Insight
Renewable energy could reduce Asia Pacific LNG plant emissions by 8%
*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
Report summary
Asia Pacific produces over a third of the world’s LNG, but also generates over 50 MtCO2e of carbon emissions during liquefaction. While LNG has clear benefits over other fossil fuels in power generation, questions are being asked about the emissions intensity of its upstream supply and liquefaction process. A number of the industry’s leading players are setting carbon neutrality targets and LNG buyers are looking more closely at the emissions of cargoes they’re procuring. Lenders are also imposing stricter terms on project financing. But the biggest driver for decarbonisation is the rising expectation around carbon taxation and tighter regulations in both exporting and importing countries, which would have a major impact on already strained project economics post oil price crash. LNG’s carbon credentials must be improved. One option is the use of renewables to power the LNG production facilities. But is it feasible and can it deliver meaningful reductions in emissions?
Table of contents
-
Executive Summary
- LNG plants vary significantly in energy consumption and emissions
- Why are LNG plants energy intensive?
- What could be done to decarbonise LNG production?
- Existing initiatives to decarbonise LNG production
- Is the switch to solar energy feasible?
- Implications of future environmental policy changes
- as well as financiers’ and buyers’ preference for green LNG
- Conclusion
Tables and charts
This report includes the following images and tables:
- Expanded data on Asia Pacific LNG operations and suggested plant emissions reductions initiative
- Asia Pacific liquefaction plants 2020 feedgas consumption patterns
- Asia Pacific LNG operations and suggested plant emissions reductions initiative
- Abatement curve of Asia Pacific LNG plants
- Comparison of APLNG NPV10 with and without solar installation and the impact of carbon tax
What's included
This report contains:
