Methane Abatement in the Oil and Gas Sector

The report evaluates methane abatement in Algeria, Angola, Argentina, Brazil, Egypt, Ghana, Libya, Mexico, and Nigeria, focusing on leak detection and repair (LDAR), vapor recovery units (VRUs), improved flaring practices, and replacing gas-driven pneumatic equipment. Using a bottom-up marginal abatement cost curve (MACC) approach, the study finds that most mitigation measures fall below a low-cost threshold of 596 USD/tCH4 (20 USD/tCO2e). The economic viability of these measures is heavily dependent on the ability to monetize recovered gas, with LDAR and pneumatic equipment replacement often yielding negative marginal costs (net savings) when gas prices are sufficiently high. The report identifies significant structural barriers, including infrastructure gaps and limited local technical capacity, and recommends a combination of regulatory frameworks, targeted financial incentives, and infrastructure investment to accelerate deployment.

• Most assessed methane mitigation measures across the nine countries fall below the low-cost threshold of 596 USD/tCH4, which is equivalent to 20 USD/tCO2e using a 100-year GWP.
• The economic viability of methane abatement is highly sensitive to gas prices and infrastructure; LDAR can generate negative marginal abatement costs (net benefits) when gas prices exceed approximately 5.5-6 USD/MMBtu, while VRUs typically require prices above 14 USD/MMBtu to be cost-effective.
• Infrastructure availability is a critical driver of cost; if 100% of recovered gas could be marketed, abatement costs could decrease by up to a factor of eight in some cases.
• In Algeria, the elimination of unlit flaring offers the highest single abatement potential at approximately 238 kt of methane reductions per year with a marginal cost of about 132 USD/tCH4.
• In Libya, the largest abatement opportunity is the elimination of unlit flaring in the onshore upstream segment, potentially reducing emissions by 271 kt per year at a marginal cost of 45 USD/tCH4.
• In Argentina, the installation of VRUs on onshore upstream storage tanks provides the largest abatement potential, estimated at 144 kt of methane reductions per year at a marginal cost of 121 USD/tCH4.
• Mexico has the most comprehensive regulatory framework of the assessed countries, including prescriptive requirements for LDAR and restrictions on venting and flaring, though enforcement remains a challenge.
• Nigeria's regulatory framework targets zero routine flaring by 2030, with penalties designed to match or exceed market gas prices to incentivize capture.
• Ghana recently introduced the Environmental Protection (Petroleum) Regulations (2025), which establish clearer expectations for methane inspection, monitoring, and emissions control.
• The replacement of natural gas-driven pneumatic equipment generally shows low abatement potential across the studied countries because these technologies are already widely adopted.

APA

Lemaire, S., Simon, M., Abuhomos, M., Bodin, J., & Lagrange, F. (2026). Methane Abatement in the Oil and Gas Sector. Clean Air Task Force. https://www.catf.us/wp-content/uploads/2026/06/Methane-Abatement-in-the-Oil-and-Gas-Sector.pdf

Chicago

Lemaire, Séverine, Manon Simon, Mahdi Abuhomos, Juliette Bodin, and Fanny Lagrange. Methane Abatement in the Oil and Gas Sector. Clean Air Task Force, 2026. https://www.catf.us/wp-content/uploads/2026/06/Methane-Abatement-in-the-Oil-and-Gas-Sector.pdf.

Wikipedia

{{cite report |last1=Lemaire |first1=Séverine |last2=Simon |first2=Manon |last3=Abuhomos |first3=Mahdi |last4=Bodin |first4=Juliette |last5=Lagrange |first5=Fanny |title=Methane Abatement in the Oil and Gas Sector |publisher=Clean Air Task Force |date=June 2026 |url=https://www.catf.us/wp-content/uploads/2026/06/Methane-Abatement-in-the-Oil-and-Gas-Sector.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{lemaire2026methane, author = {Lemaire, Séverine and Simon, Manon and Abuhomos, Mahdi and Bodin, Juliette and Lagrange, Fanny}, title = {{Methane Abatement in the Oil and Gas Sector}}, institution = {Clean Air Task Force}, year = {2026}, month = jun, url = {https://www.catf.us/wp-content/uploads/2026/06/Methane-Abatement-in-the-Oil-and-Gas-Sector.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }