Daleel Petroleum company in Oman has announced that it will be saving $15 million of diesel fuel each year due to its program to reduce flaring.Â
According to Gong Changli, chief executive officer of Daleel Petroleum, the company will recover about $15-20 million per year worth of hydrocabon liquids (NGL & LPG) in addition to saving about $15 million on diesel fuel, with the initial investment of about $22 million and an annual opex of around $8.5 million.
“The strategic reasons why companies reduce flaring is to protect the environment, enhance a company’s reputation among the local and business communities of the country, and to gain profits, as proper gas management in the oil and gas sector can increase profits significantly,” said Changli in a statement.Â
The project which is a joint-venture between Mezoon Petrogas SAOC, a subsidiary of MB Holding and Mezoon Petrogas BVI, a subsidiary of China National Petroleum Corp. is primarily owned by the Sultanate of Oman.
Other companies in the GCC have also decreased gas flaring levels. Abu Dhabi Marine Operating Company (ADMA OPCO) recently unveiled that gas flaring at Zakum oilfields has been reduced to zero, and the Kuwait Oil Company is currently flaring about 1.5 per cent of its gas production.
Every year, approximately 150 billion cubic meters (bcm) of gas goes up in smoke due to flaring and waste, of which the MENA region accounts for approximate 50 bcm, according to the Global Gas Flaring Reduction Partnership (GGFR).
According to the GGFR, Iran and Iraq are the third and fourth highest gas flaring countries in the world, burning 11.4 and 9.4 bcm in 2011 respectively. Also on the top 20 flaring countries list is Saudi Arabia, Qatar, Oman and Egypt.
Global flaring has decreased by about 20% or 85 million tons of CO2 emissions, roughly the equivalent of taking 16 million cars off the road, according to a release from the GGFR.
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