LNG - ENVIRONMENT

News: What is Liquified Natural Gas (LNG), and how it impacts the climate

 

What's in the news?

       The EU is weaning itself off piped Russian gas by rapidly expanding imports of liquified natural gas, much of it fracked in the US.

 

Key takeaways:

       LNG is to compensate for lost Russian gas supplies, with four new terminals set to come online in Germany alone.

       With LNG creating almost 10 times more emissions than piped gas by one estimate, its rapid expansion will likely compromise climate targets, say climate researchers, who also reject claims that most LNG infrastructure is suitable for green hydrogen in the future.

 

What is Liquified Natural Gas (LNG)?

       LNG is natural gas reduced to a liquid state (liquefaction) through intense cooling to around -161 degrees Celsius (-259 Fahrenheit).

       This liquid gas is 600 times smaller than the original volume and is half the weight of water.

       The compressed fossil fuel, which is constituted almost wholly of methane - a potent greenhouse gas can be transported around the world by ship.

 

Present Issue:

       Russia is world’s third biggest oil and the second biggest natural gas producer. In the wake of Russia’s invasion of Ukraine crude oil prices have skyrocketed, leaving many countries uncertain of their ability to meet demand in the medium to long term.

       It brought the attention of the economies towards alternatives and Liquefied Natural Gas (LNG) is one of the foremost available alternatives.

 

Benefits of LNG:

1. Reduces GHG emissions:

       It generates 30% less carbon dioxide than fuel oil and 45% less than coal.

       The combustion of natural gas evaporates much more quickly in the air, compared to fossil fuel, leaving no particles or residue.

       So, there’s far less spreading of oils after LNG spills and also contributes to far lower carbon emissions.

2. Consistency and reliable supply:

       LNG has a higher energy density, which means, in comparison to crude oil, more energy can be stored and transported for the same amount of volume.

3. Cost effective:

       LNG’s volume has been reduced to 1/600th of its un-liquified state, making it easier to contain and transport.

       LNG also weighs less than one-half as much as water, so it is lighter also.

4. Cleaner atmosphere and more efficient:

       Natural gas burns extremely efficiently, producing mainly heat and water vapour, and it’s much more cost-effective.

       It reduces nitrogen oxide emissions, does not emit soot, dust or fumes, and produces insignificant amounts of sulfur dioxide, mercury, and other particulates compared to other fuels.

 

Issues with LNG:

1. Increased costs:

       There are cost challenges between LNG exporters and importers related to LNG supply chains.

       Such as remote locations, cost increases, LNG storage, scheduling and price convergence determined.

2. Environmental concerns:

       Extracting and transporting it leads to methane leakage, which is the second biggest cause of climate change after carbon emissions.

3. Heavy energy use:

       The liquefaction process uses tremendous amounts of energy which directly or indirectly emits a lot of greenhouse gases.

4. Educating customers:

       Educating governments to enable them to make optimal and timely decisions and create a business friendly financial, regulatory and legal environment is a struggle.

5. Global disruptions:

       Today, the global oil market remains vulnerable to a wide range of risk factors, including natural disasters, major technical accidents, and geopolitical tensions.

6. Methane loss: 

       Between 10-25% of the energy of the gas is lost during the liquefaction process.

       Consequently, the risks of methane leakages along the production, transport and regasification chain are high and therefore much more emissions-intensive.

 

WAY FORWARD:

       Promoting energy efficiency and renewable power is the sustainable solution to the shortfall in Russian gas.

       Emphasis should be laid on cheaper sustainable energy sources to make up the current gas deficit.

       Governments should develop and implement strategies to effectively curtail Methane leakage.

 

The crisis holds lessons for various countries that have ambitious plans for using renewable technologies. Cheap and reliable energy sources should not be abandoned until the alternatives have been stringently stress-tested.  If managed successfully, the implementation of LNG can improve environmental performance.