In my presentation – MiQ Case Study: Certified Methane Abatement in LNG – I outlined the role that MiQ Certification will play in creating transparency and a global level playing field about the methane emissions associated with LNG.
The LNG market has recently been put under the spotlight following Engie’s decision to pull out of a long-term US LNG deal. We believe there is a significant opportunity to adopt a standardised global methodology for determining methane emissions across the natural gas value chain, including with LNG.
Looking at the “Green” LNG market today, we noted a wide variety of methodologies for determining methane emissions. For example, there is no agreement about how to compare different cargoes on methane or GHG emissions. Furthermore, due to generic methods, it is not possible to accurately assess the methane emissions of specific LNG cargoes which are derived from a variety of sources.
It is, however, evident that most stakeholders now recognise that all gas is not equal in terms of its climate impact. There is an urgent need for transparency about methane emissions.
MiQ’s market-based approach will help create a push and pull to drive industry change and improve LNG emissions performance. There is already customer demand for cleaner gas and product differentiation. Additionally, the industry is facing peer, investor, and regulatory pressure to clean up emissions, and operators and facilities are seeking a global and standardised measurement approach for product comparison.
As I explained during the session, certification is a “Third Way” to complement voluntary company action and regulatory efforts.
Specifically, we believe MiQ Certification can be the first step to positive market disruption. By enabling the differentiation of gas based on methane emissions intensity, certification will encourage pricing differentiation in the market and therefore incentivise the gas sector to improve. The LNG industry has the opportunity to play a leading role.
We would like to extend a huge thank you to S&P Global Platts, event speakers, and attendees to the session. We have been delighted by the positive reactions from participants following the presentation and hope to continue productive conversations to make the LNG transition as clean as possible.