Wasted Gas: As Global Supplies Tighten, Here’s 210 bcm of Natural Gas for the Taking – IEA Report

Wednesday, June 15, 2022

A new report from the International Energy Agency (IEA) estimates that if there was a concerted, global effort to eliminate unnecessary flaring and control leaks across the supply chain, nearly 210 billion cubic meters (bcm) of natural gas could be made available to gas markets.

Russia’s war with Ukraine has sent energy prices soaring as a broad swath of sanctions has effectively re-routed Russian oil and gas exports.  The recent report from IEA – “The energy security case for tackling gas flaring and methane leaks” –  contends that “substantial gas resources currently are being produced (but) are lost to flaring and leaks across the oil and gas supply chain,” and that if countries that currently export natural gas to the European Union were to implement these two measures, they could increase gas exports by more than 45 bcm using existing infrastructure, equivalent to almost one third of Russian gas exports to the EU in 2021.

According to the report, more than 260 bcm of natural gas was flared, vented or lost in leaks in 2021, with more than 140 bcm of natural gas flared and another 125 bcm vented or leaked to the atmosphere from oil and gas operations. With the level of waste accentuated by current tightness in the market, IEA estimates “that it is technically possible to avoid over 70% of today’s methane emissions and 90% of flaring from global oil and gas operations, pointing out that more than 54% of all flared volumes are within 20 km of an existing gas pipeline.

The fixes proposed in the report offer not only a compelling business case, but an environmental one too. According to the report, with 2022’s high gas prices, abatement would generate revenues of about $90 billion. In addition, the reduction of wasted gas in the atmosphere could have a positive impact on global temperature rise.

Source: “The energy security case for tackling gas flaring and methane leaks”; International Energy Agency

Categories: Energy Offshore Energy Production Oil and Gas

Related Stories

One Shelf Drilling Rig Up for New Job in India, Other for Disposal

PTTEP Hires Velesto’s Jack-Up Rig for Drilling Campaign off Malaysia

Centrica and Thailand’s PTT Ink Long-Term LNG Supply Deal

Japanese Oil and Gas Firm Enters Two Blocks off Malaysia

Woodside Agrees Long-Term LNG Supply with Petronas Unit

MODEC and Terra Drone Renew FPSO Drone Inspection Partnership

Fugro Expands Geotechnical Testing Capabilities in Indonesia

CNOOC Starts Production at Offshore Field in South China Sea

CNOOC Puts Into Production New Oil Field in South China Sea

Woodside to Shed Some Trinidad and Tobago Assets for $206M

Current News

One Shelf Drilling Rig Up for New Job in India, Other for Disposal

Four Jack-Up Drilling Rig Deals Set to Bring In $129M for Borr Drilling

PTTEP Hires Velesto’s Jack-Up Rig for Drilling Campaign off Malaysia

Yinson Production Secures $1.17B Refinancing for FPSO Maria Quitéria

Centrica and Thailand’s PTT Ink Long-Term LNG Supply Deal

Petrovietnam, Partners Sign PSC for Block Off Vietnam

Japan Protests China’s New Oil and Gas Construction Activities in East China Sea

CNOOC Signs Hydrocarbons Exploration and Production Deal with Kazakhstan

Thailand's PTT to Buy LNG from Glenfarne's Alaska LNG Project

Woodside and Jera Agree LNG Cargoes Supply for Japan’s Winter Period

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com