Navigating regulations regarding methane reduction from oil and gas activities

Canada is a global leader in methane reduction commitments, focusing on federal regulations aimed at reducing emissions from oil and gas activities. Given Canada’s advanced industry in clean energy development, the country leads in many metrics related to methane intensity and continues to have some of the most ambitious goals.

Even for the oil and gas industry that can deploy capital quickly, the challenge many operators face is the pace of regulatory changes and strategic decisions about where to most effectively deploy that capital. Focusing on the current regulatory landscape, as well as best practices from industry partners, will support efforts to plan for a net-zero emissions environment by 2050.

Regulatory approach to methane reduction

The Canadian federal government has set targets for the country to achieve a 40-45% reduction in methane emissions from 2005 levels by 2030 and net zero emissions by 2050. The new regulatory target set in the draft regulations is 75% of levels 2012 to 2030. Although it is not currently an official regulation, there is a very good chance that it will appear in 2024 and has been included in the draft regulation.

Depending on the operator’s location, many of which cover multiple provinces, the regulations are applied through different entities. In the provinces of Alberta, British Columbia and Saskatchewan, equivalence agreements mean that provincial groups will ensure that these operations meet or exceed federal requirements.

The regulations focus on reducing fugitive emissions through inspection and remediation operational practices and require facilities to implement design and technology to reduce gas discharge sources.

Cost analysis of possible solutions to reduce methane discharge

CANUSA EPC has completed various methane reduction projects at oil and gas facilities in Canada and the USA. Thanks to these project engagements, we have created an economic analysis of methane reduction costs for various degassing sources. The best return applications include instrument gas conversion followed by tank vent capture. The next group of applications includes venting rotating equipment and blowing down process gases from operations.

What will have the greatest impact on these costs per ton for specific facilities?

• cost of capital used by the operator,
• electricity costs i
• the number of sources that can be aggregated into one solution.

Wondering which apps will deliver the best returns for your facility? Here you can request an analysis of your facility’s capabilities.

Stay ahead of the regulatory trend

For those who want a more in-depth understanding of the regulations and published plans, CANUSA EPC has prepared a compilation of official methane reduction documents for Canadian and US landscapes.

We also encourage participation in organizations that will share successes and challenges in this space among colleagues and technology providers. For example, in Alberta, MELA, the Mamine Emission Leadership Alliance, is the leading organization for providers of data, technology and solutions that monitor, measure, implement and reduce methane emissions.

Conclusion: getting ahead of the regulations

The regulations will impact both existing assets and new oil and gas facility projects. Understanding the requirements and incorporating these needs into the future design of operational facilities and technologies will position your company as a leader in methane intensity.

Download the information document which provides an overview of regulators and plans for your business.

Visit our website to see unique applications in methane emission strategies.

ABOUT CANUS

CANUSA EPC is an engineering, procurement and construction company that supports clients in the construction of energy infrastructure and facilities. We implement projects in our integrated model, minimizing construction risks and supporting the safe operation of the facility. Our team is located in Calgary and Denver, allowing us to serve the North American market with local resources and the ability to expand our team to meet our clients’ needs. Contact us today.