LNG Industry Must Reinforce Emission Mitigation Measures

Experts highlight natural gas as the go-to transition fuel. However, low-carbon alternative fuels do not mean emissions-free. Moreover, the impact along the value chain of liquified natural gas (LNG), natural gas’ alternative method of transportation to pipelines, is yet to be evaluated and improved to really reduce the impact of this transition fuel.

According to experts, natural gas is typically a better alternative to coal or oil in regards to both air pollution and greenhouse gas emissions. When burnt, natural gas emits less pollutants, including sulfur dioxide and nitrogen oxides, in comparison to coal and oil. Additionally, natural gas has a lower carbon content than coal, leading to lower carbon dioxide emissions per unit of energy generated.

Natural gas demand is set to grow substantially according to recent forecasts. As reported by Forbes, any serious low-carbon outlook has gas as a foundational resource. “The world is simply too poor, too fast-growing and too energy-starved for this not to be true: more practically, the US Department of Energy forecasts a 40-45% jump in global gas consumption.”

Relying exclusively on renewables, especially in the short and medium term, is impractical as fuels are used not only for electricity generation but also for industry, heating, commercial and transport purposes. Given the difficulty to stop using fossil fuels, the industry must become more sustainable. 

The Asian market is especially reliant on LNG due to geography. In 2021, demand for LNG grew, as well as buyers’ scrutiny over LNG’s carbon footprint, calling for carbon-neutral LNG cargoes. To mitigate the impact of LNG transportation, the industry uses carbon-credits to offset emissions. However, according to Wood Mackenzie, “measuring emissions is a major challenge, with no consistent definition, methodology or reporting structure in place.”

Mexico is set to become an important LNG re-exporting hub. Several projects to build LNG terminals in Mexico are in place and various players have interest in these contracts. Nevertheless, if the LNG industry is to grow stronger in Mexico, it is important to double efforts to reduce the environmental impact of these operations. “LNG ranks among the most emission-intensive resource themes across the oil and gas sector,” says Gavin Thompson, Vice Chairman, Energy, Wood Mackenzie.