CALGARY, CANADA - Media OutReach - 20 October 2021 - Pacific Canbriam Energy Limited ("Pacific Canbriam") is proud to be part of a
first-of-its-kind deal that will generate Methane Performance Certificates
(MPCs) – tradeable instruments that unlock the market value of reducing the environmental
impact of gas production. MPCs allow a producer to sell instruments
representing zero methane emission natural gas production.
As part of the
inaugural launch, Macquarie Energy Canada, Ltd. a wholly owned subsidiary of
Macquarie Group ("Macquarie"), arranged the first MPC trade between Pacific
Canbriam and industrial gas customer Skeena Bioenergy Ltd, a manufacturer of
wood pellets exported to the UK, EU, and Japan, displacing coal in electricity
S&P Global Platts and Xpansiv, the global
marketplace for ESG commodities, worked together to launch this innovative new
way to measure and price methane performance in natural gas production. Pacific
Canbriam and other natural gas providers who qualify will issue MPCs that register
the carbon intensity of their natural gas, proving that fugitive methane
emissions fall below strict, quantifiable thresholds.
The MPCs evidence the stringent environmental
standards in B.C. and the low methane intensity of Pacific Canbriam's natural
gas. Only natural gas produced below a threshold of 0.1% methane emissions
intensity (MEI) qualifies under the S&P Global Platts protocol. This standard
reflects the market value of low methane emissions in natural gas production.
Pacific Canbriam Energy is a world-leader in
minimizing methane leaks and vents in its operations, and its natural gas involved
in this transaction is well below the 0.1% Platts threshold; the number of MPCs
are calculated relative to an average methane emissions rate for North America. Pacific Canbriam Energy is part of Pacific Oil & Gas, which is a
member of the Singapore-based RGE group of companies founded by Sukanto Tanoto.
"With increasing focus on where energy comes from,
Pacific Canbriam Energy is proud that the origin, energy content, and methane
intensity of its natural gas has been externally verified as being responsibly
sourced," said Paul Myers, President of Pacific Canbriam Energy. "This is proof
that our product is produced according to the highest standards of
environmental and social responsibility. We're excited and proud to supply MPCs
to Skeena that demonstrate the exceptionally low methane intensity associated
with the development of our natural gas."
With global attention on climate change in the run-up
to COP26, upstream energy carbon intensity is being closely watched and has
prompted investors, consumers, and producers to seek new ways to reduce their
carbon footprint. This has created an increased demand for low-carbon fuels.
"We chose to
purchase Methane Performance Certificates from Pacific Canbriam Energy to
voluntarily reduce the supply chain methane emissions intensity associated with
our natural gas," said Skeena President Roger Keery. "It's an
important step forward in lowering our overall GHG footprint."
MPCs are registered, issued, transacted, and
retired in accordance with the Xpansiv Digital Fuels Program to eliminate
double counting. Xpansiv's DF Registry maintains a complete record of the MPC
and its associated environmental claims, ensuring data quality.
"MPCs allow the market to reward
producers like Pacific Canbriam with low methane leakage, creating a clear
market price related to fugitive methane emissions," said Andrew Pisano, Head
of XRegistries at Xpansiv. "We're pleased to support natural gas market
participants on their path to reach their ESG targets and climate commitments,
and hope this incentivizes other producers to make similar measurable
Last month, Pacific
Canbriam announced it had become the second natural gas producer in Canada to
achieve an EO100™ Standard Certification from Equitable Origin. Equitable
Origin is a leading standards organization that certifies energy production
based on third-party verification that evaluates energy producers that
demonstrate their commitment to the highest ESG standards in their operations.
 Source: "Quantification Framework for Digital Natural
Gas and Methane Performance Certificates: Benchmarking Methane Performance,
v.1.0", Xpansiv, October 2021