DNV and EMC sign Memorandum of Understanding for decarbonization of existing petroleum assets

DNV will assist EMC in its commitment to maintaining and operating assets in the petroleum sector as an EPC company, actively pursuing a strategic role in implementing methodologies for the decarbonization of existing assets, with a specific emphasis on methane emissions.

DNV, the global independent energy expert and assurance provider, has today signed a Memorandum of Understanding (MOU) with EMC, a prominent Engineering, Procurement, and Construction (EPC) player in the petroleum sector. The signing took place at EGYPES and was witnessed by HE Eng. Tarek El Molla, Minister of Petroleum and Mineral Resources.

EMC, as an EPC company, is dedicated to the maintenance and operations of assets in the oil and gas sector, with a strategic focus on decarbonization, particularly that of methane emissions. DNV, renowned as an international advisory company and as an independent expert in the energy transition, has been assisting a number of Egyptian energy companies in transitioning to a deeply decarbonized energy system in the last decade.

The MOU outlines the scope of cooperation between DNV and EMC to develop decarbonization strategies for EMC’s assets, which includes greenhouse gas (GHG) emissions monitoring and validation, energy efficiency monitoring in production facilities, sustainable gas assurance, methane leak detection (System TQ), and methane emission validation. DNV will submit a proposal detailing, among other points, the suggested way forward for implementation and execution. This new agreement follows a commercial deal signed between DNV and EMC last year regarding asset integrity.

“DNV is committed to supporting the energy industry in realizing the goals of the Paris Agreement”, explained Santiago Blanco, Executive Vice-president and Regional Director for Energy Systems at DNV. “This collaboration marks a significant step towards advancing sustainable practices in the petroleum sector, aligning with global efforts to combat climate change. DNV is dedicated to empowering nations like Egypt in their decarbonization journey, aligning with the UN Sustainable Development Goals and the principles of the World Business Council for Sustainable Development. We anticipate a fruitful partnership with EMC, that will contribute to the reduction of methane emissions and promote a more sustainable energy future.”

Methane (CH4), a key component of natural gas, contributes to approximately one-third of current planetary warming, surpassing the potency of carbon dioxide (the primary greenhouse gas driving climate change). Global human-made methane emissions are projected to increase by up to 13% by 2030 without decisive action. During COP28 in November/December 2023, 52 major petroleum companies endorsed the Oil and Gas Decarbonization Charter, committing to achieve Net-Zero operations by 2050 and ceasing routine flaring as well as reducing methane leaks from pipelines by 2030, along with minimizing upstream methane emissions. While not a complete solution, this commitment marks a positive stride for the hard-to-abate oil and gas sector, crucial for the economic development of several Middle Eastern countries.

"This memorandum of understanding with EMC not only signifies a positive commitment from hard-to-abate sectors to propel us to Net Zero GHG emissions by 2050, but also serves as a vital knowledge-sharing hub, fostering a sustainable future for Egypt and beyond”, added Hisham El-Grawany, Vice President and Area Manager for North Africa, Energy Systems at DNV. “As we navigate the energy transition, we are multiplying decarbonization agreements with Egyptian organizations, which attests to their commitment to adapt to, and mitigate climate change. Our own research foresees that Egypt will become a key player in the decarbonization of oil and gas, and in particular in the emerging hydrogen market. It is our honour to accompany the transformation of the regional energy systems to contribute to sustainable economic and human growth."

In December 2023, HE Eng. Tarek El Molla emphasized that the oil and gas industry is at a crossroads, with increasing energy demands and a pressing need to address environmental impacts, and that methane both poses a major challenge and offers an opportunity for the industry to showcase its commitment to environmental responsibility. He underlined that, by reducing methane emissions, companies can improve their environmental performance, gain a competitive advantage, and enhance their reputation as responsible energy providers. Additionally, such efforts can result in significant cost savings through improved energy efficiency and reduced resource losses.

The minister also restated his active support of the Sharm El Sheikh Oil & Gas Methane Reduction Roadmap, which he had unveiled at COP27 in Egypt. This roadmap, informed by public resources, over 20 stakeholder interviews, and two COP27 workshops, offers a comprehensive guide for countries to reduce methane emissions in their fossil fuels sectors. According to a recent announcement, Egypt is working on developing internal regulations related to methane gas emissions in the oil and gas sector by the end of 2024. As the world moves towards a low-carbon future, Egypt's efforts not only protect the environment but also contribute to a more sustainable and prosperous energy industry.