UK tightens rules on flaring, venting (Update)
UK upstream regulator Oil & Gas Authority (OGA) has issued new guidance on flaring and venting, which sets out a tougher approach to driving reductions. It will use its consenting regime and stewardship activity to enforce the change where necessary, it said June 22. The OGA can order production to stop if flaring and venting is excessive.
The original objective of the OGA was to maximise the recovery of the UK continental shelf's hydrocarbon reserves but to this has been added the government's 'net zero carbon by 2050' ambition.
It concedes that some flaring and venting is necessary for safe and efficient production, but the volume can be reduced, and it will be brought to zero for everyone – in the absence of exceptional circumstances – by no later than 2030.
All new developments at the pre-concept select stage should be planned and developed on the basis of zero routine flaring and venting. The OGA will only consider consent variations as a last resort and requires adequate time to assess requests. Operators may have to curtail or stop production to stay within consent limits, it said.
OGA's director of strategy Hedvig Ljungerud said: "We are committed to driving down greenhouse gas emissions from the oil and gas sector, both supporting and holding industry to account in reaching its target to become a net zero basin by 2050. Today’s publication marks another step on that path, with a clear focus, including new developments to be planned on the basis of zero routine flaring and venting. We will monitor actual outcomes closely and reflect in decision-making when operators apply for consents and authorisations.”
Industry body prepared for the new limit
Speaking for the upstream body OGUK, its sustainability director Mike Tholen said: "The OGA’s update to flaring and venting requirements shows welcome ambition in this COP26 year and is one we share. This, alongside our coming Methane Action Plan, will be a key catalyst for accelerating the drive to sustainability, and shows how our changing sector is committed to its transformation.
“Oil and gas will continue to be needed for decades to come and must be produced and used with less impact on the environment – that is why we are working with government, industry, and our regulator through the North Sea Transition Deal to make our operations healthier and greener.”
Addressing an industry webinar June 23, OGUK CEO Deirdre Michie said that with the right government support, "industries like ours can continue to provide the UK with a secure source of energy while delivering on our sector’s net zero targets. It is exactly this kind of solution that leaders will be looking for – one which sets ambition into action, with government and industry working together to unlock public and private investment and co-operation."
The OGA said flaring is responsible for a fifth of UK offshore oil and gas production-related carbon dioxide emissions and 1% of total UK annual CO2 emissions. Vented gas offshore represents about 0.15% of total UK greenhouse gas emissions, including around 1% of total UK annual methane emissions.