Using carbon capture and storage (CCS) could reduce overall carbon emissions by more than 25% on LNG developments, according to Wood Mackenzie.
Daniel Toleman, Senior Analyst at Wood Mackenzie said: “Around 40% of the total scope 1 and 2 LNG emissions are from the process of gas liquefaction. That said, not all LNG projects are created equal from an emissions perspective. Each plant has a unique emissions profile and hence the best way to reduce the carbon footprint of an Arctic LNG plant may vary significantly from one in Qatar or Australia.”
“The main options for reducing LNG emissions include CCS, carbon offsets, methane leakage reduction, electrification, and the use of renewables and batteries. CCS can have a material impact on reducing emissions of LNG projects. Depending on the CCS strategy adopted, we estimate that more than 25% of carbon emissions can be removed.”
“The good news is that LNG players are well placed to lead the CCS charge, with strong balance sheets, operational capability and reservoir expertise. There are also economic incentives for pursuing CCS as reducing emissions mitigates against a carbon tax, helps future-proof the asset and can offer pricing upside.”
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