DiXi Group announces call for proposal to select a consultant in methane emissions assessment and reduction

DiXi Group announces call for proposal to select a consultant in methane emissions assessment and reduction

Background and context

Methane, the main part of natural gas, is a strong greenhouse gas. It’s about 25 times more powerful than carbon dioxide over 100 years and over 80 times more powerful over 20 years, making it a major contributor to climate change, according to the World Bank. In 2021, the global energy sector produced about 40% of methane emissions, with oil and gas making up over 60% of that and about 25% of all human-made methane emissions.

Reducing methane emissions quickly especially from fossil fuels is a key way to slow down climate change, and it can be cost-effective. The IEA states that 60% of methane emissions from fossil fuels can be prevented using existing technologies, often at low or negative costs.

The Global Methane Pledge (GMP) united 155 countries to reduce methane emissions. Improving public data on methane emissions is crucial. The UN Environment Programme created the International Methane Emissions Observatory (IMEO) and the Methane Alert and Response System (MARS). In 2020, IMEO launched the Oil and Gas Methane Partnership 2.0 (OGMP 2.0), a partnership that measures and reports methane emissions across the value chain.

Ukraine joined the Global Methane Pledge and many companies joined the OGMP 2.0, reflecting the commitment to reduce methane footprint. To this end, the Government of Ukraine adopted the Action Plan on implementing Ukraine’s climate policy within the framework of Global Methane Pledge initiative. Among the measures proposed are ‘Exercise of full detection of methane emissions in production, processing and transportation of gas and oil’ and ‘Introduction of efficient measurement of methane emissions by energy sector companies provided by OGMP 2.0’. One of the tasks under the Action Plan is also conducting studies on methane emission volumes and potential for their reduction in specific sectors of the economy.

Having this in mind, DiXi Group looks for a consultant in methane emissions to assist Ukrainian responsible authorities not only in assessing emissions, but also in identifying policies and technologies to better detect and reduce them.

Objective of the Engagement

The objective of this engagement is to assess methane emissions from the Ukrainian oil and gas sector at the highest disaggregation level possible (depending on data available) and to provide the insights required to develop a roadmap of solutions for emissions detection and abatement.

Expected services

Main

Component 1: Identification of the relevant solutions that could be engineered, procured, and operated by oil and gas companies (asset by asset) to reduce methane emissions due to venting, flaring, covering such types of operations as storage, transportation, distribution and other operations.

1. Data acquisition, selection, analysis and integration. A historical dataset of methane emissions from the oil and gas sector shall be compiled from all available sources (e.g. satellite data, modeling, national reporting, company reports, statistical and administrative data of public authorities, international databases etc.) at the highest disaggregation level, which input data allow. The dataset is to be reviewed with DiXi Group and key stakeholders to achieve a consensus on the most representative data to be used for further assessment. Among the results of the analysis shall be a baseline indicator of methane emissions in Ukraine in the oil and gas sector, which is to be used by the responsible authorities to better determine and track methane emissions reduction targets, and also used in the formation of relevant sectoral policies, action plans and investment programs.. The analysis should include identification of discrepancies among different data sources and recommendations on the ways to minimize them.
2. Geo-mapping and analysis of methane emissions due to oil and gasflaring, venting, covering such types of operations as storage, transportation, distribution and other operations. This activity will use the selected representative data to geo-map methane emissions asset by asset. It will analyze the volumes of methane emitted and identify key emitters site by site. This geo-mapping will provide the information needed to focus the analysis on the largest emitters in upstream and midstream segments. The analysis should include estimated methane emissions for key emission sources.
3. Concept screening and selection. This work will identify the list of solutions that could be engineered, procured, and operated by the oil and gas companies to reduce methane emissions due to, flaring, venting, covering such types of operations as storage, transportation, distribution  and other operations. It will then provide a screening analysis based on the abatement potential of the solutions. This screening analysis will provide the list of relevant solutions that could be adopted to reduce emissions in a cost-effective manner. The list of solutions should be based on best practices and best available technologies for detecting and eliminating methane leaks for each type of operation.

Component 2: Development of the roadmap of investments required to better measure methane emissions to achieve  GMP objectives.

Perform a pre-market assessment for the acquisition of methane emissions monitoring technologies to manage methane emissions associated with oil and gas , flaring, venting, covering such types of operations as storage, transportation, distribution. More specifically, the consultant will identify and cost reliable measurement systems and provide information on market providers.

1. Measurement technology. The concept screening will identify the range of relevant measurement systems for application in Ukraine. Such systems should be recognized by oil and gas operators, provide reliable information, and be cost effective. They may include satellite imagery, plane or drone, ground-based sensors, etc. The screening and identification of suitable equipment will require close coordination with DiXi Group and key stakeholders to ensure that recommendations are feasible within the context of restrictions imposed by the ongoing Russia’s full-scale invasion. 
2. Screening for deployment. Once identified, the concepts will be screened based on the accuracy of the measurements, the affordability of the solution, and the speed of deployment of the proposed solution at current government capacity. The objective of the screening is to identify the most relevant systems and their costs, and not to present the optimal system. Based on this data, the total investment need for the implementation of the most relevant systems for each of the sectors should also be determined.  
3. Preliminary regulatory review. Changes in the regulatory context that are needed to operate the system of measure (and thus to setting in future the proper monitoring, reporting and verification system) will be identified. Where changes are needed, recommendations will be made on how to proceed with the amendments needed.

Deliverables and Timeframe

The following deliverable is expected at completion of this 3-month consultancy:

• The findings from Components 1 and 2 will be consolidated into presentation format that will introduce a clear framework for implementing methane reduction solutions in Ukraine. The methane reduction framework will clearly articulate objectives, methodology, data sources, geospatial mapping of emissions, technical description of solutions, etc.

Additional:

• participation in working meetings with DiXi Group and key stakeholders;
• holding the documentation track, preparation of reports resulting from the services provided;
• performing other related tasks that can appear in the course of service provision.

One service provider will be chosen resulting from the competition.

The assessment of offers will be held based on the following criteria:

• Experience in exercising similar research activity as provided above (Expected Services);
• Facts supporting practicality of consultations/recommendations provided on this topic (recommendations from other clients, publications, etc.);
• Full final price of the services (UAH).

The Offeror shall submit its best price offer/proposal in accordance with the Objective and shall contain the following:

• A completed Application for participation in competitive selection, which can be downloaded at: https://bit.ly/38pLubY;
• Resume consisting of the Offeror’s profile and relevant past experience;
• Budget with a narrative. Offerors must provide a full, final and detailed budget, with a brief narrative explanation of the cost structure and/or assumptions.
• Offerors need to include the certificate of the company’s (entity’s) registration, the certificate of the tax registration.

The USAID Energy Sector Transparency project intends to issue a Firm Fixed-Price contract for this work.

• Costs incurred by Offerors for the preparation of a proposal and the negotiation of contract are not reimbursable.
• The project is not bound to accept any of the proposals submitted.
• The project reserves the right to accept any offers of proposal without further discussion.
• The project will only evaluate proposals from qualified firms to implement and complete the work under this project.
• The Offers must be able to complete fully and finally the objectives stated.

Only short-listed Offerors will be contacted. Proposals with accompanying documentation will not be returned to unsuccessful applicants. Besides, unselected proposals, including the proposed concept ideas will not be used by the USAID Energy Sector Transparency project in any form under any circumstance without prior written permission by corresponding applicants. Proposals received after the exact time specified for receipts of offer shall be considered late and may not be evaluated.

The proposals shall be submitted via e-mail and shall be to the attention of Viktor Chornysh at tender@dixigroup.org.

Closing Date for Submission of Proposal: 09 August 2024 (by 23:59 PM local Kyiv time)

Contact Information:

Victor Chornysh,

Senior supply manager

DіXі GROUP, NGO

18a Instytutska Str., office 2, Kyiv 01021, Ukraine

Phone/Fax: +38 044 253 66 94

E-mail: vchornysh@dixigroup.org