Current technology can potentially reduce LNG (Liquefied Natural Gas) emissions by approximately 60%, according to the International Energy Agency.

Unleashing the True Potential of LNG

On June 20, the International Energy Agency (IEA) dropped a bombshell report, shedding light on a frequently overlooked aspect of climate accountability - emissions stemming from the LNG supply chain. As the world continues to lean on liquefied natural gas, it's crucial to understand the hidden repercussions of this energy source and determine whether it truly ranks as a "lower-emitting" alternative to coal and renewables.

The report paints a stark image, revealing that 350 million tonnes of CO2 equivalent are released annually from the global LNG supply chain. To put it simply, this encompasses both carbon dioxide emissions and a substantial share of methane, a greenhouse gas with a much more powerful warming effect. But fear not! The IEA doesn't just reveal problems; it also offers viable solutions. An astounding 60% of these emissions can be slashed using today's readily available technologies. And here's the cherry on top – most of these reductions can be accomplished at minimal or no extra cost!

Tackling the Big Issues: Methane and CO2

Its voyage isn't a walk in the park for LNG; it faces issues along every leg of the way, from upstream gas production and processing to liquefaction, shipping, and regasification. On average, LNG supply chain emissions tally to just under 20 grams of CO2 equivalent per megajoule of delivered energy. That total dwarfs the average 12 g CO2/MJ for conventional pipeline gas.

Approximately 70% of LNG-related emissions are expelled as either carbon dioxide through combustion or as waste. The remaining 30% stems from methane leaks or escaping methane, bearing in mind its disproportionate warming influence compared to carbon dioxide. Though regional and supply path variances may crop up, the global picture is unmistakable: LNG is cleaner than coal, but it's hardly spotless.

The Time for Setting Low Standards is Over

One of the most thought-provoking points the IEA raises is the practice of comparing LNG to coal. While it's true that over 99% of LNG consumed in 2024 boasts a lower lifecycle emissions footprint than coal, and that it generally emits about 25% less emissions, this benchmark sets an unreasonably low bar. In today's energy landscape, where affordable technologies abound to significantly reduce emissions, LNG producers and consumers alike must aim higher. Merely being "less filthy" than coal is no longer satisfactory, especially when cost-effective carbon capture solutions and methane leak prevention strategies are readily at hand.

The Roadmap for Change

The IEA maps out a compelling plan of action. First and foremost, keep a tight rein on methane leaks – they could chop annual emissions by 90 million tonnes CO2 equivalent (roughly 25% of the total), with half of these cuts being achievable at no additional cost! It's a win-win scenario for businesses and the environment alike.

The report also advocates reducing flaring at LNG facilities and feed gas fields, which could yield an additional 5 million tonnes CO2-eq in cuts. Enhancing process efficiency and implementing carbon capture solutions at liquefaction plants would make even deeper dents in the emissions tally.

And finally, for those willing to invest more, electrifying LNG terminals and upstream facilities using renewable energy could slash emissions by an additional 110 million tonnes CO2-eq. The tools are here; it's just a question of putting them to widespread use.

The Global Impact for LNG and Climate Goals

The IEA isn't sounding the alarm in a vacuum. Its findings were presented by Keisuke Sadamori, the IEA's Director of Energy Markets and Security, at the 2025 LNG Producer-Consumer Conference in Japan. The global LNG market plays a significant role in energy security, particularly in regions that are transitioning away from coal or oil. But that security can't come at the expense of unchecked climate damage.

Bloomberg weighed in on the matter, noting that for a projected $100 billion, the LNG industry could reduce its emissions by a substantial 60%. It's an impressive sum, but viewed against the backdrop of global climate damage and economic losses resulting from extreme weather events, it's a worthwhile investment.

The Hidden Climate Opportunity

This new IEA report flips the script on LNG discussions. It no longer only champions LNG as the cleaner alternative to coal; instead, it calls on governments and energy companies to take responsibility for the entire emissions footprint of LNG. With the existing technology, the LNG sector can slash its supply chain emissions by more than half, setting the stage for meeting climate targets. The pathway is clear, the technology exists, and the costs are low. It's time to move from talking to action because the world can't afford for LNG to become a climate missed opportunity.

Additional Solutions and Cost Savings

Methane Emissions Mitigation: Beyond makeshift costs, reducing methane leaks across production, processing, and transmission (responsible for 80% of methane emissions) could fetch significant cost savings due to the value of captured gas and efficiency gains, totaling up to net-zero costs.
Efficiency Improvements: Minimizing flaring and methane leaks enhances operational efficiency, translating into less wasted gas and higher economic benefits.
Low-Cost Implementation: Many emissions reduction opportunities utilize commercially available technologies applied across various stages of upstream production, processing, pipeline transmission, liquefaction, shipping, and regasification, making them feasible at low or moderate costs without significant investment constraints.
Bio-LNG in Maritime Transport: Blending bio-LNG (biogenic LNG) in conventional LNG fuel for marine vessels can reduce CO2 emissions by around 70% compared to fossil LNG. Depending on production methods, bio-LNG has the potential to achieve up to 92% greenhouse gas reduction. It offers immediate deployability without engine modifications and assists in meeting EU maritime CO2 regulations.
Transition to Synthetic Fuels: Bio-LNG functions as a transitional step towards synthetic methane, e-methanol, and ammonia, which feature even lower carbon footprints and will play a crucial role in driving further decarbonization in the future.