Pennsylvania: The Keystone State for an Emissions-Differentiated Gas Market

This briefing by RMI argues that the "Pennsylvania Plus" (Penn+) region is uniquely positioned to become a hub for an emissions-differentiated gas market. The region possesses a strong combination of low-methane gas supply, developed market infrastructure, and a supportive regulatory environment, though it currently faces a gap where the supply of low-leakage gas exceeds buyer demand.

• The "Pennsylvania Plus" (Penn+) region, covering the Marcellus and Utica basins, is a critical area for methane market differentiation because it accounts for nearly one-third of US gas production and one-fifth of US gas consumption. Half of the gas produced in this region is already certified by MiQ as having a methane intensity below 0.2 percent.
• The Penn+ region has the necessary infrastructure and regulatory foundations to support a differentiated gas market, including extensive pipeline connectivity, storage, and overlap with major wholesale power markets like PJM and NYISO. Additionally, the region's regulatory environment includes subnational emissions targets and the Regional Greenhouse Gas Initiative (RGGI), with Pennsylvania considering a state-specific alternative to RGGI.
• Despite the availability of low-leakage gas, buyer demand is lagging due to three primary barriers: a lack of awareness regarding the impact of methane leakage on supply-chain emissions, uncertainty about how to credibly report the benefits of low-methane gas in disclosures, and perceived cost barriers.
• RMI suggests that buyers can overcome these barriers by committing to purchase only low-methane leakage gas by 2030, piloting transactions within 12 months, and using tools like the MiQ-Highwood Index to quantify emissions differences compared to national averages, as demonstrated by Bloom Energy.

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} }