Mercuria CSR Report 2021 - Flipbook - Page 50
Pipeline transportation
Pipeline transportation comprises movement of natural gas and crude within North America and
Europe. Emissions from the pipeline transportation and shipping dominate our Scope 3 Category 9
emissions.
The approach we have followed for 2021 reporting continues to be based on an emission factor per
unit of energy transported. We extract the total quantity of energy transported (moved between one
location and another) from our systems and apply an emission factor (in gCO2e/MJ). For 2021 we have
estimated both the emissions from fugitive sources as well as the combustion emissions associated
with gas used to compress the network. We take the difference between the amount received and
the amount delivered during the year and estimate the quantity directly emitted versus the amount
combusted to run the pipeline system.
There are many approaches to estimating the fugitive emissions from gas transmission, recognising
each network and stretch of pipeline will have its own losses depending on a range of factors. For 2021
we have calculated emissions using IPCC (the Intergovernmental Panel on Climate Change the technical
body that published the country level accounting standards) fugitive emission factors. We apply the
emission factor from the 2006 IPCC Guidelines for National Greenhouse Gas Inventories, Volume 2,
Chapter 4 – Fugitive Emissions, table 4.2.4 using the values for gas transmission (fugitives and venting).
Shipping – from chartered vessels
To estimate our 2021 charter emissions we have worked with a company specialising in shipping
optimisation that utilises the details of each voyage to estimate fuel consumption and emissions. The
process involves using voyage data including start and end points along with the exact voyage route
(via the noon-reports). Report types are categorised as reports in port or reports at sea, for each vessel
type, the average daily bunker consumption in-port or at sea.
The calculations include approximate total auxiliary consumption at sea.
Other transportation
We obtained details of the distances travelled along with the amount of the commodity being transported
to calculate the t-kms (tonne-kilometres). We then apply average emission factors from the Global
Logistics Emissions Council Framework for Logistics Emissions Accounting and Reporting (version 2).
Scope 3 reporting of traded commodities
Whilst we report on the emissions associated with the transportation of the physical commodities we have
traded and delivered, we recognise that there are other Scope 3 emissions associated with commodities
we trade when considering the full upstream and downstream processes. Where commodities are traded
multiple times prior to final delivery, the commodities industry continues to evaluate the most appropriate
way to allocate and report emissions, for example, if a cargo of product is traded multiple times whilst at
sea, the process of managing the full Scope 3 emissions continues to evolve.
The Scope 3 categories that we have included in the report are partial and include categories 1, 3, 5, 6, 7, 9.
There is room for improvement in the reporting of these categories that will be addressed at a later stage.
The quality of the data we have collected on the other scope 3 categories is at early stage of review
doesn’t allow for public disclosure at this stage. We are reviewing inclusion of other Scope 3 categories
including Scope 3 Cat 11 (use of sold products).
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