Canal 1 Français

Canal 1 Français Channel 2 English Канал 3 Русский

François Régis MOUTON

World Bank GGFR Adviser

Rhonda ZYGOCKI

Chairperson, International Association of Oil and Gas Producers (OGP)

Rashad KALDANY

World Bank Group, Director Oil, Gas, Mining and Chemical Department

Global Gas Flaring Reduction: a Time for Action!

Nasipolla SULEIMENOV

Head of the Committee on Environmental Monitoring of the Ministry of Environmental Protection, Republic of Kazakhstan

Flaring and Gas Utilization in Kazakhstan: problems and solutions

Utilization of Associated Gas in Russia

Alexandr SAVINOV Head of division on natural resources policy of the department of fuel and energy complex in the Ministry of Industry and Energy of the Russian Federation

Crude oil and associated gas production (2001-2005)(mln tonnes and bcm)

35,9 42,6 48,5 54,9 56,3

470459421,3

379,6348,1

0

50

100

150

200

250

300

350

400

450

500

1 2 3 4 52001 2002 2003 2004 2005

mln

to

nn

es

/bc

m

Breakdown of associated gas usage in Russia for 2005

1,6%6,9%

26,5%

55,2%

9,8%

Processed Flared Used for own needs Sold to consumers Losses

Associated gas utilization in Russian Federation (2001-2005)

35,9

42,6

48,5

54,956,3

7,2

11,2

14,7 14,9

11,1

28,831,5

37,4

40,241,4

0

10

20

30

40

50

60

2001 2002 2003 20004 2005

BC

M

Production Flared Utilization

Associated gas production and flaring by companies in 2005

CompaniesAssociated

gas production Utilized Flared

% % %

Mln m³ Mln m³ Mln m³

JSC “Surgutneftegas" 15416,8 27,4 14361,0 93,2 1055,8 6,8

JSC "ТNK-ВР holding" 10699,2 19,0 8302,3 77,6 2396,9 22,4

JSC “Rosneft" 8489,1 15,1 5311,1 62,6 3178,0 37,4

JSC “Lukoil" 6151,3 10,9 4767,8 77,5 1383,5 22,5

JSC “Gazprom Neft" 5660,9 10,1 1985,3 35,1 3675,6 64,9

JSC “Yukos" 2605,3 4,6 1964,4 75,4 640,9 24,6

JSC “Slavneft” 1532,6 2,7 994,1 64,9 538,5 35,1

JSC “Russneft" 1555,4 2,8 1057,5 68,0 497,9 32,0

JSC "Тatneft" 770,7 1,4 736,7 95,6 34,0 4,4

JSC “Bashneft" 429,0 0,8 333,0 77,6 96,0 22,4

Other 2889,7 5,1 1486,8 51,5 1402,9 48,5

TOTAL 56200 100 41300 73,5 14900 26,5

Needed measures to improve associated gas utilization rate in Russia

• Improvement of legislative and regulatory framework aimed at creation and implementation of conditions and mechanisms for complex utilization of associated gas, including at the stages of project design decisions concerning exploration and development of hydrocarbon reserves

• Improvement of fiscal legislation aimed at attraction of investments into associated gas utilization projects

• Improvement of system of payments for environmental pollution resulting from flaring, as well as for burning of valuable components with the objective to compensate for consequent damage/losses incurred by the state

Thank you for your attention!

Gas flaring: The countries' experience and best practices

James A. SlutzDeputy Assistant Secretary for Oil and Natural Gas, U.S. Department of Energy

Office of Fossil Energy ● Office of Oil and Natural Gas

U.S. Natural Gas History Overview

• The U.S. has a long history of best practices involving natural gas production.

• Today 99.5 % of gas withdrawn in the U.S. is utilized.

• Projected global demand growth will encourage countries with stranded gas to develop LNG export capacity to supply our needs.

U.S. Natural Gas History Overview (continued)

• The U.S. continues to develop implement technology that reduces carbon intensity.

• The United States supports the following international programs to reduce global natural gas venting and flaring and to develop commercially viable projects:

– World Bank Gas Flaring Reduction Initiative

– Methane to Markets

– Gas Star

– The Asia Pacific Partnership

History of U.S. Production

• Discovery in 1859

• Current Production:

–Third Largest Oil Producer

–Second Largest Gas Producer

• Context for Gas Flaring Estimates in the U.S.

Current Oil and Natural Gas Production in the United States

History of Conservation Regulation

• 1893 Supreme Court ruling that States have the right to regulate natural gas

• Prevention of Flaring and Waste Gas

• 1946 Texas Railroad Commission hearing asking operators of Seeligson field to show cause why gas flaring should not be stopped. A year later, the Texas Railroad Commission ordered Seeligson field shut in, except for “wells that were using casing-head gas for light, fuel or carbon black, or returning it to the production horizon.”

• Gas System/Infrastructure

– Natural gas is delivered to customers through a safe, sound, 2.2-million mile underground pipeline system that includes:

– 1.9 million miles of local utility distribution pipes (1.1 million miles of utility mains, plus 800,000 miles of utility service lines); and

History of Conservation Regulation

– 300,000 miles of transmission lines.

• Gas Storage

A Vast Network of Pipelines Provides Interstate Transportation

Natural Gas Costs Around the World ($USIMMBTU)

Updated mid-September 2005Source: American Chemistry Council

Global LNG Facilities

Source: ChevronTexaco (April, 2005)

President Bush’s National Climate Change Technology Initiative

• The NCCTI recognizes the central role technology needs to play in responding to global climate issues.

• Areas of focus include:

– Carbon Capture

– Carbon Storage / Sequestration

– Hydrogen Systems

– Methane Recovery and Methane Utilization

– Energy Storage Systems

Technology Support & Development

• Improved Oil Recovery– DOE is researching the mobility and the sweep of injected

CO2 in order to maximize miscible displacement of residual oil in the reservoir. Efforts focus on the innovative use of foams, chemical jells, and other thickening agents.

– Recently initiated CO2 field test in Alabama

• Gas to Liquids– DOE has partnered with Air Products and Chemicals to

develop an ion transport membrane to reduce the cost of syngas production from natural gas.

– DOE also supports small businesses working on new catalysts and reactor designs.

• Distributed Generation• Liquefied Natural Gas

Source: EOR = Shell

International Programs

• World Bank Gas Flaring Reduction Initiative

• Methane To Markets Partnership

• Gas Star

• Asia Pacific Partnership

http://images.google.com/imgres?imgurl=http://www.greenhouse.gov.au/international/partnerships/images/methane-logo.gif&imgrefurl=http://www.greenhouse.gov.au/international/partnerships/index.html&h=78&w=122&sz=3&hl=en&start=35&tbnid=od0WdLhNG6kXTM:&tbnh=57&tbnw=89&prev=/images%3Fq%3DMethane%2Bto%2Bmarkets%26start%3D20%26ndsp%3D20%26svnum%3D10%26hl%3Den%26lr%3D%26safe%3Dactive%26sa%3DN

http://thecouriermail.com.au/extras/blogs/headstart/uploaded_images/Flags-715918.jpg

Joanne DISANO

United Nations' Director for Sustainable Development

Gas flaring: in the context of Sustainable Development

François Régis MOUTON

World Bank GGFR Adviser

Kristalina GEORGIEVA

Director for Strategy & Network Operations, World Bank

H.E. François LOOS

Minister delegate for Industry, France

Gas Flaring: Energy Security and the Environment

Gas Flaring : the view from a Major IOC

Christophe de MARGERIEPresident Exploration-Production, TOTAL

The Global gas picture : Gas resources are abundantNevertheless, energy efficiency & conservation are real issues

• Proved conventional reserves equivalent to 65 years of today’s demand• Proved + probable conventional reserves equivalent to 80 years of today’s demand• Potential of non conventional resources difficult to assess

2,000 Tcf is no more than an order of magnitude

~2,000

Estimatedresources

6,340

2,000 2,000

Provedreserves

Probablereserves

Undiscoveredreserves

Conventional gas NonConventional

0

20

40

60

80

100

120

140

160

180

200

2000 2010 2020 2030 2040 2050 2060 2070 2080 2090 2100

Tcf p.a.

Demand + 2.3% p.a.

Demand + 1.8% p.a.

EIA 2006+2,0% p.a.

Proved reserves

The Global gas picture : Gas is environment friendly

• Global power generation : 17,400 TWh*

Hydro16%

Coal41%

Nuclear16%

Oil7%

Gas20%

• CO2 emissions, kg per MWh– Heavy Fuel

844– Coal (FBC)

815– Gas oil (diesel)

815– OCT (open cycle)

582– CCGT (combined cycle)

354– CHP (combined Heat & Power) 269

Source: IEA Source : IEA + DIDEME

The Global gas picture : Flaring is the most obvious and urgent issue to tackle

• Energy efficiency & conservation efforts for the Oil & Gas Industry can be applied to ~500 Bcm p.a.

• Flaring reduction : ~150 Bcm (GGFR fig.)– The only "wasted"gas within our industry– Environment & Image issue

• Energy efficiency reduce the 350 Bcm used by the industry

– Technology needed : process & equipments – Increased gas prices will help

• 400 Bcm are reinjected– Maintain reservoir pressure to improved

recovery– Delayed (not lost) gas production

Bcm p.a.2005 figures

Gas Pipe

Shrinkage : LPG & Condensates Recovery

Reinjection

Fertilizers + Methanol

LNG0

500

1 000

1 500

2 000

2 500

3 000

3 500

4 000

400

180150190150

165

190

2145

2500 Bcm

3570 Bcm

2990 BcmFlaring

Upstream cns.

Mid-Downstream cons.

sources : IEA - Cedigaz - GGFR - Total

Flaring : a common issue for the Industry

Wasted energy, Environment & Image

The path to gas flaring reduction

• E&P installations are large, complex and costly– Re engineering or modifications are difficult

• First Priority : Design new development with no flaring• Total company rule since 2000

• Our real issue now is to reduce flaring on existing fields– Existing gas markets / outlets are favorable conditions

• Examples : North Sea (no more flare), Nigeria (Ofon ph2)

– More difficult and lengthy when new gas outlet has to be created • Examples : Angola (ALNG), Cameroon..

• Enablers : – Gas outlets and valorization– Stakeholders alignment : State, National Company, Partners..– Adequate contractual –fiscal –legal gas frameworks– Project Financing, Technology

Flaring reduction Priority to Continuous Flaring reduction

•~2/3 is continuous flaring•~1/3 is due to

– Operational availability (unexpected shut downs…)

– Safety– Start-up operations

• Split of 2005 flaring– Total operated figures

64%

36%

continuous flaring

other type of flaring

OFON field redevelopmentLaunched thanks to the alignment of all stakeholders

1.Ofon Phase 1 in 1995– A typical offshore development of

the 90’s in the Gulf of Guinea

2.New context after Phase1 – Gas outlet : NLNG onstream– Field redevelopment opportunity– Growing concern on GHG emission– Nigerian objective to stop flaring

by 2008

3.Ofon Phase 2 Project– Expansion of the fields– Installation of gas facilities– No more flare– Laying of gas export pipeline

Oil export

50 Mscfd50 Mscfd

Gas export 100 Mscfd

Angola LNG mindset from a gas flaring concern to a gas valorization scheme

• Common Goal : ensure sustainable oil developments & address gas flaring concerns through a gas valorization scheme

• Strong Commitment & Alignment of all Stakeholders : partnership Sonangol - Oil companies

• Pooling of gas resources • Legal & Commercial Framework

suiting the project characteristics• Strong partners to overcome

commercial and technical challenges

• Start-up : 2012

Soyo200 m

Block 2

NAG

Greater Plutonio

Kizomba A

Kizomba B

Kizomba C

Bloc 0/14

GIRASSOL

DALIA

Phase I :LNG plant

AG pipelines

phase II 1-4 NAG

fields

phase IIIGas Caps blowdown

Arranging a stable gas supply of 1Bcfd

Cameroonfrom a gas flaring concern to a gas valorization scheme

• Difficult to reach a good technical solution because of scattered installations

• A regional approach with LNG plant in Equatorial Guinea and gas from Cameroon & Nigeria

• All Cameroonian E&P players involved

• Positive involvement of GGFR as early as 2003 Nigeria Cameroon

Eq. Guinea

SNH

Total

Perenco

Pecten

Addax

Euroil

SNH

Total

Perenco

Pecten

Addax

Euroil

New gas conversion technologies being developedmight also be part of the solution

• Aiming at efficiency improvement on :

– CO2 emissions– Flexibility– Safety

• A simple molecule (CH3-O-CH3) burning without any soot => clean fuel

• Easy to transport and store (comparable to LPG)

• Premium fuel for diesel engine • Competitive production process

GTL micro-technologies

DME : another GTL option

Direct Synthesis Process developed since 2001 by Total and a Japanese consortium

Partnership with Velocys to develop an improved catalyst

process

New Technologiesmay help create new gas outlets for limited gas flows

Gas flaring reduction is a mustbut still a difficult issue requiring efforts by all Parties

• Gas flared : Wasted energy, harm to the environment & image issue

• After the first and most obvious steps have been taken, issues are becoming and will be more and more complex, sometimes requiring solutions beyond a single company capabilities

• Enablers : – Mainly stakeholders alignment, Common Will Adequate

contractual –fiscal –legal gas frameworks, Gas outlet and valorization, Financing, Technology

• GGFR / World Bank : – a welcome initiative to rise global awareness foster stakeholders

alignment, disseminate good practice and help securing gas outlets

Efforts are rewarding : Total operated flaring will continue to decrease despite rising operated production

•No flaring on new development

•Flaring Reduction on existing fields

– Acute Monitoring of flaring

– Dedicated team

– Elaboration of Technical & Business solution

•Issues discussed with Partners and Governments

•GGFR Standard & Support quite useful

• Total’s operated fields

0

20

40

60

80

100

120

140

160

180

200

98 2005 2012

+24%

-50%

+32%

-40%

ProductionFlaring

Total target : -50% 2005-2012Beyond 2012 : Efforts are to be maintained and amplified

if we want to keep reducing flaring

Partnering with Host CountriesBeyond Gas Flaring reduction : Going Beyond Old Petroleum Practices

0

20

40

60

40$ 60$

5

10

15

2001 2002 2003 2004 2005

•Safety is key for the valuation of management performance

•New targets for 2009

•Safety policy homogenously applied worldwide

•Contractors safety managed as for Total’s employees

• Balanced risks / profitability sharing with host countries

• Development of local industry

• Strengthening strategic partnerships

• Evaluating local impacts embedded in Total’s decision making process

• Developing local employment

• Creating partnerships with communities

Target :- 60% over 4 years

Realization :- 59%

TRIR* per million man hours worked

West Africa typical deep-offshore rent sharing

60

40

20

$/boe

Net margin

Host country

Opex Capex

Injury rate, Group and contractor employees

* TRIR : Total Recordable Injury Rate

Local CommunitiesIssues & Acceptance

Sonatrach’s Efforts to reduce flared associated gas

Mohamed MEZIANE

Chairman and Chief Executive Officer of Sonatrach

Vulnerability of Algeria to Climate Change effects

• Sonatrach integrated the Sustainable development in its strategy.

• Vulnerability of Algeria to Climate Change due to its geographical position.

• Sonatrach’s commitment to reduce GHG emissions

HSE Sonatrach commitments

• Environmental protection has always been a key issue for Sonatrach

• This commitment has been formalized in its HSE policy adopted in April 2004

after

Atmosphere Protection at Sonatrach

• In the field of the reduction of air pollution, Sonatrach does its best to :

–Limit the impact of its activities on ambient Air quality

–Tackle Climatic changes–Reduce the use of substances responsible

of ozone layer depletion … etc

before

Flared gas Reduction: Sonatrach’s permanent objective

• Since the early seventies, Sonatrach has set up as an objective to reduce gas flaring in its main fields, through different schemes:

–Gas reinjection in oil producing fields to enhance oil recovery

–Gas reinjection in wet gas fields to maximize liquids recovery

–Closing up of gas lifts systems

–Using gas for utilities

–Constructing a gas transport network to monetise gas

Policy to reduction associated gases flaring, the significant results

• Many projects of gas flaring recovery were carried out since 1973

• While volumes of produced associated gases have practically Quadrupled these 35 last years, the rate of flaring passed from 80% in 1970 to 07% in 2005

• Medium-term objective is to recover the totality of produced associated gases (0% forecast of fence 2010)

• An investment of million US$ were allocated for the reduction of flared gases projects are registered with the PMT 2007-2011

Flared Associated Gas 1970 - 2005

Produced & flared associated gas 1970-2005

0

5

10

15

20

25

30

35

40

45

Bill

ion

CM

Produced gas

Flared gas

Recovered gas

Produced gas 9.5 7.2 9.3 11.2 10.2 9.8 12.8 14.5 18.0 17.5 15.6 12.0 10.4 10.4 11.8 12.5 13.3 12.6 12.6 14.1 16.0 16.8 18.2 20.6 21.5 22.9 23.5 24.8 25.7 27.0 30.7 32.4 35 38.47 39.60 41.32

Flared gas 7.5 5.7 7.5 9.4 8.3 7.3 9.1 10.7 13.3 12.5 10.5 6.7 4.8 4.3 5.5 6.3 8.0 6.1 4.1 4.6 5.5 5.1 6.2 6.2 6.5 7.6 7.2 7.2 5.9 5.5 5.4 4.1 4.4 4.271 3.62 3.00

Recovered gas 2.0 1.5 1.8 1.7 2.0 2.5 3.7 3.9 4.7 5.0 5.1 5.3 5.6 6.1 6.3 6.2 5.2 6.5 8.6 9.5 10.5 11.7 12.0 14.3 15.1 15.3 16.3 17.6 19.9 21.5 25.3 28.3 30.6 34.199 35.97 38.32

1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Flared Associated Gas 1995 - 2005

Produced & flared associated gas 1995-2005

0

5

10

15

20

25

30

35

40

45

Bill

ion

CM

Produced gas

Flared gas

Recovered gas

Produced gas 22.9 23.5 24.8 25.7 27.0 30.7 32.4 35 38.47 39.60 41.32

Flared gas 7.6 7.2 7.2 5.9 5.5 5.4 4.1 4.4 4.271 3.62 3.00

Recovered gas 15.3 16.3 17.6 19.9 21.5 25.3 28.3 30.6 34.199 35.97 38.32

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Rate of Flared Associated Gas1970 - 2005

Flaring & recovering rates of associated gas 1970 - 2005

7%

93%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

% Flared gas

% Recovered gas

% Flared gas 79% 79% 80% 84% 81% 74% 71% 73% 74% 72% 67% 56% 46% 41% 46% 50% 61% 48% 32% 32% 35% 31% 34% 30% 30% 33% 31% 29% 23% 20% 17% 13% 13% 11% 9% 7%

% Recovered gas21% 21% 20% 16% 19% 26% 29% 27% 26% 28% 33% 44% 54% 59% 54% 50% 39% 52% 68% 68% 65% 69% 66% 70% 70% 67% 69% 71% 77% 80% 83% 87% 87% 89% 91% 93%

1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 19871988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 19992000 2001 2002 2003 2004 2005

1970 : 80 %

2005 : 7 %

Flaring gas reduction Objective 0% in 2010

7%9%

11%13%13%

17%

20%

23%

29%31%

33%

0%

5%

10%

15%

20%

25%

30%

35%

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Associated gases Production and flaring,Comparison between 1970 and 2005

Flaring gas reduction, a reality

20th march 200224th September 1992

Algeria

Tunisia

Algeria

Tunisia

Sonatrach, an important gas player in the Mediterranean area

• Regarding the existing and projected gas infrastructures, Algeria is one of the main

• Natural gas suppliers to Europe, Tunisia and Morocco

– GEM (Algeria-Tunisia-Italy) and GPDF (Algeria-Morocco-Spain)

– MEDGAZ (Algeria-Spain) and GALSI (Algeria-Sardinia-Italy)

Sonatrach, an important gas player in the mediterranean area

• On the international level, Sonatrach is the :–3rd worldwide natural gas exporter

–2nd worldwide LNG exporter

–2nd worldwide LPG exporter

Sonatrach, an important gas player in the in the African area

• 25 billions of m3

• From Warri (Nigeria) to Algerian Mediterranean coast

– Diameter: 56’’

– Length : 4400 km

• Trajectory : Nigeria-Niger-Algeria- Europe

– Nigeria: 1000 Km

– Niger: 800 Km

– Algeria: 2600 Km

Trans-African gas pipeline (TSGP)Nigeria - Algeria – Europe

Sonatrach Participation in the GGFR

GGFR Program in Algeria

• Two studies were launched in 2004 with the GGFR partnership in association with the World Bank

–First study: Clean Development Mechanism (CDM) Capacity Building for gas flaring reduction in Algeria

–Second study: Assessment study of flared Gas utilization in Algeria

History of the CDM pilot project

• An inventory of flaring sites was carried out

• Three regions : TFT, Ohanet and In-Aménas were identified as candidates projects for CDM

• Ohanet was selected to elaborate the CDM pilot project

• After the integration of the flared gas reduction option in the Ohanet integrated project GTL of Tinhert, TFT was chosen as a 2nd option

• Promulgation of the new hydrocarbons law which prohibit flaring

• TFT project is now in progress

Algeria

Tunisia

Libya

Evaluation study for the utilisation of associated flared gas in Algeria

• the study explored different options to recover flared associated gas such as: Gas Reinjection, Gas-lift, Power generation, Gas or Electricity Supply for local populations, small scale GTL and gas exportation;

• Gas exportation through the existing transportation network” was the most suited

TFT

Ohanet

In-Aménas

Conclusion

• Sonatrach commits itself to continue participating in the GGFR activities.

• Sonatrach will sustain its efforts to eliminate gas flaring by 2010. • Sonatrach commits itself to communicate with transparency about

flared or vented gas quantities • Sonatrach will pursue its investments to promote the use of the

Natural Gas as a cleaner energy and as a feedstock to produce cleaner fuels such as GTL products.

• Sonatrach will use CDM to reach its objectives of 0% Flaring. • Sonatrach has registered the Carbon Capture and Storage in

partnership contracts on the new mega-projects such as Gassi-Touil and In Salah Gas (reduction of 1 million tons CO2eq/year).

• Sonatrach calls for a more active international exchange, and a more concrete sharing of gas flaring technologies & best practices.

Sonatrach– www.sonatrach-dz.com – Djenane El Malik Hydra – Algiers- Algeria– Tel. : 213 21 54 80 11 / 213 21 54 70 00– Fax : 213 21 54 77 00– e-mail : [email protected]

Thank you for your attention

http://www.sonatrach-dz.com/

mailto:[email protected]

Canal 1 Français

Documents

Transcript of Canal 1 Français