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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