Certified Gas: Just a Bunch of Hot Air?

/

From US Gain

Whatever you call it—responsibly sourced gas (RSG), differentiated gas, certified gas—the oil and gas industry is still in the early days of defining what counts, setting standards, how to verify standards are met, and whether the market will pay premiums. 

Currently, there is no single standard for certifying LNG that uses more sustainable practices in production and distribution. There are, however, several programs working with O&G producers to certify or differentiate responsibly sourced gas (again, depending on what you call it):

  • MiQ Standard - An independent framework for assessing emissions from LNG production

  • OGMP 2.0 - A framework of five reporting levels for producers to track and reduce methane emissions

  • EO100 - A three-year program that looks at wide-ranging ESG practices in energy companies

  • GTI Veritas - A Gas Technology Institute initiative toward standardizing methane emissions measurement, tracking, and reconciliation

  • And more

Learn about other voluntary emissions programs in the latest Highwood Emissions Management initiatives report. 

Many of the certification programs are independent standards, and many experts agree that the government should stay out of this particular area and let the industry and market work toward consensus. 

Recently, Chevron worked with Project Canary to earn RSG certification based on its emissions reduction efforts, reporting, and transparency. When engaged by producers, Project Canary uses advanced data analysis and other methods to certify LNG using its TrustWell Ratings framework.  

Certification is still lacking enough standards for companies to reliably earn a premium on their “responsibly sourced” gas. But in a session on RSG at Methane Strategies Forum, panelists discussed that the industry might be headed that way. Growin buy-in for certification and desire on both the supply and demand sides for lower-emission LNG are helping push for more standardization. 

Watch the RSG session from Methane Strategies Forum now.

There are a lot of discussions left to be had about certification and standards, but LNG producers and buyers seem to be on board. 

If progress continues, we’ll be cooking with (certified) gas. 

Interested in learning more about RSG, Certification Programs?  Check out the 3rd Annual Methane Strategies Forum coming up June 13-14, 2023 in Houston, TX.