Private equity’s role in US liquefied natural gas emissions

Private equity firms have invested in 85% of operating and 73% of proposed US LNG terminals, contributing significantly to global emissions. The briefing highlights that six firms—PIMCO, Brookfield, KKR, Blackstone, York Capital Management, and Global Infrastructure Partners—account for over 75% of these financed emissions. It argues that LNG may be worse than coal when lifecycle methane emissions are considered and uses the Rio Grande LNG project as a case study of private equity acquiring assets after more accountable investors exit due to climate risks.

• Private equity firms are major drivers of the US LNG industry, having invested in 85% of currently operating terminals, which export approximately 11 billion cubic feet per day (bcf/d) and emit over 28 million metric tons of CO2 equivalent (mt CO2 e) annually.
• The expansion of private equity-backed LNG infrastructure is projected to increase emissions significantly; proposed terminals backed by these firms would add 68 mt CO2 e /yr and export 26 bcf/d more fracked gas, bringing total PE-backed emissions to over 96 mt CO2 e /yr.
• Six private equity firms—PIMCO, Brookfield, KKR, Blackstone, York Capital Management, and Global Infrastructure Partners—are the primary financiers, each contributing over 10 mt CO2 e /yr and collectively accounting for more than 75% of private equity's financed LNG emissions.
• While industry groups claim LNG is a 'bridge' to a decarbonized energy mix, lifecycle analysis—including extraction, liquefaction, and transport—suggests LNG may be worse than coal and can potentially double the methane emissions compared to analyses focusing only on power plant combustion.
• In January 2024, the White House paused US Department of Energy (DOE) export authorizations for LNG projects to re-evaluate economic and environmental impacts; this pause affects multiple private equity-backed projects, which would have accounted for approximately 36 mt CO2 e of yearly emissions.
• The Rio Grande LNG project in South Texas serves as a case study where Global Infrastructure Partners (GIP) provided critical financing to reach the Final Investment Decision (FID) after European investors, including Engie and the Port of Cork, and the bank Société Générale withdrew due to climate goals and reputational risks.

APA

Heil, N., Duong, D., & Moore, A. (2024). Private equity’s role in US liquefied natural gas emissions. Private Equity Climate Risks. https://peclimaterisks.org/lng-emissions/

Chicago

Heil, Nichole, Dustin Duong, and Alyssa Moore. Private equity’s role in US liquefied natural gas emissions. Private Equity Climate Risks, 2024. https://peclimaterisks.org/lng-emissions/.

Wikipedia

{{cite report |last1=Heil |first1=Nichole |last2=Duong |first2=Dustin |last3=Moore |first3=Alyssa |title=Private equity’s role in US liquefied natural gas emissions |publisher=Private Equity Climate Risks |date=28 March 2024 |url=https://peclimaterisks.org/lng-emissions/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{heil2024private, author = {Heil, Nichole and Duong, Dustin and Moore, Alyssa}, title = {{Private equity’s role in US liquefied natural gas emissions}}, institution = {Private Equity Climate Risks}, year = {2024}, month = mar, url = {https://peclimaterisks.org/lng-emissions/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }