1. Overview & Regulations
The oil and natural gas industry is a significant source of greenhouse gas emissions, with methane being the primary concern due to its high global warming potential. EPA's Greenhouse Gas Reporting Program (GHGRP) requires large emitters to report annually.
Regulatory Framework
| Regulation | Scope | Threshold |
|---|---|---|
| 40 CFR Part 98 Subpart W | Petroleum & Natural Gas Systems | 25,000 MT CO2e/yr |
| 40 CFR Part 98 Subpart C | General Stationary Fuel Combustion | 25,000 MT CO2e/yr |
| NSPS OOOOa/b | New Source Performance Standards | Equipment-specific |
| EPA Methane Rule (2024) | Waste Emissions Charge (IRA Sec. 136) | Facility-level intensity |
Subpart W Applicability
Subpart W applies to the following midstream industry segments:
- Gathering and Boosting: Wellhead to processing plant
- Natural Gas Processing: NGL extraction, fractionation, sweetening
- Transmission and Compression: Interstate/intrastate pipelines
- Underground Natural Gas Storage: Depleted reservoirs, salt caverns
- LNG Storage: Import/export terminals
Reporting Timeline
| Milestone | Deadline |
|---|---|
| Data collection year | January 1 – December 31 |
| e-GGRT submission | March 31 of following year |
| Data verification (if required) | Within 3 years |
| Record retention | 3 years minimum |
2. Emission Sources
Midstream facilities produce GHG emissions from six primary source categories. Each has distinct quantification methods under Subpart W.
Diagram: Six GHG emission source categories in midstream operations
Source Categories
| Source | Primary GHG | Typical Contribution |
|---|---|---|
| Combustion | CO2, CH4, N2O | 30–60% of facility total |
| Venting | CH4 (primary) | 10–30% |
| Flaring | CO2 (primary), CH4 (slip) | 5–20% |
| Fugitive | CH4 (primary) | 5–15% |
| Pneumatic Devices | CH4 | 5–15% |
| Dehydrator Vents | CH4, VOCs | 2–10% |
Combustion Sources
Stationary combustion equipment includes reciprocating engines (compressor drivers), natural gas-fired heaters, line heaters, reboilers, and emergency generators. These produce CO2 as the dominant greenhouse gas from fuel oxidation, with small quantities of CH4 and N2O.
Venting Sources
Intentional releases of natural gas to the atmosphere occur during blowdowns, emergency relief events, tank flashing, and equipment depressurization for maintenance. Venting is the most potent GHG source per unit volume because methane is released directly without combustion.
Flaring Sources
Flares combust waste gas that cannot be economically recovered. While flaring converts most methane to CO2 (reducing GWP by 96%), the 2–5% uncombusted methane slip can be significant. EPA assumes 98% destruction efficiency as a default.
Fugitive Sources
Unintentional leaks from equipment components including valves, flanges, connectors, pump seals, compressor seals, and open-ended lines. EPA provides average emission factors by component type and service (gas, light liquid, heavy liquid).
Pneumatic Devices
Gas-driven pneumatic controllers and pumps use pressurized natural gas to actuate control valves. High-bleed devices emit approximately 37 scf/hr of methane continuously, while low-bleed devices emit only 1.4 scf/hr.
Dehydrator Vents
Glycol dehydration units produce methane emissions from the regenerator still column vent and flash gas. Flash gas emissions depend on the absorption pressure, circulation rate, and gas composition.
3. Calculation Methods
Combustion Emissions
Combustion emissions are calculated using fuel consumption and emission factors per unit of heat input:
Venting Emissions
Flaring Emissions
Fugitive Emissions (EPA Average Factor Method)
Pneumatic Device Emissions
4. Emission Factors
Combustion Emission Factors
| Fuel | CO2 (kg/MMBtu) | CH4 (g/MMBtu) | N2O (g/MMBtu) |
|---|---|---|---|
| Natural Gas | 53.06 | 1.0 | 0.1 |
| Diesel / Distillate Oil | 73.96 | 3.0 | 0.6 |
| Propane | 63.07 | 3.0 | 0.6 |
| Residual Fuel Oil | 75.10 | 3.0 | 0.6 |
Source: EPA 40 CFR Part 98 Subpart C, Table C-1/C-2
Fugitive Emission Factors (Gas Service)
| Component Type | EF (kg/hr/component) | Annual per 100 Components (MT/yr) |
|---|---|---|
| Valves | 0.0268 | 23.5 |
| Connectors / Flanges | 0.0006 | 0.53 |
| Open-Ended Lines | 0.0165 | 14.5 |
| Pressure Relief Valves | 0.0447 | 39.2 |
| Pump Seals | 0.0160 | 14.0 |
| Compressor Seals | 0.2360 | 206.7 |
Source: EPA Protocol for Equipment Leak Emission Estimates (EPA-453/R-95-017)
Pneumatic Device Emission Rates
| Device Type | CH4 Rate (scf/hr) | Annual per Device (MT CH4/yr) |
|---|---|---|
| High-Bleed Controller | 37.3 | 6.24 |
| Low-Bleed Controller | 1.39 | 0.23 |
| Intermittent Controller | 13.5 | 2.26 |
Source: EPA Subpart W, Table W-1A
5. Global Warming Potentials (GWP)
The Global Warming Potential converts non-CO2 greenhouse gases into CO2-equivalent units. GWP represents the relative warming effect of a gas compared to CO2 over a specified time horizon (typically 100 years).
GWP Comparison by IPCC Assessment
| Gas | AR4 (2007) | AR5 (2014) | AR6 (2021) | 20-Year GWP |
|---|---|---|---|---|
| CO2 | 1 | 1 | 1 | 1 |
| CH4 | 25 | 28 | 29.8 | 80–84 |
| N2O | 298 | 265 | 273 | 265 |
EPA Reporting Requirement: EPA currently mandates IPCC AR4 GWP values (CH4 = 25, N2O = 298) for Subpart W reporting. Using AR5 or 20-year GWP is acceptable for voluntary corporate reporting but not for regulatory compliance.
Why Methane GWP Matters
Methane is a short-lived climate pollutant with a strong near-term warming effect. While its 100-year GWP is 25–30 times CO2, its 20-year GWP is approximately 80 times CO2. This means that methane reductions produce faster climate benefits than CO2 reductions of the same mass.
For a midstream facility venting 10 MSCF/day of methane:
| GWP Basis | CO2e Impact (MT/yr) |
|---|---|
| AR4 (GWP=25) | ~1,600 |
| AR5 (GWP=28) | ~1,790 |
| 20-Year (GWP=80) | ~5,120 |
6. Emission Reduction Strategies
Midstream operators can significantly reduce GHG emissions through equipment upgrades, operational improvements, and leak detection programs. Many reductions also capture saleable natural gas, providing an economic return.
Combustion Reductions
- Engine upgrades: Replace rich-burn engines with lean-burn or electric drives (50–90% reduction)
- Waste heat recovery: Capture exhaust heat for process heating (10–20% fuel savings)
- Solar/wind power: Replace gas-fired generators at remote sites
- Electrification: Replace gas engines with electric motors where grid power is available
Venting Reductions
- Vapor recovery units (VRU): Capture tank and process vapors (95%+ reduction)
- Route to flare: If VRU not feasible, route vents to flare (98% conversion to CO2)
- Reduced-emission completions (green completions): Capture flowback gas during well completions
- Blowdown recovery: Capture compressor blowdowns to a low-pressure system
Fugitive Emission Reductions (LDAR)
| LDAR Method | Detection Capability | Typical Reduction |
|---|---|---|
| Method 21 (EPA) | 500–10,000 ppm | 40–60% |
| OGI Camera (FLIR) | Visual detection | 60–80% |
| Continuous Monitoring | Real-time sensors | 70–90% |
| Aerial/Satellite | Facility-level screening | Identifies super-emitters |
Pneumatic Device Conversions
- High-bleed to low-bleed: 96% reduction per device (37.3 to 1.39 scf/hr)
- Replace with electric: Zero direct methane emissions from actuator
- Instrument air systems: Use compressed air instead of natural gas supply
Dehydrator Vent Reductions
- Flash gas separator: Capture flash gas for fuel use (80–95% reduction)
- Condensers on still column: Recover heavy hydrocarbons and reduce vent volume
- Electric reboiler: Eliminate combustion emissions from reboiler
References
- EPA 40 CFR Part 98 — Mandatory Greenhouse Gas Reporting Rule
- EPA 40 CFR Part 98, Subpart W — Petroleum and Natural Gas Systems
- EPA 40 CFR Part 98, Subpart C — General Stationary Fuel Combustion
- API Compendium of GHG Emissions Methodologies for Oil & Gas Industry (2009)
- EPA AP-42, Chapter 3 — Stationary Internal Combustion Sources
- EPA Protocol for Equipment Leak Emission Estimates (EPA-453/R-95-017)
- IPCC Fifth Assessment Report (AR5) — Climate Change 2014
- IPCC Sixth Assessment Report (AR6) — Climate Change 2021
Ready to estimate your facility emissions?
→ Launch GHG Emissions Estimator