Canal 1 Français Channel 2 English Канал 3 Русский

Transcription

1 Canal 1 Français Channel 2 English Канал 3 Русский

2 François Régis MOUTON World Bank GGFR Adviser

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

4 Global Gas Flaring Reduction: a Time for Action! Rashad KALDANY World Bank Group, Director Oil, Gas, Mining and Chemical Department

5 Canal 1 Français Channel 2 English Канал 3 Русский

6 Flaring and Gas Utilization in Kazakhstan: problems and solutions Nasipolla SULEIMENOV Head of the Committee on Environmental Monitoring of the Ministry of Environmental Protection, Republic of Kazakhstan

7 Canal 1 Français Channel 2 English Канал 3 Русский

8 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

9 Crude oil and associated gas production ( ) (mln tonnes and bcm) , ,1 379, tonnes/bcm 250 mln t ,9 42,6 48,5 54,9 56,

10 Breakdown of associated gas usage in Russia for ,9% 1,6% 9,8% 55,2% 26,5% Processed Flared Used for own needs Sold to consumers Losses

11 Associated gas utilization in Russian Federation ( ) 60 54,9 56, ,5 42, ,9 37,4 40,2 41,4 BCM 30 28,8 31, ,7 14,9 11,2 11,1 10 7, Production Flared Utilization

12 Associated gas production and flaring by companies in 2005 Companies Associated gas production Utilized Flared % % % Mln m³ Mln m³ Mln m³ JSC Surgutneftegas" 15416,8 27, ,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 1057,55 68,0 497,99 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 , ,5

13 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

14 Thank you for your attention!

15 Canal 1 Français Channel 2 English Канал 3 Русский

16 Gas flaring: The countries' experience and best practices James A. Slutz Deputy Assistant t Secretary for Oil and Natural Gas, U.S. Department of Energy Office of Fossil Energy Office of Oil and Natural Gas

17 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.

18 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

19 History of U.S. Production Discovery in 1859 Current Production: Third Largest Oil Producer Second Largest Gas Producer C t t f G Fl i E ti t Context for Gas Flaring Estimates in the U.S.

20 Current Oil and Natural Gas Production in the United States

21 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.

22 History of Conservation Regulation Gas System/Infrastructure Natural gas is delivered to customers through a safe, sound, 22-million 2.2 mile underground pipeline system that includes: 1.9 million miles of local utility distribution pipes (1.1 1 million miles of utility mains, plus 800,000 miles of utility service lines); and 300,000 miles of transmission lines. Gas Storage

23 A Vast Network of Pipelines Provides Interstate Transportation

24 Natural Gas Costs Around the World ($USIMMBTU) Updated mid-september 2005 Source: American Chemistry Council

25 Global LNG Facilities Source: ChevronTexaco (April, 2005)

26 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

27 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

28 International Programs World Bank Gas Flaring Reduction Initiative Methane To Markets Partnership Gas Star Asia Pacific Partnership

29 Canal 1 Français Channel 2 English Канал 3 Русский

30 Gas flaring: in the context of Sustainable Development Joanne DISANO United Nations' Director for Sustainable Development

31 Canal 1 Français Channel 2 English Канал 3 Русский

32 François Régis MOUTON World Bank GGFR Adviser

33 Canal 1 Français Channel 2 English Канал 3 Русский

34 Kristalina GEORGIEVA Director for Strategy & Network Operations, World Bank

35 Canal 1 Français Channel 2 English Канал 3 Русский

36 Gas Flaring: Energy Security and the Environment H.E. François LOOS Minister delegate for Industry, France

37 Canal 1 Français Channel 2 English Канал 3 Русский

38 Gas Flaring : the view from a Major IOC Christophe de MARGERIE President Exploration-Production, TOTAL

39 The Global gas picture : Gas resources are abundant Nevertheless, energy efficiency & conservation are real issues 6,340 Tcf p.a ,000 2,000 ~2, EIA ,0% p.a Proved reserves Demand + 1.8% p.a. Demand + 2.3% p.a. Proved Probable Undiscovered reserves reserves reserves Conventional gas Estimated resources Non Conventional 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

40 The Global gas picture : Gas is environment friendly Global power generation : 17,400 TWh* Nuclear 16% Hydro 16% Oil 7% Coal 41% Gas 20% CO2 emissions, kg per MWh Heavy Fuel 844 Coal (FBC) % Gas oil (diesel) 815 OCT (open cycle) 582 CCGT (combined cycle) % CHP (combined Heat & Power) 269 Source: IEA Source : IEA + DIDEME

41 The Global gas picture : Flaring is the most obvious and urgent issue to tackle Bcm p.a figures Reinjection Shrinkage : LPG & Condensates Recovery Flaring Upstream cns. Mid-Downstream cons Fertilizers + Methanol Gas Pipe LNG 3570 Bcm 2990 Bcm 2500 Bcm 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 sources : IEA -Cedigaz -GGFR -Total Flaring : a common issue for the Industry Wasted energy, Environment & Image

42 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

43 Flaring reduction Priority to Continuous Flaring reduction Split of 2005 flaring Total operated figures other type of flaring 36% ~2/3 is continuous flaring ~1/3 is due to Operational availability (unexpected shut downs ) Safety Start-up operations 64% continuous flaring

44 OFON field redevelopment Launched thanks to the alignment of all stakeholders Gas export 100 Mscfd Oil export 50 Mscfd 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 Ofon Phase 2 Project Expansion of the fields Installation of gas facilities No more flare Laying of gas export pipeline

45 Angola LNG mindset from a gas flaring concern to a gas valorization scheme Common Goal : ensure sustainable Arranging a stable gas supply of 1Bcfd oil developments & address gas flaring concerns through a gas valorization scheme phase II phase III 1-4 NAG Gas Caps Strong Commitment & fields blowdown Phase I : Alignment of all Stakeholders : LNG plant AG pipelines partnership Sonangol - Oil companies Bloc 0/14 Pooling of gas resources Soyo Legal & Commercial Framework 200 m suiting the project characteristics Kizomba C Strong partners to overcome NAG Kizomba A commercial and technical Kizomba B challenges Start-up : 2012 Block 2 GIRASSOL DALIA Greater Plutonio

46 Cameroon from 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 SNH Total Perenco Pecten Addax Euroil Eq. Guinea

47 New gas conversion technologies being developed might also be part of the solution GTL microtechnologies DME : another GTL option Aiming at efficiency improvement on : CO2 emissions Flexibility Safety Partnership with Velocys to develop an improved catalyst process 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 Direct Synthesis Process developed since 2001 by Total and a Japanese consortium New Technologiesmay help create new gas outlets for limited gas flows

48 Gas flaring reduction is a must but 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

49 Efforts are rewarding : Total operated flaring will continue to decrease despite rising operated production Total s operated fields Production Flaring 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 d & Support quite useful Total target : 50% Total target : -50% Beyond 2012 : Efforts are to be maintained and amplified if we want to keep reducing flaring

50 Partnering with Host Countries Beyond Gas Flaring reduction : Going Beyond Old Petroleum Practices Injury rate, Group and contractor employees TRIR* per million man hours worked West Africa typical deep-offshore rent sharing Local Communities Issues & Acceptance 15 Target : - 60% over 4 years $/boe 60 Net margin 10 5 Realization : - 59% Safety is key for the valuation of management performance New targets for 2009 Safety policy homogenously applied worldwide Contractors t safety managed as for Total s employees $ 60$ Host country Opex Capex 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 * TRIR : Total Recordable Injury Rate

51 Canal 1 Français Channel 2 English Канал 3 Русский

52 Sonatrach s Efforts to reduce flared associated gas Mohamed MEZIANE Chairman and Chief Executive Officer of Sonatrach

53 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

54 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

55 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 after

56 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 ggas for utilities Constructing a gas transport network to monetise gas

57 Policy to reduction associated gases flaring, the significant results Many yprojects 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 est e t o o US$ e e a ocated o t e reduction of flared gases projects are registered with the PMT

58 Flared Associated Gas Produced gas Flared gas Recovered gas Produced & flared associated gas Billion CM Produced gas Flared gas Recovered gas

59 Flared Associated Gas Produced & flared associated gas Produced gas Flared gas Recovered gas Billion CM Produced gas Flared gas Recovered gas

60 Rate of Flared Associated Gas % 90% 1970 : 80 % Flaring & recovering rates of associated gas % 80% 70% 60% 50% % Flared gas % Recovered gas 40% 30% 20% 10% 0% 2005 : 7 % % 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% 7%

61 Flaring gas reduction Objective 0% in % 30% 33% 31% 29% 25% 23% 20% 20% 17% 15% 10% 13% 13% 11% 9% 7% 5% 0%

62 Associated gases Production and flaring, Comparison between 1970 and Gaz associé produit gaz associé récupéré 41,32 38, Gaz associé torché Billio on CM ,50 7,46 5 2,04 3,

63 Flaring gas reduction, a reality 24th September th march 2002 Tunisia Tunisia Algeria Algeria

64 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)

65 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

66 Sonatrach, an important gas player in the in the African area Trans-African gas pipeline (TSGP) Nigeria - Algeria Europe 25 billions of m3 From Warri (Nigeria) to Algerian Mediterranean coast Diameter: 56 Length : 4400 km Trajectory : Nigeria-Niger-Algeria- Europe Nigeria: i 1000 Km Niger: 800 Km Algeria: 2600 Km

67 Sonatrach Participation in the GGFR

68 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

69 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 ti 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

70 Evaluation study for the utilisation of associated flared gas in Algeria Ohanet TFT In-Aménas the study explored different options to recover flared associated ated 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

71 Conclusion Sonatrach commits itself to continue participating in the GGFR activities. iti Sonatrach will sustain its efforts to eliminate gas flaring by 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.

72 Thank you for your attention Sonatrach Djenane El Malik Hydra Algiers- Algeria Tel. : / Fax : sonatrach@sonatrach.dz

73 Canal 1 Français Channel 2 English Канал 3 Русский