In a pioneering move, MiQ, the global leader in emissions certification, has teamed up with EQT Corporation, the leading US natural gas producer, and international energy company Uniper to pilot a groundbreaking model for verifying and differentiating US LNG cargos by their emissions. This pilot transaction, announced at Gastech 2024, underscores the increasing demand for transparency in emissions reporting for US LNG exports, particularly in light of the EU’s new methane regulations.
The pilot involves EQT supplying 4 billion cubic feet (bcf) of independently certified natural gas – equivalent to roughly one LNG cargo – to Uniper in Europe. This signifies a key step toward achieving full-supply chain emissions reporting, using MiQ’s Supply Chain Protocol. The protocol leverages data from MiQ’s certification of EQT’s production facilities, combined with the best available data from other segments of the supply chain, to create a comprehensive and transparent emissions map.
This pilot marks the first instance of a US LNG exporter utilizing the MiQ Supply Chain Protocol to model a more detailed view of emissions performance. MiQ estimates that this transaction for EQT-produced gas reduces at least 24,123 metric tons of carbon dioxide equivalent (24,123 MT CO2e-20yr GWP) compared to the Appalachian basin industry average and 68,904 MT CO2e-20yrGWP compared to the current US national industry average. These reductions are validated by the Methane Scout calculator, a tool developed by MiQ to analyze public data from various emissions sources within the LNG supply chain.
The pilot transaction comes at a pivotal time for the global LNG industry. With the EU’s new methane regulations taking effect in August 2024, compliance for EU importers becomes crucial. MiQ’s program currently offers the only solution for meeting these stringent methane emissions-related reporting requirements. This pilot sets the stage for future partnerships between LNG exporters and European buyers, ensuring both compliance and market readiness.
Georges Tijbosch, CEO of MiQ, emphasized the significance of this pilot, stating, “With the EU’s new methane regulations, compliance for EU importers will become crucial. MiQ is currently the only program enabling them to meet these stringent methane emissions-related reporting requirements, and we look forward to partnering with LNG exporters and European buyers to ensure both compliance and market readiness.”
The pilot transaction also provides a blueprint for EU importers to demonstrate the source of their imported gas to national authorities, ensuring it adheres to methane measurement and reporting obligations as well as independent verification standards equivalent to those required within the EU. This initiative aims to overcome the challenges associated with achieving full supply chain transparency due to the complex nature of LNG supply chain structures.
The pilot transaction between EQT and Uniper is a significant step towards establishing a credible system for measurement and reporting of emissions across international LNG markets. It demonstrates how US-sourced gas can now be credibly differentiated by its emissions profile, thanks to MiQ’s certification and supply chain protocol. This allows buyers to choose lower-emission options, promoting a market for low-emissions gas.
The initiative emphasizes the need for credible quantification and tracking of each shipment’s methane and carbon footprint. This is achieved using certified emissions data, recognized Life-Cycle Assessment principles, and the MiQ registry, ensuring transparent and validated reporting.
This pilot highlights how MiQ’s methodologies can assist buyers, importers, and end-users in making informed decisions on methane and carbon intensity. By providing transparent and reliable emissions data, this initiative facilitates compliance with methane regulation and ensures that purchased LNG meets monitoring, reporting, and verification (MRV) obligations. This initiative represents a significant step towards achieving greater transparency and accountability in the global LNG market, ultimately contributing to a more sustainable future.
