282
M. Elshazly
8.6 Proposed Measures to Encourage
Players in the Hydrocarbon Sector
to Reduce Their Carbon
Footprint/Emissions
Egypt is the 11th largest gas flaring country in the world. There is potential for such flared gas to be processed at oil fields either for on-site
electricity production or for the national grid.
29 Nevertheless, so far,
there is no clear vision with respect to the measures taken or proposed
that encourage players in the hydrocarbon sector to reduce their carbon
footprint and exploit the on-site flared gas.
Basically, all companies in the hydrocarbon sector are committed to
abiding with the environmental legislations in the country including
the standards relating to the elimination of the hydrocarbon sector’s
negative impact on the environment including reducing carbon emissions. Ending flaring is one of the remedies for greenhouse gas emission
reductions that Egypt has indicated in its Nationally Determined Contribution (NDC) to the 2015 Paris Climate Agreement.
30 In this respect,
it is worth mentioning that the European Bank for Reconstruction
and Development (EBRD) funded a comprehensive, advanced study
shedding light on the economic, technical and legal barriers for the
exploitation of flared gas in Egypt, to reduce gas flaring at oil production
sites and their carbon footprint.
31 The main finding of the said study is
that, the exploitation of flared gas might be non-feasible for players in
the Egyptian Hydrocarbon Sector as flare sites in Egypt are mostly small
scale. Only 7 sites (of about 70) have average flaring above 5 million standard cubic feet per day.
32 The trend is towards more sites with small gas
29 Egypt Targets Gas Flares to Help Meet Increased Energy Demand, published by the World
Bank, February 12, 2018, available at https://www.worldbank.org/en/topic/extractiveindustries/
brief/egypt-targets-gas-flares-to-help-meet-increased-energy-demand, accessed 17/5/2020.
30 Egyptian Intended Nationality Determined Contribution, P. 2, available at https://www4.unf
ccc.int/sites/ndcstaging/PublishedDocuments/Egypt%20First/Egyptian%20INDC.pdf, accessed
16/5/2020.
31 APG Flaring in Egypt: Addressing Regulatory Constraints, Final Options Report, submitted
to EBRD by Economic Consulting Associates, April 2017.
32 P. 18 Ibid.
M. Elshazly
8.6 Proposed Measures to Encourage
Players in the Hydrocarbon Sector
to Reduce Their Carbon
Footprint/Emissions
Egypt is the 11th largest gas flaring country in the world. There is potential for such flared gas to be processed at oil fields either for on-site
electricity production or for the national grid.
29 Nevertheless, so far,
there is no clear vision with respect to the measures taken or proposed
that encourage players in the hydrocarbon sector to reduce their carbon
footprint and exploit the on-site flared gas.
Basically, all companies in the hydrocarbon sector are committed to
abiding with the environmental legislations in the country including
the standards relating to the elimination of the hydrocarbon sector’s
negative impact on the environment including reducing carbon emissions. Ending flaring is one of the remedies for greenhouse gas emission
reductions that Egypt has indicated in its Nationally Determined Contribution (NDC) to the 2015 Paris Climate Agreement.
30 In this respect,
it is worth mentioning that the European Bank for Reconstruction
and Development (EBRD) funded a comprehensive, advanced study
shedding light on the economic, technical and legal barriers for the
exploitation of flared gas in Egypt, to reduce gas flaring at oil production
sites and their carbon footprint.
31 The main finding of the said study is
that, the exploitation of flared gas might be non-feasible for players in
the Egyptian Hydrocarbon Sector as flare sites in Egypt are mostly small
scale. Only 7 sites (of about 70) have average flaring above 5 million standard cubic feet per day.
32 The trend is towards more sites with small gas
29 Egypt Targets Gas Flares to Help Meet Increased Energy Demand, published by the World
Bank, February 12, 2018, available at https://www.worldbank.org/en/topic/extractiveindustries/
brief/egypt-targets-gas-flares-to-help-meet-increased-energy-demand, accessed 17/5/2020.
30 Egyptian Intended Nationality Determined Contribution, P. 2, available at https://www4.unf
ccc.int/sites/ndcstaging/PublishedDocuments/Egypt%20First/Egyptian%20INDC.pdf, accessed
16/5/2020.
31 APG Flaring in Egypt: Addressing Regulatory Constraints, Final Options Report, submitted
to EBRD by Economic Consulting Associates, April 2017.
32 P. 18 Ibid.