System-wide and Superemitter Policy Options for the Abatement of Methane Emissions from the U.S. Natural Gas System

Abstract

This work assesses trade-offs between system-wide and superemitter policy options for reducing methane emissions from compressor stations in the U.S. transmission and storage system. Leveraging recently collected national emissions and activity data sets, we developed a new process-based emissions model implemented in a Monte Carlo simulation framework to estimate emissions for each component and facility in the system. We find that approximately 83% of emissions, given the existing suite of technologies, have the potential to be abated, with only a few emission categories comprising a majority of emissions. We then formulate optimization models to determine optimal abatement strategies. Most emissions across the system (approximately 80%) are efficient to abate, resulting in net benefits ranging from $160M to $1.2B annually across the system. The private cost burden is minimal under standard and tax instruments, and if firms market the abated natural gas, private net benefits may be generated. Superemitter policies, namely, those that target the highest emitting facilities, may reduce the private cost burden and achieve high emission reductions, especially if emissions across facilities are highly skewed. However, detection across all facilities is necessary regardless of the policy option and there are nontrivial net benefits resulting from abatement of relatively low-emitting sources. (Figure Presented).