STAR partners save $126 million via gas emissions cuts

Sept. 2, 2002
Industry participants in the US Environmental Protection Agency's Natural Gas STAR program reduced methane emissions from equipment leaks and unit operations by 42 bcf in 2001, saving about $126 million, EPA said.

Industry participants in the US Environmental Protection Agency's Natural Gas STAR program reduced methane emissions from equipment leaks and unit operations by 42 bcf in 2001, saving about $126 million, EPA said. The amount saved is based on a gas value of $3/Mcf. EPA said the program surpassed the partners' 2001 goal of reducing emissions by 40 bcf.

In 2000, the participants had generated a savings of $102 million, reducing emissions by 34 bcf. US natural gas systems emitted a total of 288 bcf of methane in 2000, according to EPA's latest published inventory of greenhouse gas emissions. Without the reductions achieved by Gas STAR partners, those emissions would have been almost 12% higher, EPA said.

Program details

The Gas STAR program—a voluntary partnership between EPA and the natural gas industry—focuses on using cost-effective technologies and practices to reduce methane emissions (OGJ, Aug. 28, 2000, p. 75). More than 90 partner companies in the gas production, processing, transmission, and distribution sectors participate in the program.

Gas STAR partners reduce methane emissions through market-based, voluntary activities, choosing best management practices that minimize equipment leaks, reduce gas releases from operations, and improve equipment efficiency. Partners implement only those practices that are cost-effective for their particular operations, and EPA encourages companies to seek out new gas emissions-reduction practices.

Since the program's inception in 1993, Gas STAR partners have reported total methane emissions reductions of 218 bcf, worth more than $650 million. "These reductions are the carbon equivalent of eliminating the emissions of more than 19 million cars for 1 year," EPA said. Although methane lags carbon dioxide as the main contributor to (postulated) global warming, EPA said, on a per-unit basis methane is 21 times more potent than CO2 in terms of its ability to trap heat in the atmosphere. "Because of this potency, relatively small reductions in methane emissions could have significant climate benefits," EPA said.

US efforts

In the US, natural gas operations are one of the leading sources of human-related methane emissions. EPA estimates that a 10% reduction in worldwide emissions from these sources would halt the annual rise in methane concentrations.

In February, the administration of President George W. Bush proposed a new global climate change initiative that calls on the US to voluntarily cut its greenhouse gas intensity (defined as the ratio of total greenhouse gas emissions to total gross domestic product) by 18% over the next decade. The initiative is designed to slow the growth in greenhouse gas emissions while sustaining economic growth needed to finance investment in new, clean energy technologies.

Promoting near-term opportunities for reducing methane emissions is an important part of this strategy. Methane emissions reductions can often be achieved profitably with existing technology. Companies participating in the Gas STAR Program, for example, generally increase their profit margins by reducing gas losses, because the gas saved can usually be sold.

Program comments

Greg Odegard, vice-president of environmental health and safety at Houston-based El Paso Corp., said his company's participation in Gas STAR "makes perfect environmental and business sense. And the program offers unique opportunities for technology transfer within the industry."

Kevin Tingley, a Gas STAR program manager, said, "Gas STAR continues to grow and to exceed the ambitious methane reduction goals we've set for ourselves. Our success in 2001 is a testament to industry innovation and the voluntary program approach."