Source: Media Outreach
B.C. natural gas with low-GHG intensity qualifies for new S&P Global Platts methane certificate
CALGARY, CANADA – Media OutReach – 20 October 2021 – Pacific Canbriam Energy Limited (“Pacific Canbriam”) is proud to be part of a first-of-its-kind deal that will generate Methane Performance Certificates (MPCs) – tradeable instruments that unlock the market value of reducing the environmental impact of gas production. MPCs allow a producer to sell instruments representing zero methane emission natural gas production.
As part of the inaugural launch, Macquarie Energy Canada, Ltd. a wholly owned subsidiary of Macquarie Group (“Macquarie”), arranged the first MPC trade between Pacific Canbriam and industrial gas customer Skeena Bioenergy Ltd, a manufacturer of wood pellets exported to the UK, EU, and Japan, displacing coal in electricity generation.
S&P Global Platts and Xpansiv, the global marketplace for ESG commodities, worked together to launch this innovative new way to measure and price methane performance in natural gas production. Pacific Canbriam and other natural gas providers who qualify will issue MPCs that register the carbon intensity of their natural gas, proving that fugitive methane emissions fall below strict, quantifiable thresholds.
The MPCs evidence the stringent environmental standards in B.C. and the low methane intensity of Pacific Canbriam’s natural gas. Only natural gas produced below a threshold of 0.1% methane emissions intensity (MEI) qualifies under the S&P Global Platts protocol. This standard reflects the market value of low methane emissions in natural gas production.
Pacific Canbriam Energy is a world-leader in minimizing methane leaks and vents in its operations, and its natural gas involved in this transaction is well below the 0.1% Platts threshold; the number of MPCs are calculated relative to an average methane emissions rate for North America[1]. Pacific Canbriam Energy is part of Pacific Oil & Gas, which is a member of the Singapore-based RGE group of companies founded by Sukanto Tanoto.
“With increasing focus on where energy comes from, Pacific Canbriam Energy is proud that the origin, energy content, and methane intensity of its natural gas has been externally verified as being responsibly sourced,” said Paul Myers, President of Pacific Canbriam Energy. “This is proof that our product is produced according to the highest standards of environmental and social responsibility. We’re excited and proud to supply MPCs to Skeena that demonstrate the exceptionally low methane intensity associated with the development of our natural gas.”
With global attention on climate change in the run-up to COP26, upstream energy carbon intensity is being closely watched and has prompted investors, consumers, and producers to seek new ways to reduce their carbon footprint. This has created an increased demand for low-carbon fuels.
“We chose to purchase Methane Performance Certificates from Pacific Canbriam Energy to voluntarily reduce the supply chain methane emissions intensity associated with our natural gas,” said Skeena President Roger Keery. “It’s an important step forward in lowering our overall GHG footprint.”
MPCs are registered, issued, transacted, and retired in accordance with the Xpansiv Digital Fuels Program to eliminate double counting. Xpansiv’s DF Registry maintains a complete record of the MPC and its associated environmental claims, ensuring data quality.
“MPCs allow the market to reward producers like Pacific Canbriam with low methane leakage, creating a clear market price related to fugitive methane emissions,” said Andrew Pisano, Head of XRegistries at Xpansiv. “We’re pleased to support natural gas market participants on their path to reach their ESG targets and climate commitments, and hope this incentivizes other producers to make similar measurable progress.”
Last month, Pacific Canbriam announced it had become the second natural gas producer in Canada to achieve an EO100™ Standard Certification from Equitable Origin. Equitable Origin is a leading standards organization that certifies energy production based on third-party verification that evaluates energy producers that demonstrate their commitment to the highest ESG standards in their operations.
[1] Source: “Quantification Framework for Digital Natural Gas and Methane Performance Certificates: Benchmarking Methane Performance, v.1.0”, Xpansiv, October 2021
– Published and distributed with permission of Media-Outreach.com.
