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Background: Addressing an Operational Challenge
Approach: Developing New Markets and Infrastructure
Performance: Working to Reduce Flaring
Background: Addressing an Operational Challenge
Natural gas often occupies underground reservoirs with oil and is produced along with the oil. Such "associated gas" is separated from the oil after it is brought to the surface. Where possible, ChevronTexaco and other energy companies reinject the gas back into the underground formation. Gas that is not reinjected often is used as an energy source for the production facility. But in many cases, excess gas remains. When this gas cannot be used or sold - due to lack of markets or infrastructure such as pipelines - it often is burned off at the production site, a practice called "routine flaring." ChevronTexaco and other energy companies have faced criticism for the use of flaring because it wastes a natural resource, releases greenhouse gases and can negatively affect nearby communities.
Approach: Developing New Markets and Infrastructure
ChevronTexaco is working to better manage routine flaring in its worldwide exploration and production operations. We are developing markets for our associated gas and investing in the needed gas processing and pipeline systems. The company also has undertaken projects to convert natural gas to liquid fuels and to liquefied natural gas, which can then be transported to markets. We are participants in the World Bank Global Gas Flaring Reduction Partnership, a public-private initiative working to reduce flaring and venting of associated gas worldwide.
Performance: Working to Reduce Flaring
In the United States, ChevronTexaco has virtually eliminated routine flaring, due to a combination of available gas markets, regulatory requirements and voluntary participation in initiatives like the U.S. EPA's Star program. In the United States, flaring accounts for less than 1 percent of ChevronTexaco's total upstream greenhouse gas emissions of approximately 12 million metric tons.
ChevronTexaco's international upstream companies are engaged in numerous projects to reduce and, in some places, eliminate routine flaring of gas. For example:
- In Nigeria, our business unit is developing several projects that will reduce flaring from our operations by several hundred million cubic feet per day. To give a sense of scale, 100 million cubic feet of gas per day corresponds to approximately 13 percent of Nigeria's total natural gas consumption. These projects include the Escravos Gas-to-Liquids Plant, expansion of our Escravos Gas Plant and the West African Gas Pipeline, which will carry gas that otherwise would have been flared from Nigeria to users in Togo, Benin and Ghana.
- In Kazakhstan, Tengizchevroil (TCO), a joint venture that ChevronTexaco operates, reduced flaring by approximately two-thirds between 2000 and 2002. TCO invested more than US$140 million to repair and upgrade existing facilities and install new equipment. As a result of the improvements, more than 120 million cubic feet of gas per day no longer is flared.
- ChevronTexaco has committed to eliminate routine flaring from its operations in Angola. In addition to working with the Angolan government to develop and operate new oil production without routine flaring, we are pursuing other projects that will eliminate existing routine flares from our older facilities. We expect these projects, including the Sanha Condensate Project and the Takula Gas Processing Platform Project, to eliminate the flaring of more than 350 million cubic feet per day.
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