WA oil and gas producer internal NGER review

Energetics was engaged by a Western Australian oil and gas producer to perform an internal review of the approach it employed for National Greenhouse and Energy Reporting (NGER) compliance in the 2008/2009 reporting period. The intent of the review was to identify and address compliance gaps prior to the submission of its 2009/2010 inventory. The approach employed by Energetics provided the client with confidence in the compliance of its second NGER report and enabled them to adapt existing production accounting systems to facilitate compliant NGER reporting in future years. The client was also able to build NGER reporting capacity within its own employees.

Key Facts

Client: Oil and gas provider
Location: Western Australia
Industry: Oil and gas
Project: NGER review
Lead consultant:

 

Outcomes

The following items were identified as the key achievements and deliverables of this NGER review project:

  • Identification of methods to simplify the inventory development process
  • Dataset completeness was significantly improved with additional inventory items included
  • Site-developed venting methodologies were reviewed and refined
  • Energy and carbon management knowledge transfer and capacity development of client employees
  • Management was reassured about the reduction in business and non-compliance risks

Background

Project objectives
The key objective of the project was to identify compliance gaps, address these gaps, support corporate office greenhouse reporting requirements and prepare the client for future compliance requirements.

Defining a program of works
Utilising our experience in assisting large oil and gas companies to respond to the requirements of the NGER Act, Energetics developed a structured approach to performing this internal NGER review.

Establishing systems

In addition to reviewing against NGER legislative requirements, the project also involved comparing the client’s existing systems against its corporate office emissions reporting requirements, which prescribe the use of the American Petroleum Institute’s Compendium of Greenhouse Gas Emissions Methodologies (the API Compendium). The work also involved establishing a system to assess the uncertainty range of the Scope 1 emissions inventory, as part of NGER compliance requirements for 2010/2011.

Project delivery

This project work was performed at the client’s office which allowed for immediate access to, and understanding of, production accounting and fuel gas systems, financial systems and the activities and equipment at each of the facilities for which energy and emissions inventories were being compiled.
The initial audit component of the work meant that Energetics regularly held meetings with employees in IT, operations, finance, legal and environment departments. The legal team was particularly involved throughout the review of the process employed and documentation developed to support the finalisation of facility boundaries and operational control decisions.

Reporting and implementation

Once the information gathering component was complete, Energetics developed an NGER Compliance Actions Report with specific gaps, actions and recommendations. These gaps were ranked for prioritised action.
After the report had been presented to and approved by senior management, Energetics supported the client with implementing the actions recommended in its report. This included supporting with data gathering for the 2009/2010 inventory, development of incidental energy and emission methodologies and performing a final review of the calculated inventory.

Energetics provided assistance with upload into the Online System for Comprehensive Activity Reporting (OSCAR) database and the documentation of the inventory development process which was followed for the 2009/2010 period.

Continuous improvement

Currently, Energetics is supporting its client with the automation of its NGER inventory development in order to move from a spreadsheet system to an online database. With carbon pricing again on the horizon, with a proposed July 2012 commencement, the sooner large carbon emitters can move away from spreadsheets, typically vulnerable to human error, the better. This also ensures datasets are more readily available at shorter intervals, such as monthly rather than annually.