MiQ Collaborates with EQT and Uniper on Groundbreaking Pilot Transaction for Independently Certified Gas

Industry-first pilot tests model for verifying and differentiating US LNG cargos by emissions using MiQ's Supply Chain Protocol

HOUSTON, Sept. 18, 2024 /PRNewswire/ -- MiQ, the global leader in emissions certification, has partnered with EQT Corporation, the leading producer of natural gas in the United States, and international energy company Uniper (XETRA) on a pilot transaction underscoring the importance of transparency in emissions reporting for US LNG exports. The announcement was made at Gastech, 2024.

The proof-of-concept transaction involves EQT agreeing to supply 4 billion cubic feet (bcf) 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 US 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 metric tons of carbon dioxide equivalent (24,123 MT CO2e-20yr GWP) compared to the current Appalachain basin industry average and 68,904 MT CO2e-20yrGWP compared to the current US 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 over 120 billion cubic meters (bcm) of LNG, with the United States 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 over 20% of natural gas produced in the US is now independently certified by MiQ, there is currently limited transparency on the level of emissions generated by LNG exported from the US 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^th 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 emission 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 emission 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 Life Cycle 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 US Gas Based on Emissions Profile: US-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-emission options.
• Credible Quantification and Tracking: Each shipment can be quantified and tracked for its methane and carbon footprint using certified emissions data, recognized Life-Cycle Assessment 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.

About MiQ

MiQ is a global leader in methane emissions measurement and certification. Our mission is to facilitate a rapid reduction in methane emissions from the oil and gas sector by providing a credible and transparent certification system that incentivizes improvements and ensures accountability.

About Supply Chain Protocol

MiQ introduced the Supply Chain Protocol at CERAWeek 2024 to provide comprehensive methane emissions intensity data across the natural gas supply chain. This protocol aims to aid buyers, importers, and end-users in making informed decisions to reduce methane emissions, thereby supporting environmental goals and regulatory compliance. MiQ's protocol addresses the need for enhanced transparency and credibility in emissions data by integrating multiple data sources and ranking their quality. By offering an open-source framework, MiQ enables stakeholders to access reliable emissions data and make immediate, impactful decisions to support the Global Methane Pledge's targets.

About EQT Corporation

EQT Corporation is a leading independent natural gas production company with operations focused in the Appalachian Basin. We are dedicated to responsibly developing our world-class asset base and being the operator of choice for our stakeholders. By leveraging a culture that prioritizes operational efficiency, technology and sustainability, we seek to continuously improve the way we produce environmentally responsible, reliable and low-cost energy. We have a longstanding commitment to the safety of our employees, contractors, and communities, and to the reduction of our overall environmental footprint. Our values are evident in the way we operate and in how we interact each day – trust, teamwork, heart, and evolution are at the center of all we do. To learn more, visit eqt.com.

About Uniper

Düsseldorf-based Uniper is an international energy company with activities in more than 40 countries. The company and its roughly 7,000 employees make an important contribution to supply security in Europe, particularly in its core markets of Germany, the United Kingdom, Sweden, and the Netherlands.

Uniper's operations encompass power generation in Europe, global energy trading, and a broad gas portfolio. Uniper procures gas—including liquefied natural gas (LNG)—and other energy sources on global markets. The company owns and operates gas storage facilities with a total capacity of more than 7 billion cubic meters.

Uniper intends to be completely carbon-neutral by 2040. Uniper aims for its installed power generating capacity to be more than 80% zero-carbon by 2030. To achieve this, the company is transforming its power plants and facilities and investing in flexible, dispatchable power generating units. Uniper is already one of Europe's largest operators of hydropower plants and is helping further expand solar and wind power, which are essential for a more sustainable and secure future. The company is progressively expanding its gas portfolio to include green gases like hydrogen and biomethane and aims to convert to these gases over the long term.

Uniper is a reliable partner for communities, municipal utilities, and industrial enterprises for planning and implementing innovative, lower-carbon solutions on their decarbonization journey. Uniper is a hydrogen pioneer, is active worldwide along the entire hydrogen value chain, and is conducting projects to make hydrogen a mainstay of the energy supply.

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SOURCE MiQ