From Business Models to Market Growth: Scaling Low-Methane Leakage Gas – A Market Navigator

Introduction

Slashing methane leakage from oil and gas operations is the largest opportunity to reduce human-made methane emissions and sectoral emissions this decade. The US presents one of the largest opportunities to reduce methane intensity in oil and gas globally. Our latest Oil Climate Index plus Gas (OCI+) data shows that the US has some of the highest methane intensity variance in the world, including assets with intensity as high as 7.9 kgCH4/boe. Cutting methane waste not only helps oil and gas operators stay competitive in an increasingly global market, it also makes business sense. According to the International Energy Agency, 30% of methane emissions from oil and gas operations could be eliminated with existing solutions while delivering at least a 25% return on that investment.¹

Improved methane emissions data collection and transparency are helping to identify sources of methane emissions waste. Voluntary reporting standards, independent certification schemes, and demand-side policies such as the European Union Methane Emissions Regulations (EU MER) are all creating a favorable environment for low-methane leakage gas. Yet, demand for low-leakage gas remains frustratingly low, plateauing at less than one-third of total US consumption.

While gas producers, gas buyers, and their financiers all have a role to play, gas buyers are essential to driving increased low-leak gas demand. Both direct gas buyers, such as utilities and chemical producers, and indirect buyers like data centers can engage with stakeholders across the value chain to develop widely accepted and transparent carbon accounting standards. Buyers can pilot direct procurement for low-leak gas, and, in cases where that may be less practicable, they can engage with stakeholders to create robust environmental attribute certificate (EAC) transactions. Buyers and all value chain stakeholders can also advocate for transparent Scope 3 emissions reporting and target setting as leading standard setters update carbon accounting systems.

This market navigator tool outlines the business models and incentives for both gas producers and buyers, showing in greater detail how each side can scale low-leakage gas. Buyers, sellers, and financiers can use this market navigator to identify factors to inform future transactions that successfully scale low-leakage gas and slash methane emissions waste.

¹ “Global Methane Tracker 2025,” International Energy Agency (IEA), May 2025, https://www.iea.org/reports/global-methane-tracker-2025/key-findings.