In 2016, Crescent Point executed capital and operational projects that resulted in absolute emission reductions. Continued investment in gas conservation and emission reduction projects in Saskatchewan has reduced our emissions intensity in the province by over 15%. It should be noted that over the same period, production increased and some calculation methodologies were updated to generate more accurate emission estimates. Our methodology for calculating our emissions intensity changed from using net production numbers to actual product throughput volumes at our reporting facilities, reflected in all years displayed above. We believe this more accurately represents the production volumes processed that contribute to the emissions generated.
Crescent Point continually assesses opportunities to economically reduce flaring across our operations. These initiatives range from flowlining existing single-well batteries, upgrading or installing equipment (e.g. tank replacement, vapour recovery units and flare upgrades), consolidating facilities, expanding gas gathering infrastructure and building or expanding gas processing plants.
In 2016, we spent $10.8 million from our voluntary fund for environmental initiatives to reduce greenhouse gas emissions. In addition, in late 2015 we completed the construction of a new gas processing plant in Southeast Saskatchewan that processes natural gas for sale that was previously being flared at other locations. The construction of this plant reduced emissions in the area by approximately 56,000 tonnes CO2e during its first year in operation.
Planning also began in 2016 for the construction of an additional gas processing plant in Southwest Saskatchewan. When operational in the fall of 2017, it will process natural gas from facilities that is currently being flared and is expected to reduce emissions in the area by over 115,000 tonnes CO2e during its first year in operation.
It’s anticipated that these increases to natural gas processing capacity may also provide the opportunity for other producers in the areas to conserve additional natural gas and reduce flaring at their facilities.
Green Energy Initiatives
In late 2016, Crescent Point dedicated a team of employees to focus exclusively on green energy initiatives. We have tasked this team to explore ways to reduce emissions, increase efficiency, reduce electricity and fuel costs and work toward generating clean power throughout our operations. In 2017, we plan to implement pilot projects trialing technologies such as waste gas-to-power and solar installations in both Alberta and Saskatchewan. The goal of these projects is to generate renewable energy in order to offset what is purchased from the grid resulting in a reduction in Scope 2 emissions. We look forward to sharing our progress in 2018.