Platts announces market standard for Producer Certified Gas

Platts, a part of S&P Global Commodity Insights, seeks to establish a market standard for Producer Certified Gas (PCG).

Previously referred to as responsibly sourced natural gas (RSG), PCG is the next step in energy transition for the North American natural gas markets, where certification of natural gas is required to guarantee, amongst other things, that specific carbon and methane intensity thresholds have been met throughout the production process.

As consumer demand for lower carbon natural gas production has continued to grow amid the need to decarbonize, US natural gas market participants have started to demand delivery of gas wherein producers certify and audit the upstream production process, including emissions generated therein.

Following recent market feedback, Platts has already identified elements that would be required in a definition of PCG

1. Methane intensity of production is less than 0.10% as calculated by an independent third party
2. Production volumes monitored and verified by an independent third party
3. Emissions continuously monitored during production by an independent third party

At this stage, methane intensity is the sole factor in the Platts definition of PCG. The PCG standard will be reviewed with a view to broadening its definition with the addition of other ESG components such as, but not limited to:

• Water usage
• Safe management of chemicals
• Commitment to safe and sustainable operations

As part of this initiative, Platts seeks feedback from market participants and stakeholders on additional components which are measurable and verifiable by third parties for inclusion in the PCG standard. Platts recognizes that the standard of what is considered PCG is expected to evolve over time and will continue to engage with market participants on this evolution.

Methane Intensity Threshold

Under its current Methane Performance Certificate (MPC) methodology which can be found here:

https://www.spglobal.com/commodityinsights/en/our-methodology/methodology-specifications/energy-transition/platts-methane-performance,

Platts considers a 0.10% methane intensity threshold arrived at after extensive industry consultations; this threshold would also be the maximum threshold considered for PCG.

As under current MPC methodology guidelines, Platts would continue to review this threshold and its basis as new data becomes available.

Currently, Project Canary Platinum and Gold as well as MiQ grades A and B certifications would fall in line with Platts methane intensity threshold for PCG.

Platts is certifier agnostic and will look at any certifications that fit the methane intensity threshold and the continuous monitoring requirement currently in place for the Methane Performance Certificate assessment.

Please send all feedback, comments, and questions to Platts_Carbon@spglobal.com, Americasgaspricing@splgobal.com and pricegroup@spglobal.com.

For written comments, please provide a clear indication if comments are not intended for publication by Platts for public viewing. Platts will consider all comments received and will make comments not marked as confidential available upon request.