National Gas is incentivised on the quantity of greenhouse gas emitted from our compressors through our operations, which are the most significant source of methane venting from the gas network. 

During our work to commission, operate, maintain and decommission the assets in the National Transmission System (NTS) it is necessary to release quantities of methane (a greenhouse gas) into the atmosphere. 

How the GHG Emissions incentive works

Each asset type on the NTS has different characteristics, including the extent to which gas is inherently released, or periodically vented, as part of its operation or maintenance. The current Greenhouse Gas Emissions incentive compares actual venting quantities against a defined volumetric allowance of 2,897 tonnes per year. 

The current scheme, running from April 2021 for five years, replaces the downside only incentive with a mirrored upside/downside scheme – with a cap and collar of +/- £1.5m. This means National Gas can earn revenue by venting gas below the allowed level, but is penalised for any venting in excess of the allowance.

You can view our performance on this incentive by downloading our Supporting Information document.  

Improving our performance 

We are continuing to investigate alternatives to venting natural gas. This could help to reduce emissions from assets such as compressors and chromatographs, while taking into account the operational and mandatory maintenance requirements of these assets.