EU Emission Trading Scheme

Currently, a limited quantity of carbon emissions allowance are allocated to FPS at no cost. Dependant upon system activity levels, BP may be required to purchase additional allowances. As emissions are directly associated with pipeline throughput and flared volumes these costs will be recovered from Shippers pursuant to the provisions of our Transportation and Processing Agreements. FPS emissions stem from the following 6 areas:
  • Fuel for gas turbine driven pumping stations - Cruden Bay & Brechin
  • Crude stabilisation and Raw Gas compression
  • Raw Gas and Product flaring
  • Flare pilots and emergency purges
  • Refrigerated LPG product flaring
  • Acig Gas incineration in the flare system
Cost will be recovered annually, based upon actual data and allocated based upon proportion of pipeline throughput and flared volumes. 

Trading will be executed by BP Gas Marketing on a neutral stock policy. This policy is being actively executed by BP Operated facilities with the approval of all its co-ventures. 

In the future, it may be that FPS receives no free allowances. If that is the case, FPS would expect Shippers to pay for all required allowances on the same basis as set out above.