EPA Natural Gas STAR Program Accomplishments m Introduction Established in 1993, the Natural Gas STAR Program is a flexible, voluntary partnership that encourages oil and natural gas companies—both domestically and internationally—to adopt proven, cost-effective technologies and practices that improve operational efficiency and reduce methane emissions. Given that methane is the primary component of natural gas and is a potent greenhouse gas—23 times more powerful than carbon dioxide (C02) in trapping heat in the atmosphere over a 100-year period—reducing methane emissions can result in environmental, economic, and operational benefits. Natural Gas STAR industry partners have operations in all of the major industry sectors—production, gathering and processing, transmission, and distribution—and represent 60 percent of the natural gas industry in the United States, including 18 of the top 25 natural gas production companies. Also, with the launch of Natural Gas STAR International in 2006, the Program expanded to include companies world- wide, significantly increasing opportunities to reduce methane emissions from oil and natural gas operations. Today, the Program has more than 130 partner compa- nies (12 of which are international partners) and is endorsed by 20 major industry trade associations. This document highlights the methane emissions reductions Natural Gas STAR partners have achieved to date under this important voluntary partnership program. It also highlights a variety of technologies and practices implemented by partners to reduce methane emissions. The following diagram shows some of the top methane emission reduction opportunities for each sector. NaturalGas(\ EPA POLLUTION PREVENTER * Oil Production • Install VRUs on crude oil storage tanks • Route casinghead gas to VRU or compressor for recovery & use or sale Gas Production & Processing • Perform reduced emissions completions • Install plunger lifts • Aerial leak detection using laser and/or infrared technology • Eliminate unnecessary equipment and/or systems Gas Storage • Convert gas pneumatic controls to instrument air • Replace bi-directional orifice metering with ultrasonic meters • Reduce methane emissions from compressor rod packing systems Producing wells ransmission athering Lines Processing Plant Compressor Stations LNG or Propane/Air Plant Underground Large Volume City Gate (Regu lators/Mete rs) Customer Regulator/Meter Distribution Mains Residentia Commercial Customer Gas Transmission • DI&M at compressor stations • Use fixed/portable compressors for pipeline pumpdown • Install VRUs on pipeline liquid/condensate tanks Gas Distribution • DI&M at surface facilities • Identify and replace high-bleed pneumatic devices • Survey and repair leaks Picture courtesy of American Gas Association. ------- 2008: Continuing Excellence Now in its 16th year, the Natural Gas STAR Program continues to achieve success through its partnerships with the oil and natural gas industry. Since 1993, the oil and natural gas industry has eliminated more than 822 billion cubic feet (Bcf) of domestic methane emissions through the implementa- tion of approximately 150 cost-effective technologies and practices. For calendar year 2008, Natural Gas STAR partners reported domestic emissions reductions of more than 114 Bcf. These emissions reductions, voluntarily undertaken by Natural Gas STAR partner companies, have cross-cutting benefits on domestic energy supply, industrial efficiency, revenue generation, and greenhouse gas emissions reductions. The 2008 voluntary domestic emissions reductions are equivalent to: • The additional revenue of more than $802 million in natural gas sales (assumes an average natural gas price of $7.00 per thousand cubic feet). • The avoidance of 46.3 million tonnes C02 equivalent, • The C02 emissions from the electricity use consumption of more than 6 million homes for one year. • The annual greenhouse gas emissions from 8.5 million passenger ve- hicles. • The carbon sequestered annually by 10.5 million acres of pine or fir forests. Domestic Natural Gas STAR Methane Emissions Reductions as of 2008 l Annual l Cumulative 2008 Methane Emissions Reductions by Sector (114.6 Bcf) Production Gathering and Processing Transmission Distribution Technology Transfer Activities Natural Gas STAR methane emission reducing technologies and practices have become widely implemented by partners as a result of technology transfer and sharing partner experi- ences across the industry. This is achieved through Natural Gas STAR technical documents, technology articles in the Partner Update, and partner sponsored Technology Transfer Workshops. In 2009, Natural Gas STAR held four domestic Technology Transfer Work- shops. Domestic workshops covered much of the oil and natural gas producing regions, with events in Mon- tana, Oklahoma, Pennsylvania, and West Virginia. Co-sponsored by indus- try partners or endorser organizations, these workshops provide an oppor- tunity for participants to engage in a peer-based exchange of technical and economic information related to cost- effective methane emission reduction technologies and practices and other best practices. More information on these technology transfer workshops can be found on the Natural Gas STAR Web site at epa.gov/gasstar/ workshops/index.html. ------- Natural Gas STAR International In addition to the growth experienced under the domestic Program since 1993, international progress is also being made in reducing methane emissions under Natural Gas STAR International. The Natural Gas STAR International Program requirements mirror that of the domestic Natural Gas STAR Program, and membership is open to all oil and natural gas companies worldwide. For 2008, Natural Gas STAR International part- ners reported 51.1 Bcf in methane emissions reductions and a total of 65.5 Bcf since the inception of the Natural Gas STAR International Pro- gram. This includes methane emissions reductions in Argentina, Brazil, Canada, Equatorial Guinea, India, and Nigeria. The 2008 voluntary international methane emissions reductions are equivalent to: • The additional revenue of nearly $358 million in natural gas sales (as- sumes an average natural gas price of $7.00 per thousand cubic feet). • The avoidance of 20.7 million tones C02 equivalent. • The C02 emissions from the electricity consumption of 2.7 million homes for one year. • The annual greenhouse gas emissions from 3.8 million passenger ve- hicles. • The carbon sequestered annually by 4.7 million acres of pine or fir forests. New Tools and Resources New Methane to Markets Web site (www.methanetomarkets.org) The redesigned Methane to Markets Web site includes new features to better serve the multi-national, multi-lingual, and multi-disciplinary community. New Web 2.0 features allow users to share Methane to Markets activities with others as well as translate content into dozens of languages. Updates were also made to country home pages, country detail pages, and the sector landing pages to make information easily accessible to users. Natural Gas STAR Internationa! Methane Emissions Reductions as of 2008 2004 2005 .2006 2007 2008' ------- Emissions Reductions by Sector The following section illustrates the major sources of methane emissions from each industry sector and the technolo- gies and practices implemented by partners to reduce methane emissions. The information showing the breakdown of emission sources was taken from the EPA Inventory of U.S. Greenhouse Gas Emissions and Sinks, and the information showing Natural Gas STAR partner activities, was taken from partner reports and Natural Gas STAR historical data. Production Sector Accomplishments Production Sector Top Emission Sources in 2007 Source: EPA Inventory of U.S. Greenhouse Gas Emissions and Sinks 1990-2007, April 2009 Well Venting and Flaring f Bcf Storage Tank Venting 5 Bcf Pneumatic Devices 43 Bcf Meters and Pipeline Leaks 8 Bcf Compresor Fugitives,Venting, and Engine. Exhaust 12 Bcf "Dehydrators and Pumps 1:2 Bcf Offshore Operations 29 Bcf Production partners reported 89.3 Bcf of methane emissions reductions in 2008—and a total of 537 Bcf since 1990. The technologies and practices employed by production sector partners include: Top Technologies in 2008 Total Sector Reductions in 2008 = 89.3 Bcf Top Technologies Since 1990 Cumulative Sector Reductions = 537.4 Bcf 50% 11% ¦ Perform reduced emissions completions ¦Artificial lift: install plunger lifts 6 Identify and replace high-bleed pneumatic devices ¦ Artificial lift: install smart lift automated systems on gas wells ¦ Use foaming agents to reduce blowdown frequency ¦ Convert to instrument air systems Artificial lift: gas lift Other 36% 12% 12% ¦ Perform reduced emissions completions ¦ Install vapor recovery units (VRUs) ¦ Artificial lift: install plunger lifts ¦ Identify and replace high-bleed pneumatic devices ¦ Artificial lift: install smart lift automated systems on gas wells ¦ Convert to instrument systems Install flash tank separators on glycol dehydrators ¦ Other ------- i NaturalGasf^/ f EPA POLLUTION PREVENTER ' Gathering and Processing Sector Accomplishments Gathering and Processing Sector Source: EPA Inventory of U.S. Top Emission SourCGS in 2007 Greenhouse Gas Emissions and Sinks 1990-2007, April 2009 Dehydrators and Other Plant Sources Fugitives 1 Bcf ° -gj Reciprocating Compressors 16 Bcf Blowdowns 2Bcf^ Centrifugal Compressors Gas Engine Exhaust 7 Bcf Gathering and processing partners reported 7 Bcf of methane emissions reductions in 2008—and a total of 42.8 since 1990. The technologies and practices employed by gathering and processing sector partners include: Top Technologies in 2008 Total Sector Reductions in 2008 = 7 Bcf Top Technologies Since 1990 Cumulative Sector Reductions = 42.8 Bcf ¦ DI&M aerial leak detection using laser and/or infrared technolgoy 1 Install electric compressors 1 Install vapor recovery units ¦ Redesign blowdown/alter ESD practices 1 Optimize nitrogen rejection unit to reduce methane in N2 reject stream 1 Eliminate unnecessary eguipment and/or systems ¦ Install flash tank separators on glycol dehydrators ¦ Other 15% ¦ Di&M: aerial leak detection using laser and/or infrared technology ¦ Install electric compressors ¦ Optimize nitrogen rejection unit to reduce methane in N2 reject stream ¦ Eliminate unnecessary equipment and/or systems ¦ DI&M: leak detection using IR camera/optical imaging ¦ Redesign blowdown/alter ESD practices ¦ Pipeline replacement and repair ¦ Other s - ------- Transmission Sector Accomplishments Transmission Sector Source: EPA inventory of u.s. Top Emission Sources in 2007 Greenhouse Gas Emissions and Sinks 1990-2007, April 2009 Transmission partners reported 17.3 Bcf of methane emissions reductions in 2008—and a total of 214.4 Bcf since 1993. The technologies and practices employed by transmission sector partners include: Top Technologies in 2008 Total Sector Reductions in 2008 = 17.3 Bcf Top Technologies Since 1993 Cumulative Sector Reductions = 214.4 Bcf 14% ¦ Use fixed/portable compressors for pipeline pumpdown ¦ Use of turbines at compressor stations 1 Repjace wet compressor seals with diy seals ¦ Use trot taps for in-service pipeline connections Install vapor recovery units on pipeline liquid/condensate tanks In stall electric compressors ¦ Use of YAl I closures for ESB testing ¦ Other 16% 19% 5%.i 7% 10%1 11% 18% ¦ DI&M at compressor stations ¦ Use fixed/portable compressors for pipeline pumpdown Install vapor recovery units on pipeline liquid/condensate tanks ¦ Use of turbines at compressor stations ¦ Replace wet compressor seals with dry seals 1 DI&M at surface facilities ¦ Use composite wrap repair ¦ Other Station 8 Bcf Centrifugal Compressors 8 Bcf Gas Engine Exhaust n .. ^ ¦ n , Pneumatic Devices 12Bcf 11 Bcf Reciprocating Compressors 41 Bcf Pipeline Leaks 8 Bcf Station Fugitives 8 Bcf _ Other Sources 4 Bcf ------- Distribution Sector Accomplishments Distribution Sector Top Emission Sources in 2007 Other Protected Steel c™,,™ Mains/Services ^ Bcf Customer Meter 4 Bcf Source: EPA Inventory of U.S. Greenhouse Gas Emissions and Sinks 1990-2007, April 2009 Plastic Mains/Services 6 Bcf Cast Iron Mains 1 Bet jppP^^ £ M&R Stations 18 Bet Unprotected Stgel Mains/Services 17 Bcf Regulator Stations 11 Bcf Distribution partners reported 1.4 Bcf of methane emissions reductions in 2008—and a total of 38.8 Bcf since 1993. The technologies and practices employed by distribution sector partners include: Top Technologies in 2008 Total Sector Reductions in 2008 = 1.4 Bcf oo/, 2% 7% ¦ DI&M: survey and repair leaks ¦ Identify and rehabilitate leaky distribution pipe ¦ Identify and replace high-bleed pneumatic devices ¦ Use hot taps for in-service pipeline connections ¦ DI&M at surface facilities ¦ Install excess flow valves ¦ Convert to instrument air systems ¦Other Top Technologies Since 1993 1% Cumulative Sector Reductions = 38.8 Bcf IS I 4% ¦ DI&M at surface facilities ¦ Identify and rehabilitate leaky distribution pipe B DI&M: survey and repair leaks ¦ Identify and replace high-bleed pneumatic devices ¦ Use automated systems to reduce pressure * DI&M at compressor stations (non-mainline transmission) Inject blowdown gas into low pressure system ¦ Other ------- Natural Gas STAR Partners and Endorsers Production Anadarko Petroleum Corporation Apache Corporation Arcland Energy BP Chesapeake Energy Chevron Corporation ConocoPhillips Alaska Natural Gas Corporation ConocoPhillips Petroleum Company Devon Energy El Paso E & P Company L.P. EnCana Oil & Gas (USA) Inc. Energen Resources ExxonMobil Production Company Hess Corporations Americas Explora- tion and Production HighMount E&P LLC Hunt Oil Company Linn Energy LLC Marathon Oil Company Murphy Exploration and Production Company Newfield Exploration Company Noble Energy Inc. Occidental Oil and Gas Corporation Plains Exploration & Production Com- pany (PXP) Quicksilver Resources SandRidge Midstream Shell Exploration & Production Company Southwestern Energy Company Torch Energy Total E&P USA Williams Production RMT Company XTO Energy Gathering and Processing BP Chevron Corporation DCP Midstream Enbridge Energy Partners, L.P. Enogex LLC ExxonMobil Production Company ONEOK Partners Pioneer Natural Resources USA, Inc. Prism Gas Company ROC Gas Company (a wholly owned subsidiary of SandRidge Midstream) Targa Resources, Inc. Western Gas Resources (a wholly owned subsidiary of Anadarko Petroleum Corporation) Transmission Alliance Pipeline LP ANR Pipeline Company (a TransCanada Company) Carolina Gas Transmission (a SCANA Corporation Company) Colorado Interstate Gas Company (an El Paso Transmission Company) Columbia Gas Transmission Corpora- tion (a NiSource Transmission Company) Columbia Gulf Transmission Company (a NiSource Transmission Company) Consumers Energy DTE Energy - MichCon El Paso Natural Gas Company Enbridge, Inc. Florida Gas Transmission (a Southern Union Gas company) Granite State Gas Transmission, Inc. (a NiSource Transmission Company) Great Lakes Gas Transmission Company Gulf South Pipeline Iroquois Gas Transmission System Kinder Morgan New Mexico Gas Company Northern Natural Gas ONEOK Partners Pacific Gas and Electric Company Panhandle Eastern Pipeline (a Southern Union Gas company) Piedmont Natural Gas Questar Pipeline Company Source Gas LLC Southern California Gas Company Southern Natural Gas Company (an El Paso Transmission Company) Southwest Gas Corporation Spectra Energy Transmission Tennessee Gas Pipeline Company (an El Paso Transmission Company) TransCanada - Gas Transmission Northwest Trunkline Gas (a Southern Union Gas company) Williams Gas Pipeline Williston Basin Interstate Pipeline Company Distribution AGL Resources Alliant Energy Atmos Energy Corporation Bay State Gas Company (a NiSource Distribution Company) Berkshire Gas CenterPoint Energy Arkla/Entex CenterPoint Energy Minnesota Gas Central Hudson Gas & Electric Corporation Citizens Energy Group Columbia Gas of Kentucky, Inc. (a NiSource Distribution Company) Columbia Gas of Maryland, Inc. (a NiSource Distribution Company) Columbia Gas of Ohio, Inc. (a NiSource Distribution Company) Columbia Gas of Pennsylvania, Inc. (a NiSource Distribution Company) Columbia Gas of Virginia, Inc. (a Ni- Source Distribution Company) Connecticut Natural Gas Corporation Consolidated Edison Company of New York, Inc. Constellation Energy/Baltimore Gas and Electric Company Consumers Energy Corning Natural Gas Corporation Delmarva Power DTE Energy - MichCon Duke Energy Ohio/Kentucky Equitable Gas Co. Kansas Gas Services (a ONEOK Distri- bution Company) Kinder Morgan Kokomo Gas and Fuel Company (a NiSource Distribution Company) Laclede Gas Co. Maine Natural Gas National Grid New Jersey Natural Gas Company New Mexico Gas Company New York State Electric & Gas Corpora- tion Nicor Gas Northern Indiana Fuel & Light Co. (a NiSource Distribution Company) Northern Indiana Public Service Company (a NiSource Distribution Company) Northern Utilities (a NiSource Distribu- tion Company) Oklahoma Natural Gas (a ONEOK Distribution Company) Orange and Rockland Utilities, Inc. Pacific Gas and Electric Company PECO Energy Company Piedmont Natural Gas PSNC Energy Public Service Electric and Gas Company Puget Sound Energy Questar Gas Co. Rochester Gas & Electric Corporation Source Gas LLC South Carolina Electric & Gas Company (a SCANA Corporation Company) Southern California Gas Company Southern Connecticut Gas Company Southwest Gas Corporation Texas Gas Services (a ONEOK Distribu- tion Company) UGI Utilities, Inc. Washington Gas Wisconsin Public Service Company Xcel Energy international Comgas ConocoPhillips Canada Ltd. Devon Energy Corporation Empresa Nacional del Petroleo (ENAP) ENAP Sipetrol S.A. (international affili- ate of ENAP) Enbridge, Inc. ExxonMobil Corporation GAZ-SYSTEM S.A. Marathon Oil Corporation Occidental Oil and Gas Corporation Oil and Natural Gas Corporation Ltd. (ONGC) TransCanada Endorsers The Air & Waste Management Associa- tion (A&WMA) American Exploration & Production Council American Gas Association (AGA) American Institute of Chemical Engineers (AIChE) Institute for Sustainability American Petroleum Institute (API) Colorado Oil and Gas Association (COGA) Gas Processors Association (GPA) Gulf Coast Environmental Affairs Group (GCEAG) Independent Petroleum Association of America (IPAA) Independent Petroleum Association of Mountain States (IPAMS) Interstate Natural Gas Association of America (INGAA) Interstate Oil & Gas Compact Commis- sion (IOGCC) Montana Petroleum Association (MPA) Natural Gas Supply Association (NGSA) New York State Energy Research and Development Authority (NYSERDA) Northeast Gas Association (NGA) Petroleum Association of Wyoming (PAW) Petroleum Technology Transfer Council Southern Gas Association (SGA) Texas Alliance of Energy Producers October 2009 ------- |