Gas Flaring Reduction Strategy
Gas Flaring Reduction Strategy
Gas Flaring Reduction Strategy
Consistency
Action Plan
Synchronisation
UKP4,
BAPPENAS &
MoF
4
PLENTY
OF GAS
LIMITED
SUPPLY TO
GAS MARKET
GAS FLARING
5
economic growth
PLENTY OF
GAS
LIMITED ACCESS
TO GAS MARKET
ZERO
FLARE
REDUCTION
POLICY
GAS FLARING
Policy Snapshots:
economically viable
supply
Location: Banyu Urip Field, East Java
Case in Point:
PHE Offshore North
West Java (~zero
flare since 2009)
Impact
High
GGFR assesement
No measurement,
Specific incentives
monitoring and
for project
reporting
development not
Un-defined
provided
Technology
No Flaring
selection
permits system
No mandatory requirements
for flared gas reduction
Unspecified
No single
regulatory
agency
Limitations
on gas flaring
High
Low
Easiness to implement
10
3.
Progress
1.
2.
Dec 2010
Minister of Environment (MoE)
responded to our letter, explaining his
positions on GFM and concerns
about CDM
UKP4 intervention
2nd
Government workflow
VP Meeting on
National Gas Policy,
we brought up
MoEs concern and
discussed potential
recommendations
Government
workflow
Feb 2011
Dec 2010
Mei 2011
3rd VP Meeting
also discussed
progress on flare
gas utilization
plan and policy
planning
2012
onwards
13
Towards
Zero Gas
Flare
Indonesia
14
Utilization channels:
LPG, CNG, Gas Lift, and
Reinjection
Year
310.00
281,5
300.00
MMSCFD
290.00
280.00
270.00
260.00
250.00
240.00
JAN
FEB
MAR
APR
MEI
JUN
JUL
AGT
SEP
OKT
NOV
DES
17
Incentives
18
CASE IN POINT
PERTAMINA HULU
ENERGI OFFSHORE
NORTH WEST JAVA
(PHE ONWJ)
Zero Gas Flare
Best practice in Indonesia, so far
19
Source: PT Pertamina
Pertamina Hulu
Energi Offshore
North West Java
(PHE ONWJ) is the
operator of this
PSC, transferred
from BP in 2009
11
1
3
171
Facilities include
670 wells, 170
piers, 40 refineries
& service stations,
and 1600 km
underwater pipes
almost unnoticeable
Source: PT Pertamina
ZERO
FLARE
Source: PT Pertamina
Highlights:
Zero Flare as an Economic
Company Strategy
Emission Reduction as one of the
Key Performance Indicators,
formally in 2011
Source: PT Pertamina
ONSHORE RECEIVING
FACILITY (ORF)
UKP4 intervention
Next
Steps
in 4
Feb 2011
2012
2nd
VP Meeting on
National Gas Policy,
we brought up
MoEs concern and
discussed potential
recommendations
Dec 2010
Strategically
select and integrate
Minister of Environment (MoE)
responded
to our letter, explaining his
GGFRs
recommendations
into the
positions on GFM and concerns
CDM
KPIabout
of all
related ministries
2012 through
the Presidential
Dec 2010
Minister of Energy & Mineral Resources
Directives,
particularly:
responded
to our letter, explaining his
Government
workflow
by early
progress
on GFM andRegulation
their continuing on
Issue
Ministerial
cooperation with GGFR
Government workflow
Mei 2011
3rd VP Meeting
also discussed
progress on flare
gas utilization
plan and policy
planning
related
Nov 2011
Jun policies
Sep 2011 from
2011by the end of 2012
2012
ministries
Implement
fewwith
pilot
projects
EMR
Ministry cooperated
GGFR
& successfully
completed 3 stakeholder workshops on flaring &
bypolicy
the end
of 2012
venting
in Indonesia.
EMR Ministry ready to
pass the drafted regulation soon.
25
MOVING FORWARD
UKP4
Provide
Umbrella
Policy
Detail
Program/
Action Plan
Progress
Tracking
Human
Capacity
Development
26
THANK YOU
GGFR STEERING COMMITTEE MEETING
World Bank Washington DC, 30 November 2011
APPENDIX
Onshore
Offshore
All
1.8
7.3
3.6
66%
76%
46%
13%
73%
22%
28
The format for the summary follows the framework laid out by DG MIGAS
Regulatory agency
Technology
selection
Limitations on gas
flaring
29
201
1
Eco
nomi
c
Con
Mandatory
requirements for
flared gas
reduction
Incentives for
project
development
Measurement,
monitoring and
reporting
30
201
1
Eco
nomi
c
Con