas of environmental compliance
Multiple companies own assets at facilities, making it difficult to quantify emissions
Barriers to Methane Mitigation
Project Development
80
Step 2: Conduct DiscussionsQuestions to Consider
1. Is your country facing any of the barriers included on the list?
2. Is your country facing any barriers that are not included on the list? What are they?
3. What are the most significant barriers affecting your country?
81
Step 2: Conduct DiscussionsQuestions to Consider (continued)
4. What ideas or suggestions do you have for how these project barriers could be overcome in your country?
5. Have there been any barriers discussed today that your country is currently working to address? Can you share examples?
82
Next Steps
Step 1: Compile a list of barriers– Barriers to Methane Mitigation Project Development
https://www.globalmethane.org/documents/event_OG_510_Project_Development_Barriers_25march2019_eng.pdf
– Incorporate feedback received during today's discussion
Step 2: Conduct discussions that focus on strategies to overcome project barriers– Establish task force to identify solutions and strategies– Determine schedule and responsibilities
Step 3: Identify financing options and mechanisms for implementing methane reduction projects
83
Wrap-up and Adjourn
84
