Platts extends feedback period for Methane Performance Certificate methodology

S&P Global Platts is extending the feedback period for its Methane Performance Certificate (MPC) methodology to Sept. 17.

Platts is seeking feedback on a proposal to launch MPC assessments reflecting low methane emissions in natural gas production in the continental US and Canada.

This extends the feedback period of the proposal published Aug. 9 and available here: https://www.spglobal.com/platts/en/our-methodology/subscriber-notes/080921-platts-proposes-to-begin-publishing-assessments-of-natural-gas-methane-performance-certificates

MPCs would reflect a volume of avoided methane emissions based on the methane intensity percentage of natural gas produced. The lower the methane intensity percentage below the Platts-established threshold, the more certificates a producer would register and have available to sell.

The initial emissions threshold for methane intensity proposed by Platts would be 0.10%, which encompasses approximately 45% of US natural gas production based on a Platts analysis of 2019 Subpart W data collected by the US Environmental Protection Agency. This data set uses the Natural Gas Sustainability Initiative (NGSI) protocol for calculating methane intensity percentage. The threshold would be reviewed as new data becomes available.

Platts proposes to reflect the value of certificates that require independent third-party verification of emissions. This independent verification ensures the credibility of the level of methane emissions.

The launch of a daily MPC price assessment would coincide with the anticipated development of a freely traded market for such instruments.

Platts would use data from market participants, including traders, brokers and exchanges, to inform the assessment process. The information would include bids, offers and trades, registry change of ownership information, and market participant intents to trade. Platts would also seek to publish all relevant data during the assessment process and time-stamp the assessed value at market close. The assessment would be published in $/MPC and converted to a $/mtCO2e (metric tons of carbon dioxide equivalent). It would be published in various existing publications including Gas Daily and on Platts information services alongside other Energy Transition offerings.

Platts is seeking additional feedback from market participants as to whether Platts specifications for its MPC assessments should include limitations around the methodology of methane detection and calculation. That might include references to existing technologies such as ground sensors, drone sensors, satellite readings, other modeling tools that uses emissions factors along with some combination of ambient monitoring, or mass-balance computations with producer specific emissions factors.

Platts is hosting a virtual roundtable event Aug. 24, 2021, and will present details of this proposal, answer questions, and pose questions to industry participants. To register for this roundtable, please visit: https://cvent.me/qMBe3y?RefId=Telemarketing

Please send any further queries or feedback to Americasgaspricing@spglobal.com, Platts_Carbon@spglobal.com and Pricegroup@spglobal.com by Sept. 17.

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.