In May, the European Union enacted stringent methane legislation targeting emissions from oil, natural gas, and coal. This new regulation is a game-changer for US natural gas exports to the EU. Companies that have secured third-party certification will gain a competitive edge. Understanding these rules is crucial for maintaining market access and staying ahead of the competition. Here’s what you need to know.
What’s required?
Maintaining access to EU markets will require natural gas operators to comply with all elements of the new regulations over time, including increased monitoring and reporting, comprehensive Leak Detection and Repair (LDAR), restrictions on venting and flaring, higher standards for new facilities, greater transparency and accountability and third-party verification.
Who’s covered?
It’s clear the legislation covers all fossil fuel sources including oil, natural gas and coal. The legislation specifically addresses producers but is less clear on how, or whether, it will apply to the broader supply chain including gathering, processing, transmission and liquefaction.
How soon?
In the first twelve months (by May 2025), EU operators will have to meet expanded requirements for source level emissions reporting, initially using source-specific methane emissions factors with escalating requirements, over time, for quantification of source level emissions and ultimately site level methane quantification. Emissions reporting will require third-party verification. Other requirements including Leak Detection and Repair (LDAR), elimination of venting and flaring and increased transparency and reporting will also take effect within the first year for EU operators.
By March of 2025, EU LNG importers will be required to submit information on the natural gas imported, including whether the producer of the natural gas is “undertaking source and site-level measurement and quantification, whether the data is subject to independent third-party verification, whether its methane emissions are reported” to a national GHG inventory. By 2027 EU importers of natural gas will be required to demonstrate that contracted suppliers are subject to Monitoring, Reporting and Verification (MRV) requirements equivalent to the EU measures.
What to do now?
Natural gas producers that have third-party certification will have a competitive advantage in meeting EU LNG demand. Many companies, including some of the largest producers in the U.S., are proactively reducing methane emissions by deploying advanced technology, eliminating emissions from pneumatics, and pursuing certification such as the MiQ Standard for Emissions Performance.
Certifications like Equitable Origin’s EO100TM and MiQ’s Standard for Emissions Performance enhance transparency in emissions reporting and provide the independent third-party verification required by the EU methane legislation.
Responsible Energy Solutions is the leading assessor for the MiQ Standard for Emissions Performance. Over the last four years we have performed over 60% of MiQ assessments covering over 14% of US production. We offer both MiQ certification assessments and certification preparation services.
If you’re wondering if MiQ certification is right for your operation, our team is here to help. A quick conversation with our engineers can save you time and help you assess if this certification fits your needs. Reach out to us at info@res-solutions.net for more information.
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