The International Energy Agency (IEA) has released a potentially historic report clarifying one of the most neglected aspects in terms of climate accountability – emissions from the LNG supply chain. As the world increasingly relies on liquefied natural gas, we need to understand the consequences associated with this kind of energy source and whether it is indeed “lower-emitting” than coal or renewables.

The report offers a sobering statistic, 350 million tonnes of CO2 equivalent are emitted every year from the global LNG supply chain. That includes carbon dioxide emissions and a significant portion of methane, a far more potent greenhouse gas. However, the IEA brings not just problems but also powerful solutions: over 60% of these emissions can be cut using today’s available technologies. The best part is that a large portion of these reductions can be achieved at little to no extra cost.

Methane and CO2 Are the Core Problems, But We Have the Fixes

The report breaks down emissions across every major stage of the LNG journey, from upstream gas production and processing to liquefaction, shipping, and regasification. On average, LNG supply chain emissions amount to just under 20 grams of CO2 equivalent per megajoule of delivered energy. That’s significantly higher than the average 12 g CO2/MJ for conventional pipeline gas.

Approximately 70% of LNG-related emissions are released as either carbon dioxide through combustion, or as waste. The remaining 30% comes from methane leaks or escaping methane is crucial; since it has an excessive warming impact compared to carbon dioxide. While local variations may exist associated with regional and supply path emissions, the overall global picture is clear: LNG is cleaner than coal, but not clean.

Why Comparing LNG to Coal Is Not Enough Anymore?

One of the most thought-provoking points the IEA makes is about the benchmarking of LNG against coal. Yes, over 99% of LNG consumed in 2024 had a lower lifecycle emissions footprint than coal, and yes, it generates about 25% less emissions on average. But that comparison sets an unfairly low bar.

In today’s energy landscape, where affordable technologies exist to significantly cut emissions, LNG producers and consumers alike must aim higher. Simply being “less dirty” than coal is no longer good enough, especially when cost-effective carbon capture solutions and methane leak prevention strategies are readily available.

Here’s What It Would Take to Cut LNG Emissions by 60%

The IEA lays out a compelling roadmap for action. First, reduce methane leaks, this alone could cut annual emissions by 90 million tonnes CO2 equivalent, or 25% of the total, and half of that could be achieved at no net cost. It’s a win-win for companies and the planet.

Next, the report recommends reducing flaring at LNG facilities and feed gas fields, which could deliver another 5 Mt CO2-eq in reductions. Improving process efficiency and incorporating carbon capture solutions at liquefaction plants could make even bigger dents in the emissions tally.

And for those willing to make a more significant investment, electrifying LNG terminals and upstream facilities using clean electricity could bring down emissions by an additional 110 Mt CO2-eq. The tools are here. It’s now a matter of applying them at scale.

Why This Matters for the Global LNG Market and Climate Goals?

The IEA is not just releasing this report in a vacuum. It was presented by Keisuke Sadamori, the IEA’s Director of Energy Markets and Security, at the 2025 LNG Producer-Consumer Conference in Japan. The global LNG trade plays a vital role in energy security, especially in regions shifting away from coal or oil. But that security cannot come at the cost of unchecked climate damage.

Bloomberg also highlighted the report, noting that for an estimated $100 billion, the LNG industry could reduce its emissions by 60%. It’s a hefty sum, but when viewed against the backdrop of global climate damage and economic losses from extreme weather events, it’s a necessary investment.

A Climate Opportunity Hiding in Plain Sight

This new IEA report turns the LNG discussion on its head. Instead of concentrating on LNG as the cleaner alternative to coal, it challenges governments and energy businesses to take accountability for the entire emissions footprint of LNG. The sector can go through a transformational upgrade today, in fact, the existing technology, can cut LNG supply chain emissions by more than half and put us on a pathway to meet climate targets. The pathway is clear, the technology exists, and the costs are low. It’s time to move from research to action because the world can’t afford for LNG to be a climate lost opportunity.

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