barriers to implementation of methane emissions reduction ... · 1 contact information jerome...
TRANSCRIPT
Barriers to Implementation ofMethane Emissions ReductionProjects in Gas Transmission
and Distribution
Jerome BlackmanUS EPA, Natural Gas STAR
Program Manager
1
Contact InformationJerome [email protected]
Carey [email protected]
Roger [email protected]
Suzie [email protected]
www.epa.gov/gasstar
2
AgendaWhy Focus on Methane?U.S. Greenhouse Gas Emissions
Transmission and Distribution Sector Methane EmissionsMethane Emissions Reduction Technologies and Practices
Leak Detection and MeasurementTransmission SectorDistribution Sector
Barriers to ImplementationTransmissionDistribution
Conclusions
3
Why Focus on Methane?A potent greenhouse gas (GHG) with atmospheric lifetime of~12 years
100-year Global Warming Potential (GWP) of 251
20-year GWP of 721
A primary component of natural gas and a valuable, clean-burning energy source
Proven, viable technologies and practices exist to reduce methaneemissions cost-effectively
Methane emissions from oil and natural gas operations are asignificant source of total U.S. GHG emissions (over 5%) on a20-year GWP basisReducing methane emissions increases the amount of usablefuel in the U.S.
1 – IPCC. Fourth Assessment Report, Chapter 2 - Changes in Atmospheric Constituents and in RadiativeForcing. 2007.
4
U.S. Natural Gas Industry GHG Emissions:20 year Global Warming Potential Basis
Methane emissions comprise 71% of total U.S.Natural Gas industry GHG emissions
N2O Emissions are negligibleEPA. Inventory of U.S. Greenhouse Gas Emissions and Sinks 1990 – 2007. April, 2009.Updated with 20-year GWP from IPCC. Changes in Atmospheric Constituents and in Radiative Forcing. 2007.
CH471%
CO229%
5
2007 Transmission Sector Methane EmissionsMajority of emissions from fugitives and venting at compressorstations
EPA. Inventory of U.S. Greenhouse Gas Emissions and Sinks 1990 – 2007. April, 2009. Available on the web at:epa.gov/climatechange/emissions/usinventoryreport.html
PneumaticDevices11 Bcf
CentrifugalCompressors
8 Bcf
Pipeline Leaks8 Bcf
Gas EngineExhaust12 Bcf
ReciprocatingCompressors
41 BcfStation Venting8 Bcf
OtherSources
4 Bcf
StationFugitives
8 Bcf
6
2007 Distribution Sector Methane EmissionsMajority of emissions from underground pipe leaks andfugitives from metering and regulator stations
EPA. Inventory of U.S. Greenhouse Gas Emissions and Sinks 1990 – 2007. April, 2009. Available on the web at:epa.gov/climatechange/emissions/usinventoryreport.html
Unprotected SteelMains/Services
17 Bcf
Cast IronMains9 Bcf
CustomerMeter Leaks
6 Bcf
RegulatorStations11 Bcf
M&R Stations18 Bcf
PlasticMains/Services
6 Bcf
Other Sources2 Bcf
Protected SteelMains/Services
4 Bcf
7
Technologies Exist Today to:Detect methane emissionsMeasure methane emissionReduce methane emissions
Primary barrier to reducing methane emissions in gastransmission and distribution is policy, nottechnology.
8
Leak Detection Technologies
Screening - find the leaksSoap bubble screeningElectronic screening (“sniffer”)Toxic vapor analyzer (TVA)Organic vapor analyzer (OVA)Ultrasound leak detectionAcoustic leak detectionInfrared leak detection
Acoustic Leak Detection
Leak Imaging Camera
9
Measurement Technologies
Evaluate the leaks detected - measure resultsHigh volume samplerToxic vapor analyzer(correlation factors)Rotameters/AnemometersCalibrated bagging
Leak Measurement Using High Volume Sampler
10
Transmission SectorMethane Emissions Reduction Technologies
Natural Gas STAR Partners have reported utilizing a numberof technologies and practices to reduce methane emissions
Economic rod packing replacement in reciprocating compressorsAir/fuel ratio controls on compressorsReplace high-bleed pneumatics with low-bleed pneumatic devicesReplace wet seals with dry seals in centrifugal compressorsInfrared leak detection devices
Hand-heldAerial
Hot tapsComposite wrap
11
Distribution SectorMethane Emissions Reduction Technologies
Natural Gas STAR Partners have reported utilizing anumber of emission reduction technologies including
Identification and replacement of leaky distribution pipeInfrared leak detection devicesFlexible plastic inserts for cast iron mainsSeam-sealing robot for cast iron mainsAutomated control systems for reducing distributionsystem pressure
smart regulatorsclocking solenoids
12
Partner Experience - Northern Natural GasDetection - Screened 659 rodpackings with IR camera to identifyleaksMeasurement - High volumesampler, Rotameter, and Muellerutilized to measure leaksLeak rates ranged as high as3,155 Mcf/yrReduction Technology/Practice -Regular monitoring and economicreplacement keeps rod packingemissions lowAnnual savings of 71MMcf in 2006by replacing compressor rodpacking Source: Northern Natural Gas
13
DI&M - Aerial Leak SurveysAerial leak surveys withinfrared leak detectiondevices can aid in leakidentification over largesections of pipelinesAerial surveys can beconducted in helicoptersor fixed wing aircraftsusing both active andpassive IR detectiondevices
Source: LaSen Inc.
14
Partner Experience - Northern Natural Gas1,183 miles of pipeline surveyedusing ITT ANGEL Service(Airborne Natural Gas EmissionLidar) withData collection time: 13.4 hoursDifferential Absorption LIDAR(DIAL) laser technologyprovides accurate leak detectionColor digital geospatial video ofrights-of-way and surroundingareasDatasets show completepipeline leak survey coverageLeaks found and verified in 27locations
Source: Northern Natural Gas
15
Partner Experience - Northern Natural Gas
Source: Northern Natural Gas
Underground leak detected by DIAL, Kansas
16
Technology / Practice HighlightsPlastic Inserts for Cast Iron Mains
Cured in Place LinersStarline
Surface preparation / Pipe cleaningAdhesive MixingLiner wet–out / Adhesive applicationLiner Inversion
Tight Fit PolyethyleneRolldown
Size for Size InsertionReduction of Capacity
SublineSize for SizeMinimal Reduction of Capacity
Source: ConEd
17
Technology / Practice Highlights - cont.Cast Iron Seam-Sealing Robot (CISBOT)
ConEd has reported using CISBOT to seal joints in live castiron mains between 6 – 12 inches in diameterCISBOT can seal joints in up to 300 feet of pipeline through asingle excavation (150 feet in each direction from launchingpit)Equipped with:
Video cameraPointer lightsSupport armsDrill headSealant injector
Uses anaerobic sealant forlong term repairs
Source: ULC Robotics
18
Limited Penetration of Methane EmissionsReductions in Transmission/Distribution
Technologies and practices toreduce methane emissions arematureHowever, penetration of reductionoptions has been low
19% reduction from transmission2% reduction from distributionIn comparison production hasreported methane emissionsreduction of 41%
The issue seems to bemore policy related thentechnology related
EPA. Inventory of U.S. Greenhouse Gas Emissions and Sinks 1990 – 2007. April, 2009. Available on the web at:epa.gov/climatechange/emissions/usinventoryreport.htmlNote: Natural Gas STAR reductions from gathering and boosting operations are reflected in the production sector.
EmissionsReductions
Transmission & Storage100 Bcf
Production123 Bcf
Processing33 Bcf
Distribution73 Bcf
89 Bcf
1 Bcf
23 Bcf
5 Bcf
Oil Downstream2 Bcf
19
Policy Barriers to Implementing EmissionsReduction Projects
EPA is working to understand what barriers exist such that itcan effectively promote the implementation of thetechnologies and practices available to reduce methaneemissions
Feedback is welcome from industry, trade associations, keygovernment agencies, and other stakeholders to further understandand address these barriers
EPA does not endorse a specific solution to remove barriersto implementing emissions reduction projects
However, EPA wants to highlight the fact that without overcomingthese policy barriers significant penetration of reduction options will behindered
20
Policy Barriers: Transmission Sector
Costs and risks associated with a rate caseThe cost of pipeline investments in emission reductionscan only be recovered via a rate case
Or from the creation of a “rate tracker,” which also requires aregulatory proceeding
The pipeline’s achieved earnings can be reduced as aresult of a rate case.
This can occur if there has been an extended period of time sincethe last case resulting in accumulated depreciation of the pipelinerate base that would result in new rates that are lower than theexisting rates.Rate case opens the door to other issues.
21
Policy Barriers: Transmission Sector
No revenue from emissions reductions recovered bythe pipeline
Benefits from emissions reductions/gas savings arepassed on to the shipper (pipeline customer)
A fully contracted pipeline realizes full revenueirrespective of loading of pipeline
Transmission company gas transportation rates are basedon capacity (reservation or demand charge) of pipelinesrather than actual loads of gas moved (volumetric charge)Hence, there is little or no incentive invest capital to saveoff-peak leakage
22
Policy Barriers: Distribution Sector
Customers must pay for reduction projectsCosts/benefits from emissions reductions/gas savings arepassed on to the consumerConsumers are short-sited: generally unwilling to accepthigher rates for infrastructure improvements that lead tomore efficient operation and lower rates in later years
Capital recovery through volumetric ratesRecovery of capital investment is often linked to volumetricrates despite efforts to “decouple” rates that have beenproposed in many states
23
Policy Barriers: Distribution SectorFinancing projects
Capital investments for emission reduction projects are largelyfinanced through borrowed moneyWithout clear cost recovery, this could result in downward evaluationof the company’s credit rating, which in and of itself can increase theoverall cost of capital
Investment prioritiesEconomic choice on investment in existing infrastructure improvementversus investment in expansion to new customersInvesting in improvement to existing infrastructure increases rates,economically deters consumption, potentially result in lost revenueInvestment in new customers moves more gas, lowers rates, andearns more revenue
24
ConclusionsMethane emissions are the major source of GHG emissions inthe natural gas and oil industries
Emissions reduction efforts should focus on methane emissions as itwill have the largest impact on overall emissions and is a valuableresource
Proven technologies and practices for identifying, measuringand reducing methane emissions are currently available foruse in the transmission and distribution sectorsPolicy barriers exist which inhibit the implementation of thesetechnologies and practices
Understanding of these barriers must be improved so that solutionsmay be developed