 | | | Environmental performance |
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| Air quality | Abbreviations used in this section: | CO – carbon monoxide
NOx – nitrogen oxides
PM – particulate matter | ppm – parts per million
SO2 – sulphur dioxide
VOCs – volatile organic compounds |
| We are working to reduce emissions such as SO2, NOx and VOCs from our operations. Our progress in reducing air emissions is the result of numerous initiatives, including major capital investments, implementation of cost-effective technologies and improved operating practices.
Flaring
We strive to minimize flaring. This includes the flaring of gas that is produced along with oil, and gas that is flared as a result of operating events. Recovering this gas, where possible, avoids the loss of an energy resource and reduces air emissions.
We continue to maintain flaring emissions close to record-low levels through new equipment and improved operating practices. Total gas flared from oil production facilities increased marginally over 2005 levels, but was 42 percent lower than 2002 levels. In 2006, 99.9 percent of gas associated with oil production was captured, one of the highest rates of recovery among the top 50 oil producers in Alberta.
| Meeting new regulations
Imperial actively supports the development of well-crafted regulations that are aimed at improving air quality. Accordingly, over the next several years, we will be further reducing SO2 and NOx emissions in step with emerging provincial and federal regulations.
In Alberta, we began installing a sulphur recovery unit that will reduce emissions from the Cold Lake operation’s Mahikhan plant by more than 70 percent. Construction of the unit is expected to be finished in mid-2007.
In Ontario, SO2 and NOx emission limits have been established for industrial operations. During the year, much of our effort for the Sarnia and Nanticoke refineries was spent planning and designing facility and operational improvements such as a new unit at Sarnia to treat tail-gas emissions. These will enable SO2 emissions from the sites to be reduced by about 50 percent in 2009.
To meet future SO2 reduction requirements in Nova Scotia, we are planning improvements at Dartmouth refinery to lower SO2 emissions by 25 percent in 2010.
| Producing cleaner fuels
Fossil fuels will be needed for the foreseeable future, and Imperial is working to reduce the environmental impact of their use. From 2004 to 2006, we invested $500 million to enable the production of ultra-low sulphur diesel fuel. All of our refineries now supply diesel that has a low level of sulphur – less than 15 ppm – and is 97 percent lower than previous grades.
Before that, a low-sulphur gasoline project was completed in 2003 at a cost of $650 million. Low-sulphur gasoline and diesel fuels will allow cars and trucks to use advanced emission-reduction technologies to lower NOx and particulate matter (PM) emissions by almost 90 percent. These specifications for low-sulphur fuels are now among the most stringent in the world.
| We are continuing to invest in low-sulphur fuels to meet government regulations. In early 2007, we began reformulating diesel fuels to reduce sulphur content for off-road uses such as rail and marine transportation.
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Reducing odours
Nanticoke refinery’s wastewater treatment plant recovers and processes the small amounts of oil that make their way into its wastewater system. Because the recovery facility is open to the atmosphere, odours can result. We have upgraded equipment to minimize oil from going to the wastewater treatment facility to reduce odours.
Monitoring air quality
We collaborate with government, industry and other groups to maintain regional air quality monitoring networks that measure and track long-term environmental changes. At the Sarnia, Nanticoke and Strathcona refineries, this effort is coordinated through local industry associations.
At Cold Lake, we are a founding member of the Lakeland Industry and Community Association (LICA), an industry-community organization that guides regional development. LICA members, including Imperial, have helped to establish a network that conducts continuous air quality monitoring across the Cold Lake region. In 2006, an application was submitted to the Alberta government to expand the network to incorporate industrial compliance monitoring, including our company’s local air monitoring efforts.
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Managing fugitive emissions
Our Downstream and Chemicals businesses have well-established leak detection and repair programs to monitor and reduce fugitive hydrocarbon emissions that could escape from facilities and equipment connections. We measure components for leaks and promptly carry out repairs. In 2006, the programs contributed to a seven percent reduction in fugitive emissions from these businesses.
This effort is being extended to other areas of operations. In 2006, we participated in a Canadian Association of Petroleum Producers initiative to develop industry best practices for managing leak detection and repair at oil and natural gas production facilities. We plan to implement these practices in our Upstream business, starting in 2007.
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