A natural gas certification pilot is set to begin this month at Tokyo Gas Ltd.’s properties in the Haynesville Shale of Texas and Louisiana as part of an agreement with Project Canary.
Under the pact announced Monday, Project Canary would install continuous emissions monitors and carry out its proprietary TrustWell operational certification on several well locations operated by Tokyo Gas subsidiary TG Natural Resources LLC.
The companies jointly said the project “aims to demonstrate that markets for U.S. natural gas produced with the highest environmental performance standards are expanding.”
TG Natural Resources CEO Craig Jarchow said the agreement builds on the company’s environmental efforts already in place. The company has deployed aerial emissions detection units and supplies field staff with “cutting-edge emission-detecting devices,” he said.
“The capabilities provided by Project Canary will take our environmental performance to the next level,” Jarchow said. “We and our investors strive for best-in-class environmental performance and Project Canary’s innovative, comprehensive approach makes them the right fit to help us produce results.”
The TrustWell operational analysis program includes 600 unique data points across 24 categories, providing third-party verification of operational responsibility.
The news comes as natural gas buyers around the world are pressuring suppliers to lower their carbon footprints. Certification and production of what is sometimes called “responsibly sourced gas” (RSG) has recently emerged as a popular solution.
“A differentiated market for responsibly sourced natural gas has arrived domestically and we’re proud to partner with TG Natural Resources on this agreement that will pave the way for expanded growth,” Project Canary CEO Chris Romer. “Natural gas is needed to address climate change globally and certified natural gas is the solution to ensuring that U.S. gas plays a primary role in the global energy transition.”
Other heavy hitters have recently joined in on the natural gas certification game, including supermajor ExxonMobil, natural gas giant EQT Corp. and the Tallgrass Energy LP-owned Rockies Express Pipeline.
On the liquefied natural gas (LNG) side, Project Canary has said it is in talks to provide certification to U.S. export terminals. Earlier this year, Cheniere Energy Inc. announced its intention to provide emissions certificates for each of its cargoes starting next year.
Tokyo Gas has global operations across the natural gas value chain, including production, LNG procurement, shipping and downstream operations.The company is Japan’s largest provider of city gas, serving more than 11 million customers in Tokyo and the surrounding region.
Tokyo Gas operates more than 315,400 net acres in East Texas and North Louisiana with access to the Cotton Valley formation as well as the Haynesville. It also owns 130,000 net acres in the Barnett Shale of North Texas and another 34,000 net acres in the Eagle Ford Shale of South Texas.
In addition, it has power generation assets in North America, along with tolling capacity at the Cove Point LNG export terminal in Maryland. Tokyo Gas also has an agreement in place for capacity at the Energia Costa Azul LNG export project that is under development in Baja California.
© 2023 Natural Gas Intelligence. All rights reserved.
ISSN © 1532-1231 | ISSN © 2577-9877 |