Photo 1. (Left): Carlos De Regules, Senior Advisor for Fossil Fuel Regulation from CCAC; Dato’ Ir. Ts. Razib Dawood, Executive Director of ACE; Suwanto, Head of Fossil Fuels, Hydrocarbon, and Minerals of ACE delivering welcoming remarks. (Right): MR2R scene setting presentation
How can ASEAN countries reduce methane emissions while responding to changing international market requirements?
This was one of the questions at the Methane Regulator-to-Regulator (MR2R) Southeast Asia Regional Exchange, held in Bali, Indonesia, on 27 October 2026, alongside the 51st ASEAN Council on Petroleum and Energy (ASCOPE) Meeting, hosted by PT Pertamina. The session was also supported by the Global Methane Hub (GMH).
The meeting brought together ASEAN stakeholders and international partners to discuss developments in methane emissions regulation, the implications for the region’s oil and gas sector, and opportunities to strengthen cooperation. Findings from the Optimising Methane Emissions Governance and Abatement in ASEAN Oil and Gas (OMEGA) project led by the ASEAN Centre for Energy and supported by UN CCAC were shared to contextualise the level of readiness and gaps across ASEAN countries, especially the region's four major oil and gas producers, namely, Indonesia, Malaysia, Thailand, and Viet Nam. The session also showcased ongoing ASEAN initiatives on methane emissions, including the ASEAN Energy Sector Methane Leadership Programme (MLP).
Methane management and changing market expectations
As international expectations around methane emissions continue to evolve, oil and gas producers are facing new questions about how to measure, report and reduce their emissions while remaining competitive in global markets.
Participants discussed the EU Methane Regulation and its potential implications for producers, as well as emerging methane-related requirements in liquefied natural gas (LNG) contracts. The experience of Argentina’s Vaca Muerta region in preparing to meet export market requirements also offered a perspective on how producers can respond to these changes.
Photo 2. Mariana Ramirez, Director of Emissions Monitoring from Province of Nuequen sharing experience of Argentina’s Vaca Muerta region.
The conversation extended beyond regulation to the financial implications of methane performance. Presentations explored how methane-related conditions can influence the cost of capital and how debt optimisation mechanisms might create opportunities for oil and gas companies.
Together, these topics illustrated the range of considerations facing producers as methane management becomes more closely linked to trade, financing and market access.
Building reliable data and sharing experience
Another key part of the exchange focused on monitoring, reporting and verification (MRV). Participants discussed ongoing work in ASEAN, international MRV practices and barriers to implementation in Asia.
The session also covered the Coalition for LNG Emissions Abatement towards Net-Zero (CLEAN) Initiative’s approach to transparency and the development of a voluntary marketplace for oil and gas with near-zero methane intensity. The Initiative will become a key mover for ASEAN, considering that the region exports one third of its natural gas to Japan and Korea. Discussions addressed how reliable emissions data can support regulators in developing policies and help market participants better understand methane performance.
Photo 3. Yuki Shiga, Project Director from the Japan Organization for Metals and Energy Security (JOGMEC) sharing the CLEAN Initiative
A moderated discussion gave participants the opportunity to consider the challenges facing regulators across ASEAN, including how to make methane a greater policy priority, what information from operators would be most useful, and how international partners could provide support.
The exchange concluded with a discussion of next steps and how continued regional cooperation could help countries prepare for changes in the oil and gas sector.
Continuing the regional dialogue
Photo 4. Indonesian delegates from left to right, Wijaya Kusuma Dewi, Oil and Gas Inspector from Ministry of Energy and Mineral Resources; Lody Junio from Ministry of Environment; and Dr Haruki Agustina, Director of Climate Change Mitigation, Ministry of Environment.
The Bali exchange was an opportunity to bring regional perspectives into a broader conversation about methane regulation and the changing energy market. By sharing experiences and examining both policy and market developments, participants explored issues that are increasingly relevant to methane management in Southeast Asia.
Continued engagement through MR2R can help regulators and partners exchange practical experience and identify areas where further cooperation would be useful.
