A research report by Rystand Energy revealed that the value-chain emissions of liquified natural gas (LNG) are lower on average than those of coal-fired power generation, even when the fuel is shipped over long distances.
The report says that natural gas produced and liquefied in the US, then shipped to Asia over round trips of about 23,000 miles, could emit up to 50% less COâ‚‚ than even the cleanest coal power plants.
However, emissions can vary significantly depending on the specific US LNG sources, coal sources and types, and power plants, as well as uncertainties about methane emissions throughout both supply chains.
Greenhouse gas emissions from the energy sector are a major concern for governments, operators, and other stakeholders. The report found that the coal value chain has a much larger footprint than LNG when considering carbon dioxide emissions, mainly due to emissions from its end use.
However, adding methane emissions introduces significant uncertainties. Debates about leakage rates from upstream and midstream infrastructure and methane’s potency as a greenhouse gas can result in varying conclusions about the viability of natural gas as a transition fuel.
Rystand Energy suggests that it is crucial for operators and other stakeholders in the LNG industry’s supply chain to minimize methane leaks. This would enable natural gas to be an effective transition fuel as coal is gradually phased out.
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Reducing methane emissions helps ensure that natural gas remains a cleaner alternative to coal, supporting efforts to lower overall greenhouse gas emissions during the energy transition.
Patrick King, Senior Analyst at Rystad Energy, added, “With the introduction of emissions policies globally, such as methane regulations and potentially carbon border adjustment mechanisms, gas supplies from different sources could soon see price differences depending on carbon competitiveness.”
