BAKU, Azerbaijan, June 17. LNG exhibits lower value-chain emissions than coal-fired power generation, even when transported over extensive distances, according to recent findings by Rystad Energy, Trend reports.
The research indicates that LNG originating from the US and shipped to Asia can emit up to 50 percent less carbon than the cleanest coal power plants. However, variations across different fuel sources, power plant efficiencies, and methane emissions introduce complexities into these comparisons.
By 2030, global LNG supply is anticipated to reach 850 bcm annually, with approximately 30 percent sourced from the US. With robust demand in Asian markets, LNG is poised to compete vigorously against coal in electricity generation.
Rystad Energy has delineated high-case and low-case emission scenarios for both LNG and coal to illustrate the nuances of their environmental impacts. The low-case scenario for US-Asia LNG assumes production in the Appalachian basin, electrified liquefaction, optimal shipping routes via the Panama Canal, and utilization in highly efficient power plants. Conversely, the high-case scenario factors in higher emission intensity during production, alternative shipping routes, and less efficient power generation methods. In contrast, coal scenarios range from high-quality domestic coal in modern power plants to low-quality coal in aging, less efficient facilities.
Highlighting the significance of methane leakage rates, Rystad Energy suggests that LNG's advantage over coal diminishes if gas value chain leaks exceed 4 percent. Recent studies indicating higher methane emissions from coal extraction imply that gas chain leaks would need to reach between 6 percent and 10 percent for coal to be preferable from an emissions standpoint.
For the LNG sector, reducing methane leaks throughout the value chain is crucial to maintaining its emissions edge over coal. Rystad Energy underscores the potential of advanced methane monitoring technologies to achieve this goal. Meanwhile, the limited opportunities for reducing emissions in coal-fired power generation suggest that LNG may continue to enhance its emissions competitiveness over time.
In summary, Rystad Energy's assessments highlight LNG's current emissions advantage over coal and emphasize the imperative of methane emission management to sustain this advantage.