Methane Rules for O&G in Canada Start Jan 2020

In January 2020, new federal rules on methane measurement will be enforced in the Canadian oil and gas sector. The rules will require every oil and gas company in Canada to have a system in place in order to meet the goals of the 2016 agreement with the United States and Mexico on controlling methane emissions.
Methane is a damaging greenhouse gas that has up to 30 times more potential to trap heat in the atmosphere than carbon dioxide, and leaks can occur at every stage in oil and gas production, whether from flares, pipelines, equipment tanks and/or processors.The production of natural gas consists primarily of methane, and is particularly susceptible to leaks. Reducing methane emissions in oil and gas is important to meeting Canada’s commitment to combating climate change.
By January 2020, oil and gas companies must have a general inspection program to scan their systems three times each year for leaks and other operating problems. In addition, they must undergo a compressor maintenance checkup annually to determine if there has been significant damage to the emission control system. Companies are then required to report their findings to Environment and Climate Change Canada and to the provinces.

Image Courtesy of Bloomberg.
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