Natural gas as eficient biofuel in the transition
Holding the key to the energy transition
We support the use of natural gas to bring about a structured transition to a low-emissions future, particularly due to its short-term potential to substitute coal in electricity generation.
Our Exploration and Production portfolio reflects this position, with one of the highest percentages of gas over oil in the industry. Minimizing methane emissions to the atmosphere is essential as it ensures the advantages of natural gas as a low-carbon source of energy, which is fundamental for the energy transition.
We see natural gas as the most efficient solution to bring about a structured transition to a low-emissions future. Among its advantages are:
Our objective: Reduce methane intensity
Natural gas is a key element in the energy transition, which is why we have taken on the objective of reducing the methane emissions intensity of our operated assets by 25% in 2025 compared to 2017. By 2030 we have taken on a new specific objective of reaching a methane intensity of 0.2%, a value recognised as an intensity close to zero for the O&G sector and which also coincides with the ambition announced by the OGCI (Oil and Gas Climate Initiative) of which Repsol is a member. Achieving this goal is mainly based on three lines of action:
Supporting regulations aimed at reducing methane gas emissions
EU Methane Strategy
Governments have a pivotal role in developing and implementing policy and regulation that achieve ambitious methane emission reduction outcomes. For that reason, Repsol, together with bp, the Environmental Defense Fund, Eni, Equinor, the Florence School of Regulation, the Rocky Mountain Institute, Shell, Total, and Wintershall Dea, proposed a number of policy recommendations to the European Commission in May 2020 aimed at driving the reduction of methane emissions within the framework of Europe's Green Deal.
Repsol welcomes the opportunity offered by the European Commission with the publication of the EU methane strategy to reduce methane emissions on October 14th, 2020. In our continuous pursuit of transparency, we strongly support the Commission's proposal on monitoring, reporting, and verification (MRV) processes for energy-related methane emissions, building on the methodology established by the Oil & Gas Methane Partnership (OGMP). The establishment of an independent international methane emissions observatory is key for transparency and will enable industry to unify criteria and methodologies.
New measures on mandatory leak detection and repair (LDAR) across the gas value chain and the implementation of new technologies and improved data from satellites will help to speed up the mitigation actions. In order to address real reductions, we acknowledge the need of a performance standard, including from imports. Our OGCI collective ambition of an intensity-based 0.2% for the upstream segment by 2025 can be used as a reference, as suggested in our recommendations to the European Commission.
Joining forces to reduce methane emissions
We join global initiatives aimed at implementing sustainability principles.