Global Gas Flaring Reduction Partnership (GGFR)

Billions of cubic meters of natural gas is flared annually at oil production sites around the globe. Flaring gas wastes a valuable energy resource that could be used to support economic growth and progress. It also contributes to climate change by releasing millions of tons of CO2 to the atmosphere.

During oil production, the associated natural gas is flared when barriers to the development of gas markets and gas infrastructure prevent it from being used.

The World Bank Group has a leadership role in gas flaring reduction through the Global Gas Flaring Reduction Partnership (GGFR), a public-private initiative comprising international and national oil companies, national and regional governments, and international institutions. GGFR works to increase use of natural gas associated with oil production by helping remove technical and regulatory barriers to flaring reduction, conducting research, disseminating best practices, and developing country-specific gas flaring reduction programs.

Ending poverty and boosting shared prosperity is also an integral part of GGFR’s strategy. Natural gas resources help countries move toward a more sustainable energy path. It is the fossil fuel with the lowest carbon intensity, at half the footprint of coal at the point of combustion. It can be the least-cost source of flexible electricity supply for grid-based systems with fluctuating supply and demand.

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  • In 2013, the Bank provided its first Partial Risk Guarantee (PRG) for $145 million to support Nigeria’s Gas Supply and Aggregation Agreement. Under the 10-year agreement, Chevron Nigeria Ltd will provide gas to Nigeria’s Egbin power plant, thereby assuring gas availability and reliability for power generation and assisting in economic growth. With over 75% of Nigeria’s power generation depending on natural gas, assuring the availability and reliability of gas supply is a critical step in realizing the goal of un-interrupted electricity supply to Nigerian consumers.
  • Technical assistance from the World Bank Group is helping Kenya develop governance and accountability systems to manage its future oil and gas wealth. The Bank Group is working with the government to develop the country’s petroleum resources to support growth in public and private sectors, while proactively forestalling adverse macro-economic, social and environmental impacts. Revenues will be used to support growth in domestic businesses, increase employment, develop infrastructure and expand training/education opportunities.
  • The Bank Group’s technical assistance supports Mozambique’s effort to design a national gas development master plan to guide use of its recently-discovered offshore natural gas reserves. The plan has been well-received by government officials as well as stakeholders.
  • Satellite data on global gas flaring, a joint effort between GGFR and the US National Oceanic and Atmospheric Administration (NOAA), shows that overall efforts to reduce gas flaring are paying off. Estimated flaring of associated gas has dropped worldwide by almost 20% from 172 billion cubic meters (bcm) in 2005 to 140 bcm in 2012, equivalent to taking about 52 million cars off the road.
  • In Kazakhstan, a joint venture of Chevron, ExxonMobil, Kazmunaigaz and LukArco — the first three members of GGFR — has eliminated gas flaring emissions in the giant Tengiz oil field by 94 percent.
  • GGFR partners have established a collaborative Global Standard for gas flaring reduction. This Standard provides a framework for governments, companies, and other stakeholders to consult, take collaborative action, expand project boundaries, and reduce barriers to associated gas utilization. Over 15 GGFR partners have formally endorsed the Global Standard and are committed to no flaring in new projects, except where no feasible alternatives exist.
  • In Iraq, GGFR and the World Bank are providing comprehensive technical assistance to help build institutions and systems to manage the country’s extensive gas reserves in the most efficient manner, thereby reducing wasteful flaring.
  • A “Zero Routine Flaring by 2030” global Initiative introduced by the World Bank brings together governments, oil companies, and development institutions who recognize routine gas flaring is unsustainable from a resource management and environmental perspective, and who agree to eliminate routine flaring no later than 2030. Several GGFR partners have already officially endorsed the Initiative.

Experts

Bjorn Hamso

Program Manager

Martyn Howells

Technical Network Coordinator


Contacts
Zubin Bamji
Email
Anita Rozowska
Email