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State Oil Company of Azerbaijan Republic
SOCAR activities on Climate Change
Mitigation Actions
EUROPE AND CENTRAL ASIA COUNTRIES REGIONAL
CONFERENCE:
UZBEKISTAN’S EXPERIENCE IN ASSOCIATED GAS
FLARING UTILIZATION AND IMPLEMENTATION CDM
PROJECTS IN OIL AND GAS SECTOR
2012, June 14-16
Tashkent, Uzbekistan
SOCAR, International Oil-Gas-Chemistry
Company
•
SOCAR has set a goal to become a worldwide known oil company
•
Company has representations in 10 countries, and also branches and
associated companies all over the world. SOCAR enterprises and
terminals operate in Turkey, Georgia and Switzerland
•
SOCAR implements large-scale environmental projects
•
More than 1000 hectares of lands contaminated due to 160 years of
industrial oil production has been restored by recultivation. 550
thousands of trees were planted at the restored areas
•
“International Index on Environmental Actions” issued by the
Columbia University and Yale University in 2012 – Azerbaijan was
ranked 2nd on environmental protection for the last decade, and 1st on
actions mitigating climate change.
Environmental Strategy of SOCAR
2008
2009
2010
2011
2012
- Approval of SOCAR “Environmental Policy”
- Decision on “Measures related to implementation of Framework Convention on Climate Change”
- Beginning of GHG Inventory
- Partnership with GGFR
Started measurement of transport emissions
Inclusion of mobil sources into the GHG Inventory
German “DİW econ “ Company partnership beginning
“Azerigas” PU became a part of SOCAR
Environmental Strategy of SOCAR
2008
2009
2010
2011
2012
SOCAR Associated Gas Reduction Plan
SOCAR Climate Change Mitigation Strategy
Waste Management Plan
The pilot project on “LED lighting replacement” at SOCAR
administrative buildings and Department of Ecology was
carried out.
“Azerikimya” PU became a part of SOCAR
Purchase of the measurement equipment,
start up of measurements
Submission of “LED lighting replacement”
project to the CDM Designated National
Authority for registration.
International Conference on “Azerbaijan
Experience in the field of Associated Gas
Reduction and Utilization”
Environmental Strategy of SOCAR
2008
2009
2010
2011
2012
Commissioning of Ecological Park
Putting into operation of renewable
energy equipment
Planting a forest at
the area of ​100
hectares by SOCAR
Inventory
methodology
improvement
Partnership with
Sumitomo Company
Development of
“Effectively use of
associated gas”
project with the
support of EBRD
and “Carbon Limits”
Company
GHG Inventory
• SOCAR carried out the GHG inventory for the last 5 years
• The result of GHG Inventory conducted for 2007-2010 years are
shown in below graph
Thousands t
14953.7
16000.0
14000.0
10676.4
12000.0
10000.0
8000.0
6000.0
2827.9
2730.2
4000.0
2000.0
0.0
2007
2008
2009
2010
Transport emissions measurements
• 3 Measurement Points have been established to measure harmful
emissions fro transport.
• Volume of transport emissions determines by instrumental methods.
• Vehicles do not meet Avro-2 standards after implementation of
appropriate measures should be re-sent to the measurement points.
SOCAR-GGFR partnership
• “SOCAR Associated Gas Reduction Plan” was approved in 2010
• Due to the technical measures implemented by SOCAR in 2011, the
real amount of associated gas vented into the atmosphere was
reduced from 436 mln m3 to 120 mln m3.
mln.m3
Baza xətti
700
600
Faktiki atılma
Proqnoz atılma
584.3
511.6
527,7
487,4
500
400
407.1
494
455.7
431.1
407.1
387.4
300
276.4
200
120.4
74,0
100
120.4
7.4
7.4
0
2007
2008
2009
2010
2011
2012
2013
2014
2015
SOCAR-GGFR partnership
•
GGFR Europe and Central Asia Regional Committee's annual
meeting was held in Baku on 16-17 June of 2011
•
”Azerbaijan Experience in the field of Associated Gas
Reduction and Utilization“ Conference
SOCAR-GGFR partnership
•
•
•
In 2011 measurement equipment for identification of gas emission
volumes were provided and Ecological Department‘s staff was trained
within the framework of technical assistance by GGFR.
Special measurement methodology were prepared by SOCAR experts
Auxiliary equipments were designed to support field measurement
activities
“Höntzsch” measuring device
Auxiliary equipment
Practical measurements
•
In September of 2011, by means of instrumental measurements
the volumes of associated gas emitted into the atmospheres from
"Siyazanneft" oil and gas extraction unit’s (OGEU) wells were
determined - the first experience.
•
Last year, according to the results of the measurements at
"Siyazanneft" OGPU 14,2 mln. m3/year of associated gas
emissions were determined.
•
A Feasibility Study is under preparation to collect low pressure
gas from "Siyazanneft" OGPU .
•
A measurements plan for 2012 was developed and works in this
direction continues.
Completed projects on reducing of associated
gas atmospheric emissions
“Guneshli” OGEU :
•
4 mln. m3 per day collecting associated gas compressor station
was built.
•
Station is equipped by compressors - the capacity of each one
is 2 mln.m3.
•
The station was put into operation on 4 May 2012
“Neft Dashlari” OGEU:
•
At the territory of OGEU in the framework of associated gas
utilization project 66 vacuum compressors NQK-7/1-5 were
installed
•
Compressors are manufactured in Azerbaijan
•
Annual collection of associated gas is 280 mln. m3
•
More than 1 year the PDD of the project is at validation stage
within the framework of CDM
Reducing of associated gas atmospheric
emissions – Guneshli field, Platform №4
Other projects implemented by SOCAR in the
field of GHG reducing
•
At present, the dry gas obtained as by-product of oil refinery sent
through the pipe lines to the "Ethylene-polyethylene" plant in
Sumgait city.
•
As a result transportation costs reduced, transport and fuel used
for raw materials transportation reduced, and this has led to
considerable decrease of the GHG and harmful emissions into the
atmosphere.
•
Actual amount of emissions reduction is being assessed by the
SOCAR’s Department of Ecology
Partnership with “Carbon Limits” Company
• Development of “Effectively utilization of associated gas” project
with the support of EBRD
• Data Submission for project activity by Department of Ecology.
• Future directions for partnership based on the results of
negotiations were determined
• The workshop with “Carbon Limits’” is scheduled for September of
2012
• Information potential small scale projects that could be financed
by the EBRD was provided.
Partnership with German “DİW econ” Company
•
In the framework of partnership “Climate Change Mitigation
Strategy of SOCAR “was developed and approved.
•
Joint assessment of the following proposals are carried out:
- Improvement of the GHG monitoring system;
- Future perspectives for SOCAR Ecological Park development;
- Replacement of old compressors by new ones;
- Study of Use of alternative fuels for SOCAR transport vehicles;
- Forest planting at the territory of SOCAR.
Improvement of the GHG monitoring system
First stage
SOCAR
OC & JE (10)
Azneft PU
Azeriqaz PU
Azerikimya PU
Refinery
Others
OGEU
TGPA(8)
Etilen-Polietilen
Plant
BOR named
after H.Aliyev
Services (7)
Services (5)
GDS (67)
Organic
Chemistry Plant
“Azerneftyaq”
Oil Refinery
DSTT
GPP
Second stage
Sources by categories
Internal
consumption
Oil treatment
process
Associated
gas
emissions
Annular gas
(from wells)
technological
losses
Electric power
production
Transport
Development of Ecological Park
• SOCAR Ecological Park – the first demonstrative ecological project in
Azerbaijan Republic.
• Approximately 40% of energy used in Eco Park is covered by
renewable, transition to full scale alternative energy use in underway.
• Every year 200 thousand units of seedlings are cultivated at the Eco
Park territory for vegetation of oil contaminated areas.
• With this project, SOCAR has achieved 3.6 thousands tons of carbon
dioxide reduction per year (in CO2 ekv.).
Development of Ecological Park
Total area– 9,3 ha
Renewable energy
Eco – center .
Carbon efficiency of production
Many Refineries’ technological burners
have been reconstructed. Due to above
mentioned measures the amount of CO2
emissions per 1t of oil treatment shown in
the below schedule:
Carbon efficiency by years (tCO2/t)
Refineries
2009
2010
2011
BOR named
after H.Aliyev
0.178
0.166
0.161
“Azerneftyaq”
OR
0.068
0.060
0.053
Next step (project idea)
Replacement of old compressors by new ones
• At the compressor station of “Azneft” PU Gas Storages significant
number of old outdated compressors operates.
• In the framework of SOCAR – “DIW econ” Company partnership
technical-economical assessment of the project was carried out and
“Replacement of old compressors by new ones “ PIN was prepared.
• This project will increase the
energy efficiency, but also has
positive environmental impacts
• As a result of implementation of the
project :
1. More efficient operations will help
to save 18.3 million m3 of gas and
2. will reduce the amount of CO2
equivalent of GHG emissions into
atmosphere by 37 thousand tons
Compressor
Use of alternative fuel in SOCAR Transport
system
• The project idea on replacement of “Azerikimya” PU ‘s old
outdated buses, worked on liquid fuel by new ones, working on
hydrogen was prepared.
Project benefits:
1. For SOCAR: they consist of the existing of SOCAR’s chemical
plants already producing Hydrogen as a by-product, so “0” cost
for fuel
2. For environment: reduction to virtually zero of emissions of
greenhouse gases as well as a reduction of emissions of other
danger to human health gases.
• At present Eco Park use elektromobil vehicles for inside
transportation.
• İn addition, for Eco Park staff and guests purchase of a new
electro-bus was planned.
Planting of forests on the territory of SOCAR
• The project idea on “Planting of forests
on the territory of 100 ha of SOCAR”
was developed by experts of SOCAR
Ecological Department.
• The main purpose is to create forests at
the SOCAR lands which will led to
environmental improvements and most
importantly will help to reduce carbon
emissions.
• According to calculations carried out for
an area of 100 ha, forest planting will
led to 1,8 thousands t of CO2 emissions
reduction.
• After approval procedure project will be
submit to CDM National Designated
Authorities for registration.
Yaşıllaşdırılan ərazilər
Environmental awareness
• Organization of training courses in
order to facilitate best practices and
environmental skills dissemination
among employees of SOCAR;
• Organization of environmental
activities, Olympiads etc. for children,
pupils and young generation.
• Every year Olympiads organize for
scholars in the framework of “İNEPOAVRASİYA” International Environment
Protection Project
• Conduction of "Ekoerudit" Brain-Ring
competitions among schoolchildren;
• Public awareness and work with
Media.
Environmental awareness
• In Eco Park a number of trainings,
seminars were held:
• In September of 2011, “Presentation of
new software for the calculation of
greenhouse gases emissions” training
• In December of 2011, Workshop on
«The results of 2011 year’s cooperation
between SOCAR and “DIW econ”».
• In December of 2011, German RENAC Renewable Academy
conduct “Energy efficiency assessment and alternative energy
utilization possibilities in Azerbaijan” workshop in Eco Park
Educational Center
SOCAR – in harmony with nature
Thank You for attention!
Azer Aliyev
SOCAR, Department of
Ecology
www.socar.az/eco
Tashkent - 2012