
Advancing MethaneEmissions Reductions byNational Oil Companies INTERNATIONAL ENERGYAGENCY The IEA examines the fullspectrumof energy issuesincluding oil, gas andcoal supply anddemand, renewableenergy technologies,electricity markets,energy efficiency,access to energy,demand sidemanagement and muchmore. Through its work,the IEA advocatespolicies that will enhancethe reliability,affordability andsustainability of energyin its32Member countries,13Association countriesand beyond. IEAAssociationcountries: IEAMembercountries: AustraliaAustriaBelgiumCanadaCzech RepublicDenmarkEstoniaFinlandFranceGermanyGreeceHungaryIrelandItalyJapanKoreaLatviaLithuaniaLuxembourgMexicoNetherlandsNew ZealandNorwayPolandPortugalSlovak RepublicSpainSwedenSwitzerlandRepublic of TürkiyeUnited KingdomUnited States ArgentinaBrazilChinaEgyptIndiaIndonesiaKenyaMoroccoSenegalSingaporeSouth AfricaThailandUkraine This publication and any mapincluded herein are withoutprejudice to the status of orsovereignty over any territory,to the delimitation ofinternational frontiers andboundaries and to the nameof any territory, city or area. The EuropeanCommission alsoparticipates in thework of the IEA Source: IEA.International Energy AgencyWebsite: www.iea.org Abstract National oil companies (NOCs) are responsible for around half of all global oil andgas production today and their actions strongly influence methane abatementprospects. More than 30 NOCs have joined the Oil and Gas DecarbonizationCharter (OGDC) and are engaging in initiatives to tackle methane emissions andflaring. There is a major opportunity for NOCs looking to implement best practicesin methane management to learn from the experience of peers in order to deploystrategies that are adapted and tailored to their circumstances. Best practicesincludeadopting measures to limit flaring and venting,implementing leakdetection and repair programmes, and deploying low-emissions equipment. Thisreport explores these opportunities in view of NOCs’ distinctive characteristics,including their ties to national policy priorities. Executive summary NOCs have a crucial role to play in shaping the outlook for methane emissions.Rapid and cost-effective measures to tackle methane emissions by NOCs coulddeliver an annual reduction of up to 30 million tonnes (Mt) of methane by 2030, animpact comparable to eliminating all CO2emissions from the global aviationindustry. This report aims to support NOCs on their methane reduction journey. Around half of the oil and gas produced by NOCs is covered by pledges to achievenear-zero methane emissions by 2030. NOCs are tackling methane emissions inline with policy goals, to improve their sustainability credentials, and to attractfinancing. Key opportunities to accelerate action include: Integrating methane management into operations.Dedicated resources andplans are key to support effective capital and operational spending on methaneabatement. Half of the options to reduce emissions in the oil and gas industrycould be deployed with positive rates of return, improving natural gas resourceuse and cash flows. Working with host governments and partner companies to unlock synergiesand align goals.NOCs can play a major role in supporting policy objectives. Inover 30 countries where NOCs are responsible for more than half of oil and gasproduction,methane is already included in the scope of their NationallyDetermined Contributions (NDCs).Implementing best practices.This includes adopting measures to limit flaringand venting, implementing leak detection and repair programmes, and deployinglow-emissionsequipment.Many of these mitigation options do not requiremeasured emissions data or large investments. Flaring reductions by NOCs couldmake 60 billion cubic metres of natural gas available for domestic consumption orfor export.Develop a methane monitoring, reporting, and verification system based onemissions measurements.This would enable a better assessment of abatementoptions and a credible way to track progress over time. It would also help meetmarket and regulatory requirements such as those of the European Union’s (EU)methane regulation.Make the most of supporting initiatives. Many initiatives support oil and gasmethane reductions, offering technical resources, capacity building and financing.These can help NOCs overcome existing barriers and take action that is tailoredto their national contexts. NOCs and methane management NOCs are established to manage, produce, and oversee a country’s oil and gasresources. They play a central role in advancing government objectives, includinggenerating state revenue, promoting resource efficiency, securing energy supply,boostinginvestment and supporting employment.Some NOCs also haveregulatory roles and a mandate to promote sustainable practices. NOCs have ample opportunities and reasons to lead rapid and low-cost reductionsin methane emissions. Curtailing methane emissions enhances health, safety, andenvironmental pe