Optimising Methane Emissions Governance and Abatement in ASEAN Oil and Gas Sector (Omega) [FOS-24-001]

Rationale

The Association of Southeast Asia Nations (ASEAN) region is projected to be the fourth largest economy in the world by 2050. Fuelling this growth is the rapid increase of the region's energy demand. By 2050, ASEAN's energy demand is projected to triple that of 2020 levels, reaching approximately 1,282 Mtoe, with oil and gas taking account 47% of the mix.

It is predicted that energy-related GHG emissions are projected to reach 4,503 MtCO2-eq by 2050; and within this emissions mix, methane accounts for 15.2%, making it the second largest pollutant in ASEAN. Of these, the oil and gas sector was the largest contributor accounting for 53.2%.

Although all ASEAN countries have included methane abatement in their Nationally Determined Countributions in the GHG coverage, and 6 out of 10 countries are part of the Global Methane Pledge, as of January 2024, only Indonesia, Thailand, and Vietnam have established regulation/ policies that deals with some portion of methane emissions reduction specifically for oil and gas sector.

The ASEAN region is home to several oil and gas producers. Big companies like Pertamina Indonesia, Petronas Malaysia, and PTT Thailand has started their voluntary industry-led methane emission reduction activities-albeit in the nascent stage.

However, currently lacks adequate policy to encourage or mandate companies to work more towards methane emissions abatement, and government regulations are needed to eliminate or mitigate emissions gaps.
 

Objectives

The project aims to: 

  • Identify challenges for ASEAN oil and gas companies to adopt and/or amplify their methane abatement measures and develop policy support address the identified challenges.
  • Identify challenges for ASEAN policy makers in developing policies to mandate/ incentivise oil and gas sector to abate methane emissions.
  • Enhance the technical know-how of ASEAN oil and gas companies in reducing their methane emissions through capacity building workshop.
  • Enhance the technical capacity of ASEAN policy makers in developing policies that further drive methane emissions abatement in the oil and gas sector.
  • Enable the agenda and commitment to methane emission abatement to be recognised and endorsed at the regional ministerial level. 
     

Activities

To achieve these objectives the project will:

  • Produce a gap analysis report on oil and gas companies' methane abatement measures across Brunei Darussalam, Indonesia, Malaysia, Thailand, and Vietnam.
  • produce a gap analysis report on ASEAN Policymakers 
    to identify challenges which stagnate the development of policies targeting methane emissions abatement in oil and gas sector.
  • Conduct capacity building activities tailored for both the oil and gas companies and ASEAN policy makers.
  • Enable the 10 ASEAN Ministers on Energy Meeting to endorse the importance of methane emissions abatement agenda in ASEAN.

Project Reference: Optimising Methane Emissions Governance and Abatement in ASEAN Oil and Gas Sector (Omega) [FOS-24-001]