How green is your LNG? – Supply chain emissions come under scrutiny

Only Subscribers can read the full Article

While the Covid-19 pandemic and its effects continue to dominate the news in 2020, a critical development has been playing in the background: the acceleration of policy responses to climate change. The most important was China’s announcement in September that it aims to achieve carbon neutrality “before 2060”. IOCs have also set targets to reduce and eventually eliminate the emissions from their operations.

These targets are bound to have an impact on the LNG business, with an increasing emphasis on the carbon emissions of the oil and gas industry itself. As a result, the LNG industry will have to provide a more sophisticated response to the decarbonisation agenda than relying on arguments about gas being ‘the cleanest fossil fuel’ and the benefits of displacing coal.

Coming after the first deals for ‘carbon neutral’ LNG cargoes in 2019, Pavilion’s buy side tender in April this year reflected the increasing interest buyers are showing in the emissions profile of the LNG they buy. There are now signs of producers viewing their emissions footprint as a source of competitive advantage, most recently with NextDecade announcing a plan to add a Carbon Capture and Storage (CCS) stage to its Rio Grande project.

While interest in this area has grown hugely, there is little information available to compare projects and no generally accepted methodologies or rankings that look at emissions along the whole LNG chain. In the first of a series of articles on greenhouse gas (GHG) emissions, LNG Business Review looks at how much emissions the LNG industry does in fact generate and what it can do about it.

Subscription Benefits

Our three titles – LNG Business Review, Gas Matters and Gas Matters Today – tackle the biggest questions on global developments and major industry trends through a mixture of news, profiles and analysis.

LNG Business Review

LNG Business Review seeks to discover new truths about today’s LNG industry. It strives to widen market players’ scope of reference by actively engaging with events, offering new perspectives while challenging existing ones, and never shying away from being a platform for debate.

Gas Matters

Gas Matters digs deep into the stories of today, keeping the challenges of tomorrow in its sights. Weekly features and interviews, informed by unrivalled in-house expertise, offer a fresh perspective on events as well as thoughtful, intelligent analysis that dares to challenge the status quo.

Gas Matters Today

Gas Matters Today cuts through the bluster of online news and views to offer trustworthy, informed perspectives on major events shaping the gas and LNG industries. This daily news service provides unparalleled insight by drawing on the collective knowledge of in-house reporters, specialist contributors and extensive archive to go beyond the headlines, making it essential reading for gas industry professionals.

Did you know that your Internet Explorer Browser is out of date?

Your MS Internet Explorer browser is out of date, and will not be fully compatible with our website. For best browsing experience we recommend that you upgrade your IE browser to a more recent version or use an alternative, more recent browser.