ISLAMABAD: The Oil and Gas Regulatory Authority (Ogra) is split over the requirements, criteria as well as process for commercial intake of flare gas in the transportation market (via CNG terminals).
The regulatory authority has taken on different positions at various times on the use of flare gas generated in the oil as well as gas fields that can not be transported through pipes because of quality or economic concerns. The flaring of such gas amounts are inhibited worldwide because of environmental worries.
Under worldwide commitments, the federal government has actually introduced flare gas exercise standards and it is being sold as pressed natural gas precisely at minimal CNG terminals.
The standard petroleum concession agreement with expedition and also manufacturing firms requires its commercial exercise and also disallows its burning. However, the plan enables flaring in extraordinary instances until commercial setups are made available by the federal government or its designated business. It is therefore separated at the wellhead from the crude oil or natural gas as well as scorched or changed to bowsers for business consumption.
Increasing variety of CNG station owners look for use of flare gas in automobiles
Due to enhancing gas scarcities specifically for the CNG industry, an enhancing number of CNG terminal proprietors are seeking approval to make use of flare gas in automobiles, increasing security problems. Because of this, the federal government is considering thinking of a plan choice on using flare gas.
In November in 2015, Ogra supported the exercise of flare gas subject to separation of acidic parts according to natural gas quality criteria informed by it.
In December once again it reported that “bulk of the consumers of flare gas are CNG terminals, as recognized by the candidates seeking permit from Ogra to buy of flare gas”.
Ogra claimed the “Exercise of Flare Gas Guidelines 2013 of the federal government do not restrict utilisation of flare gas in the CNG industry instead based on stipulation F( 1) and also G, flare gas can be marketed to third party at a worked out cost equally agreed specifications and supplied the lease holder shall ensure compliance of relevant HSE policies, policies and industry typical techniques”.
In yet one more subsequent letter to the federal government, Ogra mentioned that transport of flare gas through bowsers after compression in the oil and gas fields was not covered under CNG regulations and flare gas exercise guidelines to CNG terminals.
Ogra additionally noted that specific flare gas licencees in the CNG field had been found supplying off-spec gas and were quit from providing such flare gas as no device was readily available at some of these wellheads for sweetening and dehydration.
In such instances, the off-spec flare gas supply to CNG stations in addition to CNG converted cars endangered the life as well as home of the general public as it resulted in the weakening of CNG cyndrical tubes and could lead to fatal accidents, it warned.
The regulatory authority opposed the Oil Department’s summary for use of flare gas in the CNG field, stating the inconsistent high quality and also techno-legal restrictions might position serious threat to public life and safety.
In the issue of a number of CNG stations in the federal cupboard, two out of three members of Ogra (vice chairman and participant oil) noted with significant concern that the CNG terminal owners had actually used mobile gas travasi system to transfer flare gas from wellhead to the CNG station which was essential to public security.
Participant gas, nevertheless, objected to the choice in his dissenting note, saying “the complication on the issue of flare gas licences had established as persistent disease by different functionaries of Ogra”. He kept in mind that the total capacity of flare gas conservation in the nation had to do with 100 million cubic feet daily (MMCFD) as versus 18 pending licence applications’ concerning 20mmcfd or about $110 million each year.
The participant gas noted that “there is no bar or limitation on use flare gas, inter alia, in the CNG terminals, as long as” flare gas satisfied pipeline specs, compression system as well as travasi system/bowser needs and also CNG terminals were licensed by chief examiner dynamites and third party examiners. He reported that Ogra had actually quietly changed its placement from previous letters.