Technical Report

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Technical Report TECHNICAL REPORT April 22, 2018 Alberta Upstream Oil & Gas Methane 2019 Emissions Inventory and Methodology Prepared For: Alberta Energy Regulator Suite 1000, 250 – 5th Street SW Calgary, Alberta T2P 0R4 Prepared by: Clearstone Engineering Ltd. 700, 900-6th Avenue S.W. Calgary, AB, T2P 3K2 Contact: Yori Jamin, M.Sc., P.Eng. E-mail: [email protected] Website: www.clearstone.ca DISCLAIMER While reasonable effort has been made to ensure the accuracy, reliability and completeness of the information presented herein, this report is made available without any representation as to its use in any particular situation and on the strict understanding that each reader accepts full liability for the application of its contents, regardless of any fault or negligence of Clearstone Engineering Ltd. i EXECUTIVE SUMMARY This report presents a detailed inventory of 2018 methane emissions from the upstream oil and natural gas (UOG) sector in Alberta, and delineates the boundaries, methodologies and data sources used. The type and quality of emissions, activity and infrastructure data available for use in this emissions inventory has improved and enables a progressively more refined assessment compared to previous inventories for the UOG sector (ECCC, 2014). The updated inventory is intended for use by the Alberta Energy Regulator (AER) and its evaluation of methane emissions from the UOG sector. As such, inventory refinements and boundaries considered in this report focus on subsectors and activities contributing the most to UOG methane emissions. This effort may also inform Canada’s National Inventory Report submission to the UNFCCC Secretariat. Moreover, software tools developed by this project may be leveraged to establish a methane baseline (for 2012 and/or 2014 inventory years) and demonstrate achievement of provincially and federally stated methane reduction targets. This report is an extension of previous GHG inventories for the period of 1990 through 2011, which were published by the Canadian Association of Petroleum Producers (CAPP, 2005) and Environment and Climate Change Canada (ECCC, 2014). The key features of this inventory include the following: Application of a rigorous bottom-up (IPCC Tier 3) approach in which emissions have been identified at the individual facility and well level by type of primary source (e.g. fuel combustion, flaring, venting fugitive equipment leaks and accidental releases). Compliance with IPCC (2006) methodology and good practice guidance for assessing GHG emissions. Quantitative assessment of the uncertainties in all presented emission estimates using an IPCC Tier 1 methodology. Key refinement from the previous inventory model include: Semi-automated parsing of key AER input data streams that enable monthly calculation of the provincial inventory. Refined equipment, component and pneumatic counts and updated leak factors based on 2017 field observations (Clearstone, 2018). Delineation of batteries into individual upstream well sites that enables more comprehensive accounting emission sources. Delineation of emission subcategories that provides granularity relevant to AER Directive 060 methane mitigation requirements. Fugitive and venting subcategories now include: o Compressor Seals o Compressor Starts o Fugitive Equipment Leaks (contribution from detected leaks). o Fugitive Equipment Leaks (no-leak contribution) o Fugitives due to Ruptures o Fugitives due to Spills o Fugitives due to Well Gas Migration ii o Fugitives due to Well Surface Casing Vents o Glycol Dehydrator Off-Gas o Pneumatic Instruments o Pneumatic Pumps o Storage Tanks (Breathing Losses) o Storage Tanks (Flashing Losses) o Storage Tanks (Working Losses) o Truck Loading of High Vapour Pressure Products (NGLs) o Truck Loading of Low Vapour Pressure Products (Crude Oils) Scope Alberta UOG sector assets and operations are extensive. The inventory of 2018 emissions includes approximately 120,000 gas wellheads and 58,000 oil wellheads. There are 9,200 batteries producing gas into more than 3,500 gathering systems delivering to almost 550 gas plants. Oil is produced from more than 11,500 batteries that delivered to tank terminals. UOG facilities are inter-connected by tens of thousands of kilometers of pipeline which flow hydrocarbons from wells to batteries, plants and ultimately markets. The resulting 2018 inventory database contains more than 800,000 point sources. Industry Segments: The organization boundary identifies the facilities included and explicitly excluded from the inventory. Notionally, the Alberta UOG industry includes all surface facilities from the well through to the end consumer for the natural gas system (Figure ES1) and to the refinery gate for the crude oil system (Figure ES2). However, given the tremendous scope of the UOG industry and timeline expectations, software development has prioritized industry segments and emission categories contributing the most to overall UOG methane emission uncertainty. Thus inventory boundaries considered in this report include the following segments which are prioritized according their methane emission contribution: 1. natural gas production 2. light and medium oil production 3. cold heavy oil production 4. accidents and equipment failures 5. natural gas processing 6. thermal heavy oil production 7. disposal and waste treatment The following industry segments are excluded from the emission inventory because they are minor methane contributes or are accounted in other rigorous reporting programs. Facilities emitting greater than 100 kt CO2E per year are subject to the Carbon Competitiveness Incentive Regulation (CCIR formerly the Specified Gas Emitters Regulation) and report annually to Alberta Environment and Parks (AEP). Because CCIR emission report quality is assured by third party verification, there is limited value investing software development effort in these facilities. Instead, annual CCIR emission results should iii supersede preliminary NirCalc estimates1. Moreover, emissions from the natural gas transmission, storage and distribution sector are compiled annually and available from the Canadian Energy Partnership for Environmental Innovation (CEPEI) based on detailed inventories prepared by individual natural gas companies in this sector. 1. well drilling, testing and servicing 2. oil sands mining, extraction and upgrading 3. natural gas transmission, storage and distribution 4. petroleum liquids transportation The inventory explicitly excludes the following mid and downstream segments and activities: 5. Refineries, 6. Petrochemical plants, 7. Liquid fuel distribution and sales, 8. LNG plants, 9. Offshore facilities, and 10. Facility construction, decommission and reclamation activities. 11. Electric power generation.2 1 NirCalc determines air emissions for all facilities and wells that report volumetric data to Petrinex (including those excluded from the inventory). However, emissions from excluded sectors are not validated. 2 Natural gas fuel combusted at UOG facilities for the purpose of generating electricity for delivery to the power pool or for cogeneration at an in situ oil sands injection facilities is excluded. Subject emission contributions belong to the electric power sector and accounted under separate inventories. Fuel combusted for power generated and consumed at subject UOG facilities is included in the UOG inventory boundary. iv Power Generation for Grid Figure ES1: Upstream Natural Gas System and Inventory Boundary v Figure ES2: Upstream Crude Oil System and Inventory Boundary vi Substances: Emissions of methane (CH4) are reported in this inventory. Carbon dioxide (CO2), nitrous oxide (N2O), Criteria Air Contaminants (CAC) and other priority substances are also quantified, however, development effort focused on CH4 sources and validation of other substances was not sufficient for publication. Activities: Emissions from all facets of the target segments of the oil and natural gas industry are included in this report except for construction operation, ancillary structures and operations (buildings, offices, etc.) and mobile (licensed for road) sources. Timeframe: This report provides the results of a detailed ‘bottom-up’ inventory of emissions from the UOG sector for 2018. Emission Sources: The primary types of emission sources included in this report are: fuel combustion, flaring, formation CO2 releases, reported venting (vented volumes stated by production accounting), unreported venting (sum of all miscellaneous venting not normally reported by production accounting), fugitive equipment leaks, product storage and handling losses, and accidental releases. Methodology The aim has been to develop a complete and accurate assessment of the target emissions in a practicable and defensible manner that takes advantage of currently available information, provides sensible methods for bridging data gaps and quantifies uncertainties. Preplanning of the inventory, involvement of government and industry experts throughout the emissions inventory development and documentation of the applied methodology have provided a practical mechanism for ensuring transparency to stakeholders and interest groups, while promoting a constructive review process to help ensure a high-quality cost-effective product. The emissions inventory was developed using an IPCC Tier 3 bottom-up assessment methodology beginning at the individual facility, well and process unit level and aggregating the results to ultimately provide emission estimates by facility and geographic
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