Centrica Energy of the UK has signed a 10-year deal to buy 250bn Btu/d of methane emissions reduction certificates from a US shale gas producer. The transaction was only for certificates and does not include equivalent physical gas volumes. It was said to be the first long-term deal of its kind (value and terms were undisclosed).
The deal follows the coming into force of European methane emissions reduction legislation (2024/1787), which has required declaration of the source of imported gas and oil since 2025. After the US Secretary of Energy reportedly complained about the difficulty of complying with the law last year, reportedly because US LNG carriers mix together output of many sources.
In December 2025, third-party certification of gas where the origin is difficult to ascertain because of mixing, for example, was recommended by the European Council’s Transport, Telecommunications and Energy body as one of two simpler means of achieving compliance. The other was a trace-and-claim method. These requirements enter into force in January 2027.
Although the UK is no longer officially bound by European legislation after Brexit, the EU is a significant trading partner. In its announcement, Centrica points out that it sources LNG from worldwide sources to trade on international markets, including the US.
The contract was with Seneca Resources, which also trades in the US as National Fuel.
The trade agreement has been arranged with third-party certification service MiQ, which has published a standard to assess the methane emissions intensity of gas, operates a registry of certificates against a published assessment standard, and accredits auditors. It claims that it certifies 25% of US natural gas production.
The company explains that an MiQ Certificate represents the methane emissions performance attributes of 1mn Btu of natural gas. Each certificate, which has a unique identifier, evidences where and when the gas was produced and the methane intensity of production.
Seneca East Appalachian Production is one of 27 facilities currently on MiQ’s books (which also includes the UK’s Isle of Grain regasification terminal, which, coincidentally, Centrica bought in 2025).
According to Centrica, Seneca first achieved MiQ certification at the highest ‘A’ grade in 2022 for 100% of its production. ‘A’ grade means methane production less than or equal to 0.05%, or less than or equal to 8.80g/mn Btu, according to MiQ information. Seneca credits advanced monitoring, leak detection and equipment upgrades for its methane reduction performance.
Arturo Gallego, Global Head of LNG at Centrica Energy, said: ‘Reducing methane emissions is one of the most impactful actions the energy industry can take to combat climate change. This agreement with Seneca is a small but important step that reflects Centrica’s proactive approach to sustainability and positions us ahead of emerging regulatory requirements.’
MiQ CEO Georges Tijbosch said: ‘By working together through this agreement, Centrica Energy and Seneca are helping to embed independently verified methane performance into the market, strengthening accountability and supporting continuous improvement across the supply chain.’
In October 2025, standard trading agreements for certificates were published on the MiQ website.
Extracted from Energy Institute website, read more here