Gas Bubble 2020

The report finds that global LNG terminal capacity under construction more than doubled between 2019 and 2020, increasing capital expenditure from $82.8 billion to $196.1 billion. This expansion is primarily driven by North American efforts to create new markets, but faces significant headwinds from the COVID-19 pandemic, falling gas prices, and intensifying opposition. The authors argue that the 'bridge fuel' narrative is undermined by high methane leakage rates, with some estimates suggesting LNG-powered electricity can have a global warming impact up to 16% higher than coal. Furthermore, the report highlights a high failure rate for proposed export projects (61% since 2014) and the risk of stranded assets as renewables become more cost-competitive.

• Global LNG terminal capacity under construction more than doubled in the year preceding the report, with total capital expenditure rising from $82.8 billion to $196.1 billion.
• The expansion of LNG is heavily led by North America; terminals in development would place the region in a position of global leadership. Specifically, the U.S. and Canada have 60.2 MTPA under construction, and the region as a whole has 368.5 MTPA in pre-construction development, representing 68% of the global total.
• The portrayal of fossil gas as a 'bridge fuel' is challenged by methane leakage. In the U.S., the overall leakage is estimated at 2.3%, and in the Permian basin, it is 3.7%. Consequently, the global warming impact of a new LNG-supplied gas plant compared to a new coal plant can range from 29% lower to 16% higher.
• Proposed LNG export terminal projects have a high failure rate, with 61% of projects proposed between 2014 and 2020 being cancelled or abandoned. This is attributed to a combination of low gas prices, pandemic disruptions, and organized opposition.
• Floating storage and regasification units (FSRUs) are marketed to developing countries for their speed and lower upfront costs, but they have a 65% failure rate since 2016 and higher operating costs than onshore terminals after 6 to 12 years. They are also susceptible to extreme weather, as seen in Bangladesh and Malta.
• Financial institutions are facing increasing risks of stranded assets. While some banks like BNP Paribas and UniCredit have introduced restrictions on fracked gas, the European Investment Bank announced it would end nearly all funding for fossil fuel projects after 2021, with some exceptions for EU Projects of Common Interest.

APA

Plante, L., Browning, J., Aitken, G., Inman, M., & Nace, T. (2020). Gas Bubble 2020. Global Energy Monitor. https://globalenergymonitor.org/sites/default/files/migration/reports/GasBubble_2020_r3_11.pdf

Chicago

Plante, Lydia, James Browning, Greig Aitken, Mason Inman, and Ted Nace. Gas Bubble 2020. Global Energy Monitor, 2020. https://globalenergymonitor.org/sites/default/files/migration/reports/GasBubble_2020_r3_11.pdf.

Wikipedia

{{cite report |last1=Plante |first1=Lydia |last2=Browning |first2=James |last3=Aitken |first3=Greig |last4=Inman |first4=Mason |last5=Nace |first5=Ted |title=Gas Bubble 2020 |publisher=Global Energy Monitor |date=July 2020 |url=https://globalenergymonitor.org/sites/default/files/migration/reports/GasBubble_2020_r3_11.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{plante2020gas, author = {Plante, Lydia and Browning, James and Aitken, Greig and Inman, Mason and Nace, Ted}, title = {{Gas Bubble 2020}}, institution = {Global Energy Monitor}, year = {2020}, month = jul, url = {https://globalenergymonitor.org/sites/default/files/migration/reports/GasBubble_2020_r3_11.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }