Electrification key to cut UK offshore emissions: NSTA

The UK offshore oil and gas industry must make "decisive emissions reduction actions now and on an ongoing basis", with asset electrification and low carbon power central to making cuts, regulator the North Sea Transition Authority (NSTA) said today.

"Where the NSTA considers electrification reasonable, but it has not been done, there should be no expectation that the NSTA will approve field development plans", the regulator said in a new emissions reduction plan.

The NSTA set out "four clear contributing factors to decarbonising the industry" — including asset electrification, investment and efficiency and action on flaring and venting. It will also look at "inventory as a whole", ramping up scrutiny on assets with high emissions intensity. Relevant companies must produce emissions reduction action plans for offshore assets, the NSTA said.

New developments with first oil or gas after the beginning of 2030 must be either fully electrified or run on "alternative low carbon power with near equivalent emission reductions", the NSTA said. New developments with first oil or gas before 2030 should be electrification-ready at minimum. If electrification is not reasonable, other power emissions reductions must be sought, the regulator said.

The offshore industry must from 1 June provide "a documented method of the split of projected flaring and venting figures into categories", and must from 1 June 2025 have a plan and budget to "deliver continuous improvements in flaring and venting", it said. New developments — including tie-backs — must be planned on the basis of zero routine flaring and venting, which every asset must reach by 2030. Industry flaring almost halved between 2018-22, the NSTA said. The regulator has flagged a particular focus on methane emissions.

The NSTA may require developers to agree to cease production of assets with high emissions intensity "with reference to societal carbon values", it said. Societal carbon values are calculated by the UK government to reflect the marginal cost to society of additional CO2 emissions.

It will discuss end dates for production for assets with greenhouse gas (GHG) emissions intensity 50pc over the average for the UK offshore, and which intend to produce oil or gas beyond 2030. This represents a slight watering down of the initial plan the NSTA consulted on last year.

The North Sea Transition Deal, agreed in 2021, commits the UK offshore industry to reducing its production emissions of GHGs by 10pc by 2025, by 24pc by 2027 and by 50pc by 2030, from a 2018 baseline. Industry has itself committed to a 90pc reduction by 2040 and a net zero basin by 2050, the NSTA said. It "would welcome industry owning and delivering these reductions", it said, adding that its plan is focused on emissions cuts and "emissions offsetting will not be considered towards meeting the obligations."

By Georgia Gratton