Christopher Hudson, President dmg::events
2022 has become a banner year for LNG. Europe’s pivot away from Russian gas has caused a surge in demand, with prices rising as supplies tighten. As such, the LNG market has become even more critical for solidifying global energy security. Every week sees an announcement of a new investment in LNG facilities, accompanied by the rationale that existing capacity will struggle to meet global demand.
As the LNG market booms, attention is turning to how the market’s leading players can reduce their emissions. As important as energy security is, many voices in the industry are also keen to make sure LNG’s market expansion does not ignore the global energy transition.
One solution to this issue could be the development of a market for what is sometimes called low carbon, carbon-neutral, or ‘Green’ LNG. Rather than a mechanism for producing LNG with zero emissions, low carbon LNG is a process of offsetting the carbon emissions produced through production, liquefaction, and transportation. This offsetting process is typically used through carbon credits which go towards green projects such as reforestation.
The market for low carbon LNG remains in its infancy. The first low carbon LNG cargo was traded as recently as 2019 when Tokyo Gas and GS Energy purchased a carbon-neutral LNG cargo ship from Shell. Since then, a market for this kind of product has begun to grow, and last year it was reported that over 30 liquefied natural gas offset deals had been agreed, with BP, Total, and Mitsui among those involved.
While enthusiasm for the practice seems to be growing, critics of the practice are concerned that there is not always a clear and transparent method for measuring emissions along the LNG value chain. They argue that it is vital for the industry to develop an accurate methodology for measuring the real emissions of individual cargos, including scope 3 emissions. If this is to be put into practice, it is very likely that it will require the participation of the entire LNG value chain, and that will only happen if the market for low carbon LNG considerably expands.
Gastech’s strategic panels will explore the debates around low carbon LNG and how we grow its use. Our ‘Establishing a certified market for low carbon LNG’ will focus on key factors driving standardisation for green LNG and scenarios for certification and include @BP’s Global Head of LNG @Jonty Shepherd. Meanwhile Gastech will be hosting several technical and commercial sessions on low carbon LNG, looking at emissions standards in general, and relating specifically to methane.
Bringing together leaders from across the energy industry, Gastech 2022 will be the forum for the entire value chain to come together and discuss the trends and challenges shaping the future of energy.
Don’t miss Gastech 2022, 5-8 September in Milan, Italy.
To find out more about the conference, visit our website at: www.gastechevent.com/conferences/strategic-conference/
#Gastech, Fiera Milano, Italy 5-8 September 2022
