Technical guidelines for the use of associated natural gas in exploration and production of hydrocarbons

Last updated: 15 February 2022

The regulation establishes criteria for how operators must develop a Program for the Use of Associated Natural Gas (AG). This includes defining a goal to achieve 98% use within three years (Art 14) and performing a technical-economic analysis (art 11) to support its achievement. 

Operators must undertake necessary planning, investments, and other actions to maximise use of AG from exploration and extraction activities. The rule outlines destinations for AG, including for use onsite, reinjection, or transfer (art 5.) The rule outlines conditions for when controlled destruction (flaring) of methane gas is acceptable (Art 6.), including during well testing, circumstances that pose safety threats, or when bringing the gas to another productive use is otherwise not possible. Venting of AG is permitted only in emergency safety cases (art 4.) Content of the Programs must include month-by-month forecasts of AG use during the first three years and annually thereafter, description of actions and investments made towards achieving AG use goal, and an inventory of installations for AG use and destruction. 

Operators must submit electronic documentation of the Programs every trimester. Reports will include results of volumes of AG used and justification for any deviations from the planned goal. The Commission reserves the ability to perform planned or unplanned inspections to verify completion of AG installations.

The regulation was updated on March 10, 2020. The amendments provide a new format for the Program of Utilization of Associated Natural Gas (PAGNA), however, it does not impact the core aspects of the regulation. (For more information on the amendment: 

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