- Rystad Energy’s study provides the most accurate 2024 data on LNG bunker fuel emissions, supporting IMO’s Net-Zero Framework.
- Upstream gas production and liquefaction are the largest contributors to LNG lifecycle emissions, highlighting key decarbonization priorities.
- Methane mitigation and adoption of efficient liquefaction technologies have already reduced emissions, with further improvements expected through renewable electrification.
- Regional variations in emissions demonstrate the need for asset-level data rather than global averages to guide effective regulations.
Independent research firm Rystad Energy has released a detailed study examining greenhouse gas (GHG) emissions across the LNG bunker supply chain. Commissioned by SEA-LNG, the analysis provides the most accurate and certified data on LNG as a marine fuel, offering guidance for IMO’s Net-Zero Framework and shaping future shipping fuel policies, according to SEA-LNG.
Lifecycle Emissions of LNG Bunker Fuel
The study examines greenhouse gas emissions across the five main stages of the LNG fuel lifecycle: upstream production, transportation and processing, liquefaction, shipping, and distribution and bunkering. It follows the International Maritime Organization’s (IMO) Well-to-Tank (WtT) lifecycle analysis framework, aligns with the Intergovernmental Panel on Climate Change’s (IPCC) AR5 GHG definitions, and uses asset-specific data from 2024.
Global WtT emissions intensity for LNG bunkering fuel in 2024 is estimated at 13.9 g CO2e/MJ (LHV), with carbon dioxide accounting for 84% of the total emissions. Within the liquefaction stage, carbon dioxide is particularly dominant, representing 99% of emissions in that phase. Methane contributes 16% of total WtT emissions, equivalent to 2.2 g CO2e/MJ, and is most significant in the upstream gas production stage, responsible for 38% of that stage’s emissions.
Upstream production and liquefaction together account for the majority of emissions in the LNG bunker supply chain, at 30% and 43% respectively, highlighting these stages as priorities for future decarbonization efforts. The industry has already made measurable progress in reducing methane emissions in upstream operations through initiatives like the Oil and Gas Climate Initiative (OGCI) and the Oil and Gas Methane Partnership (OGMP 2.0). Emissions from liquefaction have also decreased with the adoption of more efficient technologies, a trend expected to continue alongside electrification projects using renewable energy sources such as hydro and solar power.
LNG as a Practical Pathway for Maritime Decarbonization
Despite early efforts to move away from fossil fuels, roughly 95% of vessels continue to operate on oil-based marine fuels. LNG remains the only alternative fuel available at scale with commercially competitive pricing, making it the leading option for decarbonization. Today, LNG already accounts for nearly 20% of the vessel orderbook. In some cases, emissions intensity varied by as much as 6.6 g CO2e/MJ, showing that a single global average may not fully reflect reality and could lead to poorly informed regulatory choices.
Patrick King, Vice President of Emissions Research at Rystad Energy, emphasized that the study uses asset-level data linking specific gas fields to liquefaction facilities. Supported by satellite-detected methane plumes and reported asset information, this approach provides a more accurate view of LNG used for bunkering, avoiding reliance on outdated or overly broad averages.
Peter Keller, Chairman of SEA-LNG, noted that the report sets a benchmark for the IMO, stating that decisions on alternative fuel emissions within the Net-Zero Framework should be based on real, recent data to support continued progress along the practical LNG pathway to decarbonization.
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Source: SEA-LNG
