The Latest IEA Report Reveals How LNG Emissions Could Drop by 60 Percent

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The International Energy Agency has conducted a detailed assessment of the environmental impact of liquefied natural gas, evaluating emissions across its full supply chain. From upstream production to shipping and regasification, the findings emphasize the need for comprehensive measurement and reduction strategies. According to the IEA, the global LNG supply chain currently emits approximately 350 million tonnes of carbon dioxide equivalent annually. About 70 percent of these emissions are CO2 from combustion or venting, while the remaining 30 percent is unburned methane.

Comparing LNG versus coal and the case for higher standards

LNG is often promoted as a cleaner substitute for coal, but the IEA highlights that this comparison sets a low benchmark. On average, LNG generates about 25 percent fewer greenhouse gas emissions than coal, and in 2024, over 99 percent of LNG volumes had lower lifecycle emissions. However, this advantage should not lead to complacency.

The average greenhouse gas intensity for delivered LNG is just under 20 grams of CO2 equivalent per megajoule (g CO2-eq/MJ), compared with 12 g CO2-eq/MJ for general natural gas supply. The variation across geographies and routes suggests that some producers and shippers lag behind others, underscoring the need for consistent standards and oversight.

Biggest sources of emissions in the LNG supply chain

Most emissions in the LNG lifecycle come from upstream activities and liquefaction. Methane leakage is especially concerning, representing nearly one-third of total emissions. Given methane’s short-term global warming potential, these leaks have significant climate consequences.

In addition to methane, CO2 emissions from combustion processes contribute heavily to LNG’s footprint. These come from facility operations, pipeline transmission, and marine transport. The IEA’s data identify the areas most in need of intervention.

Cost-effective and scalable abatement opportunities

The IEA indicates that more than 60 percent of current LNG emissions could be reduced using existing technologies. Some solutions, such as fixing methane leaks, offer large benefits with minimal or no net costs. Addressing methane alone could lower emissions by approximately 90 Mt CO2-eq per year, with half of that achievable at zero net cost.

Additional strategies include minimizing flaring, which could avoid another 5 Mt CO2-eq annually, and improving process efficiency. Liquefaction plants are strong candidates for carbon capture, utilization, and storage. Electrifying upstream operations and LNG terminals with low-emissions power could eliminate another 110 Mt CO2-eq, though this would involve higher upfront costs.

Policy and market dynamics at the 2025 Tokyo conference

The IEA presented these findings at the 2025 LNG Producer-Consumer Conference in Tokyo, co-hosted by Japan’s Ministry of Economy, Trade and Industry. The event focused on cooperation between LNG producers and consumers to reduce emissions while maintaining supply reliability.

Policy efforts like the Global Methane Pledge and EU methane regulations are gaining momentum. These align with the IEA’s proposed interventions and suggest a growing consensus on enforceable emissions standards. As LNG’s role in global energy markets grows, integrating climate objectives into infrastructure planning is increasingly vital.

Sources:

• IEA News
• IEA Report: Assessing emissions from LNG supply and abatement options