Critical review of technologies to eliminate methane

emissions in Alberta oil and gas industry

SEDV 611
Andres Gomez
Karla Ordaz
Susana Moncada

April 17, 2020

Abstract
The growth of greenhouse gas emissions is one of the most remarkable issues that humanity is
facing, and it is reflected in climate change. Methane is it is considered a more potent GHG as it
can absorb more heat than carbon dioxide. The primary source of methane gas emissions is the oil
and gas industry, especially during the extraction phase. Considering that Alberta is committed to
reducing 45% below 2012 levels of methane emitted from the oil and gas industry by 2025
(Government of Alberta, 2020), some systems and technologies have been designed and developed
to mitigate, reduce and eliminate fugitive and engineered emissions found in the oil and gas
facilities. In order to evaluate the current technologies available to eliminate upstream methane
emissions in Alberta oil and gas sector, a critical review has been performed. Methane emissions
caused by leaks are due to irregular assemblies, manufacturing defects or damage during use in
pressurized equipment. The leak detection and repair programs are considered when forecasting
both cost and emission reductions. Additionally, devices with maximum scalability to reduce
fugitive emissions have been developed, Flange Covers and Durlon ® Gaskets are some of these
and help to reduce gas emissions less than 5ppm. As to methane emissions released by flaring and
vent, Biofiltration Technology that oxidizes the methane with the utilization of a methanotrophic
biofilter has been identified. Among technologies implemented to vent gas capture, the 2” M160
Moisture Skid Unit returns the vented gas into the pipeline intended to serve the well, while the
SlipStream® technology redirects those gases into the air intake of a reciprocating engine in a
controlled manner. An analysis of the main features, benefits, and challenges was performed. As
well as an overview of the economic feasibility was performed, highlighting key aspects to be
consider for its future application. However, these technologies are focused on low-emitting
equipment, but no large sources and aspects such as economic feasibility, carbon offset credit
option, and limitations must be considered for its implementation.
Introduction
Climate change is one of the main concerns that humanity is facing. It is caused by the increasing
production of anthropogenic Green House Gases (GHG) like methane. Methane is produced in
lower quantities than Carbon dioxide, but it is considered a more potent GHG. It absorbs more
heat than CO2, and it possesses a Global Warming Potential (GWP) of 28-34 over 100 years (The
United States Environmental Protection Agency, 2017). According to the Global Methane
Organization, “In 2010, anthropogenic methane emissions in 2010 were estimated to be 6,875
million metric tons of CO2 equivalent (MMTCO2E) (Global Methane Organization). In Canada,
Methane emissions represent 15% of the total Greenhouse gases. (Environmental Defense Canada,
2017). The major contributor to methane emissions in Canada is Alberta, as it is the primary
producer of oil and gas. Methane represents 70% of the regional CH4 emissions (Government of
Alberta, 2020).
The oil and gas industry contribute 25% of Canada's emissions (Government of Alberta, 2020),
mainly during the extraction and production of fossil fuels. Not only the utilization of electricity
needed to operate the machinery generates this GHG. Also, over 85% of methane emissions in
Alberta come from leaks in pipelines, valves and other equipment used during the upstream
process known as fugitive emission and engineered emissions like venting and flaring
(Government of Alberta, 2020).
Methane emission can create significant impacts on human health. One of the toxic effects of
methane is that it can cause oxygen deprivation. Also, methane can form explosive mixtures with
air. (National Academy of Sciences.) On the other hand, when there is not the right mixture of
methane and air, the combustion cannot be performed completely. Incomplete combustion can
produce toxic gases like carbon monoxide, unburned hydrocarbons and VOCs, which also cause a
harmful effect on human health.
Canada and Alberta's governments are committed to reducing methane emission by 40% to 45%
below 2012 levels of methane emitted from the oil and gas industry by 2025 (Konschnik &
Reuland, 2020). To be able to achieve the target, it is necessary to implement strong regulations,
improve processes, develop more efficient equipment and technology to detect, monitor, mitigate
and eliminate methane emission.
Some benefits can be derived from the elimination and mitigation of methane. First of all, the
greenhouse gases will reduce, and human health will improve considerably as harmful levels of
toxic gases will decrease. Furthermore, there are also economic benefits. Natural gas is a valuable
hydrocarbon, and there is a potential opportunity to sell or use it instead of releasing it into the
atmosphere. Also, there can be more opportunities to create more jobs. The economic benefits can
be translated to almost $9 billion (Environmental Defense Canada, 2018).
Many programs around the world are supporting the development of technologies that can help
with methane emission reduction. For example, ERA Alberta is providing funding in order to
develop technologies that detect, quantify and reduce methane emission. (ERA Emission
Reduction Alberta, n.d.)
Research Question
Considering high amounts of methane that are released to the atmosphere directly and indirectly
in the oil and gas sector, the next questions have emerged: what are these technologies to eliminate
upstream methane emissions implemented in Alberta oil and gas industry? How do these operate
and what the amount of methane that is eliminated through them? What are implications such as
benefits, impacts, and challenges of its application in the industry that has each of these?
Objectives
The main objective is aimed at knowing the current technologies for eliminating methane
emission, and its potential in the oil and gas exploration and production processes (upstream). To
achieve this objective, an analysis of these technologies was conducted to determine how these
eliminate methane. Furthermore, aspects such as benefits, economic analysis, and barriers were
addressed to obtain a broader perspective. Finally, current trends and critical issues that influence
its application were revised and linked to concluding the critical review.
Methane emission sources identified in the oil and gas industry
In Canada, every province has its perspectives on how to eliminate methane emission, but they all
coincide in first consider the elimination or reduction of flaring. In 2013 the Pembina Institute
estimated how the methane emission from the oil and gas industry would look like by 2020. The
most significant emitting segments were determined. To realize this estimation, a 2013 baseline
that identifies the existing sources and their emissions were identified (Table 1.) The projection
took into consideration the amount of gas production, gas consumption, kilometers of pipelines
and emission from the baseline. The results of the estimation are shown in Table 2 and Fig. 1. The
objective of the study was to identify the potential opportunities to reduce methane emissions from
the oil and gas industry in a cost-effective manner (Pembina Institute, 2015). Table 3 describes the
opportunity to reduce emissions from equipment used during upstream operations.
Federal Government and Alberta’s methane emission reduction regulations
Methane fugitive emissions that come from the oil and gas industry come from regular practices
and damaged equipment. Companies use pieces of equipment that are designed to vent methane in
order to regulate the pressure in the equipment; also, many kilotons of methane are released from
malfunctioning in pneumatic devices and leaks in tanks. (Environmental Defense Canada, 2017).
Appropriate and Strategic Regulations can be implemented in order to be able to achieve the
reduction of methane emissions goal by 2025. Moreover, more robust regulation will help to
improve health conditions and create more jobs. Furthermore, it will have an impact economically
by saving money by capturing and utilize methane instead of letting it go to waste, and it will
generate money from taxes and royalties. (Environmental Defense Canada, 2018).
Intending to achieve the target, the Canadian Federal government has proposed a group of
regulations. In the same way, the government of Alberta has proposed its regulations, which they
claim that with them, they achieve the same results as with the federal regulations. Also, they
believe that with Alberta's regulations, the province will maintain the employment rate, and they
will keep the province and the industry at a competitive level. (Issawi, 2018). At this moment, both
governments are in negotiations to determine which regulations are going to be in place. As per
the study realized by Mathew R. Johnson, the regulations proposed by the federal government are
more likely to meet the criteria; on the other hand, Alberta's plan does not meet with the 2025
expectations. (Matthew R. Johnson, 2020). The most relevant discrepancies in the regulations are
as follow:
Concerning the emission coming from malfunctioning equipment, it is necessary to monitor
regularly the location by specialized personal. According to the provincial Government, leaks can
be monitored by Audio, Visual and Olfactory methods, using a soap solution. The Government of
Canada requires the use of technology like mounted sensors, crewless aerial vehicles and optical
Gas Imagine Cameras (OGI) or infrared cameras to be able to visualize the gas. These cameras
can scan leaks from pipes, valves, tanks from a safe distance. Once the leaks are detected,
employees can repair or replace the damaged equipment (Powell, 2019). Inspection and repairing
are the cheapest and easiest methods to reduce methane emissions, and it will help to save around
$67.6 million. The gas that could be saved could be used to heat around 200,000 homes in Alberta.
(Environmental Defense Canada, 2017). The Federal Government is proposing to perform
inspection quarterly, whereas Alberta is proposing to perform them once a year. (Environmental
Defense Canada, 2018).
Another essential aspect that needs to be taken into consideration is the gas that is vented.
According to CAPP, “Venting is the controlled release of unburned gas into the atmosphere. It can
occur during well maintenance and well completion” (Canada's oil and natural gas producers,
2019). It is of primary importance to limit the volume of gas released from oil tanks and oil wells.
A limit of 1,250 M3 per site per month is stipulated in the federal regulation in contrast with the
government of Alberta’s limit that is 12 times higher. Flaring is permitted as it can be a better
option than just venting the gas, but it is necessary that the combustion be as complete as possible
(Environmental Defense Canada, 2018).
Pneumatic devices are designed to vent methane as part of their regular operation to reduce the
pressure in the system. The recommendation is to use electronic pumps and controllers that do the
same function as the pneumatic, but they do not release methane to the atmosphere. The federal
government promotes the use of electronic controllers when possible (locations that have access
to electricity from renewable sources or connected to the grid). Alberta’s regulation only requires
the use of electronic devices in new wells as it is not a requirement for existing wells.
(Environmental Defense Canada, 2018).
During decades Alberta has been misreporting data related to methane emission in the oil and gas
sector. In Accord with the Green Path Report, the number of pneumatic devices exiting in the
field is 60% higher than the number of devices reported (2016). This indicator reflects the
opportunity to implement a procedure to collect more accurate data on regards the number of
equipment used at the locations. This data is essential to identify the areas producing higher
methane emissions. The federal regulations focus on reduction reported an unreported methane
emission, in contrast with the provincial regulations that do not take into account the unreported
emissions. (Environmental Defense Canada, 2018).
Both governments are focusing on reducing methane emissions, one in a more realistic way than
the other. Some areas can be improved in both proposals. One example is that these regulations do
not apply to Alberta’s oils sands mines that are emitting 19% of Alberta’s methane emissions
(Singh, 2020). These regulations are no in place yet. They are under the process of discussion. It
is important to recall that in order for the Alberta regulations to be accepted, their regulations most
meet the 2025 goal (Singh, 2020).
Technologies to reduce and eliminate methane emissions in Alberta oil and gas sector
Fugitive emissions – mitigation.
Cementing services companies make improvements to Cementing operations to maintain wellbore
integrity.
Cementing is part of the well construction stage. A slurry made with cement, water and special
additives is pumped downhole through the casing and back up to the annular space (space between
casing and formation). The purposes of the cement operations are to support the casing. Also, it
prevents the casing from corrosion, prevents blowouts, gives protection from forces that might
occur during the drilling process, provides zonal isolation so groundwater does not get
contaminated by fluids from the formation, seals thief zones, and it protects the environment by
preventing the flow of formation fluids to the surface.
When the well is not properly cemented, it can present gas migration to the surface. When a leak
is presented in the wellbore, excessive pressure is observed in the annular spaces that needs to be
vented. (Smith, 2003). Emissions from leakage in wellbores are around 7.2 megatonnes of CO2
eq in 2015, an equivalent of 4.3% of total emission from the upstream sector (Natural Resources
Canada, 2019). Some factors that contribute to cementing failure are poor annular cleaning before
place the cement into the right place, improper centralization of the casing, channels produced by
gas migrations during setting and cement dehydration (Natural Resources Canada, 2019). Gas
leaks can occur at any stage of the well like surface casing, intermediate casing or production
casing.
Gas migration can be mitigated by properly planning the cement operations and designing an
appropriate slurry that fulfills the well necessities according to its conditions like pressure,
temperatures, kind of formation and mud used to lubricate the bit. Many factors need to be taken
into consideration to design a cement job, like borehole depth, the diameter of the open hole and
pipe diameters to calculate the cement required volumes. Other factors are formation pressures to
determinate the pumping rates and the slurry densities and temperature of the well (if a slurry is
designed for a wrong temperature, it can result in a premature set). One of the most critical factors
to ensure a successful job is to develop the correct centralization of the casing. This is done by
placing the right number of centralizers. These devices help to center the casing in the wellbore
during the cementing operations, allowing the cement to be evenly distributed. Most centralizers
have turbo fins to offer a local turbulent flow that is needed to clean the filter cake that is created
by the lubricating mud (Halliburton Energy Services, 2019). If the slurry gets contaminated due to
the improper removal of mud filter cake, its thickening time is affected, creating a risk of not
setting, which causes gas migrations.
Well conditions that affect the most to gas migration
The annular space hydrostatic pressure must always exceed the formation pressures to prevent gas
from scape. Slurry must be designed at the correct density to maintain this hydrostatic pressure.
Heavyweight additives like Hematite or Barite help to restraint formation pressures. (Smith, 2003).
Cement dehydration occurs when a slurry gets in contact with a permeable zone in the open hole,
the particles attached to the permeable zone create a cement filter cake that supports the cement
column. As a result, the hydrostatic pressure decreases below the formation pressures. It takes only
a short time for the gas to start flowing through the annulus space. Situations like this occur when
the permeable zone is above the gas interval (Smith, 2003). Fluid loss additives like Organic
polymers are used to minimizes the potential of the slurry to dehydrate and reduce the permeability
of the cement filter cake.
As it is mentioned above, gas migration is related to the losses of hydrostatic pressure. The slurry
is designed with a thickening time that allows the operators to pump the cement in the right places.
Just shortly after the pumping has stopped, the slurry starts its setting process. The earlier stage of
the process is known as a gel-strength transition time (gelation). During this time, the slurry starts
gelling, and it loses hydrostatic pressure as pressure may not be transferred through the gelled
cement. The optimum slurry design requires a minim static gel-strength transition time to prevent
the gas from percolating through the unset cement. The recommendation is to design a thixotropic
slurry, that develops high gel strength in with short transition time.
Channeling in the slurry can occur when there is free water in the slurry. Free water occurs when
the slurry is static, and the solids are not in suspension, cement particles will settle. In deviated
wells, free water plays a critical role, as it creates water channels where the gas can flow. It is of
utmost importance to add free water control additives to the slurry to prevent this phenomenon
from happening.
By following all the cement operation and slurry design best practices, the leakage of natural gas
can be minimized. Ten thousand dollars to millions can be saved by avoiding the necessity of
cementing remediation jobs. (Natural Resources Canada, 2019).
Fugitive emissions - reduction
Leak detection and repair (LDAR) program
Since methane emissions associated with leaks count as its primary contributor, leak detection and
repair (LDAR) programs have to be considered when forecasting both cost and emission
reductions, in this regard, the Petroleum Technology Alliance Canada (PTAC), through the
Methane Emissions Reduction Network (MERN) is developing an LDAR program design. The
data-based approach is a critical component of this program when analyzing operational efficiency
and cost-effectiveness due to the need for historically available data for identifying and addressing
leaks is a must (PTAC, 2017). The program comprises both data processing and analysis objectives
with process standardization and best practices to consider.
For data processing, the program aims at “complete processing of available Canadian data to
identify trends” (PTAC, 2017. p. 1) and including US data where possible. By completing data
conversions and categorization, the program attempts to provide and metered leak rates and
forecast estimated. Data analysis is proposed to perform a “statistical analysis of leak magnitude
and frequency of occurrence based on facility type and product” (PTAC, 2017. p. 1). In this detail,
this objective is aimed at determining the randomness of leaks, by identifying leak’s frequency
and occurrence, as well as highlighting key factors that contribute to its appearance. Also, it is
intended to analyze and provide insight into the program’s effectiveness, focusing on fugitive
emissions but including aspects in leaking and venting.
To achieve it, the program emphasizes the need to assess if the available Canadian data set presents
sufficient information to gauge trends over time. Also, to compile the percentage of reductions
identified showing when reductions occurred, and when and why did not provide enough rationale
taking into consideration technical aspects such as “time-lapse in surveys, different detection,
production changes, technology changes, operating condition, and extensive count of components”
(PTAC, 2017). On this matter, the program considers relevant to “develop figures of average leak
rate per hour by facility type and product and include critical analysis on what the figures depict”,
considering within the Canadian Association of Petroleum Producers (CAPP) Best Management
Practice (BMP) Guideline aspects such as “improved designs, Directed Inspection and
Maintenance (DI&M) practices, improved operating practices, and the application of new and
retrofit technologies” (CAPP, 2007. p. iii). Finally, it is expected to perform data comparisons and
identify similarities and differences.
For process standardization, the program is aiming at identifying and defining material aspects to
propose a standard definition of “large leak” and venting by conducting a literature review.
Addressing best practices, the program contemplates to conduct of a risk assessment to identify
high risks components in leaks, over a technology overview focusing on assessing the
“effectiveness and operability of new and emerging technologies and inspection methods (e.g.,
screening vs. comprehensive assessments)” (PTAC, 2017. p. 2).
One concern regarding LDAR programs is the up-to-date access and subsequent analysis of
Canada and/or US LDAR data to estimate trends over time. One possible option is to limit the data
boundaries, but it may impact future research to evaluate broader trends within the sector among
provinces.
Triangle Fluid Controls Ltd. Flange Covers and Durlon ® Gaskets
It is known that irregular assembly, manufacturing defects or damage during use in pressurized
equipment are some of the causes of fugitive emissions. Nowadays, those leakage has generated
concern about its impact on the environment. Therefore, different technologies have been designed
and developed to reduce this type of emission to achieve the control of air pollution stipulated in
each nation.
The recognized company Triangle Fluid Controls Ltd. has developed products with a maximum
sealability that can facilitate the reduction of fugitive emissions to meet the regulations. Bolted
flanged connections are the ones that more present leaks, according to Triangle Fluid Controls Ltd.
and represent around 60 - 80% (Chett Norton, 2017). The company has developed flange covers
to "capture fugitive gas from leaking flange connections" (Norton, 2017). This tool allows the
fugitive emissions reduction to "nearly zero for liquids and less than 5ppm for gases" (Norton,
2017). As it is well known that there are thousands of bolted connections in the upstream stage of
the oil and gas industry. The most common is the 150# flange design. However, this model of
flanges does not resist enough load applied by the installer due to bolting, flange or material
constraints. Therefore, the gaskets are needed to seal about 2-3 times the area of a ring.
Triangle Fluid Controls Ltd. has also designed the gaskets line to reduce the gasket area and
support more stress. These are Durlon ® RCA (Reduced Contact Area), used in full-face flanges
to create a tight seal, and Durlon ® PTFE Step is ideal for pipes that transport fluids with high
sulfuric acid content.
The lifetime of the flange covers is five years and require at least an inspection per year.
Additionally, the company provides free training for future maintenance if it is required. It is
essential to mention that the flange covers are regulated by NACE dimensional standards ASME
B16.20 and B16.21, CSN EN 1514-1, and the CSA approval is not required for the gaskets
(Norton, 2017).
Evaluating the cost analysis of this technology, the company offers it at $10 to $20 per flange. The
price can vary according to size and quantity of the purchase. For the installation, the cost will
depend on the volume and size of gaskets, and the correct installation will not generate operating
and maintenance costs. Another positive aspect of this tool is the considerations of the payback,
which by reducing or eliminating gas leaks, that volume will be available for sale. Also, it helps
to mitigate the negligence of regulatory compliance. However, this product does not qualify for
carbon offset credits (Norton, 2017).
Fugitive emissions – elimination
TRIDO industries Inc. - Glycol Heat Exchange Pump
The technology switches fuel gas pneumatic devices to solar-powered eliminating methane
emissions. “The solar-powered heat exchange unit eliminates the venting common with diaphragm
pumps, and the conserved fuel gas enables the recapture of lost gas revenue. The glycol heat
exchange unit incorporates a high-capacity pump that can be set up in parallel to handle increased
volumes” (PTAC, 2019. p. 1).
An overview of the economic feasibility of this technology must consider the following aspects:
 ▪ Capital Cost: approximately $2,500. However, variation in the exact figures will depend
on the level of application.
▪ Installation Cost: is expected to be extremely low, since the equipment’s design allows it
to be installed by a field operator.
▪ Operating Cost: is mentioned to be low. An advantage comes up due to the gas no longer
being vented would represent additional cost savings (possible to sell it out).
▪ Maintenance Cost: maintenance costs are low, including the regular basic maintenance
required.
▪ Carbon Offset Credits: in Alberta, the unit is eligible for carbon offset credits through the
Quantification Protocol for Greenhouse Gas Emission Reductions from Pneumatic
Devices. (PTAC, 2019).
▪ Payback, Return on Investment and Marginal Abatement Cost: the payback period, ROI,
and marginal abatement costs are subjected to the unit’s application, but “retaining vented
gas for sale can augment project economics” (PTAC, 2019. p. 2).
On the other hand, the Unit is expected to last ten years with minimal maintenance requirements,
and no unusual safety requirements apply. Concerning regulatory issues, AER Directive is no
applicable (PTAC, 2019).
Engineered Emissions – Flaring/Venting
Flaring is the action of the burning of waste gases during the extraction of oil and gas through
combustion devices (The World Bank, 2017). Flaring is utilized as a pressure relief during the
extraction process. In the production phase flaring is used to burn gases that are economically
feasible to capture or transport (Miller, 2016). Flaring is a better option instead of venting gases
into the atmosphere where methane is emitted into the atmosphere. When flaring occurs, the main
products are carbon dioxide and water. The gases burned during flaring are valuable products that
can be utilized in more effective ways that minimize the impact in the environment (GENERON,
2019). On the other hand, venting is the controlled discharge into the atmosphere of unburned
gases that may occur during well completion operation or maintenance, but flaring is not
100%efficient (Canada's oil and natural gas producers, 2019).
Control of point Source of low volume methane emissions using methane biofiltration technology
(MBF)
Biofiltration has been used for different purposes, for example, to remove odors from the air and
wastewater treatment plants. Biofiltration is an environmentally friendly technology that is used
to break down contaminants like hydrocarbons. The process consists of passing the contaminants
through a biologically active packing material that degrades specific compounds into CO2 and
H20. (Centre for Public Environmental Oversight CPEO, n.d.). An advantage of using biofiltration
is that it does not generate secondary contaminants. In order for the biofilter to operate at its
optimal conditions, it needs an appropriate temperature, an appropriate level of moisture. The
packing media used in the biofilter can be categorized as natural like woodchips, compost and
peat, or synthetic like carbon, ceramic pellets, ground tires, to mention some examples. The
difference is that the natural material may contain the nutrients needed for the microbial growth in
contrast with the synthetic that will require the addition of them. In case that the biofilter needs
additional nutrients, they can be sprayed into the reactor. (Kinney, 2004).
Researchers from the University of Calgary, guided by Dr. Patrick Hettiaratchi, developed the
MBF technology to eliminate methane emission. Methane Biofiltration Technology consists of the
oxidation of methane with the utilization of a methanotrophic biofilter (Hettiaratchi,
Chandrakanthi, & Venugopal, 2006). This filter utilizes a methanotrophic bacteria, which its name
means “fueled by methane.” These bacteria metabolize methane since it contains methane
monooxygenase (MMO) that contains copper metal that destroys methane bonds and transforms
it into molecules of CO2 and Water (Berr, 2017). Methanotrophic bacteria work better under
controlled conditions. It acts favorably under a temperature range of 10oC to 35oC. During the
summer months, higher oxidation of methane is observed (Hettiaratchi, Chandrakanthi, &
Venugopal, 2006).
There are two types of biofilters; the passive biofilter is an open reactor installed outdoors. Gas is
injected through perforated pipes located at the bottom of the reactor. It uses atmospheric oxygen,
and its efficiency is affected by the weather. One of this biofilters is in operation in a closed landfill
in Skimikin BC to evaluate the filter’s performance (Schulich School of Engineering). The other
type is the active biofilter, which is a close reactor. This type of design protects the biofilter from
the adverse effects of the weather. During winter months, the bacteria lose activity and the
efficiency decreases. It has an active aeration system that increases the efficiency of the oxidation.
This technology can be used in locations where low volume of methane gas emissions are observed
instead of flaring the gas that creates toxics emission (Schulich School of Engineering). The
movement of the gases to the biofilter is produced by diffusion of concentration gradients and by
advection of pressure gradients. The factors that mainly affect the transportation of the gas are the
type of filter media, moisture content, reactions, ambient temperature and weather conditions.
(Hettiaratchi, Chandrakanthi, & Venugopal, 2006).
The principal application in the oil and gas industry are during hydraulic fracturing, venting and
equipment leaks produced considerable quantities of methane emissions. Furthermore,
Furthermore, MBF can be implemented in locations where gas solution is vented or flared. The
definition of solution gas is “the gas that is dissolved in the reservoir along with crude oil,
condensate and water. It remains dissolved until it experiences pressure and temperature change
during production (PETROPEDIA, n.d.).
Methane biofilter can be considered as a sustainable technology; it does not produce secondary
contaminants that can be produce by incomplete combustions during flaring. Moreover, by using
biofilters, the net greenhouse effect of methane can be reduced by almost 90% by converting
methane into carbon dioxide. (Farrokhzadeh, 2015). Biofilters are a cost-effective technology if it
is operated under the right conditions. The system only requires a recirculation pump and a fan
that needs a minimum of energy in comparison to flares. Besides, the biofilter does not require
frequent maintenance; as a result, the maintenance cost is low. It can be considered a safe
technology, the moisture that is present in the biofilter, eliminates the possibility of combustion
(Omole, Seema, & Shoshi, 2013).
Like all other technologies, MBF has disadvantages. If it is not designed for the appropriate
environmental conditions, the process can be affected. The moisture of the filter media gets
affected by rain. Leachate can be produced if the CO2 produced is dissolved in the rainwater.
Besides, this technology does not produce by-products that can be sold; for that reason, the
technology needs to be efficient and cost-effective. (Hettiaratchi, Chandrakanthi, & Venugopal,
2006)
GO Technologies - The 2” M160 Moisture Skid Unit
This technology aims at reducing “the impact of flaring, venting, and incinerating, while also
helping maintain oil production by converting unused vent gas into useable energy” (PTAC, 2017.
p. 1). This technology makes possible to compress the vent gas and return it into the pipeline
intended to serve the well. The dry “speck” gas can be obtained using dryer systems on compressor
packages according to the volume. One important aspect to highlight is that the technology’s
instrumentation is powered by two solar panels, eliminating fuel gas emissions (PTAC, 2017).
Also, the use of the moisture skid can be combined with one or more compression units and applied
on a single or multiple well that represent excess gas for use.
Another benefit from this technology relies on “when the gas is set up for use with a co-op or
utility gas,” because “the discharge pressure is increased and overcomes the utility’s gas pressure.”
At this point, the gas is sold back to the utility. (PTAC, 2017. p. 1).
Finally, when the discharge pressure declines or ceases, the well system is then backed up “by the
co-op or utility meter to maintain a set pressure. This ensures that no pressure is lost, and the well
is not shut down”. It is important to note that the excess gas is sold “on to the low-pressure line,
and there is no venting” (PTAC, 2017. p. 1).
Addressing technology's site applicability, it applies to all Cold Heavy Oil Production with Sand
(CHOPS) sites, where excess amounts of vent gas have been identified. For emissions reduction
and energy efficiency, the Moisture Skid Unit guarantees that “emissions will be reduced to zero,
or minute amounts as gas is sold into low pressure or mid-pressure lines serving residential
systems” (PTAC, 2017. p. 1).
An overview of the economic analysis must be seen over the following aspects:
▪ Capital cost: pressure requirements determine its variation. “A low-pressure unit is
$76,000. The High-pressure unit costs up to $130,000 (including a high-pressure meter and
equipped with an H2S analyzer.)”.
▪ Installation cost: A cost of approximately $2,500 for systems connected into low-pressure
lines. This amount will increase if pipelines need to be installed and connected to the site,
depending on aspects such as pipeline size, distance, pressure, etc.
▪ Operating cost: An estimated cost of $400.00/month for a low-pressure site. However,
operating costs are foreseen to be “limited to monthly gas analysis costs, mercaptan, and
supervisory control and data acquisition (SCADA) costs for monthly data charges if
modems are used.”
▪ Maintenance cost: limited to semi-annual meter inspections and “recertification every
seven to ten years. The primary cost is maintaining the compressor to ensure the continued
production of pipeline spec gas.”
▪ Carbon Offset Credits: Sites under the 0.5 E3M3 can qualify.
▪ Payback, Return on Investment and Marginal Abatement Cost: Payback relies on both oil
production and vent gas generated. “Payouts have been achieved in as little as weeks if
significant oil production is lost because of shut-in wells from high gas/oil ratios (GOR)’s.”
(PTAC, 2017. p. 2).
On the other hand, the unit’s reliability relies on its expected lifetime and maintenance. With
adequate and timely maintenance, it is mentioned the unit will last indefinitely. The operator’s
experience and knowledge related to regulating, measuring, and odourization systems (RMOs),
would secure fewer maintenance issues, coupled with completed training in the gas utility operator
course. Also, for safety requirements, regular on-site PPE is mandatory for inspections.
For regulatory compliance, the following aspects must be commented:
▪ “These units also help resource companies meet AER venting requirements
▪ Meters are Measurement Canada Approved, which is a tighter tolerance than the AER”
(PTAC, 2017. p. 2).
Vent Gas Capture (VGC) Systems and Spartan Controls Ltd. – SlipStream®
During its daily operations, even in normal conditions, the oil and gas facilities vent extremely
harmful gases such as CO2 and methane to the atmosphere. Some of the sources that issue gases
are compressor packing vents, dehydrator, and pneumatic pumps. This result generates
environmental issues that are currently affecting those who are and not final users.
Considering the high volume of natural gas that is released daily, it has been developed a system
to capture and combustion the vented methane called Vent Gas Capture (VGC) (PTAC, 2017).
This system is focused on reducing greenhouse gas emissions, mainly methane, through
combusting it and converting it to other gases such as carbon dioxide and water vapor (PTAC,
2017). The common vent gas capture system includes piping, controls, regulators, a combustion
device, and vapor recovery units (PTAC, 2017).
Spartan Controls has designed and developed a revolutionary vent gas capture technology known
as SlipStream® that "captures vented hydrocarbons and use them as a supplementary fuel source,
reducing engine fuel consumption by up to 50%" (Spartan Controls). In other words, this
technology redirects those gases into the air intake of a reciprocating engine in a controlled
manner" (PTAC, 2017). The SlipStream® technology contains a valve train for process control
and metering of the vent gas, software and hardware to integrate the system with the facility’s
control panel and shutdown systems (PTAC, 2017). It does not need an energy input as the
captured gas is input into the engine. A different version of this technology has been developed to
being used with dehydrator re-boiler burners, tank heaters or line heaters. It is worth nothing to
say that to measure the potential fuel gas savings is recommended to install a monitoring system
with a dedicated flow meter installed on the piping that connects the captured vent gas stream to a
combustion device. The data is usually collected every 15 minutes daily, and it is related to
Supervisory Control and Data Acquisition (SCADA) system (PTAC, 2017).
The facility design is an important aspect of the site applicability evaluation, to mitigate possible
risk, for instance, during the distribution phase from the dehydrator to the combustion device that
may be located in a different building. One of the estimated risks is the water content in the vent
gas, as it could cause a freezing risk. Therefore, the gas should be processed through a drying
mechanism to eliminate the water (PTAC, 2017). Additionally, the presence of water or oil in the
vent gas can affect the accuracy of this system.
Some limitations that VGC system may present are:
- It cannot be economically feasible for those projects with small vent gas volumes and its low
cost of recovering.
- It may struggle to capture and use the vented gas through pressures under the atmospheric
pressure.
- For sites that do not count on a combustion source, the combustion equipment might require
some highly cost modifications, such as adding an air-fuel ratio controller, to combust vented
gas.
- Impurities and water content in the vented gas difficult operations as it can freeze, especially
in the winter season.
- Lack of metering will impact the estimation of the vent gas rate.
When it comes to SlipStream®'s economic analysis, the main factors are described as:
▪ Capital Cost: it is based on the site to be implemented the technology. However, the cost
is ranged between $55,000 to $250,000, according to the projects developed in Alberta.
Also, the number of compressors and dehydrators required for a project will be reflected
in the capital cost.
▪ Operating Cost: considering if the equipment does not require incremental compression,
this cost can be minimal.
▪ Maintenance Cost: annually, is needed to calibrate the equipment. The maintenance cost
can be estimated between $500-$1,000/year for meter calibration as well as site visits.
▪ Carbon Offset Credits: based on the carbon offset cost in Alberta is $25/offset, VGC
projects can generate a significant value of carbon offsets, and those can be higher than the
amount of the gas savings.
▪ Payback, Return on Investment and Marginal Abatement Cost: by saving gas, VGC
projects obtain a return, and considering the site-specific of the project. The average is
about 6 thousand cubic feet per day (MCFD), which means $5,500/year.
The vent gas capture system has been implemented in the major projects of Alberta. Taking into
account the announcements of the Government of Canada about future regulations of methane
emissions from different equipment used in the oil and gas sector, the VGC system meets those
regulations by almost eliminating methane emissions completely from those sources through
offering as a natural solution by reciprocating compressor packing vents (PTAC, 2017).
Conclusion
Concerning Alberta methane regulations, Canada needs to implement strong regulations to be able
to achieve the 2025 emissions reduction goal. Not only Alberta has the task of maintaining the
province at a competitive level, but also, Alberta needs to be stricter and need to design a more
efficient data collection program as it lacks proper estimations. Alberta’s rules are focusing on
low-emitting equipment, but significant sources (e.g., leaks and venting from tanks and oil wells),
are still unaddressed. The regulations proposed by the provincial government will not meet the
target. Alberta’s regulations need to be restructured and reinforced in order to be accepted and
implemented.
Mitigation practices need to be the first option, like providing good zonal isolation to prevent gas
from escaping to the surface while drilling. Also, leak detection and repair programs must be
considered when forecasting cost and emission reductions. However, the need for available
historical data (e.g., Canada or US) for analyzing operational efficiency and cost-effectiveness
when identifying and addressing leaks is a remaining concern. One possible option is to limit the
data boundaries, but it may impact future research to evaluate broader trends within the sector
among provinces.
Technologies that address the elimination of fugitive emissions, especially those that propose in
switching fuel gas pneumatic devices to solar-powered, must be implemented. One reason is the
contribution to eliminate the venting. Another is that the conserved fuel gas enables the recapture
of lost gas revenue. On the other hand, by analyzing economic feasibility, aspects as low capital
and installation cost coupled with additional cost savings for operation, due to the gas no longer
being vented, would represent incomes, making this type of technology feasible for application.
Also, for carbon offset credits, these may be eligible through the Quantification Protocol for
Greenhouse Gas Emission Reductions from Pneumatic Device. Table 4 provides a summary of the
technologies proposed in this report to eliminate fugitive emissions.
There is a wide range of opportunities to reduce methane emissions from engineering emission.
Institutions like the University of Calgary have been researching on the matter. This report studied
possible solutions for the reduction of engineering emissions. Table 5 provides a summary of these
technologies. The solutions proposed are for different volumes of gas flared and different operating
pressures. All technologies presented provide the potential of earning revenues from carbon offset
and gives fuel gas savings as every volume of gas that is not released to the atmosphere can be
counted as a gas that can be sold.
One advantage of flaring and venting technologies, particularly those that help on reducing those
impacts while also contribute to maintaining oil production by converting unused vent gas into
useable energy, is the site applicability. Another advantage, regarding emissions reduction and
energy efficiency beyond the production's site boundaries, is that emissions can be dramatically
reduced as gas is sold into low pressure or mid-pressure lines serving residential systems.
However, capital costs rely on pressure requirements ranging from $76,000 to $130,000, but the
payback return is influenced by oil production as well as the vent gas generated. This aspect could
represent an economic advantage through the time in a BAS scenario.
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Appendix

Table 1: 2013 Baseline Inventory Emission by Segment (Pembina Institute, 2015)

Fig 1: 2020 projected Methane emission sources (Pembina Institute, 2015)

Table 2: Main methane emissions sources categorized from the highest amount emitted in the oil and gas
industry (Pembina Institute, 2015)
Table 3: Significant total Greenhouse Gas Emissions reduction generated in oil and gas facilities, through
applications of different technologies and their efficiencies (Cap-op Energy, 2013).
 Fugitive Emissions Solutions
Technology Applicability Volume Pressure
Cementing services companies make
improvements to Cementing operations to Mitigation NA NA
maintain wellbore integrity.
Leak detection and repair (LDAR) program Reduction NA NA
Triangle Fluid Controls Ltd. Flange Covers and Flange connections/
Low Low
Durlon ® Gaskets Sweet and sour gases
Upstream oil and gas
TRIDO industries Inc. - Glycol Heat Exchange facilities/midstream
Low Low
Pump and pipelines/sweet
and sour service
Table 4: Technologies and their applicability specifications to mitigate and eliminate fugitive
emissions in the oil and gas industry.

Engineered Emissions Solutions

Technology Applicability Volume Pressure
Pressure
gradient of gas
Control of point Source of low volume methane Used in operations
injected
emissions using methane biofiltration where low volume of Low
pressure and
technology (MBF) gas is flared
atmospheric
pressure.
Low and High
CHOPS sites with
GO Technologies - The 2” M160 Moisture Skid depending on
excess amounts of vent Low/High
Unit pressure
gas
requirements
High, over
Vent Gas Capture (VGC) Systems and Spartan Compressor packing
High atmospheric
Controls Ltd. – SlipStream® vents, dehydrator pressure.
Table 5: Technologies and their applicability specifications to mitigate and eliminate engineered
emissions such as flaring and venting, in the oil and gas industry.