MiQ - Methane Intelligence’s Post

The new European Union methane regulations (EUMR) have real potential to drive down upstream methane emissions from LNG imports. It is also a complicated set of rules and have significant implications for the natural gas and LNG sectors. Here's a summary that spells out key elements of the EUMR, potential impacts on the LNG sector, and how MiQ - Methane Intelligence's certification framework can provide a path forward to both drive down methane emissions and facilitate compliance with the regs. https://lnkd.in/g7rT9nd9

https://lnkd.in/eccPXGDM That means U.S. LNG suppliers will be at risk of losing sales to Europe if the methane intensity of the gas contained in their shipments fails to meet the standards the EU will set.

This is a sleeper issue for the LNG industry. Some U.S. companies seem to think they'll win a "regulatory equivalence" exemption. I would not bet on it. If you were in Brussels, contemplating the return of Trump and a potential (misguided and irresponsible) rollback of EPA methane rules, would you want to give an exemption to U.S. suppliers? These rules are challenging: that's the point. Yes, there are flaws and uncertainties, but the requirements are coming soon. It's a clear sign of growing demand for better data on methane intensity of LNG supplies.

Excellent article on the current state of play of the EU’s methane regulation and the potential long term impact on global LNG producers exporting to the EU. Fully agree also that reporting is likely to be hardest for US LNG exporters due to the complexity of data handling in the upstream gas supply chain.

This is a very interesting analysis of the current status of the EU’s thinking on regulating methane emissions. My first thought was “Jeez, there’s a long way to go!” but I moved on from that…… Let’s jump to a potential end point in a few years time in which the EU has fixed on Methane Intensity as a performance standard, at or below 0.2%, a fee being imposed on noncompliant suppliers, and even a threat to close market access to emissions-intensive gas suppliers. 0.2% is the OGCI’s invention from a few years ago, here are some of their words: “The methane intensity target introduced a standardized methodology, measuring the volume of methane emissions from member companies’ upstream oil and gas operations as a percentage of the volume of the total gas marketed. The 0.2% target it set is now frequently referenced as the industry standard to strive for.” A key word in this is ‘volume’ (the OGCI members variously use cubic ft, cubic meters, kilograms) - the important point it is these that will need independent Measurement, Verification and Reporting. This presents a rather different problem to providing a service by deploying sensors to help a company rank its fugitive emissions (and then undertake LDAR), or agreeing that it has demanding internal guidance about venting (and flaring), thus allowing/enabling Sustainability Reports etc. It requires ‘whole asset’ Measurements - probably on a repetitive basis - and I’m going to stick my neck out here and say that as of today I’m only aware of 2 sensors that truly Measure, in cubic feet, cubic meters or kilograms) - to an accuracy of say +/- 10%. And this Measurement, Verification, and Reporting has to be undertaken by an independent entity……..

National oil companies produce half of the world’s oil and gas but have lagged on methane reductions. These companies need guidance, technical support, and capacity building to cut methane. A few case studies show this can be done.

"Last November, the European Union reached a provisional agreement on its long-developing methane legislation, which aims to reduce emissions from domestically produced and imported oil, natural gas, and coal. Gaps in the legislation represent key problems that producers and consumers are grappling with to better track and reduce emissions across natural gas value chains. The legislation should enter force in the next few months, but even afterwards there will be major uncertainties," write Ben Cahill and Hatley Post. Read more: https://lnkd.in/eimjHUZe

New Oxford Institute for Energy Studies Energy Insight analyses the EU Methane Regulations: what is changing, for whom and by when? 👉 Link to Energy Insight: https://lnkd.in/eVgsTkdt Key points: 💠  EU is one of the largest global fossil fuel importers; in 2023, the EU was second only to China as a crude oil importer and the largest LNG importer 💠 Key shift in the EU’s import structure is US LNG replacing the pipeline imports from Russia 💠 According to the European Union Agency for the Cooperation of Energy Regulators (ACER), the EU remains more dependent on long-term than on spot LNG contracts (2/3 to 1/3) and the EU imported 47 bcm of LNG via spot and short-term trades with the majority (89%) delivered ex-ship (DES), and only 11% free on board (FOB) in 2023 💠 However these data should be interpreted keeping in mind the scope and reporting framework used by ACER to collect LNG market data under the Council Regulation (EU) 2022/2576 💠 Regulation imposes obligations on importers with regard to methane emissions occurring outside the EU with respect to crude oil, natural gas and coal placed on the Union market (art. 1(3)) 💠 An ‘importer’ is defined as ‘a natural or legal person who, in the course of a commercial activity, places crude oil, natural gas or coal originating from a third country on the Union market, including any natural or legal person established in the Union appointed to carry out acts and formalities required under Chapter 5’ (art. 2(59)) 💠 Data reported by the importers, alongside other sources, will be used by the Commission to create a methane transparency database and methane performance profiles (art. 30) 💠 Table  presents a summary of the requirements and consequences for non-compliance 💠In brief, the Regulation introduces three types of obligations on the importers in a stepwise manner: 1️⃣ Information provision (art. 27 and Annex IX) 2️⃣ Demonstrating equivalence of monitoring, reporting and verification (art. 28) 3️⃣ Methane intensity of the production of crude oil, natural gas and coal – reporting of methane intensity and demonstrating the imports remain below the maximum methane intensity values (art. 29) #methane #methaneintensity #methaneregulation #gas #lng #oil #coal #decarbonization #mrv #eu

As Europe's top supplier of liquefied natural gas (LNG), the United States has been the main beneficiary of the pivot by utilities to replace sharply lower Russian pipeline gas supplies with imports from other origins and in the form of LNG. But following the European Union deal on Wednesday to place methane limits on Europe's oil and gas imports from 2030, U.S. LNG shippers will be anxious that their lucrative European market may be at risk due to the enduring high levels of methane emissions throughout the U.S. natural gas supply chain. More in today's column: #lng ##power #energytransition #emissions #methane https://lnkd.in/gc3amaEf

The European Union is finalizing new rules on methane that will demand much more extensive information on the emissions of oil, natural gas, and coal produced within the bloc as well as imported fuels. These rules have important implications for global gas suppliers and could prove especially challenging for U.S. LNG exporters because of the unique complexity of U.S. gas supply chains. Read more from CSIS Energy Security and Climate Change Program experts Ben Cahill and Hatley Post: https://lnkd.in/eimjHUZe