Flaring, Venting, and Fugitive Methane Emissions

During oil production, methane gas is produced together with the oil. Much of this gas is utilized. Nevertheless, some of it is routinely flared due to technical or economic constraints, for example. This flaring of gas releases CO₂. In 2017, to reinforce our clear commitment to responsible resource management and sustainable business, we endorsed the World Bank’s “Zero routine flaring by 2030” initiative to end routine flaring of associated gas during oil production by 2030. Phasing out routine flaring is one of the essential steps toward combining resource efficiency with long-term economic success and a way to strongly support our efforts to reduce the carbon footprint of our operations. We see financial opportunities in the monetization of hydrocarbon resources by utilizing the previously flared gas and, e.g., selling it. Phasing out routine flaring also enables us to keep our license to operate by improving the environmental and safety situation at the respective production assets and helping us avoid penalties.

Reducing methane emissions from routine/non-routine venting of gas during oil and gas production and processing as well as from gas leaks also contributes to slowing down climate change and provides a valuable mitigation option for climate risk management. Methane is a powerful greenhouse gas. It is the most abundant anthropogenic GHG after CO₂ and second in its overall contribution to climate change. Its greenhouse effect is significantly stronger in the short term, making it more potent than CO₂. In our new climate strategy, we therefore also introduced a target for reducing methane emissions for the first time.

Management and Due Diligence Processes

Routine Flaring and Venting Phase-Out

Around 8% of OMV’s total direct GHG emissions and around 34% of OMV’s E&P GHG emissions resulted from routine flaring. With expected stricter policies requiring zero routine flaring conditions, OMV has taken initial steps by voluntarily endorsing the World Bank’s “Zero routine flaring by 2030” initiative. We report annually to the World Bank on our progress on this initiative. All OMV operations are required to minimize methane emissions from point sources as well as fugitive emissions and technically avoidable emissions (such as well testing and well workover, among others). New production sites are developed with associated gas utilization solutions and without routine flaring. Existing sites, where routine flaring of associated and free gas still takes place, are required to develop a phase-out plan to eliminate legacy routine flaring as soon as possible, but no later than 2030.

In refineries, state-of-the-art plant design is implemented in order to avoid routine flaring by flare gas recovery and balancing the fuel gas system. This type of advanced process control includes sufficient capacity for the flare gas recovery system, the use of high-integrity relief valves, and other economically viable organizational and control measures. All refineries use a flare gas recovery system in order to collect excess gas, which is desulphurized as required, pressurized, and added to the refinery fuel gas system as fuel for the process furnaces. As a result of such measures, we aim to use flaring as a safety system for other than normal operations, such as start-up, shutdown, emergency, process upsets, and others. Especially at Petrobrazi, the capacity for flare gas recovery has been increased in recent years. Emissions of volatile organic compounds (VOCs) are minimized by applying the best available techniques in such areas as hydrocarbon storage and tank sealings according to implementation plans.

Monitoring and Leak Detection and Repair

Fugitive methane emissions and other non-methane volatile organic compounds (NMVOCs) are monitored or estimated and controlled systematically with leak detection and repair programs. Knowing the main potential sources of methane emissions also allows us to implement precautionary measures for preventing such emissions in new production assets. The minimum requirement for identifying leaks is conducting routine audio, visual, and olfactory inspections as part of daily operator rounds at all relevant OMV operating facilities. Leak detection also entails soap-bubble testing and optical gas imaging with defined scopes and intervals (annually or more frequently, as required in accordance with a related risk assessment). At some facilities, infrared cameras are also used for leak detection. Leaks are repaired immediately or within defined time frames, depending on prioritization according to the site’s maintenance processes, and based on the risk assessment outcome and other factors like feasibility of repair during operation. In order to prevent as well as to mitigate fugitive emissions, we have taken important steps, including implementing a pipeline integrity program and modernizing facilities such as compressor stations.

2021 Actions

In 2021, we continued to implement leak detection and repair (LDAR) programs to reduce our fugitive emissions.

• At E&P Austria, we set up a LDAR program with optical gas imaging (FLIR camera), ongoing inspection of oil and gas wells and facilities, documentation in an inspection database, and measurement of leakage amounts. This has been implemented at all facilities.
• In Tunisia, a methane emission inventory was defined for the Waha central processing facility to identify all sources and types of methane emissions and unintentional leaks.
• E&P OMV Petrom implemented a LDAR program in all assets as part of Green Kaizen events in 2020. These are intended to minimize and even eliminate the fugitive emissions in selected facilities, while enabling a low-carbon operational behavior among field personnel and local contractors. The Green Kaizen events typically last for five days and get participants actively involved throughout this period. As such, it is a very concentrated form of LDAR, which additionally incorporates before-and-after measurements by an external contractor. These activities aim to raise awareness of the problem among employees and help them understand the scope of the problem, implement a solution, and sustain the result. Building on the experience gained in 2020, OMV Petrom continued the program in 2021 by organizing Green Kaizen events at the Oltenia and Moesia assets.
• In Refining & Marketing (R&M), the Petrobrazi refinery implemented an LDAR Program according to BAT-BREF (Best Available Techniques – Reference Documents). The program’s objective is to reduce fugitive emissions from the plant’s technological equipment (e.g., vents, flanges). In 2021, the program targeted accessible fugitive emissions sources from tank farm and aromatic units. The program also covered the screening of inaccessible sources, where no leaks were detected. The measurements were performed by using the Optical Gas Imaging (OGI) method, which involved an advanced hand-held infrared camera specifically developed for this purpose. Of the leakages identified, 84% were fixed. Unit shutdown is required to fix the rest.

We also continued working toward phasing out routine flaring by 2030. A total of 82% of our routine flaring in OMV E&P operations occurs in Yemen. Thus, in order to reduce flaring in Yemen, two gas engines for power generation were commissioned at the central processing facilities in December 2021. The gas engines will support the reduction of flaring, as they will consume gas which was previously flared. They will also replace diesel generators for additional GHG savings.

Outlook

We will continue to phase out routine flaring and venting, and instead look for ways to capture and utilize associated gas. In Tunisia, for instance, we already capture and sell the majority of the associated gas from the Waha field. However, some components of the gas could not be sold previously due to low quality and were routinely flared instead. At the end of 2021, we made the final investment decision on a project that will enable us to capture and sell all parts of the associated gas and thus completely phase out routine flaring. The project consists of recovering excess gas, which is currently routed to the flare, through the installation of three vapor recovering units. In Yemen, two gas engines were commissioned in December 2021. In addition, we will focus on reducing fugitive methane emissions through process optimization, field modernization, and integrity improvement measures in E&P. We continue to define and implement methane leakage, detection, and repair programs in all operated E&P assets.

Target 2025

• Achieve an E&P methane intensity¹ Methane intensity refers to the volume of methane emissions from OMV’s E&P-operated oil and gas assets as a percentage of the volume of the total gas that goes to market from those operations. This is calculated as methane intensity [%] = methane emission [Sm³] / marketed gas (sales) [Sm³]. of 0.2% or lower

Targets 2030

• Achieve an E&P methane intensity of 0.1% or lower
• Zero routine flaring and venting of associated gas as soon as possible, no later than 2030

Status 2021

• 0.6% methane intensity
• Volume of gas routinely flared decreased from 462 mn m³ in 2020 to 410 mn m³ in 2021

Relevant SDGs

SDG target:

13.1 Strengthen resilience and adaptive capacity to climate-related hazards and natural disasters in all countries