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Reducing Gas Flaring in Arab Countries a Sustainable Development Necessity

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Reducing Gas Flaring in Arab Countries a Sustainable Development Necessity Reducing Gas Flaring in Arab Countries A Sustainable Development Necessity Shared Prosperity Dignified Life VISION ESCWA, an innovative catalyst for a stable, just and flourishing Arab region MISSION Committed to the 2030 Agenda, ESCWA’s passionate team produces innovative knowledge, fosters regional consensus and delivers transformational policy advice. Together, we work for a sustainable future for all. E/ESCWA/SDPD/2019/TP.9 Economic and Social Commission for Western Asia Reducing Gas Flaring in Arab Countries A Sustainable Development Necessity United Nations Beirut © 2019 United Nations All rights reserved worldwide Photocopies and reproductions of excerpts are allowed with proper credits. All queries on rights and licenses, including subsidiary rights, should be addressed to the United Nations Economic and Social Commission for Western Asia (ESCWA), e-mail: [email protected]. The findings, interpretations and conclusions expressed in this publication are those of the authors and do not necessarily reflect the views of the United Nations or its officials or Member States. The designations employed and the presentation of material in this publication do not imply the expression of any opinion whatsoever on the part of the United Nations concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries. Links contained in this publication are provided for the convenience of the reader and are correct at the time of issue. The United Nations takes no responsibility for the continued accuracy of that information or for the content of any external website. References have, wherever possible, been verified. Mention of commercial names and products does not imply the endorsement of the United Nations. References to dollars ($) are to United States dollars, unless otherwise stated. Symbols of United Nations documents are composed of capital letters combined with figures. Mention of such a symbol indicates a reference to a United Nations document. United Nations publication issued by ESCWA, United Nations House, Riad El Solh Square, P.O. Box: 11-8575, Beirut, Lebanon. Website: www.unescwa.org. Cover photo credit: © iStock.com/Lanolan iii Contents Introduction 1 Chapter 1. Reducing Gas Flaring in the Context of Climate Action and Sustainable Development 3 A. The Arab region and energy vulnerability 3 B. Gas flaring reduction and SDG linkages 3 2. Overview of the Gas Flaring Situation in the Arab Region 5 A. Background 5 B. Gas flaring levels 5 C. NDC flaring reduction targets 8 D. Gas flaring regulation in Arab countries 8 3. Identifying Challenges 11 A. Multifaceted challenges 11 B. Technical and operational challenges 11 C. Policy and regulatory challenges 12 D. Economic and financial challenges 12 E. Conflicts and political instability 13 4. Gas Flaring Reduction Experiences in Arab Countries 14 A. Common objective 14 B. Saudi Arabia 14 C. Qatar 15 D. Kuwait 15 E. Algeria 16 F. Oman 16 5. Other Gas Flaring Reduction Initiatives and Programmes 17 A. Same issues and challenges 17 B. Canada (Alberta) 17 C. Nigeria 17 6. Gas Monetization Opportunities 19 A. Different conditions and options 19 B. Gas reinjection and gas lift 19 C. Grid and off-grid power applications 19 D. Compressed natural gas 20 E. Mini liquefied natural gas 20 F. Mini gas-to-liquids (GTL) 21 G. Mini gas-based alternatives 21 H. Marketing of liquid petroleum gases 21 I. Injection into the gas transportation network 21 iv 7. Conclusions and Recommendations 23 A. Conclusions 23 B. Recommendations 24 Endnotes 25 List of tables Table 1. Gas flaring mitigation and SDG linkages 4 Table 2. NDC gas flaring mitigation targets and zero-routine flaring in the Arab region 7 Table 3. Gas flaring regulation in Arab countries 8 List of figures Figure 1. Gas flaring in Arab countries (bcm), 2014-2018 6 Figure 2. Gas flaring as a percentage of 2018 gas consumption 6 Introduction For decades, the flaring of gas associated submitted (as of 2018) under the Kyoto with crude oil production was considered Protocol. 4 Furthermore, in some countries, gas unavoidable. National and international oil and flaring remains a key environmental issue to gas companies attempted to reduce this wasteful mitigate. Apart from its adverse climate change and environmentally harmful burning of an impact, flaring affects a wide range of exhaustible natural resource, but to no avail, sustainable development aspects. except in a limited number of producing areas. Within the framework of the 2030 Agenda for Following the adoption in December 1997 of Sustainable Development, associated gas the Kyoto Protocol to the United Nations flaring has an impact on the following Framework Convention on Climate Change Sustainable Development Goals (SDGs):5 (UNFCCC), which commits its parties to internationally binding emission reduction • SDG 3 on good health and wellbeing; targets,1 the need to address associated gas • SDG 7 on energy; flaring became apparent. At the World Summit • SDG 8 on decent work and economic on Sustainable Development, held in growth; Johannesburg in August 2002, the World Bank- • SDG 9 on industry, innovation and led Global Gas Flaring Reduction (GGFR) public- infrastructure; private partnership was created.2 The main • SDG 11 on sustainable cities and objective of the GGFR partnership, comprising communities; Governments, oil and gas companies and • SDG 12 on responsible consumption and multilateral development institutions, is to raise production; awareness globally about the adverse impact of • SDG 13 on climate action; flaring, and to support Governments and the • SDG 14 on life below water; petroleum industry in reducing associated • SDG 15 on life on land. gas flaring. Focusing on the Arab region, nine Arab According to GGFR, an average of 145 billion countries are within the top 30 gas flaring cubic meters (bcm) of gas has been flared countries worldwide. These Arab hydrocarbon annually over the last five years (2014-2018), producers accounted for about 30 per cent of resulting in over 350 million tons of carbon associated gas flared globally in 2018. However, dioxide equivalent emissions per year.3 This levels of gas flaring vary considerably among represents a small percentage of total emissions Arab countries. The volumes of associated gas produced from burning fossil fuels globally, but flared by some producers remain relatively it is equivalent to almost all the potential yearly high. This is extremely critical given that the emission reduction projects from projects Middle East and North Africa (MENA) region is 2 expected to have one of the highest gas reduction in them, and make recommendations demand growth rates worldwide, with some on key aspects to address, reduce and countries already suffering from a rising gas eventually eliminate associated gas flaring supply deficit. Moreover, the MENA region is in Arab countries. It also outlines linkages expected to be one of the regions that will be between associated gas flaring and the most affected by climate change. SDGs. Moreover, it sets out how flaring mitigation and compliance efforts are The present paper reviews the gas flaring reported (or not) and progressing, especially situation in Arab countries, identify the with respect to nationally determined challenges and opportunities of gas flaring contributions (NDCs). 3 1. Reducing Gas Flaring in the Context of Climate Action and Sustainable Development A. The Arab region and energy of the region’s energy vulnerability, it is clear, vulnerability that Arab countries, especially hydrocarbon producing countries, will continue to rely Identifying the linkages between gas flaring and heavily on fossil fuels. However, they will need the SDGs requires an overview of the Arab to consistently improve the way they use these region’s energy situation, and more specifically natural resources to minimize their impact on its energy vulnerability. This vulnerability, which their environment. The reduction and eventual is the theme of a recent ESCWA study, is elimination of gas flaring in Arab countries is defined as: the absence of adequate safeguards one of many measures to address the region’s to ensure that a country’s energy demand and energy vulnerability. supply patterns are sustainable, to support socioeconomic growth and development in the long run.6 B. Gas flaring reduction and SDG linkages The study highlights the Arab region’s high reliance on fossil fuels, making it the second The benefits of reducing and eventually fastest growing regional source of greenhouse eliminating all gas flaring are largely linked to gas emissions. Despite its relatively small total SDG 13 on climate action. However, in reality, emission level compared with industrialized the benefits are associated with several SDGs, economies, the Arab region’s carbon footprint is as mapped out in table 1. rising rapidly. This is increasingly worrying for Arab countries, which are facing significant risks One common aspect of gas flaring mitigation from climate change. Several areas of the Arab under some of the SDGs is how local region are already suffering from an increasing communities are affected by it. In some Arab wave of extreme weather conditions.7 hydrocarbon producing countries, gas flaring occurs in remote desert areas far from human There is therefore a need to reiterate calls for a settlements, but this is not the case for all Arab rethink of energy supply and demand patterns producers. Furthermore, gas flaring affects not in the Arab region. Focusing on the supply side only human beings, but the whole ecosystem. 4 Table 1. Gas flaring mitigation and SDG linkages Sustainable Development Goal Gas flaring mitigation impact SDG 3: Good health and wellbeing Gas flaring has been proven to affect the health and wellbeing of communities located near flaring sites, so flaring mitigation will meet SDG 3. SDG 7: Affordable and clean energy The recovery of flared gas and its use as a cleaner fuel (compared with other polluting fuels) to generate electricity will ensure or improve access to energy, especially for local communities and/or regions not linked to an electrical grid.
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