Global warming and the increase in carbon emissions into the atmosphere are among the main issues concerning the entire world today. Countries, international companies, institutions, and civil societies across the globe are mobilizing and taking serious steps to prevent climate change caused by greenhouse gases and reduce their negative impacts.
What work is being done to reduce greenhouse gas emissions at Azerbaijan's energy giant State Oil Company (SOCAR)?
SOCAR is purposefully working to voluntarily reduce greenhouse gases released into the atmosphere as a result of its production activities. This action is both a social obligation of SOCAR and an indication of the importance it attaches to environmental issues as an international company.
To inventory the heat-generating gases formed during oil and gas operations, a Methodology for Calculating Heat-Generating Gases in the Combustion Process in Stationary Sources has been developed, referring to the methodological documents of the UN Intergovernmental Panel on Climate Change (IPCC). This methodology has been approved by SOCAR in agreement with relevant state bodies and the Cabinet of Ministers. Using this methodology, it is possible to calculate the volume of greenhouse gases covering SOCAR's enterprises, projects in which the company participates, as well as the electricity supply and service sector. Currently, work is underway to further improve this methodology and expand its scope.
Methane emissions are reduced throughout the entire value chain
SOCAR constantly focuses on reducing methane emissions, which play a major role in global warming. To align activities in this regard with international standards, SOCAR joined the MGP initiative. MGP is a globally acclaimed institution that defines key priorities for reducing methane emissions across the entire value chain of oil and gas operations, from production to consumption. Within the framework of the initiative, member companies carry out activities such as developing new methodologies and procedures for reducing methane emissions, applying modern technologies, reporting on emissions, as well as sharing best practices in this area. SOCAR annually submits information about methane emissions to the organization in accordance with MGP's questionnaire forms.
In addition, the State Oil Company, together with bp, is implementing the Advancing Global Methane Reduction (AGMR) initiative within the framework of MGP as an industry leader in Azerbaijan. The main goal of the initiative is to promote methane emission measurement and reduction activities for oil and gas operators in Azerbaijan by bp and SOCAR, ensure accountability in this area, improve knowledge and skills, as well as support the application of the best available technologies. Within the framework of this initiative, an opening conference was held at Baku Higher Oil School on December 15, 2023. In April 2024, field trips to Oil Rocks and Sangachal Terminal were organized for representatives of service providers as part of the initiative.
On April 23, 2024, another international conference was held at SOCAR's Eco-Park within the framework of the initiative, with the participation of representatives from SOCAR, international oil and gas companies operating in Azerbaijan, operator organizations, United Nations Environment Programme (UNEP), European Commission, Oil and Gas Climate Initiative (OGCI), International Energy Agency (IEA), The International Association of Oil & Gas Producers (IOGP), World Bank, Environmental Defense Fund (EDF), German Aerospace Center (DLR), GHGSat, Baker Hughes, and SLB.
During the event, presentations and discussions were held on the Paris Agreement and the implementation of its provisions, monitoring of methane emissions across the entire value chain of oil and gas operations, the role of modern technologies in reducing them, application of drone and satellite-based technologies, OGMP 2.0 and its reporting requirements, the potential for reducing methane emissions in Azerbaijan and the application of technological solutions in this area, best international practices, as well as the implementation of LDAR projects.
As part of the initiative, another virtual (online) meeting was held on June 25th this year, dedicated to software applications used in the field of reducing methane emissions, international experiences in this area, and advanced emission measurements. Representatives from international organizations such as MGP, IOGP, IPIECA, OGDC, IEA, Carbon Limits, Energy Institute, as well as SOCAR, bp, and service providers of oil and gas operations in the country participated in the meeting.
On October 3rd, an international conference on the results of the Accelerating Global Methane Reduction (AGMR) initiative was held at the Stone Chronicle Museum as part of the Baku Climate Action Week. Representatives from the Ministry of Ecology and Natural Resources of Azerbaijan, international oil and gas companies such as SOCAR, bp, Petronas, service providers like Baker Hughes, SLB and others, the World Bank, Environmental Defense Fund, Imperial College London, as well as international organizations like Clean Air Task Force, Methane Guiding Principles (MGP), Oil and Gas Climate Initiative (OGCI), GHGSat, and SeekOps participated in the conference.
During the conference, panel sessions were held on topics such as methane scientific research, progress in AGMR initiative activities, challenges and next steps, Emission measurement, adaptation measures, and the role of technology in their reduction. There was also an extensive exchange of views on the results achieved during the implementation of the AGMR initiative, positive indicators on emission reduction, and implemented projects.
SOCAR constantly keeps the reduction of greenhouse gas emissions, which play a major role in global warming, at the center of attention. To align activities in this regard with the requirements of international standards, SOCAR announced its medium-term and long-term decarbonization targets to the general public during COP28 in 2023.
The targets are:
- Reduction of routine flaring to zero in all operational areas by 2030;
- Reduction of emission intensity in the upstream segment by 30% by 2030 compared to 2022 levels (for SOCAR's direct assets);
- Reduction of corporate emission intensity by 30% and total emissions volume by 20% by 2035 compared to 2022 levels (for SOCAR's direct assets);
- Near-zero methane target in the upstream segment by 2035 (for SOCAR's direct assets);
- Achieving net zero by 2050.
A two-year Green Lighthouse project has been launched in collaboration with the consulting firm Boston Consulting Group (BCG) to identify measures to achieve the above-listed goals, develop low-carbon projects, and ensure decarbonization in the oil and gas operations process. Currently, work in this regard is successfully ongoing.
SOCAR, which consistently demonstrates its commitment to environmental protection issues, is one of the co-founders of the Oil & Gas Decarbonization Charter (OGDC) proposed during COP28 organized in the United Arab Emirates in 2023 and is one of 12 companies represented in the Charter's Steering Committee. Thus, SOCAR directly participates in the management of the charter.
The main goal of the OGDC charter is to achieve net zero by supporting decarbonization activities in the oil and gas operations of member organizations. More than 50 international companies, which carry out 40% of the world's oil production, have already signed the OGDC charter.
Advanced technologies allow for measuring emission volumes with high precision
A more accurate inventory of methane emissions using modern technological capabilities is one of SOCAR's main directions in environmental protection. For this purpose, SOCAR, together with TotalEnergies, is conducting research on drone-based detection and measurement of methane emissions in oil and gas field areas. Within the framework of the project, it is planned to carry out emission studies using the AUSEA (Airborne Ultralight Spectrometer for Environmental Applications ) technology developed by TotalEnergies and its partners. AUSEA consists of a sensor installed on a drone that detects methane emissions and can simultaneously determine their source. This will allow for high-precision detection and measurement of methane emissions from oil and gas facilities. Initial research in this area has been conducted in TotalEnergies' operational sites in the Caspian Sea. In the next stages, it is planned to conduct these studies in SOCAR's offshore operational sites. The project is currently ongoing.
SOCAR is implementing a Leak Detection and Repair (LDAR) project based on the carbon credit mechanism in Oil Rocks. The project activities include leak detection, volume measurement, elimination of leak sources, and certification of reduced emission volumes. Measurements were carried out in the project area using state-of-the-art measuring equipment such as infrared cameras, and 171 leak sources were identified. After the audit results of an international validation company specializing in this field, repairs were carried out and leaks were eliminated. The reduced emission volumes resulting from the project will be certified and sold on the European market.
SOCAR has set as its main goal to align its emission reduction reporting system with international standards and increase transparency. To achieve this target, the company joined the OGMP2.0 initiative, which sets global standards for emissions reporting, in August of this year.
By joining this partnership, SOCAR has gained the opportunity to acquire and apply best practices in environmental protection in the global energy sector, as well as to provide more detailed reporting on methane emissions in accordance with international standards.
An accurate inventory of methane emissions formed in oil and gas operation sites is of great importance in the decarbonization process. For this purpose, SOCAR has started a satellite-based emission measurement project with the Oil and Gas Climate Initiative (OGCI). Within the framework of the project, it is planned to conduct measurements of methane emissions using GHGSAT company's satellite tools over nine onshore oil and gas operation sites of SOCAR. This project will make a positive contribution to more accurate measurement of emissions through the application of advanced technologies.
Emissions measurements are conducted based on a unified methodology
The volume of greenhouse gas emissions varies according to the activity direction of each SOCAR enterprise. Additionally, increases in production volume or the application of new technological means affect changes in emission volumes. Currently, emissions are measured in all enterprises based on a unified methodology applied by SOCAR. Emission indicators for each enterprise are consolidated for the relevant periods, and the total volume of greenhouse gas emissions for SOCAR is determined.
In accordance with its decarbonization targets and commitments made within the framework of international initiatives it has joined, SOCAR aims to continuously reduce greenhouse gas emissions. For this purpose, decarbonization projects are being implemented to reduce emissions in SOCAR's Upstream, Midstream, and Downstream segment enterprises. The implementation of these projects will positively contribute to reducing emission intensity in all segments of SOCAR's oil and gas operations processes.