CNX calculates its methane emissions according to the reporting methodologies under the EPA’s Greenhouse Gas Reporting Program (GHGRP) for Petroleum and Natural Gas Systems (subpart W). Current calculation methods can be grouped into five categories: 1) direct emissions measurements; 2) combination of measurement and engineering calculations; 3) engineering calculations; 4) leak detection and use of a leaker emission factor; and 5) population count and population emission factors. EPA developed these emission factors from published empirical data and CNX combines them with site-specific data from our operations. We maintain an inventory of the equipment and/or events that generate methane emissions from our physical locations (sites). Providing transparency around the details of our methane emission sources is fundamental to the credibility of our reported results.
CNX operates within the Production and Gathering and Boosting segments of the natural gas industry. Our operational footprint spans across the Appalachian Basin in parts of Pennsylvania, Ohio, West Virginia, and Virginia. The following tables and charts provide transparency to our reported methane emissions.
The first table shows the number of physical locations where we conduct our operations for each respective industry segment and state. The pie chart next to this table shows the split of our 2023 methane emissions between these two industry segments. Emissions from our Production segment were slightly more than half of total company emissions, with the majority from this segment coming from the multi-well sites that we operate in Pennsylvania. For the Gathering & Boosting segment, the gathering compressor stations are the primary emitting sites, led by the larger stations, which are also located in Pennsylvania.
The second table shows the counts of major sources of methane emitting equipment we had in service at the end of 2023 and the number of major event-driven sources of methane emissions we had during the year. Next to the table is a chart that shows the percentage contribution for each of the sources during 2023.
At CNX, we are committed to methane emissions reductions. Methane is the primary energy providing compound and salable component in the natural gas that we develop and produce. Our business focuses on capturing methane for sale and, like any other manufacturing business, we design our equipment and operational processes to minimize any product waste/leakage.
We work diligently to reduce methane emissions through innovative facility design, improvements in operational practices and procedures, advancements in detecting and measuring emissions and improved accuracy in emissions reporting. We measure ourselves against the industry standards that are consistent with meeting the Paris Agreement: (1) the OGCI methane intensity target of being well below 0.2% by 2025; (2) the EPA WEC methane intensity thresholds of 0.2% and 0.05% for the onshore natural gas Production and Gathering & Boosting segments; and (3) the Global Methane Pledge initiative which targets to reduce absolute methane emissions by at least 30 percent from 2020 levels by 2030.
Since 2020, we drastically reduced our methane intensity in both segments of our business, meeting the OGCI target and significantly coming in below the EPA WEC thresholds. Our Production segment has been reduced by 52% during that time to an intensity of 0.03%, while the Gathering & Boosting segment has seen a 31% reduction to 0.02%.
Since 2020, CNX has also reduced its absolute annual methane emissions by 49% and 25% in its Production and Gathering and Boosting segments, respectively. On a company-wide basis, this equates to over 4,200 metric tons, or 40% of reduction to absolute annual emissions – doing our part to help the nation meet its 30% reduction target by 2030 under the Global Methane Pledge initiative.
In 2023, we allocated $7 million of capital investment to methane mitigation efforts. This capital was used to make changes to our pneumatic devices and our liquids unloading procedures that resulted in an annualized methane benefit of over 3,400 metric tons.
As noted in the Asset Inventory section above, pneumatic controllers and pumps make up the largest source category of our methane emitting equipment. These units can be found throughout our operations on well sites and compressor stations. Under the new EPA NSPS/EG regulations, all these units are required to eventually be replaced with zero-emitting units, or to capture and route the methane emissions from the units through a closed vent system to a process. The timing of when these new standards apply differs based on whether the facilities associated with the pneumatics are existing or have been recently constructed, modified, or reconstructed. Generally, for new facilities, the standards go into effect on May 7, 2025, and for existing facilities, an extended timeline for compliance is allowed. An exemption from the rule exists for pneumatics that are used for emergency shutdown (ESD) purposes.
At CNX, we have been voluntarily reducing the methane emissions from our pneumatic devices. Over the two-year period since the end of 2021, we have reduced the number of non-ESD pneumatic devices by nearly 70%. This has been one of the main drivers of the reductions we have seen in our methane intensity and overall methane emissions over the same period.
As prescribed by EPA regulations, we conduct quarterly leak detection surveys with an OGI camera at all major CNX well sites and compressor stations. Additionally, we voluntarily conduct quarterly OGI surveys across sites that have less frequent requirements. These surveys cover any component on the site that has the potential to emit fugitive emissions of methane, such as valves, connectors, pressure relief devices, open-ended lines, flanges, covers and closed vent systems, thief hatches or other openings on a storage vessel, compressors, instruments, meters, and yard piping.
If a leak is detected during the survey, we utilize proprietary software, developed in-house, to provide automated repair work order notifications and leak detection tracking. This process allows for timely repair of leaks well within regulatory requirements.
We complement our regulatorily required OGI surveys with multiple detection technologies in combination with one another to focus and optimize our methane mitigation efforts. These alternative advanced methane detection surveys range from aerial flyovers using remote sensing technology, that screen hundreds of sites in a single deployment, to on-site sensor networks that deliver continuous real-time monitoring.
We perform quarterly aerial flyovers of our operating areas through our membership in the Appalachia Methane Initiative (AMI), which is a proactive, first-of-its-kind basin-wide initiative designed to further enhance methane emissions monitoring and, ultimately, facilitate additional methane emissions reductions in the Appalachian Basin.CNX has Project Canary ground monitoring sensors at our RichHill production facilities that represent nearly one third of the gas we sell to market. Project Canary delivers auditable and verifiable environmental attributes for Responsibly Sourced Gas and publishes those results to a registry that offers transparency to stakeholders. We have received Project Canary’s highest rating (platinum) for those sites. Obtaining the platinum level rating entails undergoing an environmental assessment, utilizing continuous monitoring technology, and quantification of methane emissions intensity.
In addition to the Project Canary sensors that we have been using for two years, CNX is adding fixed methane monitoring cameras at all of our RT sites. These cameras are provided by CleanConnect.ai who provides visual automation for oil and gas, including gas leak detections and methane measurement.
For these supplemental surveying techniques, we have developed a process where we investigate all methane detections. Any detection that is determined to be a leak is logged into our LDAR program where it is tracked to timely repair. For methane detections that are from normal operational releases, we collect all relevant quantification information and reconcile to the methodologies used for our emission reporting obligations.