A Regulatory, Operational and Commercial Framework for the Utilization of Associated Petroleum Gas

Associated Petroleum Gas (APG) is a form of natural gas that is found associated with petroleum fields. APG is often flared or vented for regulatory, economic or technical reasons. The flaring, however, is problematic from health and environmental perspectives. Moreover, flaring and venting APG wastes a valuable non-renewable resource that could be re-injected into the oil field or used for local and regional electricity generation.

CCSI has been working to develop a regulatory and operational framework that would unlock the value of the APG that is currently wasted, in order to improve energy efficiency, expand access to energy, and contribute to climate change mitigation.

CCSI first reviewed the following case studies in detail: Algeria, Angola, Canada, Equatorial Guinea, Ghana, Indonesia, Kazakhstan, Mexico, Nigeria, North Dakota, Norway, and Republic of the Congo. The Sabin Center For Climate Change Law contributed to two case studies, one on Iraq and one on Russia.

CCSI then developed A Policy Framework to Approach the Use of Associated Petroleum Gas. This framework aims at providing guidance for regulators, policymakers, and industry leaders seeking to develop practical approaches to unlock the economic value of APG. With this framework, CCSI is hoping to contribute to the World Bank’s Zero Routine Flaring by 2030.

By capturing flaring, venting, and leaking in North Africa, Europe could, within 12-24 months, start to substitute up to 15% of Russian gas in the context of its 2022 REpowerEU plan and utilize the considerable volumes of existing spare capacity in the region's pipelines and liquified natural gas (LNG) terminals. By capturing this wasted gas, Europe can also significantly reduce CO2-equivalent emissions without delaying the energy transition. This brief, building on the aforementioned policy framework, explains how and why.