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Assessment

Article 15 of the 2021 proposal  bans routine flaring altogether, and also venting unless under specific situations (see section 9 of this case study).

According to Article 125 of Law No. 002/2019 , at the request of the contractor and on the advice of the MPGHM, flaring and venting may be authorized within a period determined by the Ministry of Environment. Upon notification, the applicable thresholds (subject to periodical revision) will be determined for each field.

Article 5 of ESDM 17/2021 sets DG Migas–authorized routine gas flaring volume limits of 2 mmscf per day (six-month field average) in an oil field, and 3 percent of the daily volumetric feed gas flow rate of a natural gas field. Processing business permit holders are not allowed to flare routinely. These companies must design refineries and processing plants without routine flaring. For flaring due to gas commercialization issues, contractors must report their challenges to SKK Migas or the BPMA, along with plans to utilize gas (Article 10 of ESDM 17/2021). SKK Migas or the BPMA will review the contractors’ reports and submit recommendations to the minister (DG Migas), who will decide the status of the flared gas.

According to Article 146 of the Law on Subsoil and Subsoil Use, 2017 , flaring is allowed during emergencies, well testing, trial operations of a field, and if it is unavoidable on technical grounds. Except in an emergency, flaring under all other circumstances requires a permit from the Ministry of Energy. Applications for a permit to flare raw gas can be submitted online. There are special considerations for the northern Caspian Sea region. For example, according to Article 274 of the Environmental Code, 2021 , flaring of liquids during well operations is prohibited and “flaring of hydrocarbons during well testing should be minimized using the best available technology, which is the safest for the environment.” The best available technology is identified during the process of the environmental impact assessment. Such flaring is allowed “only under favorable weather conditions conducive to the dispersion of the smoke plume, while the design of the flare units must ensure the complete combustion of hydrocarbons.”

Section 10 of the Malaysia-Thailand Joint Authority Procedures for Production Operations, 2009 , in alignment with the requirements of the PPGUA , requires prior approval of any flaring or venting other than those that occur under conditions listed in the preceding section. The PPGUA gives the MPM the authority to set gas supply targets and approve plans for associated gas. For the operations phase of an asset the MES Greenhouse Gas Reporting and Management Plan asks for zero continuous venting and reduced routine flaring where operationally and economically feasible to be considered. 

According to Article 10 of the CNH Technical Provisions for the Use of Associated Natural Gas in the Exploration and Production of Hydrocarbons , the authorization to flare associated gas is included in the exploration or development plan’s approval according to detailed instructions in Articles 14 and 15. When a reservoir is reclassified from nonassociated gas to associated gas, the operator must modify its development plan and add a gas utilization plan. Articles 18–27 of the Regulation of the General Law of Ecological Balance and Environmental Protection in the Field of Prevention and Control of Atmosphere Pollution, 2014, require certain stationary sources—those that emit or may emit odors, gases, solid particles, or liquid particles into the atmosphere—to obtain operating licenses, which SEMARNAT issues by for an indefinite term, and outline the requirements and steps involved in the license application. For the oil and gas sector, the license application is made to ASEA.

Subject to Section 104(1) of the Petroleum Industry Act , flaring, venting, or wasting gas without Commission authorization is an offense according to Section 3.7 of the Emissions Regulations . Section 12 states that flaring is allowed under the threshold approved by the Commission as long as flaring fee is paid. According to Section 3.3.1 of the NUPRC Guide 0024-2022 , cold venting is prohibited without a waiver from the Commission.

Section 23 of the Regulations to Act Relating to Petroleum Activities, 1997 , requires the operator to apply to the MPE to flare or vent gas, with a copy of the application submitted to the NPD. Permits are issued for a period of one calendar year according to the Guidelines for Production Permit Applications. Upon application, the MPE specifies the quantity that may be produced, injected, or vented for fixed periods of time according to Section 4-4 of the Norwegian Petroleum Act, 1996 . The NPD ensures compliance with these quantities. Venting is usually allowed for safety reasons, start-up, or testing.

SAEP-400  details routine, nonroutine, and emergency flaring operations that are implicitly authorized. Saudi Aramco’s FMP and FMS practice suggests that routine flaring is marginal. Saudi Aramco has maintained a flare volume of less than 1 percent of total raw gas production since 2012 according to the company’s 2021 sustainability report.

Under Section 12A of the amended Energy Act, 1976 , consent from the OGA is required to flare or vent gas from upstream oil or gas and processing facilities. Operators must apply for these consents via the UK Energy Portal. The OGA used to provide separate guidance with regard to applications for flaring or venting consents during commissioning and production. The OGA Flaring and Venting Guidance, 2021 , replaced these two guidance documents, but most requirements for authorization of flaring and venting remained the same. The procedure for commissioning new facilities is summarized as follows: The OGA issues flaring or venting consents valid for about one month (up to three months) during the commissioning of new facilities. The amount of gas flared and vented is fixed and subject to an auditable program and should be at the lowest level possible for safe and efficient commissioning. Consents are not issued until the OGA is satisfied that the gas-processing plant is ready to receive gas (construction complete, fully tested). If the gas-processing plant cannot handle all gas within two weeks of first oil, the OGA may limit production. Supporting documentation should be submitted to the OGA six months before the expected start-up. A formal written application should be made about two weeks before first oil. The procedure for production is as follows: Consents for flaring or venting during production operations are issued after commissioning of the gas-processing plant is completed. Consents are annual, and leftover allowances cannot be carried forward. The operator must submit a new application every year (usually in October). One objective of the OGA is to use these applications to develop a realistic forecast against which to track performance. The OGA may issue consents of shorter duration if, for example, the level of flaring or venting raises concerns or more investigation or data are necessary. Flare (vent) consents are for a field, which may have multiple installations that flare (vent). Composite or group consents can be issued for several fields tied to common facilities when equity partners are the same or operators of fields and common facilities submit their agreement for a group consent. A new field connecting to an existing facility may obtain a new consent or may be added to the existing consent via a new application. Possible breaches must be reported to the OGA promptly, and a technical case must be made if a revision is required. Commissioning consent documentation may differ depending on the facility size and complexity. At a minimum it should include the following: a brief overview of the field and associated main facilities a detailed description of the plant commissioning philosophy and procedure, including gas export line commissioning, should it be applicable the commissioning schedule a summary of the main flaring and venting assumptions and GHG profiles under different commissioning strategies forecasts of daily and total quantities of gas flared or vented sketches and figures containing a high-level field layout, process flow diagram, and systems for gas compression, dehydration, gas export, and fuel gas. The OGA Flaring and Venting Guidance, 2021, also covers flaring and venting at terminals and other onshore facilities that serve offshore operations. However, consent applications for onshore facilities are submitted via email and not through the Energy Portal.