Fugitive Emissions Management Program (FEMP) Effectiveness Assessment Study. March 14 th, 2018

Transcription

1 Fugitive Emissions Management Program (FEMP) Effectiveness Assessment Study April 4, 2018 March 14 th, 2018 Sean Hiebert

2 Agenda Canada s Methane Emissions DRAFT Methane Regulations (Federal & Provincial) Fugitive Emissions Regulatory Details Study Overview The Big Gaps

3 Canada s Methane Emissions Methane has a GWP of 25 times greater than CO2 (100-yr) Canada s Methane Emissions (2012) 110Mt CO2e 15% of Canada s 2012 greenhouse gas (GHG) emissions were Methane (~110 Mt CO2e) 44% of Canada s 2012 Methane emissions were from the Oil & Gas sector (~48 Mt CO2e) Source: National Inventory Report

4 DRAFT Federal Methane Regulations The following O&G segments will be subject to the proposed regulations: Natural Gas Production & Processing Oil Production Transmission Some Oil Sands The following segments will be exempt from the proposed regulations: Distribution Refining Some Oil Sands Transmission 5% Refining Distribution 2% 2% Canada s Oil and Gas Sector Methane Emissions (2012) Oil Sands 9% Oil Production 43% Natural Gas Production and Processing 39% Source: National Inventory Report

5 DRAFT Federal Methane Regulations Aligns with the key objective of reducing 40-45% methane emissions prior to 2025 (relative to 2012 levels) Consists of prescriptive corrective actions associated with the following 5 key source types Equipment Leaks (Unintentional, Fugitive Emissions) Site Venting (Intentional) Gas Pneumatic Devices Compressor Packing/Seal Venting Well Completions (Hydraulic Fracturing Flow-back ) Written under the Canadian Environmental Protection Act (CEPA, 1999)

6 Fugitive Emissions Reg. Details DRAFT Federal Methane Regulations 2012 NPRI states that ~34% of Oil & Gas Methane Emissions are from Fugitive Emissions DRAFT Requirements In-force Date: 2020 Coverage: Larger facilities (facilities receiving at least 60,000 m3 of hydrocarbon gas per year) Frequency of Inspection: 3 times/yr Inspection Methods: OGI cameras, sniffers (M21), and equivalent alternative leak detection methods and instruments Timelines for Repair: Within 30 days or next shutdown (exceptions by permit) Exemptions: Single wellheads w/ metering, pipeline risers, components that are unsafe to inspect Stringency & design details based on best available FEMP effectiveness data

7 Fugitive Emissions Reg. Details To put this into perspective Total expected cost impact: ~$1.2B ( ) Total expected GHG reductions: ~3.5 Mt CO2e **At an approximate GHG abatement cost of ~$350/tCO2e, this begs at the need to find smarter, more cost-effective ways to find/repair fugitive emissions from our industrial sector!!!

8 DRAFT Provincial Methane Regulations Although the regulatory approach and details are still be finalized, the provincial regulations will achieve the same outcome 45% methane emission reductions prior to 2025 (from 2014 baseline) Will most likely be designed to assess & implement improved practices and abatement at the same methane emission source types, including Equipment Leaks (Unintentional, Fugitive Emissions) Luckily, we have just kicked-off a multi-stakeholder PTAC study which has been designed to identify outstanding knowledge & technology gaps, seeks to understand what factors influence FEMP effectiveness, as we work towards developing a Smart, Cost-effective Canadian FEMP Approach!

9 Study Overview Project funded by the Alberta Upstream Petroleum Research Fund (AUPRF), $300k estimated cost for phases 1 & 2 Multi-stakeholder Project Steering Team Regulators (AER & BC OGC) Provincial (AB, BC, SK) & Federal Government (ECCC) Industry Phase 1 Project Teams Cap-Op Energy / DXD Consulting / Stanford University / Davis Safety Consulting Clearstone Engineering / Carleton University / GreenPath Energy **Two independent teams

10 Study Overview Phase 1: Literature Review, Data Analysis, and Field Study Design Global literature review (historical & current practices/data) Summary of Findings Analysis of Data Outstanding Gap Identification & Importance Assessment Field Study Recommendations Report Phase 1 Completion May 2018 Phase 2: Field Study, Data Analysis, and Report Field Study Design Finalization Field Study Execution & Data Collection/Analysis (Multi-year?) Peer-reviewed Field Study Report Publication Phase 2 Completion March 2019 Phase 3+: Pending (and probable)

11 The Big Gaps (from recent Methane Roadmap Sessions) Where do leaks occur, what causes leaks and how do we prevent leaks from occurring (best operations/maintenance practices)? Do small leaks turn into large leaks (if undetected/unrepaired)? How frequently do LDAR survey s need to be completed, in order to cost-effectively manage to the regulatory required levels? 3 times per year? Does the frequency differ for each facility/source type, vintage, geographical area, etc.? How can super-emitter leaks be rapidly detected and mitigated? What equivalent alternative leak detection technologies and methods exist (or are emerging)? How can we implement cost-effectively? (and regulatory accepted/approved)

12 For more information, please contact: PTAC Petroleum Technology Alliance Canada 4th Floor, 500 Fifth Avenue SW Calgary, Alberta T2P 3L5 Website - Active Projects - Completed Projects - Sean Hiebert, CET, P.Eng. Staff, Emissions Management Engineer Cenovus Energy Inc. Phone: (403) Cell: (403) Sean.Hiebert@cenovus.com