SUMMARY: Methane performance certificates seek to monetise low emissions gas production.
Canada’s Pacific Canbriam Energy is part of an inaugural trade of methane performance certificates (MPCs), tradeable instruments intended to unlock the market value of reducing the environmental impact of natural gas production. Macquarie Energy Canada arranged the first MPC trade between Pacific Canbriam, active in the low-carbon Montney natural gas play in northeast BC, and industrial gas customer Skeena Bioenergy, which manufactures wood pellets for export.
S&P Global Platts, working with Xpansiv, a global marketplace for ESG commodities, designed the MPCs, which are issued against natural gas production that has a methane intensity of less than 0.1%. Gas production below the threshold would receive MPCs representing a percentage of methane intensity below the industry average, which currently stands at 0.437% for natural gas produced in Canada and the US.