Naftogaz Group has joined the Oil and Gas Methane Partnership 2.0, a voluntary global industrial initiative to reduce methane emissions and improve monitoring and reporting in this area.
62 companies with assets on five continents representing 30 percent of the world’s oil and gas production have already joined the partnership to minimize the impact of greenhouse gases, particularly methane emissions, on the environment.
The OGMP 2.0 framework applies to the full oil and gas value chain, not only upstream production, but also midstream transportation and downstream processing and refining – areas with substantial emissions potential that are often left out of reporting today. Receiving more data will ensure better understanding of the impact produced by the oil and gas industry on climate and help develop the most effective solutions to reduce methane emissions significantly over the next decade. In order to support the implementation of global climate targets, OGMP 2.0 aims to deliver a 45 percent reduction in the industry’s methane emissions by 2025, and a 60-75 percent reduction by 2030. Reducing methane emissions from the energy sector by 90% would shave one-fifth of a degree Celsius from the forecasted rise in the planet’s average temperature by 2050.
“Reducing airborne emissions and the greenhouse effect is not just a priority for global leaders; this is the only possible option for the future of the entire world. Transition to a climate-neutral economy is on the agenda of all Fortune 500 companies, including those operating in the energy sector. Naftogaz Group is no exception. We are a socially responsible company actively involved in the implementation of sustainable development projects, including renewables,” emphasized Naftogaz first deputy CEO Sergiy Pereloma.
“Naftogaz participation in the initiative for enhanced measurement, reporting, and reduction of methane emissions is an important part of the further transformation of our business as we embrace a climate-neutral approach to the environment,” Pereloma added.
The Energy Community Secretariat and the EBRD issued an official statement welcoming Naftogaz Group’s decision to join the initiative.
“Naftogaz's decision to join OGMP is a landmark for the whole EBRD region," says Jean-Marc Petershmitt, Managing Director of Industry, Commerce and Agribusiness at EBRD. "The EBRD is a major investor and supporter of sustainable energy in Ukraine and we are happy to continue providing support to Naftogaz in the vital task of decarbonizing Ukraine's gas supply chain.”
The preparation of the initial reporting to OGMP will be supported by the European Bank for Reconstruction and Development (EBRD) as part of ongoing work under the trilateral memorandum of understanding between Naftogaz, the EBRD and the Ministry of Environment and Natural Resources of Ukraine on reducing methane emissions in Ukraine’s gas supply chains.
UNEP and the European Commission are also finalizing plans to set up an independent International Methane Emissions Observatory (IMEO). This planned IMEO will aggregate and analyse multiple methane emissions data streams, including data reported by OGMP member companies, to accelerate reductions in methane emissions globally.
Involving oil and gas companies operating in the EU and globally in the initiative is a key element in the Commission’s recent methane strategy, which is a cornerstone of the European Green Deal in the energy sector. The relevant legislative initiative supporting the EU’s methane strategy is expected to be submitted in mid-2021.