LNG industry could reduce emissions by 60%, according to IEA

A study by the International Energy Agency reveals that global emissions from liquefied natural gas could be significantly reduced using current technologies.

Share:

Gain full professional access to energynews.pro from 4.90$/month.
Designed for decision-makers, with no long-term commitment.

Over 30,000 articles published since 2021.
150 new market analyses every week to decode global energy trends.

Monthly Digital PRO PASS

Immediate Access
4.90$/month*

No commitment – cancel anytime, activation in 2 minutes.

*Special launch offer: 1st month at the indicated price, then 14.90 $/month, no long-term commitment.

Annual Digital PRO Pass

Full Annual Access
99$/year*

To access all of energynews.pro without any limits

*Introductory annual price for year one, automatically renewed at 149.00 $/year from the second year.

The International Energy Agency (IEA) has published a new analysis detailing greenhouse gas emissions from the global liquefied natural gas (LNG) supply chain. The report specifies that these emissions currently reach approximately 350 million tonnes of carbon dioxide equivalent (Mt CO2-eq) each year, divided between carbon dioxide (70%) and methane released unburned into the atmosphere (30%).

Variable emissions intensity by region

Globally, the emissions intensity of LNG supplies reaches just under 20 grams of CO2 equivalent per megajoule (g CO2‑eq/MJ). This figure contrasts with natural gas as a whole, estimated on average at around 12 g CO2‑eq/MJ. However, data highlight significant variations depending on geographical areas and specific supply routes.

The document also highlights that over 99% of LNG consumed in 2024 had lower lifecycle emissions than coal. On a global average, the use of LNG generates about 25% fewer emissions compared to coal. However, the report insists on the necessity of not limiting comparisons to coal alone—considered the most carbon-intensive fuel—as other possibilities exist to further reduce emissions associated with LNG.

Available technologies for emissions reduction

According to the study, it would be possible to reduce emissions from the LNG production chain by more than 60% using currently available technologies. Among low-cost measures is notably the reduction of methane leaks, which could achieve an approximate reduction of 90 Mt CO2-eq per year, representing 25% of the sector’s total emissions. Nearly half of these gains could be realised without additional net costs.

Other moderate-cost emissions reduction strategies include improving energy efficiency of existing facilities and reducing flaring activities at the installations and fields supplying natural gas. This latter measure could reduce annual emissions by an additional 5 Mt CO2-eq.

The role of electrification and carbon capture

Moreover, the IEA suggests electrification of production facilities and LNG terminals using electricity from low-emission sources could provide an additional substantial reduction, estimated at 110 Mt CO2-eq annually. The integration of Carbon Capture, Utilisation and Storage (CCUS) technologies into liquefaction plants also represents a significant possibility, although requiring substantial initial investments.

The report was presented by the IEA Director of Energy Markets and Security, Keisuke Sadamori, at the annual LNG Producer-Consumer Conference in Japan, jointly organised by the IEA and Japan’s Ministry of Economy, Trade and Industry.

NextDecade has signed a liquefied natural gas supply agreement with EQT for 1.5 million tonnes annually from Rio Grande LNG Train 5, pending a final investment decision.
Sawgrass LNG & Power has renewed its liquefied natural gas supply agreement with state-owned BNECL, consolidating a commercial cooperation that began in 2016.
Gazprom and China National Petroleum Corporation have signed a binding memorandum to build the Power of Siberia 2 pipeline, set to deliver 50 bcm of Russian gas per year to China via Mongolia.
Permex Petroleum signed a $3 million purchase option on oil and gas assets in Texas to support a strategy combining energy production and Bitcoin mining.
Enbridge announces the implementation of two major natural gas transmission projects aimed at strengthening regional supply and supporting the LNG market.
Commonwealth LNG’s Louisiana liquefied natural gas project clears a decisive regulatory step with final approval from the U.S. Department of Energy for exports to non-free trade agreement countries.
The Indonesian government confirmed the delivery of nine to ten liquefied natural gas cargoes for domestic demand in September, without affecting long-term export commitments.
The Egyptian government signs four exploration agreements for ten gas wells, allocating $343mn to limit the impact of the rapid decline in national production.
Hungary has imported over 5 billion cubic metres of Russian natural gas since January via TurkStream, under its long-term agreements with Gazprom, thereby supporting its national energy infrastructure.
U.S. regulators have approved two major milestones for Rio Grande LNG and Commonwealth LNG, clarifying their investment decision timelines and reinforcing the country’s role in expanding global liquefaction capacity.
Hokkaido Gas is adjusting its liquefied natural gas procurement strategy with a multi-year tender and a long-term agreement, leveraging Ishikari’s capacity and price references used in the Asian market. —
Korea Gas Corporation commits to 3.3 mtpa of US LNG from 2028 for ten years, complementing new contracts to cover expired volumes and diversify supply sources and price indexation.
Petrobangla plans to sign a memorandum with Saudi Aramco to secure liquefied natural gas deliveries under a formal agreement, following a similar deal recently concluded with the Sultanate of Oman.
CTCI strengthens its position in Taiwan with a new EPC contract for a regasification unit at the Kaohsiung LNG terminal, with a capacity of 1,600 tonnes per hour.
Exxon Mobil forecasts sustained growth in global natural gas demand by 2050, driven by industrial use and rising energy needs in developing economies.
Capstone Green Energy received a 5.8-megawatt order for its natural gas microturbines, to be deployed across multiple food production facilities in Mexico through regional distributor DTC Machinery.
Private firm Harvest Midstream has signed a $1 billion acquisition deal with MPLX for gas processing and transport infrastructure across three western US states.
Sempra Infrastructure and EQT Corporation have signed a 20-year liquefied natural gas purchase agreement, consolidating Phase 2 of the Port Arthur LNG project in Texas and strengthening the United States’ position in the global LNG market.
Subsea7 was selected to lead phase 3 of the Sakarya gas field, a strategic contract for Türkiye’s energy supply valued between $750mn and $1.25bn.
Tokyo protests against Chinese installations deemed unilateral in a disputed maritime zone, despite a bilateral agreement stalled since 2010.

Log in to read this article

You'll also have access to a selection of our best content.