The US, the European Commission, Japan, South Korea and Australia are collaborating to limit methane emissions from liquefied natural gas supply chains as concerns mount over the climate impact from leaks of the potent greenhouse gas.
Although few details were released, the partnership represents a shift for some of the world’s biggest LNG buyers who have historically prioritized security of supply. It may force suppliers who want to sell to Japan and Korea to reduce accidental and intentional releases of methane from their supply chains.
Methane is the primary component of natural gas and responsible for almost a third of the world’s heating since the industrial revolution.
“This initiative is an unprecedented cooperation among LNG buyers to achieve a cleaner LNG value chain, by encouraging LNG producers to reduce methane emissions,” Japan’s Minister of Economy, Trade and Industry Yasutoshi Nishimura said at the LNG Producer-Consumer Conference on Tuesday in Tokyo where the initiative was announced.
The European Commission and Japan want to move towards data collection that will provide emissions intensity data at a cargo, portfolio and operator level, according to a joint statement released by the group. In a separate session at the same conference the Japan Organization for Metals and Energy Security said it would work with Jera Co. and Korea Gas Corp. to collect data on methane emissions from individual LNG projects.
Global talks to limit emissions from fossil fuels are accelerating as governments look to tackle extreme heat that is already putting 2023 on course to become the warmest year since record-keeping began in the 1800s. US climate envoy John Kerry met with China’s top diplomat Wang Yi earlier Tuesday as the top two greenhouse gas emitters seek to collaborate to fight climate change despite deep discord over other issues.
Cutting leaks and intentional releases of methane, which has more than 80 times the warming power of carbon dioxide during its first two decades in the atmosphere, is one of the cheapest ways to combat climate change. Although burning natural gas releases less carbon dioxide than coal, it can be worse for the climate depending on how much of the methane leaks during production, transport and storage.
Climate activists and institutions are increasingly encouraging fossil fuel buyers to use their influence with producers to push for lower methane emissions across oil and gas supply chains. Because of methane’s short-term potency, limiting releases of the gas now can help curb temperatures within years.
If global oil and gas operators spent $75 billion — roughly equivalent to 2% of 2022 net income — to curb releases of methane through 2030, that would keep the sector on a pathway to achieve net zero emissions by mid-century, the International Energy Agency said in a report last month.
--With assistance from Tsuyoshi Inajima.
(Updates with details throughout.)
