Clearstone Engineering
March 31, 2013
Executive Summary
PTAC, in collaboration with Environment Canada, NRCan, Ecopetrol and Pemex, has launched a project to mitigate the impact of emissions from short-lived climate pollutants. The objective of the project is to develop nationally appropriate mitigation actions (NAMA) for reducing greenhouse gas (GHG) emissions, under the Cancun Agreement Fast-Start financing mechanism. Environment Canada has contributed $3 million to help reduce fugitive methane emissions in the oil and gas sector in Mexico and Colombia. $1.1 million dollars of this contribution is marked for spending prior to March 31, 2012 and the remaining $1.9 million to be spent from April 1, 2012 to March 31, 2013.
Air emissions from the petroleum industry are constantly in the public eye. Internationally, countries are rolling out tougher emissions standards to combat climate change. Oil and gas production companies are challenged with measuring, reporting, controlling and reducing emissions to meet goals of environmental protection, technology and process mentoring, resource conservation, and regulatory compliance.
NAMA is considered as fundamental for a market-based post 2012 climate regime and expected to improve emissions trading and project based mechanisms. The objective is to develop measureable and verifiable reductions to GHG emission and intended to enable mitigation action and access to financing under future climate agreements.
The Project is a collaborative effort, managed and guided by two steering committees focusing their activities in Mexico and Colombia. The members of each steering committee consist of representatives of either Mexico and/or Columbia, representatives from Environment Canada, NRCan, and PTAC. PTAC has set a unique precedent as the project administrator, as international climate change funding usually goes to international development banks.
Canada, Colombia and Mexico are working to develop NAMAs for upstream and downstream oil and gas production. The NAMAs for Colombia and Mexico will address policy priorities, advance the development and transfer of knowledge of clean energy technologies, ensure economic, environmental and social sustainability of oil and gas production while developing new and profitable opportunities to measurably improve resource recovery and environmental performance. A list of implementable mitigation action for Colombia and Mexico will be developed.
Credible NAMAs require verifiable baseline activity determination, quantification of emission reduction opportunities, economic business case development and environmental performance improvements that can be measured, monitored and sustained. Credible NAMA plans will enable third party verification of emissions reduction magnitudes, sustainability periods of environmental performance improvement and eligibility for post 2012 carbon financing. Clearstone Engineering is leading the energy and emissions comprehensive measurement studies on PEMEX and Ecopetrol facilities. Verifiable facility or sector baseline and benchmarks will be determined for activities like flaring, venting and fuel utilization to acquire accurate sector emission inventories to develop sector strategies. Sector Strategies include NAMAs for upstream exploration, production and processing midstream gathering, storage and transportation; and downstream refining and petrochemical. Based upon flare and vent economics study, new heavy oil production is being looked at the help optimize well spacing and full gas recovery.