Companies from all sectors of the gas industry were able to save a total of 42 Bcf of gas, or about $126 million at a gas value of $3/Mcf, by reducing methane emissions from unit operations and equipment leaks, according to annual results recently released on the Natural Gas STAR Program by the U.S. Environmental Protection Agency (EPA). The EPA said the savings surpassed the STAR program’s 40 Bcf goal for 2001.

The program is a voluntary partnership between EPA and the natural gas industry, focused on using cost-effective technologies and practices to reduce emissions of methane, a potent greenhouse gas that is the primary component of natural gas. There are currently more than 90 partner companies across all major industry sectors: production, processing, transmission, and distribution.

Since the program’s formation in 1993, the EPA said Gas STAR partners have reported total methane emission reductions of 218 Bcf, worth over $650 million. The reduction is the equivalent of eliminating the emissions of more than 19 million cars for one year.

“Gas STAR continues to grow and to exceed the ambitious methane reduction goals we’ve set for ourselves,” said Kevin Tingley, a program manager. “Our success in 2001 is a testament to industry innovation and the voluntary program approach.”

The EPA pointed out that methane reduction is especially important because it is 21 times more potent than carbon dioxide in terms of its global warming potential. Because of this potency, relatively small reductions in methane emissions could have significant climate benefits.

The STAR program reduces methane emissions through market-based, voluntary activities that are both profitable for industry partners and beneficial to the environment. Partners choose among a number of best management practices identified by the industry and the EPA for minimizing equipment leaks, reducing gas releases from operations, and improving equipment efficiency. In participating, the EPA said partner companies can generally increase their profit margins by reducing gas losses.

Greg Odegard, vice president of environmental health and safety at El Paso Energy, said his company’s participation in Gas STAR “makes perfect environmental and business sense. And the program offers unique opportunities for technology transfer within the industry.”

In the EPA’s most recent inventory of greenhouse gas emissions, the government agency found that U.S. natural gas systems emitted a total of 288 Bcf of methane in 2000. During that same year, Gas STAR partners reported methane emissions reductions of 34 Bcf, showing that the industry’s methane emissions would have been almost 12% higher without the reductions achieved by Gas STAR partners.

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