At A Glance · Burning natural gas, or “flaring” it, is a safe and effective method of disposing of excess natural gas associated with oil production. Flaring, however, wastes a valuable clean energy resource and emits carbon dioxide, a greenhouse gas. Some 400 million tons of CO2 are emitted annually in this way. This is equivalent to more than half the annual Certified Emission Reductions issued by the projects currently registered under the Kyoto’s clean development mechanisms (as of June 2011). · On average, some 150 billion cubic meters (5.3 trillion cubic feet) of natural gas are being flared and vented annually, equivalent to approximately 30 percent of the European Union’s annual gas consumption. · For the fifth consecutive year, flaring of gas associated with oil production has registered a drop worldwide: between 2005 and 2010, it decreased by 22 percent from 172 billion cubic meters (bcm) to 134 bcm, according to satellite estimates commissioned by the Global Gas Flaring Reduction (GGFR) partnership. · The GGFR partnership, a public-private initiative led by the World Bank Group, facilitates and supports national efforts to use currently flared gas. It does this by promoting effective regulatory frameworks and tackling the constraints on gas utilization, such as insufficient infrastructure and poor access to local and international energy markets, particularly in developing countries. · Poverty reduction is an integral part of the GGFR program, which is developing concepts for how local communities close to the flaring sites can use natural gas that may otherwise be flared and wasted. The program has already evaluated opportunities for small-scale gas utilization in several countries. · Last year’s reductions of 13 bcm of gas flared occurred despite a two-million barrel-a-day increase in crude oil production over the same period. This also confirms a 15 percent drop in gas flaring intensity (ratio of gas flared to oil production volumes) since 2002. The 13 bcm decline in 2010 is roughly equivalent to 30 million tons of CO2 emissions, or taking almost six million cars off the road.
A Collaborative Global Standard
GGFR partners have also established a collaborative Global Standard for gas flaring reduction. This Global Standard provides a framework for governments, companies, and other key stakeholders to consult with each other, take collaborative actions, expand project boundaries, and reduce barriers to associated gas utilization. GGFR partners that have endorsed the Global Standard are committed to no flaring in new projects unless there are no feasible alternatives. The goal of GGFR is to help overcome the barriers to gas utilization so partners can unlock the value of currently wasted natural gas to improve energy efficiency, expand access to energy, and contribute to climate change mitigation hence promoting sustainable development. Developing countries face important barriers to reducing gas flaring, including: - Limited access to international gas markets as well as local markets
- A lack of financing to put the necessary infrastructure in place
- An undeveloped regulatory framework
GGFR focuses on four key areas to overcome the barriers to gas flaring reduction: - Commercialization of associated gas
- Regulations for associated gas
- Implementation of the global flaring and venting reduction standard
- Capacity building to obtain carbon financing for flaring and venting reduction projects
Main achievements by GGFR include: - Raised global awareness and understanding of gas flaring and venting issues
- Improved data using satellite imaging to monitor and measure worldwide flaring
- New regulations on gas flaring in several countries
- Gas flaring reduction plans under way in various countries
- Identification and development of gas utilization projects
- Improved understanding of and dialogue on carbon finance mechanisms
- Assistance to Indonesia, Kazakhstan, Mexico, Nigeria, Qatar, Russia and other countries to reduce flaring to minimum levels, through increased collaboration among operators, the national oil company and the regulator
Background on GGFR: Launched at the World Summit on Sustainable Development in August 2002, the GGFR public-private partnership convenes representatives of governments of oil-producing countries, state-owned companies and major international oil companies so that, together, they can overcome the barriers to reducing gas flaring by sharing global best practices and implementing country specific programs. GGFR partners include: Algeria (Sonatrach), Angola (Sonangol), Azerbaijan, Cameroon (SNH), Canada, Chad, Ecuador (PetroEcuador), France, Gabon, Indonesia, Iraq, Kazakhstan, Khanty-Mansijsysk (Russia), Mexico (SENER), Nigeria, Norway, Qatar, United Arab Emirates (UAE), the United States (DOE) and Uzbekistan; BP, Chevron, ConocoPhillips, ENI, ExxonMobil, Marathon Oil, Maersk Oil & Gas, Pemex, Qatar Petroleum, Shell, Statoil, TOTAL; European Union, the World Bank Group; Associated partner: Wärtsilä. Contacts: Mauricio Ríos (202) 458-2458, mrios@worldbank.org Christopher Neal: (202) 473-2049, cneal1@worldbank.org Updated August 2011 |
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