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More U.S. E&Ps, Utilities and Midstreamers Join Coalition to Reduce Natural Gas Emissions
Since early March, nine oil and natural gas producers, utilities and pipeline and storage operators have joined a coalition that pledges to reduce collective methane emissions to 1% or lower.
Our Nation’s Energy Future (ONE Future), with members in the upstream, midstream and downstream sectors, now numbers 45. As members, each company would report methane emissions and hold a seat on the ONE Future board.
Privately owned exploration and production (E&P) companies BKV Corp., THQ Appalachia I LLC (THQA) and Jonah Energy LLC, joined in April.
Denver-based BKV holds assets in the Marcellus Shale in Pennsylvania, as well as the Barnett Shale in North Texas. According to ONE Future executive director Richard Hyde, BKV “has grown rapidly to become a Top-20 natural gas producer in the United States.”
Supported by Tug Hill Operating LLC, THQA also targets the Marcellus, as well as Utica Shale and the Upper Devonian formation in northern West Virginia.
“Through the utilization of technology, we strive to improve the efficiency of our operations, minimize our environmental impact, and create lasting partnerships within the communities where we live and work,” said THQA COO Sean Willis.
Jonah Energy, based in Sublette County, Wyoming, holds assets within the Jonah Field. The independent produces 550 MMcf/d.
Two new utility members, Black Hills Corp. and DTE Energy, plan to report methane intensity associated with distribution operations. Through subsidiaries, Black Hills provides natural gas to customers across Arkansas, Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota and Wyoming. Detroit-based subsidiary DTE Gas delivers gas to 1.3 million customers in Michigan.
More midstream companies have also joined ONE Future’s efforts to reduce methane emissions while promoting natural gas. Each company pledged to report results from their gathering, processing, transmission, or storage sectors.
Western Midstream Partners LP (WES) joined in March. WES owns properties across Texas, New Mexico, Colorado, Utah, and Wyoming. Blue Racer Midstream LLC, which joined in April, operates processing facilities in the Utica and Marcellus shales. Most recently, Targa Resources Corp. joined in early May. The midstream company operates natural gas pipelines in the Permian Basin and in Oklahoma.
Meanwhile, storage operator Enstor Gas LLC also has joined the coalition as of May 12. Enstor has nearly 125 Bcf of working storage capacity underground along the Gulf Coast and in the Southwest, in addition to Alberta.
Since 2018, ONE Future has issued annual methane emissions intensity reports to track the progress of member companies. The initial report, published in November 2018, showed that the coalition was ahead of the curve in reducing emissions across the value chain. With only 16 members at the time, members in 2017 surpassed a goal with a registered methane intensity of 0.552%.
In 2019, ONE Future beat its methane intensity goal by 67%. By this period, the coalition had grown to 24 members, yet member companies registered a methane intensity number of 0.334%, beating the targeted 1% reduction in methane emissions by 2025. Over the same period, overall production by the companies increased 32% and deliveries to customers rose by 58%. Methane emission intensity results for 2020 are likely to be published later this year.
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