Flaring, Venting, and Fugitive Methane Emissions

During oil production, associated gas is produced together with the oil. While much of this gas is utilized, some of it is routinely flared due to technical or economic constraints, resulting in the release of greenhouse gases such as CO₂ and methane. 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 an essential step in combining resource efficiency with long-term economic success, as well as a way of supporting the decarbonization of our operations. We see financial opportunities in the monetization of hydrocarbon resources by utilizing the previously flared gas and/or selling it. Phasing out routine flaring improves the environmental and safety conditions at our respective assets, thereby enabling us to not only maintain our license to operate but also avoid any penalties.

Reducing methane emissions from the 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 climate strategy, we therefore also introduced a target for reducing methane emissions for the first time.

Management and Due Diligence Processes

Phasing Out Routine Flaring and Venting

Around 1% of OMV’s total direct GHG emissions and around 5% of OMV’s Energy GHG direct emissions result from routine flaring. With stricter policies requiring zero routine flaring expected, OMV has taken initial steps toward compliance by voluntarily endorsing the World Bank’s “Zero routine flaring by 2030” initiative. We report to the World Bank on our progress on this initiative annually. 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 the appropriate gas utilization solutions in place and without routine flaring. Existing sites, where routine flaring of associated and free gas still occurs, are required to develop a phase-out plan to eliminate legacy routine flaring as soon as possible, but no later than 2030.

In our refineries, state-of-the-art plant design is implemented to avoid routine flaring, for example through the use of flare gas recovery and balancing the fuel gas systems. 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 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 during unplanned operations, which include start-up, shutdown, emergency, process upsets, and others. At the Petrobrazi refinery in particular, the capacity for flare gas recovery has been increased over the past few years. Emissions of volatile organic compounds (VOCs) are minimized by applying the best available techniques (BATs) in such areas as hydrocarbon storage and tank seals according to implementation plans.

Fugitive Emissions 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 (LDAR) programs. Knowing the main potential sources of methane emissions also allows us to implement precautionary measures for preventing such emissions at 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 corresponding risk assessment). At some facilities, infrared cameras are also used for leak detection. We also collaborate with third parties to further enhance state-of-the-art methane monitoring with technologies such as drones, satellite data, and acoustic leak imaging.

Leaks are repaired immediately or within defined time frames and, depending on prioritization, according to the site’s maintenance processes. These are based on the risk assessment outcomes and other factors including feasibility of repair during operation. To prevent and mitigate fugitive emissions, we have taken important steps, including implementing a pipeline integrity program and modernizing facilities such as compressor stations.

2023 Actions

Decarbonization Initiatives

• At OMV Petrom, several initiatives have been initiated to reduce methane emissions, routine venting, and flaring, including various modernization and upgrade projects for oil and gas processing, production, and transportation infrastructure. In 2023, the Production System Padina in Asset Moldova installed a combined heat and power unit (CHP) that recovers the gas that would otherwise be vented and/or flared. This will result in an emissions reduction of approximately 18,000 t CO₂e during the first full year after implementation. 
• In August 2023, a performance test for the Bărbuncești Compressor Station in Asset Moldova was successfully carried out before it was put into operation. This project is partly a continuation of the project initiated in 2014 and aims to improve the performance of the compression system. As an integrating section for that project, the Merișani-Vâlcele and Brăgăreasa-Colelia compression stations were completed and the Brădești compression station is currently under construction. The new system architecture will reduce operational costs significantly, ensure flexible and safe natural gas collection and compression, and improve safety by introducing new equipment while dismantling old equipment that present some integrity problems and significant operational risks. The new system meets the Transgaz requirements for increasing system pressures up to 40 barg. Lower GHG emissions are expected by minimizing possible leaks and through more efficient energy consumption.
• 2023 was a milestone year for OMV New Zealand in terms of the completion of decarbonization projects. Two projects were implemented at the Raroa production system in Asset Maari. First, a reverse osmosis unit was installed in order to replace the steam-driven water maker. Reducing the steam demand resulted in lower consumption of the fuel oil, leading to an emissions reduction of approximately 6,000 t CO₂e. The second project’s scope was the replacement of fuel gas with nitrogen in the flare purge process. A nitrogen generator was already available on site, offering an opportunity for the project to minimize investment costs. The emissions reduction impact from this project is estimated at approximately 3,000 t CO₂e. Other projects with a decarbonization effect in New Zealand that have been trialed or implemented include changes to the turbine’s operating concept, pressure optimization at the production separator, optimization of the compressor surge controller, and installation of solar panels on the roof of the warehouse. The combined emissions reduction impact from these projects is approximately 4,200 t CO₂e.
• As OMV and Borealis operate joint facilities in Schwechat and Burghausen, we strive to identify and increase joint synergies across both sites. For instance, at the Burghausen refinery from mid-2023, the quantity of flared gas was reduced, as the discontinuous nitrogen-rich gases produced by OMV were combusted in the Borealis regenerative thermal oxi­dation (RTO) plant, rather than being sent to the elevated flare. 
• Borealis completed the cracker furnace upgrade in Stenungsund, Sweden, with the final furnace upgraded in 2023. This will generate a total annual reduction of up to 24,000 t CO₂e.
• Flaring was reduced in Porvoo, Finland, which resulted in savings of 500 t CO₂e annually.

Leak Detection and Repair

OMV consistently implements leak detection and repair (LDAR) programs to reduce our fugitive emissions. Important steps have been taken to prevent and mitigate fugitive emissions, such as the pipeline integrity program in OMV Energy and the LDAR program in both OMV Energy and Fuels & Feedstock (F&F). An LDAR program includes two fundamental steps: first, the identification of the leaking components and second, the repair of these leaks to minimize losses. This program serves as the basis for developing reduction projects in accordance with best practices in the industry and using the best available technologies. LDAR programs are routinely run both upstream (OMV Energy) and downstream (OMV F&F) to detect, prevent, and eliminate fugitive emissions. In OMV Energy, following the guidelines of the GHG Management Framework, methane emission programs have been established in line with the Oil and Gas Methane Partnership 2.0 (OGMP 2.0) Framework, which accepts LDAR as the most efficient method for detecting fugitive methane emissions from the operations and mitigating them. In OMV Austria, an internal LDAR team has been formed in order to perform regular screening of the production and processing sites by utilizing high-standard technologies (e.g., OGI, FLIR cameras, etc.). In addition, more than 300 facilities are included in the internal LDAR program led by Operations in OMV Petrom, which covers methane screening using FLIR cameras and mitigation of identified leakages. Furthermore, LDAR programs have become an integral part of operations, establishing strong partnerships with external service providers for compliance with our GHG Management Framework, as well as with other frameworks such as upcoming EU Regulations for methane emissions in the energy sector.

Methane Reporting

In line with the OMV Group’s GHG Management Framework, which references the OGMP 2.0, OMV Energy-operated businesses shall reach source-level measurement of methane emissions (equivalent with Level 4) by the end of 2025.

Furthermore, the upcoming EU methane legislation will introduce additional stringent requirements for methane leak detection and repair programs, as well as for methane monitoring and reporting at source level and site level. In OMV Energy, OMV has already started taking important steps toward compliance with both the GHG Management Framework and the EU methane reporting requirements within the given deadlines for the ventures that are affected, i.e., OMV Austria and OMV Petrom.

Global and local methane management programs (such as Ops CH4llenge at OMV Petrom) have been established within OMV Energy with the purpose of preparing the operations’ organization for the new methane detection, measurement and reporting requirements. For that purpose, multiple pilot tests with various technologies, solutions, and service providers were executed by the end of 2023. An extensive pilot project has been completed at representative sites in three assets at OMV Petrom. The detection and quantification services were performed by third-party specialized contractors. This enabled us to achieve the following reporting levels:

• Source-level methane emissions for operated assets by direct measurements and sampling to establish the specific emission factors
• Source-level methane emissions for operated assets complemented by measurements of site-level methane emissions, thereby allowing assessment and verification of the source-level estimates aggregated by site

Based on the outcome of the pilot project, a rollout strategy has been developed and converted into a scope of work for outsourcing the services for methane measurement reporting and verification for affected assets at OMV Austria and Romania.

Outlook

In 2024, OMV will continue to pursue projects to further phase out routine flaring and venting, reduce Scope 1 emissions, and expand and intensify our LDAR campaigns. For example, an LDAR campaign has been planned in Tunisia, where pilot Optical Gas Imaging (OGI) camera screening will be conducted for the Gas Treatment Plant (GTP) to quantify the leaks and establish an appropriate action plan. In addition, other sustainability and decarbonization projects that specifically target flaring and venting reduction and are currently in the execution phase in multiple assets at OMV Petrom are expected to be completed by 2025 at the latest. At the Burghausen refinery, the current gasometer is scheduled to be replaced with a membrane gasometer, which has a greater gas storage volume. This is expected to reduce the intervals and quantity of gas flared, and result in an annual reduction of 1,800 t CO₂e.

In general, we will focus on reducing fugitive methane emissions through process optimization, field modernization, and integrity improvement measures in OMV Energy. We continue to define and implement methane leakage, detection, and repair programs in all OMV Energy-operated assets, as well as establishing standard methane reporting with the required granularity (e.g., source level, site level).