The Truth About LNG: Is It Really A Clean Fuel?

by | Sep 24, 2025 | Glossary and FAQs

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In recent years, there has been a notable shift in the global energy environment, with LNG becoming a controversial topic in conversations about climate change and the energy transition. Liquefied natural gas may not be the environmental hero that many thought it was, according to growing scientific research, despite supporters’ claims that LNG clean fuel qualities provide a link to a sustainable future.

LNG clean fuel

What Is LNG and Why Is It Promoted as Cleaner?

Liquefied natural gas, or LNG, is natural gas—mostly methane—that has been cooled to a liquid condition for easier shipping and transportation. LNG clean fuel is referred to as “lower-carbon” or “cleaner burning” by many governments and energy businesses because it burns cleaner than coal or heavy fuel oil in terms of carbon dioxide (CO₂) per energy unit.

During the whole LNG lifetime, including extraction, processing, liquefaction, shipping, regasification, and end-use, emissions are produced, especially methane (CH₄), a much more potent greenhouse gas on short time scales.

Also Read: Power-Sector Emissions In India Fell Again, Marking First Multi-Decade Reduction

The LNG Revolution and Market Dynamics

The liquefied natural gas market has grown at an unprecedented rate; in 2024, the global LNG trade reached 411.24 million tonnes, up 2.4% from the year before. Geopolitical considerations have fueled this expansion, especially in the wake of Russia’s 2022 invasion of Ukraine, which interrupted conventional pipeline gas supplies to Europe and hastened the hunt for alternative energy sources. With 11.9 billion cubic feet of LNG sent daily in 2024, the US has surpassed Australia and Qatar to become the world’s largest LNG exporter.

The global LNG industry is rapidly growing, with around 1,313 LNG terminals (existing + planned + under construction) worldwide. These terminals handle about 5 billion tonnes of LNG per year. The capacity to produce LNG is expected to increase from 474 million tonnes in 2024 to 666.5 million tonnes by 2028. One million tonnes per annum (MTPA) means a facility can process that amount of LNG in a year. This growth shows how LNG is becoming a key part of the world’s energy system, requiring large investments in storage and shipping infrastructure.

Also Read: New Study: Emission Surge Could Jeopardize India’s Solar Infrastructure

Methane Emissions Throughout the Supply Chain

Methane traps about 84-87 times more heat than CO₂ over 20 years, the critical window for climate action, and around 28–36 times over 100 years, a common policy timeframe. LNG’s environmental credentials as a clean fuel become much more complicated when considering the full supply chain, rather than just combustion emissions.

Scientific studies from 2024 and 2025 show that when you count all the methane leaks during LNG production and transport, LNG can cause up to 33% more greenhouse gases than coal over 20 years. Methane escapes in tiny amounts all along the chain—from drilling to shipping—and this makes a big difference because methane traps much more heat than carbon dioxide. Methane leakage across the LNG supply chain, which takes place at several points during the extraction, processing, liquefaction, transportation, and regasification processes, is the main cause of these increased emissions.

Even modest leakage rates have a climatic impact since methane has an 82.5-fold higher potential for global warming than carbon dioxide over its first 20 years in the atmosphere. On average, LNG liquefaction terminals leak about 0.07% methane, and regasification terminals leak about 0.02%, combining to a total of roughly 0.1%. These small leaks add up because methane traps much more heat than CO₂ over 20 years.

Also Read: Methane Emissions In Brazil Surged 6%—Mostly Driven By Beef & Dairy

Transportation and Processing Impacts on LNG’s Carbon Footprint

The energy-intensive procedures needed to bring liquefied natural gas (LNG) to market further complicate the story of LNG as a clean fuel. Liquefaction cools natural gas to about -160°C (-260°F) so it turns liquid for shipping. This cooling uses a lot of energy, often from fossil fuels, which adds to emissions.

LNG tankers are another concern. In 2025, tests found that new LNG ships still leak about 6.4% of methane from their engines. This slip is far higher than earlier estimates and makes LNG’s climate footprint even bigger. Fixing this ‘methane slip’ is a key challenge for making LNG cleaner.

Although two- and four-stroke engines are more fuel-efficient than steam-powered ships, methane slipping through exhaust systems paradoxically results in increased greenhouse gas emissions from modern LNG carriers. When LNG is stored and transported, engines burn it, causing unburned methane to leak straight into the atmosphere.

LNG clean fuel

Source: IEEFA

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Comparing LNG Clean Fuel vs Alternatives

Aspect Liquefied Natural Gas (LNG clean fuel) Coal Renewables (Wind, Solar, etc.)
CO₂ emissions when burned Lower than coal per unit of energy, but it depends on combustion efficiency. High. CO₂ per MJ is much larger. Very low or none at the point of generation.
Methane leakage & upstream emissions Significant risk; if uncontrolled, can erase benefits. Coal has less methane leak (but has CO₂ + particulates + sulfur, etc.). Minimal lifecycle leakage (mostly manufacturing/installation).
Lifecycle GHG intensity (20-year timeframe) It can be 20-40% worse than coal if leakage rates are high. Coal is the baseline of high emissions. Much lower. Net-zero potential.
Infrastructure & investment lock-in High cost, long payback. Risk of locking in fossil infrastructure. Already established; high environmental cost. High upfront cost but rapidly dropping; long-term clean payoff.
Local air pollution (NOx, SOx, particulates) Better than coal/oil but not zero; combustion emits some pollutants. Very high. Soot, sulfur, etc. Very low during operation. Some from manufacturing.
Role as a transition fuel Possible, but only if methane leaks are tightly controlled and a phase-out is planned. Non-viable in the long term under climate goals. Essential for a long-term clean energy future.

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Economic Competitiveness: LNG vs Renewables in 2025

As the cost of renewable energy continues to drop, the economic case for LNG clean fuel has grown more and more dubious. Even when fossil fuel prices were close to all-time highs, the International Renewable Energy Agency (IRENA) reports that over 75% of new renewable energy capacity deployed in 2023 was less expensive than fossil fuel alternatives. Compared to the previous year, the cost of solar photovoltaics dropped by 12%, onshore wind by 3%, and offshore wind by 7%. Meanwhile, LNG infrastructure necessitates large capital expenditures that will take decades to pay for.

When taking into account the entire lifetime costs of fuel procurement, infrastructure development, and environmental externalities, an analysis conducted by the E3 consultancy shows that renewable energy resources provide more affordable alternatives to both coal and LNG-fired generation. Liquefied natural gas clean fuel arguments are becoming harder to support from a simple economic standpoint, as the levelized cost of electricity (LCOE) from renewable sources has steadily declined.

Also Read: IEA’s Global Methane Tracker 2025 Reveals Surging Emissions, Over 120 Million Tonnes Released Annually

Scientific Measurement and Data Gaps

The lack of thorough emissions data throughout the supply chain is one of the biggest obstacles to evaluating LNG clean fuel claims. According to research by chemical engineer Paul Balcombe, scientists have only gathered direct measurement data for about 5% of LNG activities; the other 95% need more research to properly comprehend overall emissions patterns.

More precise emissions data is starting to become available because of recent developments in supply chain-specific lifecycle assessments, direct measurement technology, and satellite monitoring. Liquefied natural gas clean fuel assumptions are undermined by studies that use these sophisticated measuring techniques, which routinely reveal greater methane emission rates than previously assumed.

Also Read: Top 10 Global Methane Hotspots Identified In New Atmospheric Study

Conclusion

A growing body of information indicates that LNG clean fuel claims need to be carefully examined, especially in light of whole lifecycle emissions, economic competitiveness, and climate obligations. In direct combustion scenarios, liquefied natural gas might be superior to coal in some ways, but a thorough environmental and economic analysis identifies serious drawbacks that call into question its viability as a sustainable energy source. Renewable energy technologies’ quick development and falling costs offer more convincing avenues for real climate action and energy security, indicating that the future is not cleaner fossil fuels but rather the quicker adoption of really clean energy alternatives.

FAQs: Frequently Asked Questions

1. If LNG burns more cleanly than coal, why isn’t it clearly a “clean fuel”?

Methane leakage and emissions upstream and downstream can offset the benefits; the short-term global warming potential of methane is very high.

2. How bad are methane leaks really?

Recent studies show methane leaks can be high—up to 6.4% of gas escapes from ship engines alone, and leaks from production and shipping add more. These leaks make LNG much worse for the climate than people used to think

3. Can LNG clean fuel help in reducing global emissions goals?

It can contribute if managed strictly—but relying on LNG alone without renewables, leak control, and phase-outs will likely prevent meeting 1.5-2°C goals.

4. Is LNG preferable to coal or oil?

In many cases, yes, especially for local air quality and when infrastructure is efficient. But the margin of benefit depends on leakage and lifecycle emissions.

5. What are the alternatives to LNG for cleaner energy?

Renewables (solar, wind, hydro), green hydrogen, energy efficiency, and demand reduction are far cleaner over full lifecycles.

Also Read: Australia’s 2035 Emissions Target Falls Short Of Expectations At 62-70%

Author

  • Michael Thompson is an esteemed expert in the renewable energy sector, with a profound experience spanning over 25 years. His expertise encompasses various sustainable energy solutions, including solar, wind, hydroelectric, and energy efficiency practices. Michael discusses the latest trends in renewable energy and provides practical advice on energy conservation.

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1 Comment

  1. Shawn

    Me ha parecido muy interesante el análisis sobre las emisiones de metano en toda la cadena de suministro del GNL. Es un recordatorio crucial de que la etiqueta de “combustible limpio” a menudo oculta realidades más complejas. Esto me hizo reflexionar sobre cómo, en muchos campos, las soluciones que parecen obvias en la superficie requieren un examen más profundo y, a veces, un enfoque completamente diferente para ser realmente efectivas.

    Hablando de enfoques diferentes, recientemente escuché un podcast fascinante que exploraba cómo los pensamientos no convencionales y la voluntad de cuestionar los supuestos establecidos han impulsado algunas de las mayores revoluciones científicas. El episodio, que pueden encontrar aquí https://skrapsofbrilliance.com/the-maverick-mindset-how-unconventional-approaches-sparked-scientific-revolutions, analiza casos como el desarrollo de antibióticos y otras terapias.

    Esto me lleva a mi pregunta: En el contexto de la transición energética, ¿creéis que estamos aplicando un pensamiento lo suficientemente “maverick” o disruptivo para abordar el desafío del GNL? O, por el contrario, ¿nos estamos quedando atrapados en soluciones incrementalistas que simplemente perpetúan un sistema de combustibles fósiles “menos sucio”, en lugar de buscar una transformación real hacia energías genuinamente limpias? Me gustaría escuchar vuestras opiniones.

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