Oil & Gas

The surge in liquefied natural gas (LNG) imports to Europe, driven by efforts to offset Russian pipeline gas shortages, has sparked environmental concerns. A recent EU report accused Algeria, Qatar, and Nigeria of exporting LNG with emissions levels comparable to heavy fuel oils. This raises questions about the role of LNG as a cleaner energy alternative amidst Europe’s push for decarbonization. The allegations come as the EU prepares to implement laws promoting clean technologies in shipping, highlighting the tension between rising LNG demand and environmental sustainability.

As Europe pivots away from Russian energy, LNG imports have grown substantially, with Algeria, Qatar, and Nigeria ranking among its top suppliers. However, these imports carry significant emissions footprints, from extraction to transportation. A report by the EU Transport and Energy Authority revealed that LNG imports from these regions contribute pollution levels similar to heavy fuel oil. Greenpeace echoed this sentiment, singling out methane emissions from Algeria's Hassi R'Mel field. Such findings fuel debates about stricter environmental controls on both EU countries and exporters, with some questioning the fairness of these accusations.

Despite Europe's growing reliance on LNG, its use as a maritime fuel faces criticism. The EU’s upcoming Fuel Maritime Act aims to reduce carbon intensity in shipping, targeting an 80% reduction by 2050. However, current emissions data suggests LNG usage in shipping exceeds permissible levels by 30%. T&E’s report highlights significant methane leakage during LNG processing and combustion, challenging its viability as a sustainable fuel. The gap in emissions standards underscores the need for updated metrics to assess LNG’s environmental impact more accurately.

T&E's shipping officer, Inessa Olichina, advocates for a shift away from LNG, urging investment in green fuels that genuinely reduce emissions. While LNG is marketed as a transitional fuel for decarbonizing shipping, its lifecycle emissions suggest otherwise. Methane leakage and upstream pollutants remain major concerns, negating its purported benefits. With 1,200 ships already operating on LNG and another 1,000 expected, the stakes for adopting cleaner technologies are high. The push for green fuels is essential to achieving long-term climate goals and minimizing the ecological footprint of global energy consumption.