Purpose: This work sheds light on efforts to improve sustainability of the Egyptian O&G industry by flare gas recovery. The outcomes of research conducted on Egypt’s first refinery flare gas recovery project will be presented. The project was foreseen for implementation under CDM, therefore, the project was analysed from a triple bottom line (TBL) perspective.
Theoretical framework: The analysis builds upon the capital budgeting theory whereby the objective function considered by the project owner is maximization of investment returns. The Internal Rate of Return (IRR) was the metric chosen to assess the project’s financial gain. IRR analysis was performed with and without CDM and compared against the owner’s current IRR.
Results: The analysis showed that the project fulfils the CDM criteria, including promoting sustainable development. In addition to annual GHG emission reductions of 153,948 tCO2e, yielding yearly revenues of at least 777,000 American Dollars, the project can contribute to capacity building and employment opportunities in Egypt’s O&G industry. Registering the project under CDM improves its economic feasibility and can provide impetus to overcome the identified project barriers. IRR sensitivity analysis revealed that the project’s IRR is highly sensitive to local prices of gas.
Conclusions: Flare gas recovery projects promote Cleaner Production within Egypt’s O&G industry, hence, such projects should be implemented across the country’s O&G facilities. Although Egypt is not yet a member of the GGFR Partnership, the country should join this global initiative. From a future outlook, this project represents a major steppingstone for implementing zero flaring in Egypt.