Capterio shares GasTech conference abstract
The world is facing a pressing need to increase energy security, address energy affordability, and accelerate the transition to a net-zero and carbon-free economy. One solution that can make a significant impact today is fixing gas flaring, venting, and leaking, which releases 266 billion cubic meters of gas annually – enough to supply 47% of Europe’s 2021 demand. By tackling this issue, we can replace Russian gas, diversify supply risk, lower prices, and reduce emissions by up to 6.6 billion CO2-equivalent tonnes per year.
We will present a unique approach that is centred around high-frequency and granular data on gas flaring, an often overlooked source of emissions. Our advanced analytics provide unparalleled visibility by tracking every gas flare for every asset, for every company, in every country, every day. By mapping this data to critical infrastructure such as pipelines and power lines, we help companies improve the visibility of flaring (especially for the all-too-often blind spot of flaring at Non-Operated Joint Ventures), improve operational performance (by identifying operational upsets, detecting flare-to-venting switching and defining tactical interventions) and identify and prioritise strategic investments. Our investment methodology screens flares based on parameters such as scale, continuity/volatility, and proximity to infrastructure.
Our data-driven approach is already shifting industry perceptions from viewing flaring as a problem or liability to a compelling investment opportunity that aligns with net-zero and Paris Agreement goals. Indeed, most of this wasted gas can be recovered with proven technology that generates attractive financial returns – especially if commercial incentives can be aligned. We are encouraged, therefore, to see not only building political momentum for action, but also the support from Presidents Biden and von der Leyen to mobilise capital for attractive flare capture projects.
We will showcase several examples of flare reduction projects that lower scope one emissions (by up to 80%), partly also by eliminating methane emissions from inefficiently-operating flares. Such projects deliver emissions reduction on a scale measurable in units of millions of cars per year. This impact can be delivered quickly, on a per-project basis, providing material decarbonisation within 12-18 months. With significantly negative marginal abatement costs, they also create real commercial value for operators, their partners, and host governments – especially if operators and governments think creatively to unlock any incentive misalignments. We also detail how our industry can collaborate more effectively to fast-track the delivery of these real-world flare-capture projects whilst reducing emissions, creating value and accelerating the energy transition.