Core Viewpoint - The release of three new methodologies under the CCER mechanism aims to enhance greenhouse gas reduction efforts in the oil and gas industry, promoting innovative recovery and utilization of associated gas in both onshore and offshore oil fields [1][2][3] Group 1: CCER Methodologies - The third batch of CCER methodologies includes the recovery and utilization of gas from onshore gas fields, low-volume associated gas from onshore oil fields, and associated gas from offshore oil fields, expanding the total to nine methodologies [1] - The methodologies are characterized by their wide coverage across industry sectors and various types of greenhouse gases [1] Group 2: Onshore Gas Field Methodology - The "Onshore Gas Field Testing Gas Recovery Utilization Methodology" is noted for its unique Chinese innovation, addressing the lack of market-based emission reduction incentives for testing gas recovery projects globally [1] - This methodology encourages the recovery of testing gas for use in liquefied natural gas (LNG) and compressed natural gas (CNG), promoting technological upgrades in the oil and gas sector for greenhouse gas reduction and resource recovery [1] Group 3: Low-Volume Associated Gas Methodology - The "Onshore Oil Field Low-Volume Associated Gas Recovery Utilization Methodology" allows projects with associated gas production of less than 30,000 cubic meters per day to apply for CCER [2] - This methodology provides an incentive mechanism for small-scale, decentralized associated gas resource utilization projects that are currently not economically viable [2] - For example, a project in Heilongjiang with an associated gas source of 15,000 cubic meters per day could see its return on investment increase from 5% to approximately 8.5% with CCER benefits [2] Group 4: Offshore Oil Field Methodology - As of October this year, there are four projects that comply with the "Offshore Oil Field Associated Gas Recovery Utilization Methodology," with a total recovery volume of about 150 million cubic meters per year and an LPG production of 32,000 tons per year [3] - A new project is expected to recover about 100 million cubic meters of natural gas annually, resulting in a reduction of approximately 160,000 tons of emissions, which could generate an additional revenue of 12.8 million yuan per year based on an estimated CCER price of 80 yuan per ton [3]

Core Insights - The Ministry of Ecology and Environment has released three new methodologies for voluntary greenhouse gas emission reduction (CCER mechanism), expanding the total to nine methodologies since the mechanism's launch [1][2][3] - The new methodologies focus on the recovery and utilization of associated gas from onshore and offshore oil fields, promoting technological upgrades in the oil and gas industry for greenhouse gas reduction and resource recovery [1][2] Group 1: Onshore Gas Recovery - The "Onshore Gas Field Testing Gas Recovery Methodology" is noted for its unique "Chinese innovation" characteristics, as there is currently no market-based emission reduction incentive mechanism for such projects globally [1] - This methodology encourages the recovery of gas during testing phases for use in liquefied natural gas (LNG) and compressed natural gas (CNG), aiming to enhance recovery technology in the oil and gas sector [1] Group 2: Low-Volume Associated Gas - The "Onshore Oil Field Low-Volume Associated Gas Recovery Methodology" allows projects with associated gas production of less than 30,000 cubic meters per day to apply for CCER [2] - This methodology provides an incentive mechanism for small-scale, decentralized projects that currently lack economic feasibility, such as those in remote areas [2] - An example project in Heilongjiang with a gas source of 15,000 cubic meters per day could see its return on investment increase from 5% to approximately 8.5% with CCER benefits [2] Group 3: Offshore Gas Recovery - The "Offshore Oil Field Associated Gas Recovery Methodology" has identified four projects that collectively recover about 150 million cubic meters of gas per year, producing 32,000 tons of liquefied petroleum gas (LPG) annually [3] - A new project is expected to recover 100 million cubic meters of natural gas annually, resulting in a reduction of approximately 160,000 tons of emissions [3] - Estimated CCER revenue at 80 yuan per ton could generate an additional income of 12.8 million yuan for the project [3]