How the oil and gas industry has an incentive for a greener product

MiQ is a global not-for-profit partnership between SYSTEMIQ and RMI that certifies the methane emissions performance of natural gas at a platform/asset level. The certification provides aspirational standards for operators on their mission to reduce GHG emission levels and counteract climate change. These standards are already changing the economy of the oil and gas industry. The lower the gas emission levels, the higher the grade awarded to the producer. MiQ has launched a Registry for tracking methane emissions from natural gas. The Registry is the single source of truth for MiQ Certification and is expanding the market for certified gas by enabling gas buyers to transact certified gas while enabling firms to trade it on an exchange. Gas with a higher MiQ grade is considered a higher value product and can trade at a higher market value. This increases incentive for drastic emissions reductions beyond climate action.

The certification system helps the industry provide transparency on methane emissions. It’s relied on as a standard that determines the quality and value of gas by operators, traders and purchasers. It creates incentives for companies to improve their practices in reducing GHG emissions and delivering a thriving market for independently certified gas driven by climate action. Industry operators will aspire to achieve the lowest levels of emissions to differentiate their gas because it positively impacts climate and their business.

Differentiating natural gas through MiQ certification requires reporting on methane emissions by the producers through a robust monitoring program. It also requires an independent, third-party auditor to verify the accuracy by reviewing the report and company procedures, collecting samples and calculating the methane emissions to gas ratio. A report is then submitted to MiQ, who awards the grade.

GHD is one of a small number of auditors approved by MiQ to complete the audit and reports used to award the grade. We rely on expertise from decades in the oil and gas industry to support clients in their goal to lower emissions and obtain their target MiQ Certification grade level. In addition to conducting audits to achieve certification, we work with producers to improve their business practices and refine procedures that produce lower emissions levels, allowing them to improve their MiQ grade and sustainability metrics. We also assist with designing corporate GHG inventory systems that serve several business goals.

We have already completed several audits for major oil and gas producers, including bpx Energy’s South Hainesville facility, which received a Grade A Certification by MiQ.

Contact us to understand more about the MiQ process. GHD has conducted pre-assessment audits for many leading corporations in the oil and gas industry to ensure they are ready to achieve the best possible grade on their MiQ certification.