Seneca Resources Co. LLC plans to certify as responsibly sourced gas (RSG) about 300 MMcf/d of its Appalachia Basin production.

The National Fuels Gas Co. subsidiary clinched an agreement with Project Canary to independently certify nearly one-third of its natural gas production. 

Seneca said it also plans to install continuous monitoring devices at three well pads for real-time, site-level emissions data. 

The certification process is another step in Seneca’s environmental, social and governance (ESG) commitments, said CEO David Bauer.

“Seneca’s commitment with Project Canary seeks to independently verify our existing operational practices and further strengthen the company’s ESG commitments. We are excited to work toward independent validation of our leading operational and environmental practices, many of which are standard across our Appalachia assets.”

Denver-based Project Canary uses a proprietary process for operators seeking RSG certification, with a focus on air, land, water and community impacts. Overall, the certification process is expected to analyze more than 600 operational and ESG-related data points on a per-well basis.

“Responsibly sourced gas certification is readily becoming a key piece of the independent analysis reviewed by investors, regulators and customers to confirm top environmental performance,” said Project Canary CEO Chris Romer. “Seneca Resources is an early mover in working to gain certification for its operations and production, underscoring its commitment to strong environmental performance.”

A bevy of North American natural gas producers are jumping on the RSG wagon, from the Haynesville Shale to the Montney Shale. The RSG designation is becoming valuable for liquefied natural gas (LNG) exports, particularly to countries that are working toward net-zero emissions.

Houston-based Southwestern Energy Co. in June became the nation’s first exploration and production company to certify that its natural gas was responsibly produced from all of its wells in Appalachia.

There are many ways to certify gas as responsibly sourced. For example, EQT Corp., the largest gas producer in the Lower 48, has partnerships with Equitable Origin, MiQ and Project Canary to certify about 4 Bcf/d from 200-plus wells in Pennsylvania.

Haynesville pure-play Vine Energy Inc. is working to certify all of its gas output through Project Canary. Chesapeake Energy Corp., which in July said it would take over Vine, launched a similar program earlier this year for some of its Marcellus Shale and Haynesville volumes.
The RSG trade is expanding in Canada as well. 

Calgary-based Seven Generations Energy Ltd. (7G) in April 2020 scored the first breakthrough into the RSG brand. 7G merged with Montney producer Arc Resources Ltd. in February.

More recently, Macquarie Energy Canada Ltd., using a virtual market, said it would expand its RSG trade by selling British Columbia (BC) production from the Montney Shale to Montreal-based distribution company Energir.