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Audit-Ready Carbon Reporting for Gas Distributors

Track fugitive methane from pipeline leaks, customer end-use combustion, and distribution system emissions—with satellite leak validation.

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The Industry Hotspot: Pipeline Methane Leakage

60-80% from methane leaks

For gas utilities, 60-80% of direct emissions are fugitive methane from pipeline leaks, compressor station venting, and meter set leaks (Scope 1). Methane has GWP100 = 28x CO2. A 1% leak rate (typical for aging infrastructure) means 1% of distributed gas escapes as methane. Customer end-use combustion (Scope 3 Category 11) is 10-20x larger than Scope 1 but outside utility operational control. NetNada tracks leak detection survey data, integrates satellite monitoring (TROPOMI, GHGSat), calculates methane intensity per mcf distributed, and quantifies customer combustion emissions.

SASB Industry Definition

The Gas Utilities & Distributors industry consists of entities that distribute natural gas through local distribution networks (LDC) to residential, commercial, and industrial customers. These entities operate pipeline infrastructure, storage facilities, and metering systems. Revenue comes from regulated distribution rates and gas commodity margins. The industry faces climate transition risk as electrification reduces gas demand and methane leak detection requirements increase operating costs.

View SASB Standard →

Industry-Specific Carbon Accounting

No generic solutions. Metrics, data sources, and reporting aligned to Gas Utilities & Distributors operations.

Fugitive Methane Leak Quantification

Import leak detection survey data (leaks found, estimated volume per leak). Calculate: Total leaked methane (scf/year) × 0.0192 tCH4/Mcf × 28 GWP = CO2e emissions. Leak rate = Leaked gas ÷ Total throughput. Industry average: 0.5-1.5% leak rate. Benchmark vs peers and track reduction over time.

Leak rate tracked

Satellite Methane Detection Integration

Import TROPOMI or GHGSat satellite data showing methane plumes over distribution network. Cross-reference with leak survey schedules. Flag discrepancies >20% between reported leaks and satellite-detected emissions. Support EPA GHGRP Subpart W compliance.

Satellite validation

Customer Combustion Emissions (Scope 3 Category 11)

Calculate end-use emissions from gas sold: Total gas distributed (Mcf) × Emission factor (0.0531 tCO2/Mcf for natural gas combustion). Example: Distribute 10 billion cubic feet (10,000 Mcf) → 10,000 × 0.0531 = 531,000 tCO2 from customer use. Report separately from Scope 1 leaks.

Customer emissions tracked

Pipeline Replacement Carbon Impact

Older cast iron and bare steel pipes have 5-10x higher leak rates than modern plastic pipes. Model replacement program: Replace 50 miles of cast iron (1.5% leak rate) with plastic (0.2% leak rate) → Reduce fugitive emissions 85% on that segment. Calculate ROI: Leak reduction vs replacement cost.

Replacement impact modeled

Renewable Natural Gas (RNG) Carbon Accounting

RNG from landfills or anaerobic digesters is considered carbon-neutral (biogenic CO2). If blending 10% RNG into pipeline: Customer combustion emissions = 90% × Fossil gas emissions + 10% × 0 (RNG is carbon-neutral). Track RNG % and disclose methodology. Requires RIN (Renewable Identification Number) tracking.

RNG % tracked

SASB IF-GU Metrics Automation

Auto-generate disclosure: Gross Scope 1 emissions, methane intensity (tCH4 per mcf), % gas from renewable sources, pipeline incident rate per 1,000 miles. Footnotes cite EPA emission factors and PHMSA data.

SASB IF-GU compliant

Product Features for Gas Utilities & Distributors

Use Carbon Data Uploader to import leak survey data and gas throughput volumes for automated methane intensity calculations and satellite validation. Learn more →

The Activity Calculator applies EPA emission factors for fugitive methane and customer combustion—calculating Scope 1 and Scope 3 Category 11 for gas utilities. Learn more →

Related Solutions

See our Carbon Accounting solution for end-to-end gas utility emissions tracking from leak detection through customer end-use reporting.

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Gas Utilities & Distributors Case Studies

How entities in this industry use NetNada to solve carbon accounting challenges.

Urban Gas Distributor (5,000 miles of pipe, 800,000 customers, 50 Bcf/year throughput)

Challenge

State PUC required methane leak reduction targets: 40% reduction by 2030. Baseline leak rate unknown due to inconsistent survey data. Needed investment case for accelerated pipe replacement program.

Solution

Deployed NetNada with 5-year historical leak survey import. Calculated baseline leak rate: 1.2% (600 million cubic feet leaked/year = 11,520 tCH4 = 323,000 tCO2e). Modeled pipe replacement: $300M over 10 years to replace 500 miles of highest-leaking pipe.

Result

Business case approved: Replace cast iron pipes reducing leak rate to 0.5% by 2030 (58% reduction). Projected avoided methane: 190,000 tCO2e/year. Additional benefit: Reduced unaccounted-for-gas (lost revenue) by $8M/year. Submitted plan to PUC showing compliance pathway.

Regional Gas LDC (Midwest US, 2,000 miles of pipe)

Challenge

EPA GHGRP Subpart W required annual methane reporting with third-party verification. Manual calculations from leak survey data took 200 hours/year with 25% error rate flagged by verifiers.

Solution

Used NetNada to automate EPA Subpart W calculations. Imported leak survey data (leak count, estimated volume). Applied EPA emission factors for distribution pipelines, meter sets, compressor stations. Generated Subpart W XML report for EPA submission.

Result

Reduced reporting time from 200 hours to 40 hours. Achieved verification with zero errors. Identified 15% of leaks concentrated in 5% of pipe segments (aging bare steel). Prioritized replacement for highest-emitting sections first.

SASB Disclosure Topics for Gas Utilities & Distributors

Material sustainability topics beyond emissions that investors and stakeholders expect disclosed per SASB standards.

Greenhouse Gas Emissions

environment

Track Scope 1 fugitive methane from pipeline leaks, compressor stations, storage facilities. Report methane intensity (tCH4 per mcf distributed) and total GHG emissions in CO2e.

End-Use Customer Emissions

environment

Calculate Scope 3 Category 11 emissions from customer combustion of distributed gas. Report total gas sold (mcf) and implied customer emissions (tCO2e).

Pipeline Safety and Integrity

social

Track pipeline incidents, leaks per mile of pipe, and compliance with PHMSA (Pipeline and Hazardous Materials Safety Administration) regulations. Report pipeline replacement programs.

Energy Affordability

social

Disclose average residential gas rates, % customers with service disconnections, and programs for low-income customer assistance.

Transition Risk: Electrification and Demand Decline

business model

Report % of revenue from residential heating (at risk from heat pump adoption). Disclose scenario analysis for gas demand under net-zero pathways and stranded asset risk.

Renewable Gas Integration

business model

Track % of gas throughput from renewable sources (RNG from landfills, biogas, hydrogen blending). Report RNG procurement contracts and pipeline hydrogen compatibility.

NetNada tracks all SASB material topics, not just emissions. Our platform supports disclosure across environmental, social, governance, and business model topics relevant to your industry.

Gas Utilities & Distributors FAQs

Common questions about carbon accounting for this industry

How do you calculate methane leak rate for a gas distribution system?
Leak rate = (Leaked methane volume ÷ Total gas throughput) × 100%. Leaked volume from leak detection surveys: Sum of estimated leaks (cubic feet) based on measured flow rates. Total throughput = Gas delivered to customers + Utility use + Unaccounted-for gas. Example: 600 million cubic feet leaked ÷ 50 billion cubic feet throughput = 1.2% leak rate. Convert to emissions: 600M cf × 0.0192 tCH4/Mcf × 28 GWP = 323,000 tCO2e.
Should we report customer combustion emissions (when customers burn gas in furnaces) as our Scope 3?
Yes, customer combustion is Scope 3 Category 11 (Use of Sold Products). Calculate: Gas sold (Mcf) × 0.0531 tCO2/Mcf combustion factor. This is typically 10-20x larger than Scope 1 fugitive leaks but outside your operational control. Report separately with clear methodology. Some utilities exclude Scope 3 Category 11 because they are 'delivery service' not energy producer, but best practice per GHG Protocol: include and disclose assumptions.
How do satellite methane detectors like TROPOMI validate our leak surveys?
Satellites detect methane concentration plumes from space. TROPOMI (free, 7km resolution) shows large leak clusters. GHGSat (paid, 25m resolution) pinpoints individual leaks. NetNada overlays satellite plumes with distribution network map. If satellite detects 50 tCH4 emission source but leak surveys report 10 tCH4 in that area → Flag 40 tCH4 discrepancy for investigation. Helps identify super-emitter leaks missed by ground surveys.
What's the carbon impact of blending hydrogen into natural gas pipelines?
Hydrogen combustion emits zero CO2 (product is H2O). Blending 10% hydrogen by volume into gas pipeline reduces customer combustion CO2 by ~10%. Challenge: Hydrogen production emissions matter. Green H2 (from electrolysis with renewables) = near-zero emissions. Gray H2 (from methane reforming) = 10 kgCO2/kg H2, worse than burning gas directly. Must track hydrogen source and lifecycle emissions. Pipeline compatibility limits: most systems can handle 5-20% H2 before material issues.
How do we account for biogas or renewable natural gas (RNG) in our distribution?
RNG from organic waste (landfills, wastewater, anaerobic digesters) is considered biogenic carbon—plants absorbed CO2, decomposition releases it, combustion re-releases (carbon neutral on ~1-year cycle). If blending 10% RNG: Customer combustion = 90% fossil gas (0.0531 tCO2/Mcf) + 10% RNG (0 tCO2/Mcf). Requires RIN tracking or book-and-claim system to prove RNG purchased. Disclose % RNG and methodology. Lifecycle benefits: RNG avoids methane from waste decomposition (otherwise released to atmosphere).

Track Pipeline Methane Leaks and Customer End-Use Emissions

See how gas utilities calculate leak rates, validate with satellite data, and report SASB-compliant methane intensity and customer combustion emissions.

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