Reducing methane losses across the gas value chain – Woodside journey to excellence

Abstract

Woodside is the first, and, to date, only, Australian listed company to be a signatory to the Methane Guiding Principles, an industry, non-Government organisation and educational institution collaboration aimed at reducing methane emissions across the natural gas value chain. Woodside’s methane emissions are ~0.04% of our total hydrocarbon production, or 400 kt CO2-eq per annum (Woodside Energy 2019). This is a relatively small methane emission footprint in comparison with other industrial and oil and gas operators; however, to ensure the greenhouse gas and environmental benefits of LNG over coal and other greenhouse intensive fossil fuels remain legitimate and substantial, we recognise the important role of minimising methane losses through the natural gas value chain. The global-warming potential of methane is 86 times more potent over a 20-year time frame than that of carbon dioxide (IPCC 2014). By tackling methane emissions, significant inroads can be made in reducing the impacts of greenhouse gases in the atmosphere. Woodside became a signatory to the Methane Guiding Principles in April 2018 and has commenced a program of work to deliver on the five principles, which are to (1) continually reduce methane emissions, (2) advance strong performance across gas value chains, (3) improve accuracy of methane emissions data, (4) advocate sound policy and regulations on methane emissions and (5) increase transparency. This paper will focus on the journey we are on, namely, understanding our methane emission footprint within our operational boundaries and setting in place an action plan to reduce these emissions. But it is also a lot broader as we start to look beyond our gates to the transport and distribution networks, through to the end user turning on their gas stove at home. It is about cradle to grave custody of our product for it to be a viable long-term solution in a lower-carbon economy.