Asia Pacific LNG plants can cut emissions by 8% with green power

The use of renewable power to run liquefied natural gas (LNG) plants in Asia Pacific could reduce their emissions by 8% in 2020 alone, Wood Mackenzie says.

Producing a third of global LNG, Asia Pacific emits more than 50 million tonnes of carbon dioxide equivalent (MtCO2e) from the liquefaction process. Australia alone is the source of more than 29 MtCO2e of liquefaction emissions from LNG projects in the region.

The power for LNG plants is usually generated from feedgas, which, if saved, could be sold to the domestic market or converted into LNG for exports, bringing additional revenues. This gas could be replaced by lower-carbon power from the grid, if available, or renewable energy generated on-site.

“A carbon tax is likely to be the biggest driver for LNG projects to switch to renewable energy at the plant or deploy carbon capture and storage to reduce emissions from upstream gas, or both,” said Wood Mackenzie senior specialist Jamie Taylor. “As costs continue to decline and technology improves, renewable plus battery storage could become an alternative in the future, especially for new LNG plants,” Taylor added.

Some LNG companies are already looking at how to reduce the emissions intensity of upstream supply and the production process. Several players have even set carbon neutrality targets for 2050.

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