New technologies can cut greenhouse gases from the liquefied natural gas (LNG) supply chain by more than 60%, according to a new report from the International Energy Agency (IEA).
Reducing methane leaks alone could cut annual emissions by close to 90 million tonnes of carbon dioxide equivalent (Mt CO2e), or 25% of total LNG emissions – and half of that reduction could be realised at no net cost.
Production, processing and transmission accounts for 80% of supply chain methane emissions and 47% of total greenhouse gas emissions.
Reducing flaring at the LNG facilities and fields providing feed gas could lower annual emissions by a further 5 Mt CO2e.
The report, Assessing Emissions from LNG Supply and Abatement Options, examines upstream production, processing, pipeline transmission, liquefaction, shipping and regasification worldwide.
It estimates that greenhouse gas emissions associated with global LNG supply are roughly 350 Mt CO2e annually. Around 70% of this is in the form of CO2 emissions that are either combusted or vented; the remaining 30% is methane that escapes unburnt into the atmosphere.
Globally, on average, LNG results in about 25% less emissions than coal.
Nevertheless, the report emphasises that for those making an environmental case for LNG use, comparing it only to coal – the most carbon-intensive fuel – “sets the bar too low, especially given the strong opportunities at hand for improving the emissions performance of LNG supply”.
Other cost-effective strategies that could substantially reduce emissions include increasing process efficiency across the supply chain and implementing carbon capture, utilisation and storage (CCUS) at liquefaction facilities to capture the naturally occurring CO2 present in the feed gas.
There are two main opportunities to equip CCUS along the LNG supply chain: to capture naturally occurring CO2 which is often present in feed gas and to capture emissions produced from gas combustion at LNG liquefaction terminals.
While the upfront costs can be high, the electrification of upstream facilities and LNG terminals using electricity from low-emissions sources would further reduce the emissions by about 110 Mt CO2e.
Around 550 billion cubic metres (bcm) of natural gas were exported as liquefied natural gas (LNG) in 2024, just under 15% of global natural gas consumption. A further 500 bcm of natural gas was transported through pipelines.
Nearly 300 bcm of new annual LNG supply capacity is expected to come to market between 2025 and 2030.
The report, presented today [20 June] by IEA Director of Energy Markets and Security Keisuke Sadamori at the 2025 LNG Producer-Consumer Conference in Japan, forms part of the IEA’s broader work on LNG markets.