Global Gas Flaring Red

Partnership

BOEMRE workshop

New Orleans

30 March 2011
GGFR Initiative – General Context

• Created in 2002 at the World Summit on Sustainable Deve

in Johannesburg 

• Objective: 

– Reduce gas flaring and GHG emissions– Avoid waste of valuable resources – Contribute to energy efficiency and climate change mitigati– Monetization of associated gas through domestic use or 

export alternatives

• Means:

– World Bank-led Public – Private Partnership

Mission Statement 

GGFR is a catalyst for reducing wasteful and undesirable pract

flaring and venting through policy change, stakeholder facilit

project implementation

Mission Statement 

GGFR is a catalyst for reducing wasteful and undesirable pract

flaring and venting through policy change, stakeholder facilita

project implementation
GGFR Partners

Countries/(NOCs)Algeria (Sonatrach)Angola (Sonangol)Azerbaijan (SOCAR)Cameroon (SNH)Ecuador Equatorial Guinea GabonIndonesia IraqKazakhstanKhanty Mansiysk (Russia)Mexico (Pemex)NigeriaQatar (QP)UzbekistanDonorsCanadaEUNorwayFranceUSA 

Oil companiesBPChevronConocoPhillipsEniExxonMobilMarathon OilMaersk Oil & GasPemexShellStatoilTOTALOrganizationsThe World Bank
• An estimated 150 bcm of 

gas is being flared & vented globally each year

– Approx 25% of US gas consumption – $30 – 35 Billion per year loss value

• Approx. 400 million tons of 

carbon dioxide into the atmosphere each year

– Annual emission from 77 million 

cars (1/3 of US fleet)

– Output from 125 medium sized coal 

power generation plants [63 GW] i.e. 2/3 of India’s coal plants

• Technological and policy 

reform requirements are generally well understood

Gas Flaring –Magnitude of the Issue
• Global Activities 

– Support adaptation and implementation of “Voluntary 

Standard” that was developed and endorsed by GGFR 

Partners 

– Promote investment in Gas Flare Reduction projects 

through guidance on legal, regulatory, fiscal and technical best practices 

• Country-Specific Activities 

– Assist Governments to gather data for development of 

Gas Flaring Reduction strategies 

– Review potential gas utilization options for EOR, small 

scale power generation, LPG recovery projects etc. 

• Knowledge Transfer and Best Practice 

Dissemination Activities 

– Organization of country/regional workshops, Publication 

of reports, High level international conference etc. 

• Government – operator facilitation

GGFR Focus Activities 
Global: Satellite flaring volume estimatio

100

110

120130140150160170180190200

Gas flared, bcm

Gas flaring Oil production
• GGFR Partners have endorsed the Global Volunt

Standard for gas flaring reduction

• Global Standard provides a framework for 

governments, companies, and other key stakehto consult, collaborate, expand boundaries and reduce barriers to associated gas utilization

 Eliminate continuous venting No Flaring in New projects Eliminate continuous flaring from existing production 

(Unless there are no feasible alternatives)

Global Standard
International regulation of venting versus flaring

• Norway (Regulated by NPD)

–Law: No flaring (or venting) of assoc. gas for other 

reasons than safety

–In practice – No venting–CO

2 tax $120/1000m

3 ($ 3.3 /Mcf) whether flared or 

vented

–On a typical platform the regulator measures 

• Well streams by (intermittently) measuring gas oil and water 

flow rates by well 

• Fuel gas consumption• Gas to flare• Diesel consumption
International regulation of venting versus flaring

• Alberta, Canada (Regulated by ERCB)

–Onshore, smaller fields–Venting not considered acceptable, if volumes are suf

sustain stable combustion (> 537 Btu/scf)

• Regulator investigates vented volumes of 500 M3/day (1

• Venting requires justification 

–Routine flare and venting require metering when volum

exceed 500 m3/day (14 mcf/d)

–Economic evaluation of flare reduction economics

• if > 900 m3/day (25 mcf/d) is flared
International regulation of venting versus flaring

• UK (Regulated by DECC)

–Flare/vent require permit (negotiated case-by case)–Target 5% year-on-year reduction (mass of gas flared)–EU Emission Trading Scheme is main legislation controlling 

flaring

—CO2 Emissions = Activity Data x Emission Factor x Oxidation 

Factor (excludes venting!)

–Monitoring and reporting guidelines (MRG 2007) –Tier system based on tons of CO2/year, stricter measurement 

for larger emitters

–Options for monitoring flares: calculation & 

measurement-based technologies, 

–Reporting needs independent verification

Activity Data
International regulation of venting versus flaring

• Mexico (Regulated by CNH)

– Aim is gas conservation and utilization– Establishes an annual decreasing limit for 

flaring/venting

• Based on flare/vent rate of last 3 years (-20% until flare/

• Flaring/venting achieved in one site could be accounted 

asset (currently 11)

– Venting is not allowed nor an alternative to – New fields need to present an economic ana

gas conservation/utilization

– Regulatory permitting process for existing fi

new developments
GGFR Guidelines on Flare and Vent Measuremen

Recommendations for measuring flare and vent volumesAudience: oil companies, regulators and carbon offsetting project developers Aim: Improve reliability, completeness and accuracy of dataBasis: accurate measuring of flare vent volumes is critical for effective, consistent and fair enforcement of flaring/venting regulations
Guidelines on Flare and Vent Measuremen

Overall conclusions • Each options for measurement of flare/vent gas volumes, 

metering or estimation has positive and negative aspects 

•Selection of the most appropriate method will usually depthe accuracy requiredthe volume of flared gas to be measured and the degree of varthe liquid content of the gasavailability of a specific meter type and the required sup

(calibration facilities, maintenance,...)
Sample table: Characteristics of flow meters for flare/ gas volume m

Guidelines on Flare and Vent Measuremen
Emissions from venting and flaring

Volume (scf

Constitue

Nitrogen Carbon Dioxide Methane Ethane Propane i-Butane n-Butane i-Pentane n-Pentane Hexanes + Heptanes + Octanes + H2S Water Oxygen Total 

Global Warming 

Potential *

Flare

tCO2

Vent

(tCO2)

GWP 

Factor

GWP time 

horizon 

(years)

25 2,627,161 13,380,075 5 100 72 2,627,161 38,961,319 15 20

Emission of CO2e of flare vs vent(for 1 bcm of natural gas)

GWP is based on a number of factors, including the radiative efficiency infrared-absoeach gas relative to that of carbon dioxide, as well as the decay rate of each gas (the removed from the atmosphere over a given number of years) relative to that of carboSource: IPCC guidelines
GGFR’s Vision is...

Thank you for your attention!

www.worldbank.org/ggfr
Back Up 
Mexico – Regulatory process for existing operations
Mexico – Regulatory process for new projects