Q&A on joining the GGFR partnership
What is GGFR's main objective?
Who can become a GGFR partner?
What is the procedure to become a member?
Is there any pre-requisite to become a member?
What is expected from a GGFR partner?
Is there any fee for the membership?
How long will the membership last?
What are the advantages of becoming a member?
What are some of the major results achieved by the GGFR partnership?
Who are the GGFR members?
1) What is GGFR´s main objective?
GGFR is a World Bank-led public-private partnership that brings around the table representatives of governments of oil-producing countries, international and state-owned oil companies, so they can together overcome the barriers to reducing gas flaring by sharing global best practices and implementing region/country specific programs. GGFR´s main objective is to play a catalytic role to facilitate cooperation between public and private stakeholders in order to reduce routine gas flaring to minimum levels.
2) Who can become a GGFR partner?
Documentation under preparation for GGFR´s third phase indicates that partners may be governments, oil companies, and organizations directly involved in promoting and executing Gas Flaring reduction actions.
Non-traditional candidates that do not fit in one of the above categories can participate in GGFR as Associated Partners, but they do not have voting rights at the GGFR’s Steering Committee.
3) What is the procedure to become a member?
GGFR has signed agreements and procedures in place with Partners that contribute to the GGFR multi-donor Trust Fund for Phase 2 (2007-2009). We are currently finalizing agreements for Phase 3 (2010-12) that will include signed agreements with all Partners.
Ideally, a country’s national oil company and the Ministry of Energy (Hydrocarbons) or Environment in India should express a joint interest for joining GGFR, making it clear that gas flaring reduction or the utilization of associated gas plays a strategic role in the country’s energy matrix or environmental strategy.
The process is rather simple; you join the partnership by signing the trust fund agreement, between the interested party (public or private entity) and the World Bank (International Bank for Reconstruction and Development/IBRD).
4) Is there any pre-requisite to become a member?
The main pre-requisite is to express the commitment for flaring/venting reduction. It is also expected that Partners endorse GGFR’s global standard for flaring and venting, which translates into a commitment for reducing existing flaring, wherever it is economically feasible, and avoiding flaring/venting in new oil/gas developments.
5) What is expected from a GGFR partner?
Once the company and/or government become a partner, it will be expected that the company will develop an Associated Gas Recovery Plan, which should feed into a Country Implementation Plan for flaring reduction developed for the country between the government and other relevant stakeholders (NOCs, IOCs, power sector, gas distributors, etc).
6) Is there any fee for the membership?
Each country and/or company makes a flat contribution of US$390,000 either all at once or spread over the next three years (2010-2012). This funding commitment is made through an administration agreement (the “Administration Agreement”) entered into with the Bank.
The fee covers running costs of core team, consulting services, some pilot studies and projects, communication and outreach initiatives, etc.
A candidate from a country eligible for World Bank lending or a non-traditional candidate may request partial or full waiver of its funding commitment, and a candidate may also propose to provide part of its funding commitment through an in-kind or parallel contribution. These requests should be stated as part of the request for membership provided to the GGFR Program Manager and is subject to approval by the Steering Committee.
7) How long will the membership last?
GGFR is about to start a third phase in 2010 which will go until end of 2012. A further extension is also possible but will depend on the partners’ decision and needs.
8) What are the advantages of becoming a member?
The short and long term advantages include:
- Be part of a select group of countries/companies which are leading the global efforts to reduce associated gas flaring and venting, thus contributing to conserving a valuable energy source and mitigating impact of global warming on climate change
- Become a key player in associated gas utilization in your region, along with other leading international and national oil companies.
- Become part of the only public-private global partnership that is taking a proactive approach and role to reducing gas flaring worldwide.
- Support in implementing demonstration/pilot projects for associated gas utilization, and thus setting specific flaring reduction targets through increased collaboration between operators, the national oil company and the regulator.
- Support in seeking carbon finance, through GGFR’s knowledge and partners, and access to relevant expertise in development of methodologies for leveraging carbon credits as a way of increasing the economic feasibility of flaring reduction projects. GGFR is leading the formation of a working group on carbon finance.
9) What are some of the major results achieved by the GGFR partnership?
In just seven years since its creation, the GGFR partnership has already achieved some significant results, including.
- Eighteen major oil companies, the OPEC Secretariat and 16 countries that contribute a significant share of the world’s total flaring (about 50 percent) have already joined GGFR.
- The majority of partners have endorsed the Global Standard for gas flaring reduction
- Over the past seven years there has been a 20% reduction in gas flaring (30% in Intensity) worldwide, but particularly in GGFR partner countries.
- GGFR has implemented demonstration projects for associated gas utilization in eight countries.
- GGFR is assisting Algeria, Cameroon, Equatorial Guinea, Kazakhstan, Nigeria, and Qatar to meet identified dates for minimum flaring, through increased collaboration between operators, the national oil company and the regulator.
- GGFR is also making steady progress in the two major flaring countries in the world, Russia and Nigeria, through a series of actions.
10) Who are the GGFR members?
GGFR Partners around the World
Republic of Congo
Khanty-Mansiysk (Russian Federation)
United States of America
Kuwait Oil Company
European Bank for Reconstruction and Development (EBRD)
The World Bank