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SONATRACH DOWNSTREAM ENVIRONMENTAL REGULATION

AND IMPACT ON GAS FLARE

NAAR Mokhtaria Sonatrach Downstream Activity

Keywords: 1. gas flare; sonatrach; liquefied natural gas; pollution; regulation. 1 Introduction

In fact, Algeria has a gas vocation. This is particularly true for LNG production. So, Sonatrach, the first Oil and Gas Company in Africa has been ranked the fourth LNG exporter on a worldwide scale in 2006. With its huge gas infrastructures, Sonatrach has become a prominent figure in the development and exploitation of gas fields, in transport trades through drains and in maritime transport. With a favorable geographical position which makes of it a privileged crossroad for the development of LNG industry, Algeria has ambitioning stand to consolidate its position as a leader in the production and marketing of LNG. Indeed, the Algerian gas constitutes a reliable and durable source of provisioning for the national and international markets and the Algerian gas reserves represent nearly 3% of the world reserves. Because of the prosperity of its ground, Algeria will play a significant role in LNG industry; a role which will be reinforced in the coming years with the series of projects being carried out or underway. In order to reinforce its position as a leader in the field of gas industry and to increase its outputs of LNG, Sonatrach launched two large scale projects. The first one consists in the realization of a new LNG train in Skikda which is 510 km East of Algiers, with a yearly output of 9978 m3 of LNG per year. Once it becomes operational, this plant will produce 9 978 m3 of LNG per year, 171 400 metric tones of butane, 207 600 metric tones of propane, 164 700 metric tones of ethane, 108 700 metric tones of gasoline and 163 million cubic meters of gas enriched in helium. The reception of the plant is programmed for 2014. This plant will allow the country to have a flexible tool to ensure a better valorization of its energy generating products and to consolidate its position on the international market. A second project is crossing a new big achievement of a new LNG train in Arzew which is distant of about 450 km west from Algiers. With a production capacity of 8889 m3 a year. So, LNG plants situations are strongly located in west and east of Algeria as shown in fig.1. with very big capacities of energy productions and huge gas emissions.

FEATURE OF THE ZONE

Vocation: hydrocarbon and petrochemicals

Area: 2,500 ha Production Unit: 15 units and complex

Service Units: 17 units Volume of total employment: 13 000 with 30% in services units

Average density: 12.5 jobs / ha Fig1.

Petrochemical and refining storage

Liquefaction natural gas

Manufacturing of fertilizers

Electricity Production

ARZEW ARZEW ARZEW

ARZEW

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Sonatrach works since its creation to preserve the environment and in particular to limit the impact of its activities on: air pollution; climate changes; the impoverishment of the ozone layer; … etc. The fight improving against waste heat recovery systems in process plants can reduce the huge demand for hot utilities. This means the direct combustion emissions such as carbon dioxide (CO2) Since the Seventies, Sonatrach laid down an objective to retard throttle associated wiped clean in its fields with production according to various input as we note the fluctuation of result of gas flare in downstream activity is shown in.Fig 2. Fig. 2

The natural gas obtained on the level of the well is pre-treated on the spot to eliminate CO2 and H2O before being conveyed towards the LNG plants. The reception of this gas on the level as of factories, the natural gas undergoes a second more thorough treatment as regards elimination of liquid heavy hydrocarbons, CO2, H2O. The content CO2 tolerated at the exit of the column of decarbonation must imperatively be lower than 90 ppm. CO2 is absorbed by a solution of mono ethanol amine known as MEA then released towards atmosphere in order to be able to re-use solution MEA since it functions in closed circuit. The content of H2O must be lower than 1 ppm on the outlet side of the driers, it is clicked it freezing which is used to drain water. The Hg content must be lower than 10 Ng/Nm3 by effect of adsorption using the impregnated sulphur activated carbon. The main aim of the liquefaction of natural gas is to reduce its volume of 600 times to facilitate its transport. In order to achieve the design goals (Quantity of LNG produced with a an auto-consumption (AC) lower or equal to 14%), one must imperatively take care of:

- Respect of the operating parameters on the whole of the train (pressure and temperature).

- To avoid them on pressures in the static equipment (columns, balloons).

- To avoid at all costs the and releases of the trains.

- To choose the normal stop of a train if a failure appears rather than to arrive at the release.

In March 2005 Algeria ratified the Kyoto Protocol on reduction of Greenhouse Gas emissions. AIG members are potentially impacted by all these initiatives due to the energy intensity of the air separation process, direct Carbon Dioxide emissions from steam reforming plants, as well as the filling, distribution and use of carbon dioxide and methane. The leading contributors to gas flaring are (in declining order): Nigeria, Russia, Iran, Algeria, Mexico, Venezuela, Indonesia, and the United States. In spite of a ruling by the Energy, Mines Ministry of Algeria (that forbade flaring) in 2005, 43% of the gas retrieval was still being flared in 2007. It will be prohibited by law as of 2012. In order to address the gas flaring issue, GGFR facilitates and supports national efforts for increasing the use of associated gas, thus improving energy efficiency, increasing access to energy, and contributing to climate change mitigation.

1,06 1,08 1,09 1,08 1,08

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0,79 0,79

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1990 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008

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Recently, under the Kyoto Treaty, some developing countries garbage collecting companies have received carbon bonus for installing burning chimneys for the methane gas produced at their landfills, preventing methane from reaching the atmosphere. After the burning, this gas is converted to heat, water and CO2,. The World Bank estimates that over 100 billion cubic meters of natural gas are flared or vented annually. Flaring gas also has a global impact on climate change by adding about 400 million tons of CO2 in annual emissions.

The Kyoto protocol, adopted on December 11th in 1997 and signed by Algeria, so comes to put a point of order in this mess as far as it subjects industrial nations to reduce their greenhouse gas emission. It means that the developed countries have to pay the quantities emitted (uttered) by carbon dioxide except quota (quantity granted (tuned) to every country). On the other hand, the poor or weakly developed countries can sell their quota of pollution not used in the rich countries.

2 Objectives

Under the protocol of Kyoto, come into effect in February 2005, the countries having ratified this protocol have to reduce by 5% their emissions combined of six principal gases for greenhouse effect lasting for the period 2008-2012 in on these side levels of 1990. For much of country, to achieve the goals of Kyoto will be a big challenge, which will require new policies and approaches. Sonatrach uses of associated gases like fuel gas in the utilities and construction of a grid system to collect gas. Some of 32 projects of recovery of wiped clean gases were carried out since 1973. While volumes of produced associated gases have practically triplet these 30 last years, the rate of flaring passed from 80% in 1970 to 11% in 2008. The flaring of non associated gases (GN), represents less than 1% of the production of dry gas of 137 GM3. If one resounds in term of aggregate output of associated gas and natural gas, the rate of flaring borders the 3% (in 2003). The medium-term objective is to recover 93% of produced associated gases and 100% in 2010. An investment of more than 200 million US$ were allocated for the reduction of wiped clean gases. 04 projects are registered with the PMT 2004-2008. The regulation (law of July 2007), as from 2012, as an example of limiting of emission not to be exceeded is fixed energy companies and those who would exceed it must buy quotas of emission. For example the European Union decided that the CO2 emissions planes will have to be limited in 2012 on the European territory with 97% of their level of 2005 then to 95% of this level over the period 2013-2020. In fact all the companies will find obligations to pay rights to pollute which would have to pay nearly 5 billion Euros per year the measurement were severely criticized by our administration on climate warming. “Initially, it is a unilateral decision which penalizes the company heavily and then it is all the more unjust that Algeria as country emergent is not concerned with protocol of Kyoto.

Algeria represented by Sonatrach doesn’t have direct obligation throughout the Kyoto protocol. Sonatrach works since its creation to preserve the environment in particular to Limit the impact of its activities on ambient Air quality; tackle Climatic changes, reduce the use of substances responsible of ozone layer depletion. However this does not prevent Sonatrach from adopting an HSE Policy on April, 2004. Several efforts and developing programs have been issued such as in downstream activity.

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An investment was allocated for the HSE and especially for reduction of flared gases projects are registered with the Program investments as shown in Fig.3.

Fig. 3

Algeria makes efforts in reduction of gas flares for greenhouse effects (example of LNG plant) as shown in Fig.4. and Fig.5.

Fig. 4 Gas flare for LPG and LNG plants for the first five months 2009

7%9%

11%13%13%

17%

20%

23%

29%31%

33%

0%

5%

10%

15%

20%

25%

30%

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1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Algeria flaring gas reduction. Objective 0% in 2010

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Fig. 5

The legislative aspect is certainly important, but we do not have to lose sight, the contribution of the raising awareness and the environmental education to guarantee a behavior eco-citizen. Since the early seventies, Sonatrach trys to set up as an objective to reduce gas flaring in its main plants & fields in upstream and downstream activities , through different schemes: • Using new technologies to recover NOx and CO2 emissions

• Closing up of gas lifts systems

• Using gas for utilities

• Constructing a gas transport network in order to monetise gas

• Reinjection in oïl producing fields to enhance oil recovery

• Reinjection in wet gas fields in order to maximize liquids recovery

3 Development Algeria as developing country, not concerned by the commitments of the Kyoto protocol, but having it ratifying all the same, developed an original initiative bound connected to its pattern of national consumption (production and internal consumption of natural gas), contributed to develop the use of the GN in Europe particularly and developed original and specific projects within the framework of the GGFR (wiped gases), the hybrid power plant. So, the measures of the law on hydrocarbons incite to a better coverage of the environmental aspects by companies. That makes obligation to every developer to use the effective means and requires respect for the prescriptions in health, safety and environment. The ban on flaring converges with the new standards of the atmospheric broadcasts (emissions issues) which impose a stake according to hydrocarbon plants. Thanks to the existing and future gas mains, Algeria is one of the mainsuppliers of Natural gas for Europe. Many projects of gas flaring recovery were carried out since 1973. While volumes of produced associated gases have practically triplet these 30 last years, the rate of flaring passed from 80% in 1970 to 07% in 2007.

INVENTORY of gas for greenhouse effect in Algeria Clear emission: 100 Million CO2

According to the law aspect developed in early 1990’s:

• The control of energy in 1999 (development, energy saving, reduction of the emissions, substitution inter energetic).

• The control and the waste disposal (2001).

• Signings of contracts of performance with more than 60 industrial companies (2002/2003).

• The protection and the valorization of the littoral (2002)

• Environmental protection within the framework of sustainable development (2003).

• The charter of the environment for the industrial company (2003).

• The promotion of the Energy within the framework of sustainable development (2004).

• Bill relating to the quality of the air and protection of the atmosphere.

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• Protocol of Kyoto ratified by Algeria.

The image of energy consumption as shown in Fig.6 gives us a general view according to the level of using energy and the way this even energy is consumed.

Fig.6.

a. Emissions

Sonatrach members are potentially impacted by all these initiatives due to the energy intensity of the air separation process, and direct Carbon Dioxide emissions from steam reforming plants, cogeneration plants, and Carbon Dioxide and nitrous oxide plants as shown in Fig.7 There are also possible emissions associated with the distribution and supply of carbon dioxide, methane, nitrous oxide, hydro fluorocarbons (HFCs), perfluorocarbons (PFCs, sulphur hexafluoride), and other so several methods should be used to reduce all these impacts as studies, new equipment, new technologies etc..

Fig.7.

Energy67%

Inductria process5%

Agriculture11%

Grounds/forest12%

Wastes 5%

Natural gas62%

Petroleum product28%

GPL7%

others3%

Energy consumption in Algeria

Emission per sector

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4 Results

As much of generating industrial activities of atmospheric pollution, the industry of hydrocarbons contributes in a way sensitive to air pollution through the rejection of various pollutants in gas form or particular Les emissions relative to this industry whose methodology of inventory will be presented in the paragraphs which follow, constitute only part of the important mass of gas waste which comes from various sectors and various areas of the world and which pollutes the atmosphere permanently. This pollution inevitably involves an environmental impact as well on the local plan and regional as international

Réduction of gas flare Year 1970 2003 2007

Ratio 80% 11% 7%

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The stack disposals related to LNG industry can be identified on the level of the various activities of this industry, namely:

• Production of natural gas. • The transport of gas. • The refining • The marketing of the end products.

So, the emissions related to the phase of production is characterized by a number of stages which are strongly represented in the separation of gases and the liquids. and the Treatment of gas. On the level of each one of these stages, various pollutants are emitted towards the atmosphere. It is mainly: - Organic compounds birds (COV). - Nitrogen oxides (Nox). - Carbon monoxide and carbonic gas (CO and CO2). The gas is treated to be removed from its water and others made up which it can contain. The emissions related to the aspect separation of gases and the liquids, concern mainly: Combustion gases coming from the operation of the compressors and the equipment of electrical production and heat (CO, CO2, particles). COV emitted on the level of the storage tanks, the operations of loading and the escapes on the level of the equipment.

A study of the American Institute of Oils (A.P.I) summarizes below the emissivity’s concerning the volatile organic compounds (COV) on the level of a treatment unit of gas (2, 3.4).

Equipement Emission factors Kg/day/source

Valves 0.48 Joints of pumps 1.50 joints of Compressors 18 Valves of safety 4.5

Openings of sampling 0.2 Connections of conduits 0.026

Carbonic gas (CO2) and methane (CH4) are also emitted in the form of torches or directly towards the atmosphere during the degasification of the wells and the maintenance actions of the equipment of drilling. In 1988, International Energy Agency (A.I.E) estimated that the quantities of CH4 burned by flaring account for on average 4% of the worldwide production of gas is approximately 16% with

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the Middle-East and less than 0.5% to the U.S.A because of a strict regulation on the rejections and of the existence of a market for the use of this gas.

Emissions related to the phase of transport: After processing, the product is transported by pipe on long distances. As regards gas, compressors are used to pressurize it, but also stations of counting for the cubic measures. For crude oil, when there does not exist pipe, tankers can be used to transport the liquid products until the stock room. On the level of the stage transport, there are thus rejections which can occur either deliberately, or by inadvertency. The most current emissions are: - Fugitive emissions (involuntary emissions in the form of escape on the level of the equipment: joints, connections, valves, valves, etc). - Emissions during maintenance (when the equipment or the pipes is put at the atmosphere). These emissions can be minimized by reducing the pressure in the pipe before any intervention of maintenance. - Accidental emissions due to breaches or ruptures of a pipeline, a gas pipeline or in equipment.

The importance of these various types of emissions varies from a country with another and will depend especially on the type of installations or the age of the equipment in fonctionnement.2.3- the emissions related to the phase of refining: The refining of crude oil makes it possible to obtain a certain number of end products the such gasoline’s, the aromatic one, fuels light and heavy, etc the type and the complexity of the process used will depend on the composition of the crude and the products which will be obtained. The pollutants emitted during the phase of refining are primarily: - Organic compounds birds (COV). - Nitrogen oxides (Nox). - Sulfur oxides and odors (for the sulfur crudes). - Carbonic gases and carbon monoxide. - Particulate matters. The emissions of COV and Nox starting from a large refinery (>10-7 t/an) were estimated at more than 10,000 t/an for each one of these pollutants and at more than 1,000 t/an for the carbon monoxide and the particles. When the crude contains sulfur, its refining is accompanied by gas emission sulfur such SO2, H2S and the mercaptans in smaller quantity. These compounds are responsible for the bad smells which one can note in the vicinity of the oil wells and the refineries. The emitted quantities are function of the percentage out of sulfur in the crude. The COV are rejected starting from several sources within the refinery. One can identify these emissions on the level of storage, of the equipment (escapes), of the systems of water treatment of process and turns of cooling. The escapes in the equipment relate to the losses of hydrocarbons in liquid or gas form starting from the valves, of the pumps, the compressors, the openings of sampling, of connections, A concentration which would exceed 10,000 ppm in the vicinity of an escape required an action of maintenance. Alone, the emissions of COV due to the escapes on the level of the equipment, are evaluated by the American Institute of Oils from 80 to 500 t/an for an average refinery.

b. Impacts The impacts on the international plan are strongly based on the stack disposals, taking into account their importance on the global level, are in the beginning various problems which worry the international opinion and which are currently the subject of studies and searchs in much for country. Among these problems, it is necessary to quote: The greenhouse effect: The gas emissions for greenhouse effect such as the carbonic gas (CO2), chlorofluorocarbons (CFCS), methane (CH4), nitrogen oxides (Nox), , etc, contribute to the warming of planet. Various methods can be used to estimate this kind of emissions. The emissions during the filling are considered at 1.4 gasoline g/l charged. The gas rejections can cause under the effect of the wind and according to the emitted quantities, the deterioration of the quality of the air in a ray of several kilometers around the source of emission. This situation would result in a going beyond the standards prescribed as regards quality of the air and would involve an impact not only on the animal human health and but also on the vegetation and the local environment in a manner générale.The principal pollutants discharged by oil industry such as the COV, Nox,…, more or less absorb solar energy in the bands wavelengths present in troposphere.

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For Sonatrach, the impact of law of july 2007 could be very strong avec the Kyoto Protocol, detailed below:

• Art 52: to prohibit flaring: Exceptional authorization to wipe clean, payment of a tax. • Art 62: Joint approval of mine & energy ministry the use, transfer or transfer of credit

concerning the emission of gas flares for greenhouse effects. (And taxes payable with the Treasury).

• Art 109: Maximum period of setting in seven (07) years conformity granted to adapt the operations, the installations and the equipment produced before the date of coming into effect of the law to the legislative texts and lawful.

• Taxation: economic calculations must be based on an approach allowed of exploitation.

5 Conclusions

The data published in the literature show that this warming is ascribable for: • 50% with CO2 and CO. • 20% with the CFCS. • 16% with the CH4. • 8% with ozone. • 6% with Nox.

At the end the industry is responsible for 25% of the emissions of these gases, the consumption of energy of 50% and the remainder is divided between agriculture and deforestation. The ozone hole: Certain pollutants such CFCS, the Nox like various radicals, contribute to the destruction of stratospheric ozone. Chlorine has a particularly harmful effect so much so that an international protocol (Montreal) obliges the signatory countries to limit the use of the CFCS. Reality concerning the destruction of ozone is however more complex. Indeed, there are about fifty components bound by several chemical reactions and photochemical which intervene in the process of destruction of ozone. Oil industry belongs to the branches of industry which contribute in an important way to pollution of the atmosphere. Among the pollutants discharged by this industry, it is necessary to announce mainly hydrocarbons in the form of vapors but also of other types of pollutants which are combustion gases coming from operation from various equipment and installations. These pollutants can involve a deterioration of the quality of the air on the local plan but also on the regional scales and international, particularly with certain hydrocarbons which are at the origin of the photochemical oxidant formation when certain weather conditions are joined together. A quantitative estimate of this pollution can be realized by carrying out an inventory detailed on the level of all the sector. For that, it is necessary to identify the various installations and equipment likely to constitute potential sources of emissions. The fight against this pollution requires a rigorous program of maintenance of the various installations and a monitoring of ambient pollution on the various production sites, of treatment and storage of hydrocarbons to detect all excessive emissions.

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For Algeria this means a considerable reduction in greenhouse gas emissions by 2012 according to the executive Decree No. 5 / 127, 24/04/05. Sonatrach repeats its commitment and participation in the GGFR activities to reduce gas flaring. Sonatrach will continue its efforts in reducing associated gas flaring according to the new Algerian hydrocarbons law and according to its commitment to eliminate the flaring of associated gases in 2012. Through:

• Pursuing its investment to promote the use of the Natural gas as more respectful energy of

the environment and gas products such as GTL. • Watching the use of the Protocol of Kyoto to reach its objectives of 0% flaring. • calling to a more concrete international technologies and the best practices exchange for the

reduction of gas flaring • Danger environment studies and several new clean chemical projects • Capture and geological storage of CO2 • Valorization of CO2 of the decarbonation of gas to units GNL for marketing as a CO2 or like

raw material for petrochemistry • Energy efficiency

• Improvement of energy efficiency in the design of the industrial projects. • Improvement of energy efficiency in the buildings of residential or tertiary use

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References [1] Internet Research [2] Hydrocarbon processing (marsh 2008) [3] Sontrach presentations & publications [4] LNG markets review [5] Algerian legislation