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Recovering Revenues through Responsible Methane Reduction – Issue & Opportunity: CEG

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Issue and Opportunity

While the economic impacts of the COVID-19 pandemic are immediate and severe, Alberta’s energy sectors are facing an even deeper crisis.

Targeting the Alberta and Canadian government’s commitment to combat climate change, Alberta’s Energy Regulator has introduced a full-scale commitment to protect our environment by implementing methane reduction requirements, as outlined by Directive 060.  Supporting this commitment, there has been significant increases in climate-related funding from now into the foreseeable future.

CEG and its industry partners recognize the importance of preserving our environment through climate change initiatives. We have partnered up with energy producers, to offer a methane reduction program that also helps distribute stimulus through the energy sector and supporting industries. The basis of this program is converting existing production sites (and new) from instrument gas powered pneumatics to stand-alone instrument air system. CEG along with our industry partners will support all aspects of the program, providing turn-key solutions for your site.

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Its Not Just About Methane Capture any Longer

Instrument Gas which is mostly composed of Methane has been a primary source of energy for oil and gas producer’s instrumentation/controls and is a major contributor to Canadian emissions. Methane emissions are proven to have a much greater environmental impact than Carbon Dioxide.  CEG knows this and has been manufacturing and installing methane capture technologies for years in our Optimizer beam mounted gas compressors. Now is the time to expand our efforts into Methane vent reduction.

With increased emission regulations, increased environmental awareness, and increased scrutiny of our industry we must find better ways to continue to operate and provide the most ethically sourced raw energy products in the world.  With improved technology and ideas, we can can do things better today. As you will see, producers have options that not only provide immediate environmental benefits, but also provide revenues in the form of carbon offsets that can be turned into a significant return on your initial investment.

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The Methane Reduction Program

CEG, working in partnership with MEGA Projects, a Calgary based Engineering company and Radicle, an expert in the emissions market, has developed a three phase program to assess your inventory, implement your instrument air conversion, and generate carbon offset credits that will help monetize a measurable and positive change.

As part of the program, CEG has manufactured two options for conversions.  One option is a Solar Instrument Air Package, and the second options is a Hybrid Gen/Air Package.  Both options are customizable, and both are protected by a portable, secure enclosure with year-round power redundancy for your peace of mind.

See for more information.

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Phase 1 – Assessment and Development of ROI

In the Assessment phase of our program, our team of field technicians work with your operations team to take inventory of your locations and the pneumatic devices installed with the following objectives in mind:

  • Confirm the suitability of one of our two compressor options (in one of several configurations) and,
  • To provide you will a summary detailing the potential revenue generation (ROI) for converting from the devices to instrument air.

This conversion will highlight a multi year financial breakdown with your current equipment, and the inventory will be stored in an industry leading software system for access by your team into the future. This software will also provide the backbone for the monitoring, reporting and generation of carbon offsets.  This phase is key to the success of the project and gives a clear expectation for ROI.

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Phase 2 – Implementation and Monitoring

Whether your team has the capacity in-house to implement the conversion package, or you would like to outsource it, our program will guide you along the way.  Each package comes with a simple assembly guide, and CEG’s team of experts will be there for support or delivery/commissioning as required. Our engineering team will review site information to ensure the transition is seamless, they will also make recommendations for optimization of instruments, controls and pumps to take full advantage of the capabilities these packages have to offer.

Each unit also has custom monitoring, data storage and reporting built in, with the ability to directly communicated data, or transport the results to your SCADA system as required.  Our monitoring devices communicates directly with all major brands of equipment found on sites.  All of this is accessible remotely, with logging, alarms, and notifications as designed during the assessment and ROI development phase.

Phase 3 – Reporting and Generation of Carbon Credits

Once the migration has been completed and the monitoring is in place, in comes the carbon experts to turn the results into revenues.  Data from the monitoring devices included in the package is received and entered in reporting software that will assist Radicle in finding the best-fit solutions for negotiating and executing on carbon offset transactions.

These credits can be utilized as a revenue source into the future or can be leveraged as a form of re-payment for the initial capital investment.  No matter how the credits are used, the program delivers a measurable and verifiable reduction in methane gas emissions, that any company can be proud that they are a part of.  Environmental responsibility is becoming a form of currency as we move forward.

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Positive Side Effects to this Program

As mentioned previously, the reduction of methane venting is not something that is an option, and with an affordable opportunity like this that will provide ongoing revenues to offset the expense, it makes a lot of sense to look into the conversion.

But there are several value-added benefits of this program that need to be mentioned:

  • Increased Production; Operators have to use back-pressure regulators/control valves to ensure that there is enough upstream system pressure to power the pneumatic devices on site. Switching to instrument air as the source for your pneumatic devices allows upstream system pressures to be lowered and has shown a positive and, in some cases, a substantial impact on production rates, especially at legacy well sites.
  • Reliability; Dry instrument air is less prone to plugging/freezing compared to wet instrument gas and can deliver far more consistent pneumatic pressures as compared to the propane powered systems.
  • Fuel Savings; Preventing the wasteful venting of Methane or Propane also means that you have the extra revenue from the sale of your Natural Gas and the reduction in operating costs associated with the large amount of propane required.
  • Job Creation; Getting Canadians back to work is a big part of this program.  Looking at the potential sites that could take advantage of this conversion in Alberta alone, hundreds of Canadian manufacturers, workers and administrative professionals could see valuable employment opportunities immediately.

Corporate Image; Positive social and environmental change in a market that prioritizes Environmental, Social and Governance (ESG) factors for investment and lending. We already know how clean our energy sector is, now we must share that message.

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Contact our team of professionals for more information on the Methane Reduction Program and keep showing the world that it is possible to be an energy producer and be environmentally responsible to.

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Phone: (780) 542-2250

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