Are New Regulations Tightening Gas Emissions in the Upstream Oil Sector?
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Synopsis
The Centre's new draft policy aims to drastically cut gas emissions from the upstream oil sector. With stringent reporting and monitoring requirements, it's a significant step towards sustainable energy practices in India. Get insights into how these regulations will impact the industry and the environment.
Key Takeaways
- New regulations target gas emissions in the oil sector.
- Quarterly reporting on gas flaring is now mandatory.
- Contractors must develop and submit monitoring plans.
- Injection permits are limited to pilot tests.
- Environmental management and disaster plans are required.
New Delhi, May 11 (NationPress) The Centre's latest draft policy, designed for the upstream oil & gas exploration and production sector, seeks to reduce the environmental footprint of mineral oil activities, particularly regarding gas flaring and stringent monitoring of greenhouse gas emissions and flared gas.
Gas flaring commonly occurs during oilfield production due to a lack of facilities for gas utilization, such as reinjection, on-site consumption, or transportation to market. The new draft mandates that all lessees and contractors must present reports detailing the volume of gas flared and the corresponding emissions every quarter, following a specified format within 15 days after the end of each calendar quarter.
The regulations clarify that each lessee and contractor is required to implement measures to mitigate greenhouse gas emissions during mineral oil operations and adhere to relevant environmental laws and standards.
According to the draft rules, every lessee and contractor must submit a monitoring plan within 180 days of beginning production from a leased area. This plan should identify greenhouse gas sources from mineral oil operations and outline the methodology and frequency of measurements.
Additionally, lessees and contractors are obligated to periodically review and update their monitoring plans as necessary.
They will also need to submit reports on their greenhouse gas emissions following government specifications.
The draft further delineates clear procedures for obtaining authorizations for greenhouse gas (GHG) sequestration, injection, and storage permits.
Any lessee or contractor planning to evaluate the feasibility of geological GHG storage within a leased or contract area must obtain prior authorization from the Government before commencing such assessments.
Upon conclusion of the assessment, a lessee or contractor may apply for a GHG injection permit in a format prescribed by the government.
The initial term of this injection permit is set at two years, with the potential for renewal based on satisfactory performance and compliance with the stipulated rules and regulations.
The injection permit is strictly for conducting pilot tests and studies to confirm the geological suitability of the reservoir for permanent sequestration, and it does not confer long-term storage rights.
The lessee or contractor must carry out the GHG injection according to a plan approved by the Government of India, and no modifications to the plan can occur without prior governmental consent or that of any other designated agency.
After completing the injection tests and establishing the reservoir's geological suitability, a lessee or contractor may apply for a storage permit for the permanent sequestration of greenhouse gases, following government notification.
Additionally, the lessee or contractor must submit an environmental management plan and a disaster response plan to the Government, detailing measures to mitigate environmental risks, including groundwater contamination, surface water effects, and atmospheric emissions, and must adhere to these plans.
The Ministry of Petroleum and Natural Gas has solicited stakeholder feedback on this draft policy.
Point of View
It is clear that the government's new draft policy represents a crucial turning point in environmental responsibility within the oil sector. While it imposes strict measures on greenhouse gas emissions, it also reflects a commitment to sustainable practices that benefit both the industry and the environment. As we navigate this new regulatory landscape, it is essential that stakeholders engage constructively to ensure effective implementation.
NationPress
16/06/2025
Frequently Asked Questions
What is the purpose of the new draft policy?
The new draft policy aims to minimize the environmental impact of upstream oil and gas operations, focusing on reducing gas flaring and monitoring greenhouse gas emissions.
How often must contractors report gas flaring and emissions?
Contractors are required to submit quarterly reports detailing the volume of gas flared and associated emissions within 15 days of the end of each calendar quarter.
What is the term of the GHG injection permit?
The initial term of the GHG injection permit is two years, with the possibility of renewal based on compliance with regulations.
What plans must be submitted to the Government?
Lessees and contractors must submit an environmental management plan and a disaster plan outlining measures to mitigate environmental risks.
How does the policy affect environmental monitoring?
The policy mandates that every lessee and contractor must adopt measures to reduce emissions and submit monitoring plans for greenhouse gas sources.
