Pennsylvania: The Keystone State for an Emissions-Differentiated Gas Market
Summary
The briefing identifies the "Pennsylvania Plus" (Penn+) region—covering the Marcellus and Utica basins—as a prime location for a differentiated gas market due to its high supply of low-methane gas and strong infrastructure. It notes that while supply is ample, buyer demand is hindered by lack of awareness, reporting uncertainties, and perceived costs. The author urges corporate buyers to commit to low-leakage gas by 2030 and pilot transactions to catalyze supply-chain mitigation.
Key insights
- The "Pennsylvania Plus" (Penn+) region, encompassing the Marcellus and Utica basins, is well-suited for a differentiated gas market because it accounts for nearly one-third of US gas production and one-fifth of US gas consumption, with 50% of produced gas already certified by MiQ to have a methane intensity below 0.2 percent.
- The Penn+ region possesses the necessary infrastructure and regulatory environment to support this market, including extensive pipeline connectivity, storage, and overlap with major wholesale power markets like PJM and NYISO. Additionally, the region's participation in the Regional Greenhouse Gas Initiative (RGGI) by several states provides a precedent for climate-differentiated markets.
- Despite available supply, buyer demand for low-leakage gas is limited by three primary barriers: a lack of awareness regarding the impact of methane leakage on supply-chain emissions, uncertainty over how to credibly report benefits in disclosures, and the perception that any price above the lowest cost source is too expensive.
- The document recommends that gas buyers take immediate action to catalyze methane mitigation by committing to purchase only low-methane leakage gas by 2030, piloting transactions within the next 12 months, and advocating for methane leak reduction targets in accountability systems.
Cite the original document
- APA
- RMI (2025). Pennsylvania: The Keystone State for an Emissions-Differentiated Gas Market. https://rmi.org/resources/pennsylvania-the-keystone-state-for-an-emissions-differentiated-gas-market/
- Chicago
- RMI. Pennsylvania: The Keystone State for an Emissions-Differentiated Gas Market. 2025. https://rmi.org/resources/pennsylvania-the-keystone-state-for-an-emissions-differentiated-gas-market/.
- Wikipedia
- {{cite report |author=RMI |title=Pennsylvania: The Keystone State for an Emissions-Differentiated Gas Market |date=8 July 2025 |url=https://rmi.org/resources/pennsylvania-the-keystone-state-for-an-emissions-differentiated-gas-market/ |access-date=17 August 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{rmi2025pennsylvania, author = {{RMI}}, title = {{Pennsylvania: The Keystone State for an Emissions-Differentiated Gas Market}}, institution = {RMI}, year = {2025}, month = jul, url = {https://rmi.org/resources/pennsylvania-the-keystone-state-for-an-emissions-differentiated-gas-market/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }
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