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TOKYO, Aug 06, 2010 (AsiaPulse via COMTEX) —
Japan’s JX Nippon Oil & Energy Corp. and Mitsubishi Corp. (TSE:8058) Thursday announced that the government of Russia has approved a joint implementation (JI) project in which the two companies will work with Russian oil giant Gazprom Neft to recover and utilize flare gas in exchange for carbon emission rights.
Oilfields yield natural gas as a side product, and this is typically burned, or flared, on-site for safety reasons. But because this releases greenhouse gases into the atmosphere, the Kyoto Protocol provides an economic
incentive in the form of marketable carbon emission rights to recover and use the gas instead of flaring it.
For this particular JI project, a 70km pipeline will be installed from the Siberian oilfield to recover the gas so it can be utilized as fuel.
The JI project is retroactive to August of 2009. Between then and the end of 2012, about 3.1 million tons in carbon emission rights will become available for Mitsubishi to sell.
The Russian government has approved 15 JI projects, five of which involve natural gas from oil fields.
(Nikkei) bl
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