The energy security casefor tackling gas flaring
and methane leaks

INTERNATIONAL ENERGYAGENCYThe IEA examines thefull spectrumof energy issues
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Commission also
participates in thework of the IEAThe energy security case for tackling gas flaring and methane leaks

A concerted effort to limit flaring and methane
emissions could make nearly 210 billion cubic metresof natural gas available to markets
Russia’s unprovoked invasion of Ukraine has had a dramatic impact on the global
energy system. Russia was the world’s largest oil and natural gas exporter in
2021, and energy markets have been thrown into turmoil, with major energy
security and supply risks worldwide.
There are a number of options available to boost gas supplies to reduce thecurrent market tightness. Some gas producing countries and companies arelooking to explore and approve new supply projects. However it typically takes
many years for such projects to start producing, so they are not a good match for
our immediate energy security needs.
Substantial gas resources currently are being produced that do not make it tomarket because they are lost to flaring and leaks across the oil and gas supply
chain. Reducing flaring, venting and methane leaks would offer more immediate
relief to gas markets than investing in new supply, bringing a double dividend:
relief for very tight gas markets and reduced greenhouse gas emissions. 1 We
estimate that nearly 210 billion cubic metres (bcm) of natural gas could be madeavailable to gas markets by a global effort to eliminate non-emergency flaring andreduce methane emissions from oil and gas operations.

bcm

Gas volumes from eliminating non-emergency flaring and curtailing methane
emissions60
Methane
Flaring40

200Middle East

Eurasia

AfricaNorth America

Central andSouth America

Asia Pacific

EuropeIEA. All rights reserved.
Note: Methane abatement estimates take into account that flaring reductions would reduce methane that is emitted due toincomplete combustion in flares (8% of natural gas and natural gas liquids entering flares is not combusted).

A third option is for major gas producers to reduce their own consumption, notably in the power sector, via increased
deployment of low-cost renewables.

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1

The energy security case for tackling gas flaring and methane leaks

Reducing emissions of methane, the main component of natural gas, is one of thebest opportunities available for limiting the near-term effects of climate change.
Limiting flaring to emergencies would also lower local air pollution and cut black
carbon emissions, which is another contributor to climate change.
If countries that currently export natural gas to the European Union were to
implement these two measures, they could increase gas exports by more than
45 bcm using existing infrastructure, equivalent to almost one third of Russian gas
exports to the EU in 2021. If all other liquefied natural gas (LNG) exporters – suchas Egypt and Australia – were to do the same, they could provide an additional
8 bcm to global gas markets without needing to construct any new LNG
liquefaction terminals.

Over 260 bcm of natural gas was flared, vented or lostin leaks in 2021
Over 140 bcm of natural gas was flared in 2021 and a further 125 bcm was vented
or leaked to the atmosphere from oil and gas operations. This waste of natural gas
is happening against the backdrop of tight and volatile gas markets.

200
Flaring
150

100
Methane
50

0
1990

1995

2000

2005

2010

2015

2020

IEA. All rights reserved.

We estimate that it is technically possible to avoid over 70% of today’s methane
emissions and 90% of flaring from global oil and gas operations. This wasted gas
could often easily reach markets: over 54% of all flared volumes are within 20 kmof an existing gas pipeline.
The ways to prevent flaring and methane emissions from oil and gas operations
are known and cost-effective. These measures include installing emissions control
devices, conducting regular leak detection and repair campaigns, and replacing
components and devices that emit methane in their normal operations. If there areno connections to gas markets, companies can re-inject waste gases into oil andgas reservoirs, or use them for local electricity generation.

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bcmWorldwide flaring and methane emissions, 1990-2021

The energy security case for tackling gas flaring and methane leaks

In total, we estimate that action to reduce methane leaks, venting and flaring could
quickly bring nearly 210 bcm to global gas markets.

Substantially reducing gas flaring and methane
emissions would avoid around 0.1oC of warming
Gas wasted in flaring, venting and methane leaks from oil and gas operations led
to around 2.7 billion tonnes of CO2 equivalent (Gt CO2-eq) emissions in 2021. 2 We
estimate that rapid action to deploy all available abatement technologies over the
next decade would cut around 0.07 °C in 2050 and 0.12 °C in 2100 from the global
temperature rise. 3 This is the same effect on the global temperature rise by
mid-century as immediately eliminating the GHG emissions from all of the world’s
cars, trucks, buses and two- and three-wheelers.
Shares of emissions from oil and gas operations covered by international initiatives totackle flaring and methane emissions, 2021
Countries not in
Zero Routine
Flaring Initative

Countries in Zero
Routine Flaring
Initative

Flaringemissions
0.3 Gt CO2

Countries not in
Global Methane
PledgeCountries in
Global Methane
PledgeMethaneemissions
2.4 Gt CO2-eq

IEA. All rights reserved.
Note: Shares of emissions reflect countries participating in the Zero Routine Flaring by 2030 and Global Methane Pledge.

Emissions from flaring, venting and methane leaks have remained stubbornly highdespite a number of commitments to address them, underscoring the need for
ambitious mitigation efforts. Through the Zero Routine Flaring by 2030 Initiative,
launched in 2015, governments and companies pledge to end routine flaring nolater than 2030. The Global Methane Pledge, launched at the 26th UN Climate
Change Conference of the Parties (COP26), includes over 110 countries that

One tonne of methane is considered to be equivalent to 30 tonnes of CO2 based on the 100‐year global warming potential(GWP) (IPCC, 2021). Emissions are around 6.5 Gt CO2-eq, if one tonne of methane is considered to be equivalent to
82 tonnes of CO2 (based on the 20-year GWP).
3
Temperature differences are estimated using the Model for the Assessment of Greenhouse Gas Induced Climate Change(“MAGICC”). They are based on flaring and methane emissions from oil and gas operations in the Stated Policies Scenario
in a case with no change in emissions intensities from current levels and a case with all available abatement measures
deployed by 2030. See Annex for further information.

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2

The energy security case for tackling gas flaring and methane leaks

commit to a collective goal of reducing global methane emissions from humanactivity by at least 30% compared with 2020 levels by 2030.

With 2022’s high gas prices, abatement would generate
global revenues of USD 90 billion
At today’s elevated natural gas prices, almost all of the options to reduce flaring
and methane emissions from oil and gas operations could be implemented at nonet cost because the abatement measures cost less to deploy than the market
value of the gas that would be captured. If all the gas flared in routine operations
during 2021 was brought to markets today, its revenues would amount to about
USD 60 billion. Capturing methane emissions could bring over USD 30 billion.

Billion USD

Annual costs and potential revenue from reducing methane emissions
40

30

Costs
Other measures

20
Leak detection andrepair programs

100

New equipment andreplacements
Revenue

Costs

IEA. All rights reserved.
Note: Revenues are based on well-head prices, derived from average natural gas import prices in 2022 within each country.
For exporting countries, the relevant well-head price is taken as the import price in their largest export market net-backed tothe emissions source. For the net-back, allowance is made for transport costs (including liquefaction and shipping or pipelinetransport), fees and taxes. Revenue takes into account that flaring reductions would also reduce methane that is emitted due
to incomplete combustion in flares.

A number of organisations are working on accelerating methane abatement andflaring reduction, including the International Methane Emissions Observatory, theClimate and Clean Air Coalition, the World Bank’s Global Gas Flaring Reduction
Partnership and the Global Methane Hub. Financing and technical support is also
coming from institutions like the European Bank for Reconstruction andDevelopment (see, for example, the Methane Emissions Reduction Programme in
Gas Supply Chains in Egypt).

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There is growing interest in pursuing these opportunities. Canada has been
supporting investments in methane abatement through the Methane Technology
Implementation Program (which offers a 50 % rebate for purchasing emissions
reduction equipment). The World Bank also recently published a report on Financing
Solutions to Reduce Natural Gas Flaring and Methane Emissions, aiming to guidethe evaluation of flaring and methane reduction projects, identify investment
barriers, and share success factors.

The energy security case for tackling gas flaring and methane leaks

Policies are key to stop non-emergency flaring andcurtail methane emissions
Not enough is being done, and barriers to further action include a lack ofawareness of emissions sources and abatement opportunities; misaligned
incentives that make other investment options more attractive, and the lack ofinfrastructure to bring captured gas to markets.
These challenges can be addressed with tried and tested policies andtechnologies, including leak detection and repair requirements, equipment
mandates and bans on non-emergency flaring and venting. Adopting thesepolicies globally would reduce methane emissions from oil and gas emissions byhalf and put an end to non-emergency flaring.

kg CO₂-eq/boe

Indirect CO2 and methane emissions from global gas supply, 2021
300

Downstream methane

250

Upstream methane

200

LNG

150

Pipe

100

Vented CO2

50
0Energy for extraction
500

1 000

1 500

2 000

2 500

3 000

3 500

4 000
bcm

IEA. All rights reserved.
Note: kg CO2-eq/boe = kilogrammes of CO2 equivalent per barrel of oil equivalent. Energy for extraction includes emissions
from processing to remove impurities before transport. Upstream methane includes emissions from production, gatheringand processing; downstream methane includes emissions from shipping (if applicable), transmission and distribution. One
tonne of methane is considered to be equivalent to 30 tonnes of CO2 based on the 100‐year global warming potential (IPCC,
2021).

Policies can also drive down other emissions from the natural gas supply chain.
For example, we estimate that the process of liquefying natural gas for transport

PAGE | 7

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The IEA’s Regulatory Roadmap and Toolkit collects examples of regulatory
experiences around the world to support policy makers looking to develop policies
and regulations on methane emissions. It discusses additional policies available
that could result in the full adoption of all abatement options and lead to a morethan 70% reduction in methane emissions from oil and gas operations. These
include emissions pricing, financing instruments, and performance standards thatwould need to be supported by robust measurement-based monitoring regimes.
An increasing number of companies have joined the Oil and Gas Methane
Partnership 2.0, which provides a key framework for companies reporting on
methane emissions.

The energy security case for tackling gas flaring and methane leaks(as LNG) resulted in around 140 million tonnes of CO2 in 2021. A large portion ofthese emissions could be avoided by sourcing low-emissions power andelectrifying operations or equipping them with carbon capture and storage.

Improvements in emissions intensities are an integral
part of a net zero pathway
Limiting the global temperature rise to 1.5 °C can only be accomplished by
reducing the consumption of fossil fuels. These reductions need to beaccompanied by an even faster decline in the greenhouse gas emissions
associated with the extraction and processing of fossil fuels.
In the Net Zero Emissions by 2050 (NZE) scenario, flaring is reduced by over 90%
between 2020 and 2030, and methane emissions from fossil fuel operations fallby 75%. About one-third of the drop in methane emissions to 2030 results from an
overall reduction in fossil fuel consumption. The remaining two-thirds stems fromthe rapid deployment of mitigation measures and technologies, leading to theelimination of all non-emergency flaring and all technically avoidable methane
emissions by 2030.
In this scenario, there is a near-50% reduction in the GHG emissions intensity ofnatural gas operations by 2030. This is a necessary condition for natural gas toplay a supporting role in a pathway to net zero, where it can displace morepolluting fuels such as coal in the immediate future or support low-carbonhydrogen production (when paired with carbon capture, utilisation and storage).
Natural gas demand and emissions in the Net Zero Emissions by 2050 Scenario
Emissions from natural gas operations in the NZE

Mt CO2-eq

bcm

Global natural gas demand in the NZE
5 000
4 000

2 500
2 000

3 000

1 500

2 000

1 000

1 000

500

With current intensities

With intensities in the NZE
0
2020

2030

2040

2050

0
2020

2030

2040

2050

IEA. All rights reserved.

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Note: Emissions from natural gas operations uses natural gas consumption in the NZE scenario. “With current intensities”
assumes no change in current practices; “With intensities in the NZE” uses the change in intensities in the NZE.

The energy security case for tackling gas flaring and methane leaks

Speeding up clean energy development can quickly lower gas demand
Global gas consumption today is around 4 100 bcm, about 40% of which isconsumed in the power sector, 25% in industry and 20% in buildings. We estimatethat rapidly deploying an array of clean energy technologies globally could free up
around 350 bcm of natural gas by 2025. Efficiency gains would contribute around
210 bcm to the total, the deployment of renewables would contribute about
100 bcm, and the remainder would come from an increase in the use of bioenergy
and direct use of heat, hydrogen and geothermal.
Producer economies in the Middle East and North Africa have the potential toreduce around 70 bcm of natural gas consumption through the rapid deploymentof clean energy technologies, thereby freeing this gas for export. Currently, oil andgas account for almost 95% of electricity generation in this region. Over 150 bcm
of natural gas – around one-fifth of the region’s total gas consumption – is usedeach year in low-efficiency gas-fired power plants. By expanding renewabledeployment and other clean energy technologies, the region stands to gain gas
export revenues while boosting local economies and clean energy supply chains.

bcm

Current gas demand for selected regions and deploying clean energy
technologies
1 200

DemandReductions

Power
Buildings
Efficiency
Other clean energy

Industry
Other
Renewables

600

0Clean energy
technologies
North America Asia PacificEurasia

EuropeMiddle East

AfricaCentral andSouth America

Gas consumption in 2021
- 600

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Note: Other includes gas used in transport and other uses (e.g. energy transformation, losses). Deploying clean
energy technologies shows potential avoided gas demand by boosting the deployment of efficiency measures,
renewables, and other clean energy technologies to 2025.

The energy security case for tackling gas flaring and methane leaks

Abatement measures can quickly help Europe reduce
its reliance on Russian gas
Curtailing flaring and methane emissions would save over 45 bcm of natural gas
in countries that currently export to the European Union. Many of these measures
could be implemented quickly, especially by replacing leaky equipment or byminimising accidental leaks with frequent leak detection and repair programmes.
If all other LNG exporters, including Egypt, Australia, and Malaysia were to do thesame, they could provide an additional 8 bcm to global gas markets without
needing to construct any new LNG liquefaction terminals.
The European Commission has announced measures to mitigate flaring andmethane emissions. The EU framework to decarbonise gas markets, promotehydrogen and reduce methane emissions includes a regulation that bans venting
and flaring, introduces measurement, reporting, and verification standards, and aleak detection and repair requirement. It also addresses methane emissions fromgas imports by creating transparency tools to support more stringent measures in
the future. More recently, the EU external energy engagement strategy aims toensure that additional gas supplies are coupled with targeted actions to tackle
methane leaks and to address venting and flaring. It further mentions the EU will
provide technical assistance to partners to set up “You collect/we buy” schemes.
Possible gas savings from current and potential exporters to the European Union fromreducing flaring and methane emissions (bcm)
Reducing
flaring

Reducing
methane

Total

Difference between
2022 export capacityand 2021 exports

Additional gas
available

Current exporters to the EU
United States

8

14

22

18

18

Algeria

7

2

10

10

10

Nigeria

6

2

8

7

7

Libya

5

2

7

7

7

Angola

2

0.4

2

2

2

United Kingdom

0.8

0.2

1

1

1

Trinidad and Tobago

0.1

0.2

0.4

5

0.4

Equatorial Guinea

0.2

0.2

0.4

0.4

Total

29

21

50

50

0.4
46

Egypt

2

1

3

7

3

Australia

0.8

0.6

1

7

1

Malaysia

2

0.5

2

7

Other

1

0.3

1

6

2
1

Total

5

2

8

27

8

Note: US export capacity in 2022 takes into account LNG liquefaction facilities currently under construction; Algeria 2022
export capacity takes into account midstream bottlenecks that effectively limit available pipeline and LNG capacity. OtherLNG exporters include Cameroon, Brunei and Peru.

PAGE | 10

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Other LNG exporters

The energy security case for tackling gas flaring and methane leaks

Annex

PAGE | 11

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Download the full data set for further regional and country-level
information on related emissions, abatement potentials, additional gas
supply, costs and revenues.

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