The market assessment was designed to provide quantitative information describing to what degree a Flaring Mitigation Centre (FMC) was required and what the scope of its operation would be. To ensure that all interested stakeholder groups had an opportunity for input and that the survey was objective and unbiased, the following survey development process was undertaken with the agreement of the Technical Steering Committee (TSC):
- To facilitate the initiation of both surveys, C-FER/ARC developed a general discussion document for input by both provincial and federal government interest groups.
- The responses from the Government Discussion Document were reviewed to formulate the draft surveys.
- The draft surveys were distributed to the TSC industry members and four equipment vendors to solicit their comments, concerns and understanding of the questions prior to their distribution.
32 of the 241 oil and gas industry companies responded to the survey (13.28%). Based on the June 1999 ST 99-60 data, these responding companies are responsible for 40.8% of the gas flared in Alberta. 21 of the 91 equipment vendor companies responded to the survey (23.08%).
The survey information was complied, assimilated, then used for the assessment and recommendations for the advancement of the FMC project initiative.
Based on an analysis of the results, it is C-FER’s/ARC’s opinion that the envisaged role the Flaring Mitigation Centre would undertake is required either fully or partly by the oil and gas industry and the equipment vendors surveyed. This is particularly the case with industry and vendor need for the development of flaring and flaring mitigation technology performance standards and testing protocols.
The requirement for the physical structure of a building, whether permanent or temporary is not so readily clear with a reluctance on the part of the industry and vendors to contribute financially towards a facility. Hence, with the absence of sufficient funding, C-FER/ARC suggests that the FMC be initially designed based on the field investigation of existing and future flaring systems. To aid the vision of the FMC as required by the RFP, the Centre design would also incorporate the provision to investigate other flaring mitigation technologies on an as-required and funding-available basis. Notwithstanding, to assist industry in meeting the expectations of Guide 60, the FMC Group would act as an independent industry advisory body for flaring mitigation systems.
Based on the survey response, C-FER/ARC recommend that a modified Phase I (Project Development and Techno-economic Assessment) be funded primarily from the Federal and Provincial Government’s. However, as with the current flaring research, industry and vendors would be encouraged to provide sponsorship.