eu emission trading scheme

EU Emission Trading Scheme


Currently, a limited quantity of carbon emissions allowance is allocated to FPS at no cost. Dependent upon system activity levels, INEOS may be required to purchase additional allowances. As emissions are directly associated with pipeline throughput and flared volumes these costs will be recovered from customers 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 and Brechin
  • Crude stabilisation and raw gas compression
  • Raw gas and product flaring
  • Flare pilots and emergency purges
  • Refrigerated LPG product flaring
  • Acid 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 on a neutral stock policy.

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