Reaching Methane Reduction targets in Canada Are we really? April 5, 2018

Transcription

1 Reaching Methane Reduction targets in Canada Are we really? April 5, 2018

2 Methane Emission Reductions in Canada Some history on the proposed Regulation. How Canada has committed to reducing methane emissions over the next several years. Methane emissions quantification and reporting. Status of the proposed Regulation. 2

3 Global Commitments United Nations Framework Convention on Climate Change was introduced March countries ratified the Convention and are called the Parties to the Convention. stabilization of greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous anthropogenic interference with the climate system Kyoto Protocol December adopted in 1997 and in force in 2005 Commits Parties by setting internationally binding GHG emission reduction targets Under the Protocol, countries' actual emissions have to be monitored and precise records have to be kept of the trades carried out. 3

4 Global Commitments Paris Agreement 2016 aim to strengthen the global response to the threat of climate change by keeping global temperature rise this century well below 1.5 degrees Celsius above pre-industrial levels As of April 1, of 197 Parties have ratified the Convention. 4

5 Canada s Commitments In March 2016 Canada-U.S. Joint Statement on Climate, Energy and Arctic Leadership, leaders commit to: reduce methane emissions from the Oil & Gas sector by 40-45% by 2025 relative to 2012 levels and explore new opportunities for additional methane reductions. Canada commits that ECC will regulate methane emissions from new and existing oil and gas sources and put in place regulations and publish an initial phase of proposed regulations by In December 2016, the Pan-Canadian Framework on Clean Growth and Climate Change was adopted Aims to reduce emissions, build resilience to a changing climate and enable clean economic growth across all sectors of the Canadian economy. reiterates Canada s commitment to reduce methane emissions from the Oil & Gas sector by 40-45% by

6 6 Canadian GHG Emissions to UNFCCC

7 Canadian GHG Emissions to UNFCCC 28% reduction from 722 Mt 7

8 Methane Emissions Source: 8

9 9 Methane Emissions

10 ECCC Proposal Regulatory Coverage Proposed Regulation to cover: Natural Gas production and processing Oil Production Transmission But not Distribution Refining Some oil sands emissions 10

11 Environment and Climate Change Canada (ECCC) Proposed Regulations Environment and Climate Change Canada (ECCC) proposed Methane emission limits at the facility and equipment level in the Regulations Respecting Reduction in the Release of Methane and Certain Volatile Organic Compounds (Upstream Oil and Gas Sector) in five key areas: 1. Fugitive emissions: equipment leaks 2. Facility Production Venting 3. Pneumatic devices (pumps and controllers) 4. Compressors 5. Well completions by hydraulic fracturing

12 Methane Emissions from Five Key Areas Well Completions 1% Compressor Emissions 9% Other 13% Fugitives 34% Pneumatic Emissions 20%20 General Venting 23% Source: Proposed methane regulations: A significant step in addressing climate change in Canada, ECCC, June 2017

13 1. Fugitive Equipment Leaks Key Methane Emission Source Fugitive Equipment Leaks Proposed Requirement Coverage Proposed Flexibility Proposed Date of Implementation Implementation of a Leak Detection and Repair (LDAR) program to detect and repair gas leaks Inspections three times per year Corrective action within 30 days for onshore facilities and within 365 days for offshore facilities Larger Facilities Scheduling of shutdown so that the emissions from the repair do not exceed the emissions from the leak Exclusion of single well-heads. January 1,

14 2. Facility Production Venting Key Methane Emission Source Facility Production Venting Proposed Requirement Coverage Proposed Flexibility Proposed Date of Implementation Limit of 250 m 3 per month (3,000 m 3 per year) Conservation or flaring / clean incineration of natural gas Larger Facilities Permission to vent in case of an emergency January 1,

15 3. Pneumatic Devices Key Methane Emission Source Proposed Requirement Coverage Proposed Flexibility Proposed Date of Implementation Pneumatic Devices Non-emitting pneumatic controllers for larger facilities; low emitting pneumatic controllers for smaller facilities Non-emitting pneumatic pumps for larger pump rates Switch to non- or low-emitting pneumatic controllers Switch to non-emitting pneumatic pumps Larger Facilities and larger pumping rates Pneumatic controllers: exemptions possible for operational needs Pumps: exemption permits possible if no feasible non-emitting technology Both: exemption where emissions are conserved or destroyed January 1,

16 4. Well Completions - Hydraulic Fracturing Key Methane Emission Source Well Completions by Hydraulic Fracturing Proposed Requirement Coverage Proposed Flexibility Proposed Date of Implementation No venting Conservation or flaring / clean incineration of natural gas Fractured wells with high gas-to-oil rations Exemption for well completions in Alberta and British Columbia January 1,

17 5. Compressors Key Methane Emission Source Proposed Requirement Coverage Proposed Flexibility Proposed Date of Implementation Compressors Annual measurements of compressor vents Corrective action within 30 or 90 days based on compressor type All existing compressors at oil and gas facilities must meet emissions limit and all new compressors must conserve emissions No measurement where emissions are conserved or destroyed January 1,

18 Estimate Costs to Comply Source: Environment Canada 18

19 Current Provincial Regulations - Methane British Columbia Flaring and Venting Reduction Guideline flaring, incineration and venting of natural gas at well sites, facilities and pipelines Alberta Directive 060 requirements for incineration and venting at all petroleum wells and facilities. This regulation does not include pneumatics and pumps. Saskatchewan Directive S-10 has requirements for the reduction of flaring and venting of gas from oil wells, processing plants and wells that vent, flare or incinerate gas. S-20 provides performance requirements for flaring and incineration. 19

20 Let s do the math are we really Current estimations 722 Mt of CO 2 e annually in Canada 102 Mt of that CO 2 e is methane 48 Mt of that CO 2 e (methane) is from Oil and Gas activities We are aiming for 21 Mt reduction in CO 2 e by implementing the 5 strategies. Leaks 16 Mt? Venting 11 Mt? Pneumatics 10 Mt? Compressors 4 Mt? Completions 0.5 Mt? 20

21 Canada s Methane Commitments Anticipated Benefits and Costs These emission reductions would contribute to meeting Canada s international obligations. It is expected that the proposed regulations would lead to a 21 megatonne (Mt) reduction in methane emissions in 2025, a reduction of 41 percent below 2012 levels, falling in the range of a percent reduction as committed in March The total compliance costs attributable to the proposed regulations are estimated to be $3.3 billion over an 18-year period. These compliance costs would be offset, in part, by the recovery of 663 PJ of natural gas with a market value of $1.6 billion. Saskatchewan has not yet adopted the Pan-Canadian Framework 21

22 Where will that put us globally? 102 Mt CO 2 e of methane was emitted in Canada in Mt CO 2 e of that was from Oil and Gas If we reduce that by 40-45% in 2025, it would be a reduction of 21 Mt of CO 2 e or 0.27% of global anthropogenic methane emissions. 22

23 23 Thank you!