OGMP 2.0 vs. the new EU Methane Regulation: Differences and Obligations for the Oil and Gas Industry

So far, the oil and gas industry has only been required to voluntarily and flexible report their methane emissions under the so-called OGMP 2.0 (Oil and Gas Methane Partnership) guideline. This will change on August 4, 2024, with the official implementation of the new EU Methane Regulation. This regulation introduces new, stringent requirements for the industry, with mandatory reporting and strict measures for measurement and maintenance. In the following, we explain the differences between the guidelines.

Voluntary and flexible: The Current OGMP 2.0 Standard

The OGMP 2.0 (Oil and Gas Methane Partnership) provides voluntary and flexible reporting standards developed by the UN Environment Programme (UNEP) and the Climate and Clean Air Coalition.

Here are the main features of OGMP 2.0:

• Voluntary Participation: Participation in OGMP 2.0 is voluntary and aimed at companies that want to monitor and reduce their methane emissions.
• Measurement-Based Reporting: Reports are based on actual measurements of methane emissions, which improves data quality. However, companies do not decide how detailed their reporting should be; reporting follows a standardized framework to ensure comparability and transparency.
• Flexibility in Implementation: Companies have certain freedoms in implementing the requirements and can decide which parts of their value chain they want to cover. However, OGMP 2.0 provides a clear framework and specific guidelines that must be followed.
• Voluntary Target Setting: The partnership relies on voluntary reduction targets that are ambitious. These targets are not binding, but participating companies commit to making progress and reporting regularly.

For more information, visit the official pages of the UN and the Climate and Clean Air Coalition.

The New EU Methane Regulation: Mandatory and Strictly Controlled

The new EU Methane Regulation is based on the OGMP 2.0 Level 1-5 framework but implements much stricter and binding standards for operators:

• Mandatory Reporting: All operators in the gas industry are required to submit reports on their methane emissions. Participation is not voluntary.
• Strict Deadlines: Operators must submit detailed reports on quantified methane emissions at the source within set deadlines, which represents a significant administrative burden. For more information, see our special article on deadlines, requirements, and inspections.
• Reconciliation and Validation: Reports must include measurements of methane emissions at the site level and be reconciled with data at the source. This requires comprehensive review and validation to identify and explain discrepancies.
• Regular Government Inspections: Compliance with the regulations is monitored through regular inspections by the relevant authorities. These inspections include both routine and non-routine checks, further increasing the operational burden. In addition, there are report audits.

These adjustments underscore the EU's commitment to more strictly regulating methane emissions in the gas industry and minimizing environmental impact.

Conclusion

Compared to the OGMP 2.0 standard, the new EU Methane Regulation relies on mandatory measures with increased measurement effort. It follows the OGMP 2.0 Level 1-5 framework from Level 3 with increasing requirements each year in the first three years. Gas industry operators must prepare for comprehensive administrative and technical requirements to meet the new regulations. This includes detailed measurements, reporting, and regular government inspections.

Therefore, it is crucial to take the necessary steps early to comply with the new regulations and effectively reduce methane emissions. For further information and support, we are happy to assist you.