The discussion of how to decarbonize the oil and gas industry has often disregarded methane. Nonetheless, its impact is more potent than carbon dioxide, with a global warming potential over 28 times greater in the first 100 years. For ASEAN countries, which currently face myriads of economic and environmental challenges, prioritizing methane abatement can be one of the wisest investments to balance both economic resilience and environmental sustainability. The answer lies under one unique value that methane has that other greenhouse gases lack: methane has commercial value, particularly in the oil and gas industry.
Decarbonization Challenges in ASEAN’s Oil and Gas Industry
For ASEAN countries, the typical roadblocks to driving decarbonization have often revolved around funding and production pressures. With the growing population and high economic growth target, there is an urgent need to balance economic growth and environmental responsibilities. It must be noted that curbing the methane losses in the oil and gas industries does not equate to hindering growth; instead, it can accelerate the decarbonization journey, catalyzing innovation and fueling economic growth.
Cost-Effective and Available Solution
Readily available technologies, such as gas recovery and programs like Zero Routine Flaring and Leak Detection and Repair, not only help to decarbonize methane but also cut down methane losses that can be otherwise used for on-use facility gas or processed to a sales gas. For future abatement solutions, emerging technologies, such as gas-to-x and green completion, can also help create new economic pathways and drive growth for the country.
Many studies have also endorsed one advantage that the oil and gas industry can leverage in their decarbonization roadmap: methane abatement cost-effectiveness. Unlike CO2, methane—the primary component of natural gas—has commercial value. Given the nature of the oil and gas business, which mainly sells and transports gas, this will be easier than any other industry elsewhere, including those in the energy sector. This means that emissions reductions could result in economic savings or be carried out at low cost.
Policy Gaps and Recommendations
Unfortunately, the supporting system for the methane abatement strategy in ASEAN remains lacking. It is not about reporting standards or how to measure. Companies can always refer to the OGMP 2.0 framework, which provides guidelines for measuring and inventorying methane for oil and gas companies. OGMP is a community that aims to drive transparency and verification on methane reporting, which companies like Petronas, Pertamina, and PTT, which all are ASEAN’s NOC, have joined. Unfortunately, the lack of a supporting system comes from within the region itself. Policies to standardize, accelerate, and incentivize are lacking. Not only that, methane emission measurement and reporting are relatively new in ASEAN, with capabilities only recently emerging. Technology transfer and the introduction of new technologies into the region can help to accelerate the abatement process.
Urgency for ASEAN
Understanding the situation in which ASEAN countries must continue increasing oil and gas production while decarbonizing, methane abatement strategies can provide a quick and long-term decarbonization solution for the oil and gas industry. However, the region must recognize that to maximize its methane abatement potential, many factors must be addressed, including a robust policy system, technology management, and resources. These gaps can help to speed methane abatement in ASEAN.
Even with those constraints, reducing and managing methane emissions remains a crucial potential response to the most commonly asked question about decarbonizing the oil and gas business in ASEAN nations. How can we balance out decarbonization and increasing energy production?
Conclusion: Methane Abatement as a Win-Win Solution
In summary, focusing on methane abatement offers a practical and cost-effective strategy for ASEAN’s oil and gas industry to achieve decarbonization while maintaining economic growth. Given methane’s significant global warming potential and its commercial value, reducing methane emissions can drive environmental sustainability and economic resilience. To maximize the benefits, ASEAN needs to address policy gaps, enhance technology transfer, and strengthen resource management. By prioritizing methane reduction, the region can effectively balance the dual objectives of environmental responsibility and economic development.
