Australian Energy Producers Conference 2025: Carrot or stick? The key to unlocking LNG decarbonisation

In this paper, Wood Mackenzie reviews the carbon intensity of LNG projects. We analyse the range of investments that could reduce carbon intensity to assess whether players have sufficient incentives to decarbonise across the different parts of the LNG value chain. Finally, we consider whether upcoming environmental legislation will kickstart a premium market for low-carbon LNG and the implications this would have on trade flows and prices.