Uniper, EQT, MiQ collaborate on first certified LNG shipment
European energy trader Uniper, US natural gas producer EQT and MiQ, which certifies natural gas production, said September 18 they had collaborated on a pilot transaction of some 4bn ft3 of certified natural gas as LNG.
The pilot transaction, equivalent to about one LNG cargo, involves MiQ-certified natural gas produced by EQT and MiQs deployment of its own Supply Chain Protocol, which integrates data from the EQT certification and the best available data from other supply chain segments using accepted Life Cycle Assessment principles.
It represents the first time a US LNG exporter has utilised the MiQ Supply Chain Protocol to model a more detailed view of emissions performance.
The transaction, announced on the sidelines of Gastech 2024 in Houston, is seen as critical to demonstrating the transparency of US LNG exports, which must comply starting next year with new EU methane reporting requirements.
“With the EU’s new methane regulations, which took effect in August 2024, compliance for EU importers will become crucial,” MiQ CEO Georges Tijbosch said. “MiQ is currently the only programme 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.”
MiQ’s findings estimate that the transaction for EQT-produced gas reduces at least 24,123 tonnes of CO2-equivalent (CO2-e) emissions compared to the Appalachian basin industry average and 68,904 tonnes of CO2-e emissions compared to the US national industry average. These reduction calculations are validated by the Methane Scout calculator, a tool developed by MiQ to analyse public data from various emissions sources throughout the LNG supply chain.
The pilot transaction 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 120bn m3 of LNG, with the US contributing nearly 50% of those imports, nearly tripling European imports of US LNG compared to 2021.
“As one of the world’s largest producers of independently certified gas, we are dedicated to validating our emissions reductions,” EQT CEO Toby Rice said. “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 operationalised.”
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, a data gap MiQ hopes to fill with its Supply Chain Protocol. 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 and overcoming the challenges of achieving full LNG supply chain transparency.
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.
"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…emissions across a supply chain.”