Advocates hold out US LNG as a cleaner option for Asia
A study published June 8 by natural gas advocates finds LNG sourced from western US states could help Asian economies reduce their carbon footprint across the entire supply chain.
The study from the Western States and Tribal Nations Natural Gas Initiative (WSTN) finds that supplying this LNG to China, India, Japan, South Korea and Taiwan would reduce net life cycle emissions reductions of between 42-55% when it is used to replace coal in power generation. South Korea would make the biggest reduction of 54.8%.
From the US well head to transmission and distribution points in Asia, the study looked at emissions across the entire LNG supply chain.
“This study provides the building blocks needed to develop a pathway that elevates Rockies gas into the global Environmental, Social and Governance (ESG) gold standard for LNG,” Andrew Browning, the president of the WSTN, said.
The goal, he added, was to provide a baseline for policy-makers to use to “chart a course toward greater American economic strength and environmental leadership at home and across the world.”
At issue, however, is the lack of LNG export terminals on the western US coast. The only US export facility on the Pacific Ocean is the Trans-Foreland facility on the Kenai Peninsula in Alaska. With an export capacity of 200mn ft3/day, it is among the smallest US LNG export facilities.
Between May 27 and June 2, 21 vessels laden with LNG left US export facilities with a combined 76bn ft3 of product. None of that left Kenai, which last exported LNG in 2015.
That, however, does not prohibit US LNG from reaching Asian economies. At least two export terminals are being built on the north American western seaboard: Shell's in Canada and Sempra's in Mexico.
“To me, it is a no-brainer that LNG exports should be encouraged and fast-tracked with broad community and political support,” WSTN board chairman Jason Sandel said. “This study demonstrates that the US can literally export tangible emissions reductions that will benefit the global environment by exporting responsibly produced LNG.”