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US LNG to Asian Market is Cleaner than Coal

By Shubhendra Anand , 15 October, 2024

Clean energy sources are important elements in the green transformation. The shift from fossil fuels to renewable energy sources accelerates the transformation process. Other energy sources, liquidated natural gas (LNG) and electricity, boost the clean energy transition. These two energy sources are gaining momentum in 2024 at a rapid rate. Liquified natural gas is not a renewable energy source, but its harmful emissions are much lower than those of fossil fuels. Therefore, the United States LNG exports to India will grow significantly in 2024.

Experts say that despite LNG being a fossil fuel, it is considered a cleaner burning energy source than coal. In contrast, coal produces a much higher rate of carbon emissions than LNG, which produces fewer air pollutants. Therefore, LNG is an effective fossil fuel for the clean energy transition. For an Asian country like India, which has a large population, LNG can provide better results. This is due to the difficulty of shifting from coal usage to renewables in India, citing the growing population. It is challenging to offer renewable energy to a large population to meet the fuel demand. Hence, fossil fuels like LNG come to the rescue. According to research in the clean energy sector, studies show that LNG will help reduce greenhouse gas emissions by 2024. hence, the dependency on coal will be reduced gradually. However, there are specific gaps in LNG transportation and usage, too. This includes methane leakage in the LNG supply chains that reduces the efficiency of LNG's transportation. Based on the surveys, LNG produced in the United States generates 5o percent less emissions than the clean coal power plants.

According to surveys, LNG transportation to Asian markets from the United States is anticipated to increase by up to 30 percent by the end of 2030. It is difficult to lower the demand for gas in Asian nations and simultaneously meet the demand for renewables. Therefore, finding solutions to overcome the gaps in shipping LNG exports to support clean energy transition is essential.

                              Emissions from coal and LNG in the energy market

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Shubhendra Anand

Head Research