Managing Methane Emissions as Part

of a Sustainable Energy Future

Claudio Rodríguez Suárez

Gas Assets General Manager

Enagás

Lost in transition

Natural gas in energy transition

An advocacy that arrives late

The conversion of vessels to LNG has been only 0.3% over the

last 10 years

The maritime sector has a carbon footprint that

accounts for 11% of total transport sector

Many shipowners are opting for the

"wait and see” tactic to see what happens in

January, 2020

Of the total alternative fuels used for bunkering, LNG

accounted for only 0.03% in 2017

Of the vessels with alternative technologies in

operation or under construction, only

approximately 8% are LNG driven

“Lost in transition”

Current Situation: The prejudgments of LNG

The LNG sector is perceived as "expensive" and not as "green" in terms of emissions

Flexible and efficient logistics chains could optimize prices: most of the

infrastructure and logistics already exist - additional CAPEX and therefore the impact of

this on the existing price is very low and quickly amortizable.

There is currently an uncertainty regarding the real weight of methane emissions from LNG

there is no clear methodology of measurement

However, recent studies show that the LNG chain is cleaner in comparison to other

fossil fuels.

Expensive .. but

Emissions .. but

Modular and flexible solutions adapted to market needs with low investments.

20% 65%

Enagás carbon footprint 2018

Scope 1 and 2 emissions by GHG

Scope 1 and 2 emissions by source

Enagás carbón footprint (scope 1 and 2) (tCO2e)

- 41%

Enagás’ CH4 emission mitigation measures

• Flaring instead of venting

• Replacing wet seals with dry seals

• Hot taps for in-service pipeline connections

• Composite wrap for non-leaking pipeline defects

• Electric motor starters in compressors

• Electrical driven chemical plants

• Converting gas pneumatic controls to instrument air

• Optimising the operation and trying to align it with the maintenance works in order to reduce vents.

• LDAR campaigns

Cost-effectiveness + environmental and reputational benefits

Methane emissions reduction potential

Enagás has already implemented several mitigation measures to reduce its CH4 emissions

CH4 emissions reduction

Enagás’ CH4 emissions are due to:

1. Fugitive emissions (60.3%)

2. Venting (39.7%)

- O&M or security venting (90.6%)

- Pneumatic valves (2.8%)

- Natural gas analyzers (i.e. chromatographs) (6.7%)

Lessons learned regarding fugitive emissions

• Emissions must be detected and quantified in order to be reduced.

• There is still a great uncertainty associated with quantifying equipment and conversion

factors, and there is no standardized methodology.

• Nevertheless, LDAR is currently the most effective and realistic technique to reduce fugitive

emissions.

• Innovation and development of new technology is necessary to reduce the uncertainty.

• Valves, which are also the most difficult to repair, are the main leaking components in

LNG terminals (58% of detected emissions) and underground storages. Connectors are

also components that are likely to leak principally in compressor stations (49%),

regulation and metering stations and valve positions.

• The age of the installation is also an influencing variable. In general, there is an upward

trend for both emissions and number of leaks as the age increases.

• The frequency of the campaigns is also a determinant factor for reducing fugitive

emissions. The more often measurements and repairs are made, the lower fugitive

emissions will be released.

LDAR applied to

all infrastructure

(maintenance)

BAT

implementation

based on CBA

Scientific studies

& analysis

Enagás ongoing activities

Gas sector

activities &

initiatives

Enagás emission reduction targets

Public commitment of action

Energy efficiency annual targets

Emissions reduction medium term targets (30% CO2 reduction target by 2016-2018 vs.

2013-2015 achieved)

Enagás is committed to taking measures to combat climate change and its impacts

Energy efficiency and emissions reduction targets (linked to variable remuneration)

Target: achieve 85% reduction of fugitive emissions in 2021

Annual LDAR campaigns in all infrastructures

Own technology & optimizing repairs (regularly)

Incorporation into maintenance schedule

Use of emission quantifiers as a regular working tool

The raising of awareness of the CH4 emissions issue of the gas industry

Emerging market niches: the maritime sector

• “Greenhouse gas intensity from

natural gas in transport” – NGVA

(published May 2017)

• Study on “Sustainability assessment

of LNG for shipping fuel” carried out

by SGI (presented in September

2018, to be published soon)

• LCA on the maritime sector -

SEA\LNG & SGMF (to be published

on 11th April)

Enagás organised a workshop on 20th September 2018 (Barcelona) and a follow-up

meeting on 31st January 2019 (Madrid): Project proposal:

“Measuring, modelling and minimising methane emissions from LNG transport”

Thank you very much for your attention