IEA finds LNG supply-chain emissions cuttable over 60% with existing technology

The IEA's June 20 2025 report estimates the LNG supply chain emits about 350 million tonnes of CO2-equivalent annually and could cut over 60% using existing technologies. As India's LNG demand grows, the findings raise emissions-accountability expectations for gas importers and ESG-focused energy portfolios.

The International Energy Agency (IEA) published "Assessing Emissions from LNG Supply and Abatement Options" on June 20 2025, unveiled at the 2025 LNG Producer-Consumer Conference in Japan. It estimates the LNG supply chain emits approximately 350 million tonnes of CO2-equivalent annually from upstream production, pipeline transport, liquefaction, shipping, and regasification. Around 70% is carbon dioxide from combustion and venting and 30% is unburned methane. The report finds emissions could be reduced by more than 60% using existing technologies including methane leak detection, flaring minimisation, efficiency improvements, and carbon capture, utilisation and storage.

The findings affect LNG producers, energy portfolio managers, and sustainability officers facing growing scrutiny from ESG investors and regulators. Methane abatement alone could cut 90 Mt CO2-eq annually, one-quarter of total LNG emissions, with nearly half achievable at no net cost. While over 99% of LNG consumed in 2024 had lower life-cycle emissions than coal, the report warns this "sets the bar too low." On average LNG emits about 25% less greenhouse gas than coal per unit of energy, though wide geographical variation in efficiency and methane intensity undermines this advantage.

Indian gas importers and ESG-focused energy investors should track emissions-accountability expectations across the LNG value chain as demand rises across Asia over the coming decade. The report prioritises near-zero-cost methane abatement for policymakers and producers, and highlights electrification of LNG terminals and upstream infrastructure with clean electricity, which could cut a further 110 Mt CO2-eq annually. Energy portfolio managers should assess supply-chain methane intensity and abatement readiness, recognising that LNG cannot be treated as a climate solution without serious supply-side abatement.

Key figure — Emissions reduction potential: over 60% using existing technologies