November 2023
As the global energy transition progresses, natural gas and Liquefied Natural Gas (LNG) emerge as pivotal elements steering the shift towards a more sustainable and lower carbon future. Their roles, multifaceted and evolving, encompass acting as both transition and destination fuels, crucial for the gradual shift away from higher-emission coal towards net-zero targets.
The inherent versatility and cleaner combustion of natural gas, compared to coal, offer immediate reductions in greenhouse gas emissions and air pollutants. This advantage is underscored by a significant milestone where coal-to-gas switching has already prevented approximately 500 million tons of CO2 emissions since 2010, equivalent to an additional 200 million electric vehicles on the road over the same period.
However, the journey of natural gas and LNG within the energy transition is nuanced, facing scrutiny under deep decarbonisation scenarios aligned with the Paris Agreement’s climate goals. The industry’s response includes innovative strategies such as the integration of green technologies and carbon capture, utilisation, and storage (CCUS), alongside the development of renewable natural gas and hydrogen blending to extend the utility of existing infrastructure while addressing emissions.
Offering a bridge to a lower-carbon future, natural gas and LNG stand at the forefront of the energy transition. Their continued evolution and integration into the energy mix, supported by policy innovation and technological advancements, are crucial for meeting global energy demands sustainably and efficiently.
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