80027 The News Flare Issue No. 14 September 2012 - June 2013 Top News Flared GGFR Kicks off Fourth Phase, Aims to Scale in This Issue up Flaring Reduction • GGFR Global Forum 2012 - Photographs of the T he World Bank-led Global Gas Flaring Reduction partnership recently marked its 10th anniversary at a major event hosted need to sustain, and even scale up, the flaring reduction efforts to make further progress on gas utilization in the next few years. Award Winners in Gas by the European Bank for Reconstruction and Flaring Reduction Need to scale up Development in London. At GGFR’s Global Forum there was ample In this context, GGFR partners agreed to scale • Russia: KMAO and GGFR up flaring reduction efforts in the next three consensus on the importance of facilitating the Sign Agreement for years with a more holistic approach along the opportunities to avoid the waste of a valuable Advisory Services energy source like natural gas. This was the gas value chain, both upstream and down- common message from various stakeholders: stream. This involves developing effective from the Minister of Hydrocarbons of the Re- domestic gas markets and prices, harnessing • Alberta: Indonesians public of Congo, André Loemba, to the CEOs viable technologies, and fostering partnerships Participate in Regulatory with multiple actors across various industries, Workshop of various oil companies, to the President of the EBRD, Sir Suma Chakrabarti, just to name such as power and petrochemicals. a few. Supporting flaring reduction is also one of the • Iraq: GGFR Launches commitments of the World Bank, as well as of Study on Gas Pricing Over the past decade, GGFR has facilitated critical dialogue between industry and govern- other GGFR partners, under the UN’s Sustain- Mechanisms able Energy for All initiative. Accelerating the ments around the world to foster much needed collaboration on policy challenges and on utilization of associated gas makes concrete specific project implementation. contributions toward reducing GHG emis- sions, improving efficiency, and increasing These efforts are starting to pay off. In the past access to cleaner electricity and cooking fuels. six years, flaring of gas has dropped world- wide: from 172 billion cubic meters in 2005 to In a world where some 1.3 billion people do 140 bcm in 2011, according to latest data from not have access to electricity, and 2.7 billion satellite estimates. still depend on wood, charcoal, dung, or coal to cook meals and heat their homes, the energy The decrease of almost 20% in global flaring needs are enormous. has prevented more than 270 million tons of CO2 emissions equivalent, roughly the same In London, the World Bank challenged all oil as taking some 52 million cars off the road. producers from around the world, companies and countries, to further cut flaring by 30 per Although this is important progress, some 140 cent in the next five years. This would reduce bcm of natural gas are still flared around the flaring from 140 bcm in 2011 to 100 bcm by world, and the global downward trend in flar- end of 2017, preventing millions of CO2 emis- ing could be reversed for a number of reasons, sions equivalent to taking 60 million cars off including an increase in oil production in the road. several countries such as Brazil, Iraq, and the United States of America. This aspirational target is based on a shared responsibility between all major stakeholders, The 2011 satellite data, released by GGFR, particularly governments and industry, but also already show a slight increase of 2 bcm in financiers and technology providers. GGFR global flaring volumes, comparing to the partners will put its best efforts in contributing previous year. The situation points to a crucial towards meeting the new challenge. This newsletter is prepared by the GGFR core team in Washington, DC. Any comments, suggestions or contributions from any of the GGFR partners are very welcome and should be sent to Mauricio Rios at: mrios@worldbank.org Gas Flaring Reduction Forum - 2012 T he GGFR initiative recently celebrated 10 years of public-private partnership. Stakeholders from all over the world met in London on October 24-25 to take stock, celebrate successes, and share best practices to minimize gas flaring. Here is a selection of photographs that capture the event and the subsequent flaring reduction awards ceremony. AWARD CATEGORIES Government awards • Khanti Mansyisk • Gabon • Congo National Oil Company Projects • Pemex • Petroamazonas • SOCAR • Uzbekneftegas • Sonatrach • Rosneft • Ghana Gas National Oil Company Programs • Saudi Aramco • KOC (Surgutneftegas) International Oil Companies/ Joint Ventures • TengizChevroil • Maersk/QP • Qatargas • “Ugragazpererabotka� (TNK-BP and SIBUR) Others • Rostechexpertise • Monolit S ince 2005, the reduction in gas flaring has avoided 270 million tons of greenhouse gas emissions. Page 2 Issue No. 14. September 2012 - June 2013 A ccelerating the utilization of associated gas makes concrete contributions toward reducing GHG emissions, improving efficiency, and Bent Svensson, Manager, S. Vijay Iyer, Director, GGFR, World Bank Energy Dept. World Bank increasing access to cleaner electricity and cooking fuels. Issue No. 14. September 2012 - June 2013 Page 3 Briefly Vented Russia: KMAO and GGFR Sign Agreement for Advisory projects and their respective economic assessment; recommendations Services on the application of gas to liquid technologies; and the assistance with the establishment of a public-private partnership which will Within the framework of this RAS Agreement, signed last Decem- prepare and implement gas flaring reduction projects in this Russian ber, various technical assistance activities are planned, including: the region. The RAS agreement was based on a Memorandum of Under- analysis of existing barriers to the efficient utilization of currently standing signed in 2011 to further cooperation between the Bank and flared associated petroleum gas; the improvement of data on gas flar- KMAO. ing volumes; the identification of potential associated gas utilization Alberta: Indonesians Participate in Regulatory Workshop and vent management in the Canadian oil-producing provinces of Al- berta and Newfoundland. The event provided opportunities to discuss GGFR and Alberta’s Energy Resources Conservation Board (ERCB) specific regulatory approaches and challenges as well as to visit oil joined forces to conduct a three-day regulatory workshop in Septem- and gas production and processing facilities in Alberta. ber for Indonesian government representatives. The workshop, held at ERCB premises in Calgary, focused on regulatory practices in flare Iraq: GGFR Launches Study on Gas Pricing Mechanisms and this production will ramp up with the forthcoming increase in oil production. Most of this gas, however, is currently flared despite GGFR has launched a study on Gas Pricing Mechanisms for Iraq. the huge needs of fuel for power generation and other industries. The The objectives are to provide the Ministry of Oil with a benchmark lack of regulations and weak institutions are identified as key factors of international practices on gas pricing mechanisms and also on gas leading to this situation. institutions and regulations, including recommendations on these topics. Natural gas is seen as the fuel of choice for Iraq’s reconstruc- tion and development. Iraq produces large volumes of associated gas, For more information, visit: www.worldbank.org/ggfr Partners Algeria (Sonatrach), Azerbaijan, Cameroon, France, Gabon, Indonesia, Kazakhstan, Khanty-Mansiysk, Yamal-Nenets (Russia), Kuwait Mexico (Sener), Nigeria, Norway, Qatar, United States, BP, Chevron, ConocoPhillips, Eni, ExxonMobil, Pemex, Shell, Statoil, Total, European Union, European Bank for Reconstruction and Development (EBRD), World Bank Group, Associated Partner: Wärtsilä Page 4 Issue No. 14. September 2012 - June 2013