Workshop on Changing Export Market Expectations Regarding Methane

The Petroleum Commission, Ghana and the New Producers for Sustainable Energy organised a leadership roundtable on how new producers can position themselves strategically with respect to new methane regulations that affect oil and gas imports to the EU and evolving requirements of off takers.

Speakers:

• Maria Olczac of Oxford Institute for Energy Studies
• Phillip Torres of Emerging Investors Market Alliance
• Dan Grossman of Environmental Defence Fund.

Background:

The 2024 EU Methane Regulation has set requirements for fossil fuel imports that will be implemented gradually from 2025 to 2030. These build on the Oil and Gas Methane Partnership 2.0 (OGMP 2.0) framework that supports a shift from methane estimates to direct measurements of methane emissions. All export contracts in place are affected from August 2024 for these measuring, monitoring, reporting and validation (MMRV) rules. Exporters will need to provide data on how they measure methane, then demonstrate equivalence in measurement standards against OGMP 2.0 level 4 or 5, followed by reporting, and finally ensure that imports stay below the methane intensity thresholds. Meanwhile, regulations and incentives for differentiated, low methane gas are emerging in other importing
jurisdictions, such as Japan and Korea (CLEAN initiative). A growing number of electricity buyers are also demanding fully quantified and certified low carbon gas from point to point. Consequently, producers will increasingly be required to prove they measured the methane intensity of their cargo, and beyond that the whole value chain behind it. Producers are moving at very different speeds in addressing these changes.

To find out more about how the New Producers for Sustainable Energy can help new producers prepare for these new rules and market changes, please get in touch.