WHAT ARE THE RISKS ASSOCIATED WITH THE DEVELOPMENT OF LIQUEFIED NATURAL GAS (LNG)?

The document outlines the high energy consumption and methane leakage associated with the LNG value chain, highlighting that US-produced LNG can have a carbon footprint 28% higher than coal. It warns of significant financial risks, including the potential for LNG infrastructure to become stranded assets due to overcapacity, particularly in Europe where utilization rates are forecast to drop to 36% by 2030.

• The LNG value chain is energy-intensive and prone to methane leaks at every stage, including pipeline transport, liquefaction, sea transport, and regasification. Liquefaction plants alone consume approximately 10% of the fossil gas they process to power operations.
• LNG produced in the United States is particularly damaging due to the use of hydraulic fracturing and high-risk pipeline networks, resulting in a carbon footprint that is roughly 28% higher than that of coal.
• There is a high risk of LNG infrastructure becoming stranded assets due to projected overcapacity. In Europe, import capacity is expected to exceed 400 billion cubic metres (bcm) by 2030, while demand is forecast to remain between 150 and 190 bcm, potentially leading to a utilization rate of 36%.
• Financial risks for LNG projects are severe; under the IEA's Announced Pledges Scenario, two-thirds of projects under construction may not recover their initial investment, a figure that rises to three-quarters under the Net Zero Emissions by 2050 Scenario.
• The possibility of converting LNG infrastructure to carry hydrogen or bio-methane is largely overestimated due to technical and economic constraints, with the exception of some long-distance pipelines and storage sites for hard-to-abate sectors.

APA

Reclaim Finance (n.d.). WHAT ARE THE RISKS ASSOCIATED WITH THE DEVELOPMENT OF LIQUEFIED NATURAL GAS (LNG)? https://reclaimfinance.org/site/wp-content/uploads/2024/11/What-are-the-risks-associated-with-the-development-of-liquefied-natural-gas-LNG.pdf

Chicago

Reclaim Finance. WHAT ARE THE RISKS ASSOCIATED WITH THE DEVELOPMENT OF LIQUEFIED NATURAL GAS (LNG)? n.d. https://reclaimfinance.org/site/wp-content/uploads/2024/11/What-are-the-risks-associated-with-the-development-of-liquefied-natural-gas-LNG.pdf.

Wikipedia

{{cite report |author=Reclaim Finance |title=WHAT ARE THE RISKS ASSOCIATED WITH THE DEVELOPMENT OF LIQUEFIED NATURAL GAS (LNG)? |url=https://reclaimfinance.org/site/wp-content/uploads/2024/11/What-are-the-risks-associated-with-the-development-of-liquefied-natural-gas-LNG.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{reclaimfinancendwhat, author = {{Reclaim Finance}}, title = {{WHAT ARE THE RISKS ASSOCIATED WITH THE DEVELOPMENT OF LIQUEFIED NATURAL GAS (LNG)?}}, institution = {Reclaim Finance}, url = {https://reclaimfinance.org/site/wp-content/uploads/2024/11/What-are-the-risks-associated-with-the-development-of-liquefied-natural-gas-LNG.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }