Gas flaring refers to the burning of natural gas that emerges associated with crude oil pumping – also called associated petroleum gas (APG). With India being the world’s third largest oil importer today, checking gas flaring carries economic and environmental relevance.
Oil reservoirs contain a mix of liquid petroleum and associated natural gas (APG) consisting primarily of methane, ethane, butane and propane. As per industry data:
- APG constitutes around 5-15% of total crude output over the lifecycle of a reservoir
- 75% of all flared volumes globally comes specifically from APG as other forms of natural gas flaring are relatively limited
- India flares over 14 billion cubic meters of APG yearly which has calorific value equal to 58 million barrels of crude oil
Direct release of these associated lighter hydrocarbons leads to higher greenhouse warming given methane’s heat trapping potential is over 25 times more than carbon dioxide.
APG Flaring Scenarios
- During well testing phase to confirm crude oil discovery and analyze yields
- When pipeline capacity falls short of production levels especially during testing of new wells
- Midstream processes like dehydration, storage tank vapor capture, shipping requiring pressure management
Reasons for Persistence of Flaring
- Over 60% of India’s crude oil production comes from Mumbai High fields lying 170 km offshore where transporting associated gas poses infrastructural constraints
- Laying underground sea pipelines below production platforms costs upwards of ₹3 crore per km – 10 times onshore terrain pipes
- Most flare volumes arise from shipping, storage etc. where establishing standalone facilities for intermittent gas has low feasibility
- For instance, a 12 million metric tonne storage terminal with vapour recovery abilities costs ~₹600 crore requiring assured offtake
- India consumes over 90% of its dry natural gas output leaving limited demand for more expensive liquefied APG in niche industries
- During well testing/workovers, operational flexibility necessities like adjusting steam injections require flaring for pressure management nearly 30-40 days per year
While India mandates 95% APG utilization in new fields, economic unviability coupled with technical limitations at maturing offshore blocks hampers capture – underscoring structural constraints.
Impact of Flaring
As per estimates, India’s APG flaring activity leads to emissions of:
- Over 18 million tonnes of carbon dioxide yearly – 5% of energy sector emissions
- Effluents like nitrogen dioxide, sulphur dioxide at average rates exceeding WHO’s 8-hour safe limits as observed around Assam fields
- Black carbon accounting for 9% of total particulates as monitored in and around key flaring sites
Direct implications
- On Climate: Methane leaks erode gas calorific value by 7% causing equivalent loss exceeding ₹5,200 crore over extraction life cycle
- On Health: Respiratory ailments increased 14% over 5 years in flaring districts vis-a-vis 9% nationally indicating correlation
- On Energy Security: 14 bcm APG flared annually can potentially substitute $13 billion worth LNG imports over current decade if captured
Effects of Gas Flaring Across Dimensions
| Category | Implications |
| Climate Impact | Millions of tonnes of greenhouse gases emitted yearly |
| Health Effects | Toxic fumes directly affect nearby communities |
| Resource Wastage | Cleaner energy worth billions of dollars lost annually |
| Economic Losses | Reduced petroleum resources available for sale affects oil earnings |
Efforts to Limit Flaring
Recognizing the issue, India aims to eliminate routine flaring by 2030 under Paris Agreement obligations. Various policy, regulatory and technological interventions are underway.
- Priority pipeline access to producers for associated gas transportation to complexes
- Tax incentives and easier credit access for investing in collection equipment
- Mandating oil miners to submit flaring reduction plans
- Zero routine flaring clauses in licensing policies
- Promoting mini LNG plants at remote sites to liquefy excess gas for trucking instead of flaring
A multi-pronged approach tackling root factors can lead to substantial cut in yearly flared volumes, benefiting communities, climate and budgets.