Barreras para la Utilización de Gas Asociado y Enfoque Integrado en la Utilización de Gas Asociado Taller Nacional: “Impulsando la Alianza para Reducir la Quema de Gas en Ecuador” Bent Svensson

Barriers to gas development Underdeveloped domestic market for gas and gas products Gas pricing Lack of gas sector policies Limited institutional, legal and regulatory framework Fiscal system and contractual framework Infrastructure constraints and access to markets Funding constraints Lack of Co-operation between stakeholders

From Global to Country focus Flaring and Venting Reduction Activities Commercialization Regulations Carbon Credits Standards Country Deliverables and Demo projects Sustainable Gas Flaring Reduction Phase I Phase II Focus on major flaring countries and in-country deliverables

GGFR Work Program Commercialization –Consultations to identify and address associated gas utilization barriers –Demonstration projects –Small scale gas use Regulations for (associated) gas sector development –Identification and dissemination of regulatory best practice –Contractual issues surrounding associated gas Global Gas Flaring Standard –Stakeholder engagement process, including measurement and reporting Carbon Credits –Capacity building including methodology for flaring projects –Representative projects assistance with crediting process

Regulation in 44 countries WB carried out study of 44 oil producing countries Objective: regulations and other factors that effected the flare and venting volume Findings: countries that managed to reduce flaring and venting volumes adopted a combination of –Efficient regulation –Other incentives (fiscal policies & reform of energy markets)

Flaring and Venting Regulation Many countries have inadequate institutional capabilities often overlapping responsibilities clear and transparent operational processes and efficient regulatory procedures are lacking Issues contractual rights to assoc. gas (preemptive rights) lack of effective regulatory procedures for monitoring, measuring, and enforcing lack of financial resources and technical expertise to introduce comprehensive monitoring programs

The Standard  Provides framework for governments, companies, and other key stakeholders  to consult each other and take collaborative/complementary actions  Reduce barriers to associated gas utilization Encourages integrated approach  market and infrastructure development, commercialization, legal and fiscal regulations, carbon credits  Allows for flexibility to local conditions,  balancing ambitious timescale with realistic constraints

Adoption of the Standard Adoption of the Global Gas Venting and Flaring Reduction Voluntary Standard means that the stakeholders: Endorse the principles set forth in the Standard Support collaboration with other stakeholders toward the utilization of associated gas and the reduction of flaring and venting Agree to publish flaring data through the government for transparency

Carbon Credits –Assisting with demonstration projects facilitating linkages to carbon finance –Capacity building for stakeholders improving methodology issues –Creating a forum for best practice on flare reduction and CDM/JI –Providing technical assistance to help host countries in national approval processes and sustainable development –Encouraging donors and providing study funding to support reduction projects

Feasibility studies Project identification workshops Stakeholder facilitation Ohanet-Algeria / LPG- Indonesia Río del Rey-Cameroon / Sedigi-Chad Gulf of Guinea / Zafiro-EG / Ofon-Nigeria Approach Projects Demonstration Projects (Commercial)

1)Gas to power 2)Gas to pipeline 3)Gas to reinjection 4)Gas to LNG 5)Gas to LPG Russian JI (Russia) Afam (Nigeria) TFT (Algeria) OB/OB (Nigeria) LNG (Angola) LPG (Indonesia) Methodology Projects Demonstration Projects (Carbon Credit)

Small Scale Gas Utilization Purpose: –Finding solutions for associated gas utilization around the flare sites to benefit the local communities and the domestic market, and thereby meeting the poverty reduction mandate of GGFR. Project categories –Small-scale power production/distribution at gas flaring site –Small-scale gas distribution in vicinity of anchor customer –LPG distribution scheme –Improve quality of life around flaring sites –Direct poverty alleviation impact

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