Ecadin Pushes for Methane Emission Regulations in Oil and Gas Sector

Energy Academy Indonesia (Ecadin) is encouraging regulators to create policies that can manage the reduction of methane emissions in the oil and gas sector. According to International Energy Agency data, the energy sector accounts for 41 percent of Indonesia’s total methane emissions.

Ecadin Chief Operating Officer Candra Sutama said a number of Indonesian oil and gas companies have actually joined the Oil & Gas Methane Partnership (OGMP). OGMP is a framework initiated by the United Nations Environment Programme (UNEP) to measure and report methane emissions.

However, Candra said the commitment to reduce methane in international cooperation is still voluntary, making its implementation difficult to enforce. “So what we want to support next is how methane reduction, especially in the oil and gas sector, is included in our country’s regulations or policy rules,” he said during a media briefing in Jakarta.

According to Candra, one country that should be emulated in reducing methane emissions is Norway. He explained that Norway has had methane regulations since 1970 and has been improving them annually. The Norwegian government imposes a tax on methane emissions produced by the oil and gas sector. As a result, methane emissions from the country’s oil and gas sector are among the lowest in the world.

Besides protecting the planet, Candra said efforts to reduce methane emissions can also provide benefits for companies. “Although oil and gas companies spend money to upgrade their technology to prevent leaks, ultimately the money paid for the technology upgrade is recouped because there are no leaks, generating foreign exchange, so the net cost returns to zero or is even positive,” he stated.