The second largest category of direct methane avoidance projects is installation of vapor recovery units at tank farms accounting for 17.6% of all technical methane abatement opportunities in the oil and gas sector.

Captured volatile organic compounds (VOCs) vary greatly in volume and in terms of the relative share of the different substances. If a large part of the captured VOCs are condensates energy sales revenues are large. Moreover, if the methane fraction is large, the environmental benefits and potential carbon credit revenues can be significant. Both the technical and economic factors need careful considerations before project implementation.

Key considerations for VRU installation at tank farms:

·      The process encompasses the capture of vapor where heavier hydrocarbons are liquified, and the methane is used on site to then be sent to gas infrastructure or flared.

·      Site-specific variation in composition of vapor and hence variations in internal rates of return (IRR) and greenhouse gas (GHG) impacts.

·      MRV (emission reduction calculations) can be complex.