Shell Flaring, Emissions Both Grew in 2017
Shell said April 9 that overall greenhouse gas emissions (GHGs) rose to 73mn metric tons carbon dioxide (CO2) equivalent in 2017, up from 70mn mt in 2016.
In its Sustainability Report 2017, Shell said that main reason was the inclusion in its data from May 2017 onwards of a facility previously operated by the US Motiva petrochemical joint venture; and the return to production of refining units in Singapore. The rise was partly offset by divestments in Canada, Gabon, Malaysia and the UK; and reduced production at Shell's Pearl gas-to-liquids (GTL) plant in Qatar.
Gas flaring within its upstream business increased by 8% last year to 8.2mn mt CO2 equivalent, from 7.6mn mt in 2016, but remained lower than its 11.8mn mt in 2015 and 13mn mt in 2014.
Close to 80% of flaring from Shell-operated assets in 2017 occurred in Iraq, Nigeria, Malaysia and Qatar (up from over 70% in 2016). Nigeria’s finance minister Kemi Adeosun has complained that many operators in Nigeria continue to opt to pay a fine on flaring there, because it is tax-deductible. It calls into question their commitment to cut flaring.
Shell itself says a rise in Nigeria – both the volume flared and the amount of gas flared per barrel of oil produced – in 2017 was “primarily due to increased production [there] following the return to production of fields previously closed due to security issues. Work continues to bring additional gas gathering facilities online in Nigeria to reach our goal of no routine flaring by 2030.”
Shell said the amount flared in Nigeria during 2017 was 0.8mn mt CO2 equivalent, up from 0.5mn mt in 2016, but still less than all preceding years. It hoped that two gas gathering projects “historically delayed due to lack of adequate joint venture funding” would be completed in 2018-19. Oil spilled in operational incidents fell by two-thirds to 100 tons in 2017, it added.
Shell and others signed a global Zero Routine Flaring by 2030 pledge in November 2017; others have signed in the past two months.
In Iraq, the Majnoon facilities (Shell interest 45%) captured about 44% of associated gas that otherwise would have been flared in 2017, for use in power generation. That's less than in 2016, for which Shell data showed that 65% was captured that year. Also in Iraq, Basrah Gas Company (Shell stake 44%), a co-venture with Iraq’s South Gas Co and Japan’s Mitsubishi, captures gas that would otherwise have been flared from three southern Iraq oil fields: BGC processed 676mn ft3/d from these fields in 2017, an 18% improvement from 574mn ft3/d in 2016 and sent to local markets. While Shell divested oil interests in Iraq in 2018, it maintained its BGC interest and investment.
Shell also said that its pioneering Quest carbon capture and storage (CCS) project in Alberta captured over 1mn mt CO2 equivalent from oil sands in 2017, similar to its 2016 amount.
In a foreword to its report, Shell CEO Ben van Beurden wrote: “We are working hard with our partners to find solutions to the problems caused by earthquakes as a result of gas production at the giant Groningen field in the Netherlands. We support the people of Groningen and will meet our responsibility.”
His message follows a similar reassurance given to a February 1 press conference when he stated: “NAM has a legal responsibility to contribute” to compensation for earthquake-damaged homes in the area and that both Shell and Exxon want to retain their interests in NAM, after he, Shell and Exxon had faced accusations they were seeking to limit their financial liabilities to NAM.