EO100™ Featured in new Rystad Report on Natural Gas Certification

While natural gas certification was slow to be adopted in the late 2010s, a new Report from Rystad Energy  shows that an inflection point has been reached in 2021-2023, with certification now accounting for some 30% of US and Canadian production, and over half of production in key basins. ‘Certified Gas: The Past, Present and Future, compares the three leading gas certification systems and explores the evolution of the markets for certified gas.

North American gas demand is growing through LNG exports, though buyers are increasingly interested in the full-cycle emissions profile of North American LNG. European buyers, in particular, are focused on the emissions profile of US natural gas, leading to increased scrutiny of aggregate emissions and the emergence of voluntary programs among North American oil and gas operators to certify their production and demonstrate environmental & social performance.

Regulatory bodies may require more sustainable gas molecules over time, according to Rystad, though the extent and pace of this differentiation remain uncertain. Government actions, including market mechanisms and direct requirements on operators, will shape the trajectory of voluntary standards in the industry.

Programs such as those offered by EO and MiQ aim to certify ESG and methane intensity, with the expectation that molecules with better ESG performance will gain better market access and prices. Furthermore, initiatives like the recent pilot program in New York, allowing utilities to recover costs for procuring certified gas, aim to incentivize emissions reductions. As European supply chain disclosure regulations are finalized, the certification of North American gas production may serve as evidence of tighter environmental standards, enabling market access and potentially catalyzing further legal requirements along the value chain.

EO welcomes this new report from European thought leader Rystad Energy, which highlights the dramatic growth of energy project certification and its move into the mainstream, with over 50% of several major gas basins now certified to EO or MiQ systems. The report reaffirms that EO’s non-profit status and broad coverage of ESG issues and Indigenous Rights offers unique benefits in the face of changing demands.