More US natural gas producers join lower-emission gas trading hub - Upstream Online
More US natural gas producers join lower-emission gas trading hub | Upstream Online
Two US natural gas producers have joined certified natural gas trading platform CG Hub, adding 1 billion cubic feet per day of liquidity through the service.
Seneca Resources and Northeast Natural Energy joined the first commodities trading platform for certified natural gas after their natural gas production was independently certified by auditor MiQ.
MiQ helped develop the CG Hub to transparently trade certified natural gas, which is natural gas audited by a third party to determine its compliance with environmental, social, and governance (ESG) standards. While different certifiers have different criteria in their assessments, MiQ focuses on methane intensity, methane monitoring technologies, and company policies.
“Certified natural gas is the bridge to the future of sustainability. By creating a trading platform that supports a vibrant and dynamic marketplace in certified natural gas, we believe CG Hub will play a critical role in driving market-led transformation of the natural gas industry,” said Jon Olson, CG Hub chief executive.
"We're proud to welcome Seneca and Northeast as liquidity providers on the platform and we expect to be announcing more liquidity providers in the coming weeks."
Interest in certified natural gas has grown in recent years as more oil and gas companies implement carbon-reduction initiatives.
MiQ says about a third of total US natural gas supply has been independently certified, with MiQ alone certifying about 20% of the sector. When CG Hub was launched, MiQ was certifying 15 billion cubic feet per day of natural gas.
Methane emissions are still high: MiQ estimates the US natural gas supply chain has a methane intensity of about 2.2%, about double the US Environmental Protection Agency’s methane leakage estimates.
“Goodwill and commitments to sustainability are one thing, but getting true, industry-wide buy-in for certified natural gas also requires market-driven financial incentives to do the right thing,” said Georges Tijbosch, MiQ chief executive.
"CG Hub will play a key part in the commercialisation of certified natural gas and we are delighted to see so many future-facing businesses working to drive change in global methane emissions."
Major companies such as ExxonMobil, EQT, and Chesapeake Energy have had their operations certified by MiQ. Chesapeake Energy has been vocal in its certified natural gas efforts, using three different auditors to provide evaluations, and recently adjusted its emissions-reduction targets for 2025 because they were reached early.
Last week, the US shale producer released its 2022 sustainability report and is now targeting a methane intensity of 0.02% and greenhouse gas intensity of 3 tonnes of carbon dioxide equivalent per thousand barrels of oil equivalent produced.
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