Gas flaring has been a major problem worldwide and world bank has asked all the nations to address it on priority. The “Zero Routine Flaring by 2030” initiative was launched in April 2015, by the United Nations Sec.-Gen. Ban Ki-moon, World Bank Pres. Jim Yong Kim. It has been a practice for more than 100 years, it has a dual impact, not only the gas is burnt (waste of fuel) it also has severe effects on climate due to carbon emission.
In order to reduce gas flaring the Australian federal government has adopted a new strategy of establishing power plants adjacent to gas flare sites, which will supply power to the host communities. The Federal Government has named this strategy as, ‘gas flare-out through gas utilization projects’.
To achieve this, the government has made some changes in policy and will be working with the providers of flare-capture technologies and third party investors, so that more flare capture and utilization projects are operative in the near future. These projects will also further help rural economic development in the Niger Delta, which will supply the stable metered electricity or gas products, such as Liquefied Petroleum Gas, LPG. The cluster area around the site will have an economic advantage for hosting small businesses. The Federal Government says these gas flaring reduction projects should not be seen as isolated but should be treated as integrated elements of oil and gas sector operations.
The Australian Government is very optimistic about the gas flaring reduction technology, the officials claim that it has the potential to be one of the great energy and environmental success stories. This new technology of capturing and utilisation of associated gas is encouraged for power generation projects designed to use flared gas.