The draft study commissioned by Natural Resource Governance Institute (NRGI) further finds that while institutions, a policy and legal framework have been put in place to regulate the oil and gas sector, the frameworks have not been explicit in detailing how methane emissions will be handled.
Findings of the study by Dr. Michael S. Mbogga, a Senior Lecturer at the School of Forestry, Environmental and Geographical Science, were validated at a workshop held at the Sheraton hotel on Tuesday.
It was attended by civil society in the environment and oil and gas sectors. Other attendees included representatives from some of the oil and gas developers, the Ministries of energy and environment, as well as the Petroleum Authority of Uganda. Part of the mission was to ensure that Uganda properly regulates the emission of this gas before oil production begins.
Unchecked oil and gas sector methane emissions threaten to exacerbate the climate change crisis, harm community health and safety, and undermine Uganda’s ability to trade in the global oil and gas market.
Dr Mbogga reported that efforts by the major sector players like TotalEnergies, CNOOC and Uganda National Oil Company( UNOC) towards reducing methane emissions appear to be isolated, with hardly a year towards production or what has come to be known as getting oil out of the ground.
UNOC, which plans to plant 40 million trees by 2030. TotalEnergies has conducted a comprehensive assessment of the likely GHG emissions for its operations in the Tilenga project area. These individual plans need to be part of the bigger national plan on how methane emissions from the oil and gas sector will be handled,” said Dr. Mbogga, one of the leading Climate Change Researchers in Uganda.
Why Methane?
Methane is a potent greenhouse gas with a global warming potential up to 80 times greater than carbon dioxide, and its contribution to climate change is second only to carbon dioxide. The global oil and gas sector is the second-highest source of methane emissions after agriculture.
The oil and gas sectors have been described by some as a very leaky industry. The dangerous gases like methane leak either through production, transportation or even intentional gas flaring.
In 2023, it was estimated that wasteful industry operations account for nearly 80 million metric tons of methane leaked. Methane emissions and climate change.
According to Mbogga, the climate is changing because of greenhouse gas emissions. He said the major driver of climate change is gases that come from human activities.
“One of them is carbon dioxide, a gas that comes from the burning of fossil fuels, waste and biomass. The other gas that is key and even more powerful than carbon dioxide is methane. It comes naturally from wetlands, and methane will also come from livestock naturally. Again, the major driver of methane right now is the exploitation and use of fossil fuels, “he explained.
Dr Mbogga told Uganda Radio Network that while Uganda’s oil is yet to flow from the Tilenga and the Kingfisher fields, the government need to put in place regulations as well as incentives to ensure that gas is not flared to waste. He said Uganda, as an emerging oil producer, has to commit to the global methane pledge.
“We can’t be too harsh because the oil is not flowing yet, but given that the law says there will be incentives, I have not seen those incentives. What is it there for the companies that are doing the right thing?“ Mbogga asked.
According to Dr. Mbogga, Article 22 of Uganda’s National Climate Change Act 2021 requires that incentives for climate change action (both adaptation and mitigation will be provided by the Minister in charge of Finance.
Oil producers like Nigeria in Africa have long been practising venting or intentional release of methane and other gases from oil and gas operations. That gas could have otherwise been converted to other commercial uses. The operations are prone to what is known as fugitive or accidental leaks from pipelines, wells and other equipment.
Natural Resources Governance Institute, a think tank on oil, gas and minerals, has been pushing the government and oil and gas companies to be mindful that they manage potential emissions that can escape from those activities by adopting technologies and investing in methane abatement.
The government of Uganda had, right from the onset of the oil and gas development stage, said that there would not be flaring of the gas. And the joint venture in the Lake Albert Development has said that the gas will not be vented or flared.
Statistics from the Ministry of Energy, also quoted by the Petroleum Authority, indicate that as of 2023, Uganda’s natural gas reserves were estimated at approximately 605 billion cubic feet (Bcf), including 259 Bcf of associated gas. It has been stated that during oil production, this associated gas will be separated from crude oil at the Central Processing Facility (CPF).
The Government plans to utilise this gas for multiple purposes, including power generation, heating, LPG production, and other industrial utilities. Specifically, LPG production from the Kingfisher and Tilenga projects is projected at around 20,000 and 80,000 tons per year, respectively.
In February 2024, the Minister of Energy, Ruth Nankabirwa, awarded China National Offshore Oil Corporation (CNOOC) a license to construct $4.8 million liquefied petroleum gas (LPG) facility.
Dr. Mbogga said that he was told that flaring will only be carried out as an emergency measure. “And many of the major energy producers are moving to improve their technologies to ensure that there is no flaring as a routine. Initially, gases that would be associated with gas production would be flared. But now we are saying that those gases would be resources to address energy poverty. And that releasing those gases would contribute to climate change”
Domisiano Owor, an Environment Officer at the Petroleum Authority of Uganda, said Uganda is developing the resource at a time when climate change is a very critical issue.
“But we also have an advantage that we are not doing something new. Some have been doing it. And there have been lessons. And we are leveraging on those to ensure that we produce these resources with the lowest possible emissions,” he stated. Owor revealed that a big percentage of the methane emissions can be abated at no net cost.
“So as we are focusing on monetising these resources, we don’t want to waste them. Of course, you cannot have 100 per cent monetisation,” he said.
He said that from the regulatory perspective, the PAU reviews and approves the designs of the oil and gas projects.
Shallon Nuwamanya, the Acting Principal Environment Officer at the Ministry of Energy’s Health, Safety and Environment Division, states that a reduction in methane emissions is a key step to achieving climate change mitigation goals as stated in Uganda’s climate change policy 2015.
She said Uganda aims to achieve a 24.7 per cent reduction in its GHG emissions below a “business-as-usual” scenario by 2030 as per Nationally Determined Contributions (NDCS).
Meanwhile, the Ministry of Energy’s Permanent Secretary, Irene Batebe, in a speech, said they have embarked on a review of the 2008 oil and gas policy in order to bring on board some of the climate change developments related to oil and gas.
“As part of national commitment, Uganda intends to formally join the Global Methane Pledge and align with initiatives such as OGMP and the World Bank’s Zero Routine Flaring by 2030. These platforms will not only strengthen our accountability but also unlock technical assistance and climate finance,” she said.
Learning from Nigeria’s methane reduction efforts.
Tengi George-Ikoli, the Nigeria Country Manager at NRGI, virtually presented a paper, “Methane Emission Abatement – Turning Methane Pledges into Real Change”, in which she shared Nigeria’s effort in methane emission reduction.
Nigeria has been one of the largest methane emitters through its oil and gas sector. In 2023, Nigeria emitted approximately 1.85 million tons of methane from oil and gas operations (venting 68 per cent, leaks 19 per cent, flaring 12 per cent).
With support from NRGI, it has in recent years embarked on efforts not to waste resources through venting or flaring. Nigeria is now leveraging methane as a transition fuel. “Nigeria is committed to eliminating gas flaring by 2030.
It signed up to the methane pledge. Reduce fugitives by 60% by 2031 in Nigeria’s NDCs and Energy Transition Plan.
She said Uganda has an even stronger starting point, unlike Nigeria, retrofitting an entrenched sector. “Uganda can build best practices from day one, saving cost and avoiding mistakes,” she stated.
She suggested that the regulator must adopt regulations and guidelines across the oil and gas value chain that ensure effective monitoring, reporting, and verification of emissions to enable tracking and possibly impose tough penalties in case of default.