Gas flaring in the news – September

The Canadian Government has announced conditional approval of a 600-mile LNG pipeline as part of a $36 billion liquefied natural gas (LNG) project backed by Malaysian energy company Petronas.  The project indicates a wider confidence in the industry’s recovery, which is further evidenced by the results of a recent Deloitte survey.  Meanwhile Shell has announced that recent gas flaring at the Norco manufacturing complex in Louisiana was due to a technical issue in the refinery.

Canadian Government backs new LNG pipeline project

The Canadian Government’s commitment to combatting climate change has been questioned after it announced approval for a $36 billion LNG project in northern British Columbia.

The government has conditionally approved the ‘Pacific North West LNG project’, which is backed by Malaysian energy company Petronas and will include a 600-mile natural gas pipeline and an LNG facility near Prince Rupert in British Columbia.  If successfully implemented the project will ship 19 million tonnes of LNG every year to markets in Asia.

The project will be one of Canada’s largest resource development projects, creating as many as 630 direct and spin-off jobs, as well as 4,500 construction jobs.  The government has estimated the project will add nearly $2.4 billion per year to the country’s gross domestic product (GDP).

Catherine McKenna, the Canadian Government Environment Minister, said the decision had been informed by rigorous environmental assessment: “The only way to get resources to market in the 21st century is if it is done in a responsible and sustainable manner.  This decision reflects this objective.”

Louisiana chemical plant upset triggers flaring

Shell has said that gas flaring at the Norco manufacturing complex in Louisiana, which is shared with the Motiva Enterprises refinery, was due to a technical issue in Shell’s chemical plant.  Shell spokesman, Ray Fisher, commented: “The issue is said to be resolved, but [there will be] flaring for next hour or so.”

The refinery and chemical plant share the safety flare system at the complex and when the stack begins to flare it is often reported as the result of a refinery malfunction.

Oil & Gas Industry executives optimistic for 2017

A recent survey by Deloitte, “2016 Oil and Gas Industry Survey: Optimism Emerges in the Aftermath of a Long Downturn,” shows 59% of oil and gas professionals believe the two-year downturn in the industry may have already begun or will begin in 2017.

Despite the current state of the market, executives have shown renewed confidence in the industry’s recovery, pointing to expectations of rising prices and a return to increases in capital expenditures and headcount.

John England, vice chairman, Deloitte LLP commented: “This recovery in many ways mimics the pattern of the recovery from the Great Recession.  If last year was the year of hard decisions, 2017 will be the slow road back.  Companies are generally optimistic that prices will rise to a more sustainable level next year; however, they understand that even if we see an uptick in price, the industry likely won’t fully recover until 2018 or beyond.”

October 6, 2016 | Flaring in the news, News

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