Evaluating Greenhouse Gas Reduction Programs for Natural Gas Pipelines

Abstract

Natural gas plays an important role in heating homes and fueling industry now and for many years to come. Natural gas transmission pipelines are integral to ensuring natural gas is delivered to those homes and businesses that depend on it. The 113 compressor stations on these pipelines dispersed across western Canada are responsible for most of the 8 million tonnes of GHG emissions per year. Although technology exists to reduce the emissions at a single station, the implications of wide-spread compressor station decarbonization have not been well-studied. The research question, is a unique policy approach needed for decarbonization of natural gas pipelines, was investigated through a scenario analysis that assessed the cost-benefit of 3 scenarios. From the analysis it was determined that existing carbon pricing schemes are likely to be effective but could be optimized to better incentivize emissions reductions for natural gas transmission pipelines.