MiQ collaborates with EQT and Uniper on pilot transaction for independently certified gas
MiQ, a global leader in emissions certification, has partnered with EQT Corp., a leading producer of natural gas in the U.S., and international energy company Uniper on a pilot transaction underscoring the importance of transparency in emissions reporting for U.S. LNG exports.
The proof-of-concept transaction involves EQT agreeing to supply 4 Bft3 of independently certified natural gas—a volume comparable to approximately 1 LNG cargo—to Europe-based Uniper.
Third-party certification of natural gas operations works to improve measurement and transparency in emissions reporting, allowing buyers to better understand emissions performance underpinning the gas they are purchasing. EQT is an industry leader in certified natural gas with a majority of its production operations being certified under the MiQ methane standard.
The collaborative effort is designed to demonstrate the potential for full-supply chain emissions reporting using the MiQ Supply Chain Protocol. The Protocol integrates data from MiQ's certification of EQT's production facilities with the best available data for other supply chain segments, providing a credible and transparent emissions map across multiple segments of the LNG supply chain. This marks the first instance where a U.S. LNG exporter has utilized the MiQ Supply Chain Protocol to model a more detailed view of emissions performance.
MiQ's findings estimate that the transaction for EQT-produced gas reduces at least 24,123 tonnes of carbon dioxide equivalent (24,123 tonnes of CO2e-20 yr GWP) compared to the current Appalachain basin industry average and 68,904 tonnes of CO2e-20 yr GWP compared to the current U.S. national industry average. These reduction calculations are validated by the Methane Scout calculator, a tool developed by MiQ to analyze public data from various emissions sources throughout the LNG supply chain.
Georges Tijbosch, CEO of MiQ, emphasized the significance of this pilot transaction between EQT and Uniper, stating, "With the EU's new methane regulations, which took effect in August 2024, 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 concept comes at a pivotal moment for the global LNG industry, underscored by growing demand for clear supply chain emissions transparency amid mounting market and regulatory pressures to reduce methane leakage. In 2023, the EU imported > 120 Bm3 of LNG, with the U.S. as the largest supplier, contributing nearly 50% of these imports. This marks a near-tripling of LNG imports from the U.S. compared to 2021.
"As one of the world's largest producers of independently certified gas, we are dedicated to validating our emissions reductions," said Toby Rice, President and CEO, EQT Corporation, "European buyers want credible data on LNG cargoes with transparent low emissions, and this pilot transaction with Uniper is proof-of-concept of how this can be operationalized."
"Uniper is a major gas importer in Europe, so we understand the importance of gas as a transition fuel on the road to net zero," said Carsten Poppinga, Uniper's Chief Commercial Officer. "We also understand the need to make gas as sustainable as possible while we progress along that road. We're pleased to work with a US producer like EQT on a pilot that is helping us understand the complexities of tracking and managing LNG emissions across a supply chain."
Although > 20% of natural gas produced in the U.S. is now independently certified by MiQ, there is currently limited transparency on the level of emissions generated by LNG exported from the U.S. to Europe, which is what MiQ's Supply Chain Protocol seeks to address. The pilot transaction between EQT and Uniper is a significant first step towards deploying a credible system for measurement and reporting of emissions across international LNG markets. It aims to overcome the significant challenges associated with achieving full supply chain transparency due to the complex nature of LNG supply chain structures.
The transaction also provides a blueprint for EU importers to demonstrate the source of 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. With this in place importers can be expected to meet the new EU importer requirements.
The EU's methane regulations came into force on August 4 and will have far-reaching impacts on crude oil, gas and coal imported into the EU, as well as that produced within the EU. New methane emissions reporting requirements, and ultimately the incorporation of a methane intensity cap for imported natural gas, will place significant information collection, reporting and verification challenges for oil and gas producers and LNG exporters. A credible certification system, such as that developed by MiQ, can facilitate compliance with the regulations by demonstrating the provenance of imported LNG and the emissions profile of the production site.
MiQ's Supply Chain Protocol constructs complete supply chain emissions profiles, until such time that credibly measured, third-party audited and certified emissions are available for each segment of the supply chain across the globe. This protocol applies accepted lifecycle assessment (LCA) principles under ISO 14044 to combine and evaluate heterogenous data sources – certified and uncertified – and note the quality of each data methodology using Data Quality Indicator (DQIs).
Key highlights of the MiQ, EQT and Uniper initiative:
- Differentiation of U.S. gas based on emissions profile: U.S.-sourced gas can now be credibly differentiated by its emissions profile, thanks to MiQ's certification and supply chain protocol. The initiative evaluates the carbon footprint of natural gas throughout the supply chain, enabling buyers to choose lower-emissions options.
- Credible quantification and tracking: Each shipment can be quantified and tracked for its methane and carbon footprint using certified emissions data, recognized LCA principles, and the MiQ registry. This ensures transparent and validated reporting and supports MiQ's commitment to a full-cycle emissions profile for LNG.
- Facilitating the implementation of EU methane regulations: MiQ's credible methodologies assist buyers, importers and end users in making informed decisions on methane and carbon intensity, aiding compliance with methane regulation and ensuring that purchased LNG meets monitoring, reporting, and verification (MRV) obligations.
- Market differentiation through transparency: This initiative empowers buyers to make informed decisions based on the environmental impact of their LNG purchases, potentially fostering a market for low-emissions gas.
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