The next focusIR Investor Webinar takes place tomorrow with guest speakers from WS Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund. Please register here.

Less Ads, More Data, More Tools Register for FREE

Pin to quick picksRDSA.L Share News (RDSA)

  • There is currently no data for RDSA

Watchlists are a member only feature

Login to your account

Alerts are a premium feature

Login to your account

RPT-INSIGHT-Satellites reveal major new gas industry methane leaks

Fri, 26th Jun 2020 12:39

(Repeats with added graphic, no changes to text)

* GRAPHIC-Global methane intensity: https://tmsnrt.rs/318gDAX

* Methane emission estimates by country: https://tmsnrt.rs/2Yx4aou

* GRAPHIC-Russian methane emissions estimates: https://tmsnrt.rs/3ex9wG7

* GRAPHIC-Sources of Russian methane: https://tmsnrt.rs/2Z0ZO8p

By Shadia Nasralla

LONDON, June 26 (Reuters) - Last fall, European Space Agency
satellites detected huge plumes of the invisible planet-warming
gas methane leaking from the Yamal pipeline that carries natural
gas from Siberia to Europe.

Energy consultancy Kayrros estimated one leak was spewing
out 93 tonnes of methane every hour, meaning the daily emissions
from the leakage were equivalent to the amount of carbon dioxide
pumped out in a year by 15,000 cars in the United States.

The find, which has not been reported, is part of a growing
effort by companies, academics and some energy producers to use
space-age technology to find the biggest methane leaks as the
potent heat-trapping gas builds up rapidly in the atmosphere.

Kayrros, which is analysing the satellite data, said another
leak nearby was gushing at a rate of 17 tonnes an hour and that
it had informed Yamal's operator Gazprom about its
findings this month.

Gazprom did not immediately respond to requests for comment
about the leaks identified by Kayrros.

Up to now, estimates of greenhouse gas emissions from
industries have relied mainly on paper-based calculations of
what's pouring out of tailpipes and smokestacks, based on the
amount of energy consumed by people and businesses.

But as satellite technology improves, researchers are
starting to stress test the data - and the early results show
leaky oil and gas industry infrastructure is responsible for far
more of the methane in the atmosphere than previously thought.

Such a revelation would heap pressure on energy companies –
already targeted by climate activists and investors for their
contribution to carbon dioxide emissions - to find and plug
methane leaks.

The new satellite discoveries of methane leaks could also
lead to more stringent regulatory regimes targeting natural gas,
once seen as a "clean" fossil fuel, as governments seek to
combat climate change, experts say.

While scientists generally agree that calculating emissions
based on consumption works well for carbon dioxide, it is less
reliable for methane, which is prone to unexpected leaks.

Methane is also 80 times more potent during its first 20
years in the atmosphere and scientists say that identifying
methane sources is crucial to making the drastic emissions cuts
needed to avoid the worst impacts of climate change.

"What this now shows is that the avoidance of that fossil
leakage actually can have a larger impact than what was
anticipated earlier," said Imperial College London climate
scientist Joeri Rogelj, who is one of the authors for reports by
the Intergovernmental Panel on Climate Change (IPCC).

PIVOTAL DISCOVERY

A study in February's Nature magazine reinforced the idea
that the oil and gas industry produces far more methane than
previously thought as it suggested emissions of the gas from
natural causes have been significantly overestimated.

The findings don't let farming off the hook - it's still
responsible for a quarter of the methane in the atmosphere - but
they suggest mud volcanoes and natural oil and gas seepages have
been taking some of the heat for the energy industry's leaks.

Some big oil and gas companies such as BP and Royal
Dutch Shell are tackling the issue by investing in
satellite companies or signing monitoring deals so they can find
and plug their leaks and stick to pledges to slash emissions.

The push to detect emissions from the sky began when U.S.
advocacy group Environmental Defense Fund (EDF) and universities
including Harvard used aerial measurements to show methane leaks
from America's oil and gas heartland were 60% above inventories
reported to the U.S. Environmental Protection Agency.

That 2018 report was pivotal, said Christophe McGlade, a
senior researcher at the International Energy Agency (IEA).

"What they found from actual ground and aerial measurements
is that the engineering-based approach can really underestimate
total emissions," he said. "Maybe if emissions were higher in
the United States than previous estimates, maybe they were
higher in other parts of the world too?"

A year later, Canadian greenhouse gas monitoring company
GHGSat found another major leak at pipeline and compressor
infrastructure near the Korpezhe field in Turkmenistan.

In an October report, GHGSat estimated the leak released
142,000 tonnes of methane in the 12 months to the end of January
2019 and said then it was the biggest on record.

GHGSat said the leak was plugged in April 2019 after state
oil company Turkmen Oil was notified. Turkmen Oil officials
could not be reached for comment. The company declined to
comment when asked about it in November.

"That one emission that we found together represents about
one million cars taken off the road per year," said GHGSat
founder Stephane Germain.

Now, the more recent Kayrros discovery has added to the
evidence that undetected methane leaks from the energy industry
are a global issue – and a major one.

RUSSIA IN THE SPOTLIGHT

Kayrros said its analysis of the satellite data showed
concentrations of methane around compressor stations along the
pipeline linking Russian gasfields to Europe.

The Yamal-Europe pipeline stretches 2,000 km (1,250 miles)
from Germany through Poland and Belarus to Russia where it joins
the 2,200 km SRTO–Torzhok pipeline to Siberia's gasfields.

Gazprom estimated that about 0.29% of the 679
billion cubic metres of gas it moved through its pipeline
network escaped as methane emissions in 2019. Yamal has an
annual capacity of about 33 billion cubic metres.

"These figures correspond to the best global practices,"
Gazprom said in a June 10 statement about its emissions.

Kayrros also discovered leaks from oil and gas installations
in the Sahara Desert in North Africa.

"Early results show that the estimates we have been relying
on for the last years and decades are probably too low and we're
finding more methane coming out of various industries and
regions than we thought was the case," said Christian Lelong,
director for natural resources at Kayrros.

McGlade said the IEA increased the projected contributions
of several countries in central Asia and North Africa in its
Methane Tracker this year because of the satellite detections.

He singled out Russia as one country where official methane
emissions estimates were likely too low.

According to current IEA estimates of methane emitting
countries, Russia is closely followed by the United States, with
other large oil and gas producers such as Iraq, Iran and Saudi
Arabia further down the list.

"Our estimates suggest that Russia is actually among the
higher emitters globally. There does appear to be evidence from
satellites of leaks along some of its large gas pipeline
routes," McGlade said.

The Kremlin did not immediately respond to requests for
comment about the IEA estimates.

MORE SATELLITES

The scrutiny from space is set to intensify. GHGSat aims to
launch two new satellites this year while the EDF advocacy group
plans to launch its own satellite in 2022.

The U.S. National Aeronautics and Space Administration
(NASA) is also working on a satellite monitoring programme for
greenhouse gas emissions, specifically in the United States.

Shell signed a deal with GHGSat last year to work towards
covering its sites globally, saying it hopes to get its methane
leakage rate down to 0.2%, or below, by 2025.

BP is planning to cover its sites with constant measurements
by 2023 and invested $5 million this month in Satelytics, an
analytics firm that tracks methane emissions using satellites.

BP, Shell and U.S. non-profit EDF - along with Eni,
Total, Equinor and Wintershall Dea - sent
policy recommendations to the European Union in May, asking the
world's biggest gas importer to standardise the gathering of
methane emissions data by 2023, using satellite technology.

U.S. oil companies have also been exploring ways to detect
methane emissions, said Howard Feldman, senior director for
regulatory and scientific affairs at the American Petroleum
Institute.

Exxon Mobil Corp, for example, said this year it was
field testing eight detection methods, including satellites and
aerial surveillance with drones, helicopters and planes.

(Additional reporting by Vladimir Soldatkin; Editing by Richard
Valdmanis, David Clarke and Jon Boyle)

More News
30 Dec 2021 09:28

UPDATE 2-FTSE 100 edges down as COVID fears dull festive cheer

(For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window)* Industrial stocks eye best performance in 23 years* Travel and leisure hit by Omicron fears* Ashtead the top YTD performer on FTSE 100* UK ...

Read more
30 Dec 2021 05:33

UPDATE 5-Oil prices rise slightly ahead of OPEC+ meeting next week

* U.S. crude, fuel stocks fell last week; output rises -EIA* Saudi king says OPEC+ pact 'essential' for oil market stability (New throughout, updates prices, market activity and comments to settlement, adds OPEC+ meeting details and PSM details)By...

Read more
28 Dec 2021 09:41

S.African court halts Shell's offshore seismic survey

CAPE TOWN, Dec 28 (Reuters) - A South African high court on Tuesday blocked Shell from conducting seismic testing offshore from South Africa's pristine Wild Coast, in the latest ruling in a case seeking to prevent the oil major from exploring for...

Read more
27 Dec 2021 14:01

Mexican president says Pemex to close Deer Park deal in January

MEXICO CITY, Dec 27 (Reuters) - Mexican state oil company Petroleos Mexicanos (Pemex) will complete its purchase of a controlling interest in a Texas oil refinery in January, Mexican President Andres Manuel Lopez Obrador said on Monday.Mexico's go...

Read more
24 Dec 2021 10:03

UPDATE 1-Russia says Europe missing out on gas with Nord Stream 2 delay

(Recasts, adds quote, background)MOSCOW, Dec 24 (Reuters) - Europe, struggling with soaring gas prices, is missing out on additional Russian supplies amid delays to the Nord Stream 2 pipeline, a top Russian official signalled on Friday.Deputy Prim...

Read more
24 Dec 2021 08:26

Russia's Novak: Nord Stream 2 hindered by politics

MOSCOW, Dec 24 (Reuters) - The launch of the Nord Stream 2 natural gas pipeline is being hindered by politics, but Russia still hopes its certification will be completed by mid-2022, Russian Deputy Prime Minister Alexander Novak said on Friday.The...

Read more
24 Dec 2021 08:19

Russia says Nord Stream 2 a bargaining chip for U.S., EU, Interfax reports

MOSCOW, Dec 24 (Reuters) - The Nord Stream 2 gas pipeline project linking Russia with Europe has become a bargaining chip in a game played by the United States and the European Union, Russian Deputy Foreign Minister Sergei Ryabkov said on Friday, ...

Read more
23 Dec 2021 14:14

Third Point's Loeb slams activists after UK fund chairman quits

LONDON, Dec 23 (Reuters) - Hedge fund Third Point's boss Dan Loeb on Thursday blamed the departure of the chairman of the firm's London-listed fund on "inexperienced" and "juvenile antics" of activist investors.Third Point Investors Limited (TPIL)...

Read more
22 Dec 2021 20:56

Shell declares force majeure on Nigerian Forcados crude

LAGOS, Dec 22 (Reuters) - Royal Dutch Shell's Nigerian subsidiary SPDC has declared force majeure on exports of Nigerian Forcados crude oil after the obstruction of a tanker path by a malfunctioning barge, the company said in a statement.The actio...

Read more
22 Dec 2021 13:49

UPDATE 3-Mexico says U.S. approves Deer Park refinery deal, sees completion early 2022

(Adds details)MEXICO CITY, Dec 22 (Reuters) - The U.S. government has authorized the purchase by Petroleos Mexicanos (Pemex) of Royal Dutch Shell's controlling interest in a Texas oil refinery in a transaction that should conclude early next year,...

Read more
22 Dec 2021 13:49

UPDATE 2-Mexico says U.S. government approves Deer Park refinery deal

(Adds context, comment from Pemex CEO)MEXICO CITY, Dec 22 (Reuters) - The U.S. government has authorized the purchase by Petroleos Mexicanos (Pemex) of Royal Dutch Shell's controlling interest in a Texas oil refinery, Mexican President Andres Manu...

Read more
22 Dec 2021 13:49

UPDATE 1-Mexico says U.S. government approves Deer Park refinery deal

(Adds details)MEXICO CITY, Dec 22 (Reuters) - The U.S. government has authorized the purchase by Petroleos Mexicanos (Pemex) of Royal Dutch Shell's controlling interest in a Texas oil refinery, Mexican President Andres Manuel Lopez Obrador said on...

Read more
22 Dec 2021 13:15

Mexico says U.S. government approves Deer Park refinery deal

MEXICO CITY, Dec 22 (Reuters) - The U.S. government has authorized the purchase by Petroleos Mexicanos (Pemex) of Royal Dutch Shell's controlling interest in a Texas oil refinery, Mexican President Andres Manuel Lopez Obrador said on Wednesday.Lo...

Read more
21 Dec 2021 19:06

UPDATE 1-Texas lawsuit by laundromat owners seeks to block Shell refinery sale to Pemex

(Adds U.S. Treasury, CFIUS decline to comment)By Stefanie Eschenbacher and Gary McWilliamsMEXICO CITY/HOUSTON, Dec 21 (Reuters) - A pair of New York businessmen filed a lawsuit in a U.S. court seeking to block Mexico's state oil company Petroleos M...

Read more
21 Dec 2021 18:32

Texas lawsuit by laundromat owners seeks to block Shell refinery sale to Pemex

By Stefanie EschenbacherMEXICO CITY/HOUSTON, Dec 21 (Reuters) - A pair of New York businessmen filed a lawsuit in a U.S. court seeking to block Mexico's state oil company Petroleos Mexicanos (Pemex) from taking control of a Texas refinery, claimin...

Read more

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.