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pipelines. 44 Examples of cost-effective options for reducing methane emissions from the natural gas system<br />

include (1) changing operations and maintenance practices, (2) increasing leak detection and repair, and (3)<br />

45, 46, 47<br />

upgrading equipment (see Figure 7-2).<br />

There are economic, environmental and safety benefits associated with modernizing the natural gas TS&D<br />

system. Policies are needed to ensure that private companies can recover costs of such investments to improve<br />

safety and reduce emissions. 48 In addition, while a number of actions may not have net benefits when only<br />

accounting for the monetary value of conserved gas, some of these can be cost effective if the climate change<br />

and safety benefits are taken into account. To achieve these societal benefits, there is an important role for<br />

government—often in partnership with industry—to advance new technologies and encourage investments.<br />

A combination of ongoing Administration actions and QER recommendations meet this need for Federal<br />

action.<br />

Figure 7-2. Total Emissions Abatement Potential (million metric tons CO 2<br />

-equivalent per year) 49, m<br />

Mariginal Cost (2013$/Metric Ton CO 2<br />

e)<br />

55<br />

50<br />

45<br />

40<br />

35<br />

30<br />

25<br />

20<br />

15<br />

10<br />

5<br />

0<br />

-5<br />

-10<br />

-15<br />

Centrifugal compressors (wet seals)<br />

Pipeline venting<br />

Centrifugal compressors (wet seals)<br />

Centrifugal compressors (wet seals)<br />

Centrifugal compressors (wet seals)<br />

Transmission station venting<br />

Kimray pumps<br />

Kimray pumps<br />

Kimray pumps<br />

High bleed pneum. devices<br />

High bleed pneum. devices<br />

Gas fueled engines and turbines<br />

LDC meters and regulators<br />

Gas fueled engines and turbines<br />

Well fugitives<br />

Recip. compressor rod packing<br />

Recip. compressor rod packing<br />

Recip. compressor rod packing<br />

Recip. compressor rod packing<br />

Recip. compressor rod packing<br />

Intermit. bleed pneum. devices<br />

Intermit. bleed pneum. devices<br />

Compress. station fugitives<br />

Recip. compressor fugitives<br />

Recip. compressor fugitives<br />

Compress. station fugitives<br />

Recip. compressor fugitives<br />

High bleed pneum. devices<br />

High bleed pneum. devices<br />

Recip. compressor<br />

fugitives<br />

Intermit. bleed pneum. devices<br />

Compress. station fugitives<br />

Intermit. bleed pneum. devices<br />

Liquids unloading - uncontrolled<br />

Recip. compressor fugitives<br />

Gas fueled engines and turbines<br />

Chemical Injection pumps<br />

Condensate tanks w/o cntrl. devices<br />

0 20<br />

40<br />

60<br />

Total Emissions Abatement Potential (Million Metric Tons CO 2<br />

e/yr)<br />

Production Gathering & boosting Processing Transmission Storage LNG Distribution<br />

Assuming full revenue recovered from the sale of captured natural gas, an estimated 40 million metric tons CO 2<br />

-equivalent of methane emissions<br />

abatement could be achieved at a negative marginal cost; under this scenario, at a marginal cost below the Social Cost of Carbon, all segments of<br />

natural gas infrastructure have potential opportunities for cost-effective methane abatement. Acronyms: intermittent (intermit.); pneumatic (pneum.);<br />

local distribution company (LDC); liquefied natural gas (LNG); reciprocating (recip.).<br />

m<br />

The social cost of carbon is a metric that monetizes the societal benefits and costs of emitting an additional ton of carbon. The social<br />

cost of carbon at a 3 percent discount rate in year 2015 and in 2015 dollars is $43 per ton CO 2<br />

. Source: Interagency Working Group<br />

on Social Cost of Carbon, 2013. Technical Support Document: Technical Update of the Social Cost of Carbon for Regulatory Impact<br />

Analysis – Under Executive Order 12866. May. U.S. Government.<br />

QER Report: Energy Transmission, Storage, and Distribution Infrastructure | April 2015 7-9

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