- Approximately 140 billion cubic meters (bcm) of gas is flared every year worldwide, resulting in approximately 350 million tons of carbon dioxide emissions annually.
- Flare gas is associated gas from the extraction of crude that must be flared due to technical, regulatory, or economic constraints.
- While there is a lack of electricity around the world, gas is being flared wasting a valuable energy source.
- Gas flaring takes place at most oil production facilities.
- The cost of reducing one ton of CO2 by investing in associated gas projects is 50% cheaper than investing in wind and solar projects.
- There are many places in the world where gas is being flared, while power generation equipment runs on diesel or crude.
- In most cases AG flaring continues for the following reasons:
- Oil companies focus on oil reserves and oil production (Associated Gas is a by-product whereby in most cases “waste” is not monitored).
- Regulatory barriers (monopolies, subsidies, etc.).
- Technical barriers (unpredictability of Associated Gas).
- Economical barriers (economy of scale and or risk of stranded assets).
- Regulatory hurdles (approximately 16,000 flares burning approximately 140 billion cubic meters of natural gas annually).
- Financial hurdles (challenging investment environment).
- The energy33 team has the experience to evaluate the necessary technical and commercial issues related to monetizing associated gas and the team has developed more than 15 projects with Associated Gas totaling more than 300 MW.
Diesel generation while flaring gas!
Does it make sense?