The concept of environmentally sustainable natural gas, once a niche market in the United States, is experiencing rapid growth. This surge is driven by international customers who are now meticulously evaluating the environmental impact of their energy sources from extraction to consumption.
In a significant shift towards sustainability, the proportion of U.S. natural gas supplies that are certified as environmentally responsible is projected to reach 45% in the current year, a notable increase from 38% in the previous year. This equates to a production volume of approximately 47 billion cubic feet per day of this lower methane-emitting gas. By the end of last year, nearly 40 entities had received certification to produce this type of gas.
The push for certification began among upstream producers in 2018 and has since expanded to a diverse group of consumers, including utilities, LNG exporters, and various industrial sectors. These stakeholders view certified gas as a viable strategy for reducing emissions across their supply chains.
Despite its benefits, the market for low-methane natural gas, which commands a modest premium of about 10 cents per million British thermal units, faces challenges. The Biden administration's recent halt on approving new LNG export facilities could impede market growth. Additionally, the absence of standardized federal certification criteria has sparked debate, with environmentalists arguing that the concept of "cleaner" gas minimizes the broader environmental impacts of fossil fuels.
