Saudi Aramco leads fight against methane

Saudi Aramco spends a big proportion of its research and development budget on measures to counter the environmentally damaging effects of the oil and gas business. (Shutterstock)
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Updated 06 January 2020

Saudi Aramco leads fight against methane

  • Saudi company is more efficient in both current emissions and its targets for future reduction

DUBAI: Saudi Aramco has emerged as the most effective energy company in the world at mitigating emissions of the atmospheric pollutant methane from natural gas operations, according to consulting firm Thunder Said Energy.

A research survey put Aramco, the world’s biggest listed company, at the top of a table that included all the big energy groups. 

The Saudi company was about six times more efficient than US energy giants Exxon Mobil and Chevron, in both current emissions and targets for future reduction, as a proportion of its gas production.Equinor, the state energy company of environmentally conscious Norway, ranked second in the survey.

Thunder Said’s Rob West, an expert in energy economics, said that controlling methane emissions was a crucial aspect of the move to decarbonize global energy supplies, in which gas is playing an increasingly important role. Methane, a much more powerful greenhouse gas than carbon dioxide (CO2), is released in the gas production and transportation process.




Saudi Aramco became the world’s most valuable public company this year with a stock offering launch in December. (AP)

“Scaling up natural gas is the largest decarbonization opportunity on the planet. But this requires minimizing methane leaks. Exciting new technologies are emerging,” West said. Global gas demand will treble by 2050 as producers and consumers seek cleaner alternatives to coal and oil.

Aramco, the biggest oil exporter, has huge quantities of natural gas, which it has identified as a key area of expansion for domestic supply and export in the form of liquified natural gas. “We basically look at natural gas as an area for growth for the company,” Khalid Al-Dabbagh, Aramco’s chief financial officer, said in an investor call in the run-up to its successful IPO this year.

Aramco spends a big proportion of its research and development budget on measures to counter the environmentally damaging effects of the oil and gas business, including advanced technology to reduce pollutants in energy products.

Although most environmentalists have focused their attention on CO2 as the main contributor to global warming, and hence to damaging climate change, some experts regard methane as a far more serious threat.

There is far more CO2 in the atmosphere, but methane is up to 120 times more powerful as a warming agent and takes longer to leave Earth’s atmosphere. “Methane accounts for around 25 to 30 percent of all the warming occurring on the planet,” West said, while around a quarter comes from fossil fuel production.

“Mitigating methane emissions is becoming crucial for tackling net emissions.” 

While methane leaks at all stages of the natural gas production process, almost half is emitted during the upstream phase. Sensors, drones and even satellites are being increasingly used to detect these emissions. Aramco stopped “flaring” gas years ago.

“The world will need superior methods to mitigate methane. In the developed world, this will be necessary for operators wishing to demonstrate low carbon credentials, and preserve their access to customers and capital markets,” West said. “The other way for investors to lower methane emissions may be to favor companies with low methane emissions and targets to improve.”

Decoder

Methane

A much more powerful greenhouse gas than carbon dioxide (CO2), methane is released in the gas production and transportation process.


UK to purge Huawei from 5G by 2027, angering China and pleasing Trump

Updated 14 July 2020

UK to purge Huawei from 5G by 2027, angering China and pleasing Trump

  • UK to purge Huawei from 5G by 2027
  • No new 5G components to be bought from end of 2020

LONDON: Prime Minister Boris Johnson ordered Huawei equipment to be purged completely from Britain’s 5G network by 2027, risking the ire of China by signalling that the world’s biggest telecoms equipment maker is no longer welcome in the West.
The seven-year lag will please British telecoms operators such as BT, Vodafone and Three, which had feared they would be forced to spend billions of pounds to rip out Huawei equipment much faster. But it will delay the roll out of 5G.
The United States had long pushed Johnson to reverse a decision he made in January to grant Huawei a limited role in 5G. London has also been dismayed by a crackdown in Hong Kong and the perception China did not tell the whole truth over the coronavirus.
Britain’s National Security Council (NSC), chaired by Johnson, decided on Tuesday to ban the purchase 5G components from the end of this year and to order the removal of all existing Huawei gear from the 5G network by 2027.
The cyber arm of Britain’s GCHQ eavesdropping agency, the National Cyber Security Center, told ministers it could no longer guarantee the stable supply of Huawei gear after the United States imposed new sanctions on chip technology.
Telecoms companies will also be told to stop using Huawei in fixed-line fiber broadband within the next two years.
“This has not been an easy decision, but it is the right one for the UK telecoms networks, for our national security and our economy, both now and indeed in the long run,” Britain’s Digital, Culture, Media and Sport Secretary Oliver Dowden told parliament.
“By the time of the next election, we will have implemented in law, an irreversible path for the complete removal of Huawei equipment from our 5G networks.”
In what some have compared to the Cold War antagonism with the Soviet Union, the United States is worried that 5G dominance is a milestone toward Chinese technological supremacy that could define the geopolitics of the 21st century.
With faster data and increased capacity, 5G will become the nervous system of the future economy — carrying data on everything from global financial flows to critical infrastructure such as energy, defense and transport.
After Australia first recognized the destructive power of 5G if hijacked by a hostile state, the West has become steadily more worried about Huawei.
White House national security adviser Robert O’Brien is meeting representatives of France, the UK, Germany and Italy in Paris this week to discuss security, including 5G.
The West is trying to create a group of rivals to Huawei to build 5G networks. Other large-scale telecoms equipment suppliers are Sweden’s Ericsson and Finland’s Nokia .

End of ‘Golden Era’?
Hanging up on Huawei, founded by a former People’s Liberation Army engineer, marks the end of what former Prime Minister David Cameron cast as a “golden era” in ties, promoting Britain as Europe’s top destination for Chinese capital. Cameron toasted the relationship over a beer with President Xi Jinping in an English pub, which was later bought by a Chinese firm.
Trump, though, has repeatedly asked London to ban Huawei which Washington calls an agent of the Chinese Communist state — an argument that has support in Johnson’s Conservative Party.
Huawei denies it spies for China and has said the United States wants to frustrate its growth because no US company could offer the same range of technology at a competitive price.
China says banning one of its flagship global technology companies would have far-reaching ramifications.
In January, Johnson defied Trump by allowing what he called high-risk companies’ involvement in 5G, capped at 35%.