IMPROVING PETROLEUM GOVERNANCE: CONTEMPORARY DISCUSSIONS ON GHANA’S PETROLEUM ENVIRONMENTAL LAWS AND REGULATIONS - Part 4

Gaps in the Laws and Regulations and Corresponding Recommendations

4. Venting and Flaring

Natural gas is typically produced as a byproduct of crude oil extraction. To cut costs, petroleum companies tend to waste this resource by either releasing the gas directly to the atmosphere (venting) or burning it (flaring). There is a particular attention being paid to intentional and unintentional venting of associated gas because it is a significant source of methane, a potent greenhouse gas. Flaring is considered a better option in terms of protecting the climate, but this practice emits a range of harmful air pollutants, including hydrogen sulfide, benzene, and poly-cyclic aromatic hydrocarbons. For these reasons, many oil and gas producing jurisdictions have adopted regulations to tightly restrict venting and flaring and also require operators to do a better job of identifying and fixing gas leaks.

Although the Petroleum (Exploration and Production) Act, 2016 (Act 919) generally prohibits venting and flaring without prior authorization, however, the Act only regulates intentional gas releases, and does not impose any requirements that would compel operators to identify and control leakage/fugitive emissions from valves, compressors and other equipment.

The Petroleum (Exploration and Production) Act, 2016 (Act 919) and the Petroleum (Health, Safety and Environmental) Regulations 2017, (L.I. 2258) are silent on flaring and venting except to address reporting in an emergency situation. Section 33 of the Act 919 and its implementing regulations are inadequate and should be substantially revised to eliminate venting, limit flaring to exceptional circumstances. Under section 27(6) of the Act 919, petroleum companies are already required to design facilities that will avoid gas venting or flaring under normal operating conditions. Section 33 should therefore reinforce this important goal, and not offer an opportunity to backslide. 

Recommendation

At a minimum, Ghana’s petroleum laws should include provisions to achieve the following international best practices:

• Reduce and eliminate intentional methane venting.

• Prioritize gas capture and utilization over destruction (i.e., flaring).

• Require zero-bleed, non-emitting equipment where possible.

• Require vapour collection and recovery.

• Require quarterly leak detection and repair.

• Offer incentives for operators to implement continuous monitoring.

• Require regular replacement of parts known to leak when worn.

• Require regular and transparent inspections, with thorough and transparent record-keeping and public reporting.

My name is Kofi Anokye, a development enthusiast, and by the time I leave this world, it must be better than I found it. Brains, not natural resources, develop a nation!