Adapting to OGMP 2.0: Key Steps for Effective Emissions Management

As environmental accountability becomes more and more critical, the Oil and Gas Methane Partnership 2.0 (OGMP 2.0) framework sets a new standard for methane emissions measurement, reporting, and reduction in the oil and gas industry. By adhering to this comprehensive framework, companies can significantly enhance their emissions management practices to demonstrate their commitment to sustainability.

Effective emissions management is no longer a luxury — it’s necessary for oil and gas companies striving to meet stringent environmental regulations and societal expectations. Robust emissions accounting not only helps mitigate your environmental impact but also ensures operational efficiency, reduces regulatory risks and improves investor confidence. Effective January 2027, the European Union mandates that new oil and gas import contracts must meet equivalent MRV requirements as those established for EU producers. 

Through proactive emissions management strategies, companies can safeguard their reputation and secure a competitive edge in an increasingly eco-conscious market.

As the oil and gas industry adapts to evolving standards, understanding and implementing the key components of OGMP 2.0 is increasingly important. We will explore essential steps for preparation and adaptation, highlight the benefits of complying, and provide actionable insights to help your organization thrive in this new regulatory landscape. By the end of this blog, you’ll be well-versed in the best practices for effective emissions management, positioning your company for success under the OGMP 2.0 framework.

What Is OGMP 2.0?

OGMP 2.0, an initiative by the United Nations Environment Programme (UNEP), represents the gold standard in methane emissions management for the oil and gas industry. This enhanced framework builds upon its predecessor. OGMP 2.0 introduces more rigorous requirements for measuring, reporting, and verifying methane emissions. It is the only comprehensive, measurement-based international reporting framework for the sector.

The Oil and Gas Methane Partnership (OGMP) was created by the Climate and Clean Air Coalition (CCAC) and the United Nations Environmental Programme (UNEP) as a voluntary initiative to help companies reduce oil and gas methane emissions. It also offers a credible platform to help member companies demonstrate actual reductions to industry stakeholders. Through the OGMP, governments, international organizations, non-government organizations, and the oil and gas industry collaborate to raise awareness and responsibly address methane. 

The primary goal of OGMP 2.0 is to achieve a significant reduction in methane emissions, mitigating its impact on global climate change. By fostering greater transparency and accountability, OGMP 2.0 aims to drive meaningful environmental progress while ensuring that companies are adequately prepared to meet emerging regulatory demands.

Key technical partners of the OGMP include the Environmental Defense Fund, the U.S. EPA’s Natural Gas STAR program, and the Global Methane Initiative.

Key Components of OGMP 2.0

OGMP 2.0 is characterized by its comprehensive and detailed approach to emissions management, encompassing several critical components:

• Accurate Measurement and Reporting 

Companies are expected to measure methane emissions with a high degree of accuracy using state-of-the-art technologies and methodologies. 

• Comprehensive Emissions Inventories 

The framework mandates the creation of detailed emissions inventories that cover all relevant sources of methane within a company’s operations, including direct emissions and those from upstream and downstream activities.

• Transparency and Public Disclosure 

OGMP 2.0 emphasizes the importance of transparency by requiring firms to publicly disclose their emissions data. 

• Reduction Targets and Mitigation Strategies 

Companies must set ambitious methane reduction targets and develop robust strategies to achieve them. 

• Third-Party Verification 

To ensure the credibility of reported data, OGMP 2.0 requires third-party verification of emissions measurements and inventories. 

Benefits of Adopting OGMP 2.0 Standards

Adopting OGMP 2.0 standards offers numerous benefits for oil and gas companies, reinforcing both their environmental and business objectives:

• Enhanced Regulatory Compliance 

By aligning with OGMP 2.0, companies are better prepared to meet current and future regulatory requirements, minimizing the risk of non-compliance penalties and legal challenges.

• Operational Efficiency 

Implementing comprehensive emissions management practices can lead to operational improvements, including reduced waste and optimized resource utilization.

• E.U. Importer Regulatory Compliance

The urgency to tackle methane emissions is reflected in the rules on mitigation that aim to deliver reductions soon after the legislation enters into force in 2027.  Compliance will be required for importers to access European markets. 

• Investor Confidence 

Demonstrating a commitment to robust emissions management can attract socially responsible investors and improve access to capital.

• Reputation and Brand Value 

Companies that proactively manage their methane emissions and adhere to stringent standards enhance their reputation and brand value.

How to Join OGMP 2.0

To join the OGMP, organizations must voluntarily commit to the following actions:

1. Survey their facilities for nine “core” sources that make up the majority of methane emissions in typical upstream operations

2. Evaluate cost-effective technology options to address uncontrolled sources

3. Report progress on surveys, project evaluations, and project implementation in a transparent, credible manner that demonstrates results

Member companies survey their operations and report the number of each core sources. Members note how many sources are mitigated and how many are unmitigated, referencing recommended best-practice options in the OGMP's Technical Guidance Documents. Companies calculate methane emissions from each mitigated source and report their mitigation projects and respective emission reductions. Annual reports submitted by each partner company are collated by the Coalition Secretariat to track the overall progress of the Partnership.

Why OGMP 2.0 Matters for Oil and Gas Companies

Regulatory and Compliance Requirements

Governments and regulatory bodies worldwide are intensifying their focus on methane emissions, and adhering to OGMP 2.0 can help companies meet stringent requirements. The European Union’s Corporate Sustainability Reporting Directive (CSRD) and the California Climate Corporate Data Accountability Act (SB 253) both require detailed and transparent emissions reporting. The EU Methane Strategy regulates oil and gas imports into the European Union, effective January 2027.

By aligning with OGMP 2.0, companies can stay ahead of regulatory changes, avoid hefty fines, optimize global market opportunities, and ensure their operations comply with current and anticipated legislation.

EU Methane Strategy

The EU Methane Strategy is the first-ever EU Regulation on methane emissions reduction in the energy sector, adopted on May 27, 2024. It aims to reduce energy sector methane emissions in Europe and global supply chains, by stopping the avoidable release of methane into the atmosphere and minimizing methane leaks of methane fossil energy companies operating in the EU. 

The Regulation establishes the methodology for calculating O&G production methane intensity, along with producer-level maximum values. It considers various sources, processes, and site conditions.  EU rules on the measurement and reporting of methane emissions build on the OGMP 2.0 framework to help understand the exact locations and volumes of methane emitted, allowing a shift from estimates to direct measurements of methane emissions, checked by independent verifiers. 

The regulatory rules include:

• Improved energy sector methane emissions measurement, reporting, and verification: 

  Oil and gas companies are required to detect leaks by frequently surveying their equipment. If found, they need to be repaired immediately – mostly within 5 or 15 working days – and monitored to ensure that repairs were successful. 

• An immediate reduction in emissions through mandatory leak detection and repair and a ban on venting and flaring practices: The rule allows venting only in exceptional or unavoidable circumstances for safety reasons. It permits flaring only if methane is re-injected, utilized onsite, or market transport is not technically feasible, with more restrictive rules for how it can be carried out.
• A methane transparency requirement on imports: The regulatory framework collects information on whether and how exporter countries/companies are measuring, reporting, and abating methane emissions, to establish a methane intensity profile of those entities.

Environmental Impact and Corporate Responsibility

Methane is a potent greenhouse gas, with a global warming potential significantly higher than carbon dioxide over 20 years. As such, reducing methane emissions is an impactful way for companies to make a tangible impact on climate change. OGMP 2.0 provides a clear framework for achieving these reductions. 

By adopting OGMP 2.0 standards, oil and gas companies can demonstrate a genuine commitment to environmental stewardship and corporate responsibility. Implementing OGMP 2.0 can also enhance a company’s standing in the eyes of customers, communities, and other stakeholders increasingly prioritizing environmental initiatives.

Competitive Advantage and Investor Relations

Adhering to OGMP 2.0 can provide a significant competitive edge in a market where environmental, social, and governance (ESG) criteria are becoming key differentiators. Companies that adopt these standards are better positioned to respond to investor demands for transparency and sustainability. As major investment funds, such as Norway’s $1.7 trillion wealth fund, begin to require robust climate strategy disclosures, compliance with OGMP 2.0 can enhance investor confidence and attract ESG-focused capital. 

Additionally, companies that can accurately measure, report, and reduce their emissions are often more efficient and cost-effective, translating to better financial performance. This proactive approach to emissions management can distinguish companies from their competitors, fostering innovation and long-term business resilience.

Steps To Prepare for Adopting OGMP 2.0 Standards

1. Conduct a Comprehensive Emissions Inventory

Identifying Sources of Methane Emissions

The first step in preparing to adhere to OGMP 2.0 standards is to conduct a thorough emissions inventory. This involves identifying all potential sources of methane emissions within your operations. Methane emissions can originate from various points, including production, processing, storage, and transportation stages.

Collecting Accurate Emissions Data

Companies need to employ reliable methods for measuring methane emissions to ensure the data is precise and comprehensive. This may involve using a combination of direct measurement techniques – such as ground-based sensors and aerial surveillance – and indirect methods, like emissions factors and activity data.

Leveraging Technology for Real-Time Monitoring

Technologies such as infrared cameras, continuous monitoring systems, and satellite-based detection offer real-time insights into methane emissions. These tools enable companies to respond quickly to potential issues, minimizing methane release and improving overall emissions management. Real-time monitoring also enhances transparency and facilitates more accurate reporting to regulatory bodies and stakeholders.

2. Implement Best Practices for Emissions Management

Leak Detection and Repair (LDAR) Programs

Effective leak detection and repair (LDAR) programs are vital for managing methane emissions. These programs involve regular inspections using advanced detection equipment to identify and repair leaks as soon as they are discovered. Implementing robust LDAR protocols helps companies significantly reduce methane emissions from unintentional leaks, thus enhancing operational efficiency and environmental performance.

Utilizing Advanced Emission Reduction Technologies

Technologies such as vapor recovery units, flares, and methane capture systems can be integrated into operations to minimize emissions effectively. Investing in these technologies not only aids in meeting OGMP 2.0 standards but also showcases a commitment to innovative and sustainable practices.

Regular Audits and Assessments

Conducting periodic audits helps identify areas for improvement, verify the effectiveness of implemented measures, and ensure that all practices align with regulatory requirements. Continuous assessment and refinement of emissions management strategies foster a culture of accountability and progress toward sustainability goals.

Download the Reference Guide to Accomplish the Oil and Gas Methane Partnership

Key Features of Effective Emissions Management Software

1. Centralized Data Collection and Storage

By consolidating all emissions data in a single, unified platform, companies can ensure data consistency, accuracy, and accessibility. This centralization allows for seamless data integration from various sources, including sensors, manual logs, and third-party reports, providing a comprehensive view of the emissions landscape. It simplifies data management, reduces the risk of errors, and enables more efficient analysis and reporting.

Benefits of Secure Cloud-Based Storage

Secure cloud-based storage ensures that all data is stored safely. Cloud storage also facilitates real-time data access and collaboration, enabling teams to work with the most current information regardless of their location. Moreover, cloud solutions can easily scale with a company’s needs, accommodating growing data volumes and supporting advanced analytics tools.

2. Advanced Analytics and Reporting Capabilities

Emissions management software should include advanced analytics capabilities, including predictive modeling and scenario analysis tools. These features empower companies to forecast future emissions based on various operational scenarios and mitigation strategies. Predictive modeling helps identify potential emissions hotspots and enables companies to proactively address them before they become serious issues. Scenario analysis aids in evaluating the effectiveness of different emissions reduction strategies, helping companies make informed decisions and optimize their emissions management plans.

Customizable Reporting Templates

Customizable reporting templates allow companies to generate tailored reports that meet specific regulatory requirements and stakeholder needs. Custom reports enable users to present data in a clear, concise manner, highlighting key metrics and trends. This flexibility ensures that reports can be adapted to various audiences, from regulatory agencies to investors and internal management.

3. User-Friendly Interface and Accessibility

A user-friendly interface is essential for the effective use of emissions management software. Intuitive dashboard design makes it easy for users to navigate the platform, access key features, and understand data visualizations. A well-designed dashboard provides a clear overview of emissions data, highlighting critical information and trends.

Mobile Compatibility

Mobile compatibility is another important feature of modern emissions management software. With mobile access, users can monitor emissions data, receive alerts, and manage reporting tasks from anywhere, at any time. This flexibility is particularly valuable for field personnel and remote teams, ensuring they stay connected and informed.

Training and Support Resources

Comprehensive training and support resources are crucial for the successful implementation and ongoing use of emissions management software. These resources should include detailed user guides, video tutorials, and access to expert support teams. Investing in robust training and support resources maximizes the software’s value and helps companies achieve their emissions management goals efficiently.

Navigate O&G Methane Regulations With Confidence

Adapting to OGMP 2.0 standards is not just a regulatory necessity but a strategic move that positions oil and gas companies for future success. Early preparation is key to successfully adapting to these standards. Companies that proactively implement the necessary systems and practices will ensure compliance and gain a competitive advantage. By adopting effective emissions management software, companies can centralize data, utilize advanced analytics, and ensure compliance through user-friendly and accessible platforms.

Are you ready to take the next step in your emissions management journey? Equip your organization with the tools and knowledge needed to navigate the complexities of OGMP 2.0 with top-down and bottom-up reconciliation.  Learn why Envana has earned the trust of leading NOCs to navigate their Level 1-5 OGMP 2.0 roadmap. Download The Reference Guide to Accomplish the Oil & Gas Methane Partnership " OGMP 2.0 Gold Standard" today. This resource will provide you with clear insights to ensure compliance and drive sustainability in your operations. 

Reach out to the Envana team for a free personalized consultation on how your company can streamline its oil and gas emissions management with an efficient methane monitoring and reporting roadmap.  

Don’t wait — start your path to better emissions management now. Contact the Envana team today!