How shipping more US natural gas to Europe helped fuel CO2 pollution By Reuters

By Tim McLaughlin

(Reuters) -Carbon dioxide emissions from U.S. liquefied amenities have jumped to 18 million tons per 12 months, up 81% since 2019, including a quantity of greenhouse gasoline to the environment equal to that produced by a number of large coal crops, in line with United States authorities knowledge.

They may greater than double to 45 million tons per 12 months by the top of the last decade as new amenities, inspired by hovering abroad demand for the super-cooled gas, come on-line, in line with firm projections supplied to the U.S. Environmental Safety Company and the Federal Vitality Regulatory Fee tallied by Reuters.

The emissions figures and projections, which haven’t been beforehand reported, mirror a hard tradeoff for the Biden administration, which needs to spice up gas shipments to European allies whereas additionally chopping greenhouse gasoline output at residence to combat local weather change.

The Biden White Home has mentioned U.S. LNG might help Europe scale back its dependence on gasoline provides from Russia, which is dealing with western sanctions over its battle in Ukraine. The administration authorized 5 U.S. LNG export licenses to serve the European market following Russia’s invasion, having authorized none beforehand.

The White Home didn’t return messages searching for touch upon the rise in emissions from the LNG sector. The Vitality Division, which oversees LNG export allowing, mentioned it’s funding a number of initiatives targeted on lowering carbon dioxide emissions from LNG terminals and different sources.

U.S. particular local weather envoy John Kerry advised Reuters final 12 months that greenhouse gasoline emissions have been an inevitable “draw back” to rising LNG exports to European allies.

Carbon dioxide emissions from all seven working U.S. LNG export amenities totaled 17.6 million tons in 2022, up 81% since 2019 when the sector had 6 amenities, in line with EPA knowledge.

By 2028, 5 tasks now beneath development are as a result of come on-line, producing a further 27 million tons a 12 months of emissions, in line with firm projections supplied to the EPA and FERC.

That works out to greater than 45 million tons per 12 months by the top of the last decade or roughly 2.5% of present carbon emissions from the U.S. energy trade.

LNG exporters, in the meantime, have shelved plans to make use of carbon seize and sequestration (CCS) to scale back emissions, in line with regulatory filings, casting doubt on the viability of the expertise as a large-scale answer to the trade’s local weather influence.

CO2 emissions from the energy-intensive technique of liquefying gasoline for export mark just one stage within the trade’s general local weather influence. Methane leaks throughout drilling, piping, delivery, and distribution additionally add to air pollution – even earlier than the gas is used.

A CLEANER FUEL?

The US grew to become an LNG exporter in 2016 on the again of a home pure gasoline drilling increase, with abroad shipments rising quick.

U.S. LNG exports averaged a file 11.6 billion cubic toes per day throughout the first half of 2023, up 4% from the primary half of final 12 months, with a lot of these volumes going to Europe, making the US the world’s largest exporter, in line with the Vitality Info Administration.

Advocates of LNG argue the gas burns cleaner than coal.

“Nations world wide need to replicate the US mannequin for financial improvement and speedy carbon emissions reductions, which is to maneuver away from dirtier fuels and in direction of pairing pure gasoline with renewables,” mentioned Robert Payment, vice chairman of local weather and worldwide affairs for LNG exporter Cheniere Vitality (NYSE:).

Critics argue that it’s unclear whether or not the U.S. gasoline export increase to Europe is displacing coal or delaying a transition to renewables like photo voltaic and wind.

“We do not actually know the way a lot coal is being displaced in these abroad markets,” mentioned Alexandra Shaykevich, an analyst at Washington-based Environmental Integrity Challenge.

CARBON CAPTURE DOUBTS

Three LNG operators – Freeport LNG, Sempra and Enterprise International in 2021 and 2022 introduced plans to make use of carbon seize to maintain a portion of their greenhouse gases from reaching the environment.

Freeport’s CCS undertaking was to start out injecting CO2 air pollution from its Texas plant into the bottom by 2024, in line with a 2021 press launch. However in an August disclosure to the SEC, its associate within the undertaking, Talos Vitality (NYSE:), mentioned, “We’ve no future improvement plans associated to the undertaking.”

Freeport declined to touch upon the event and Talos didn’t return messages.

Sempra final 12 months introduced a plan to include a CCS undertaking in its Cameron LNG facility in Louisiana. However the firm has mentioned in SEC disclosures that the undertaking wants a dedication from its companions earlier than transferring forward.

Sempra didn’t reply to requests for touch upon the probability the undertaking could be constructed.

Upcoming CCS tasks are additionally doubtful.

NextDecade (NASDAQ:) Corp has mentioned its proposed terminal close to Brownsville, Texas, might take away greater than 90% of its anticipated 6.4 million tons per 12 months of carbon emissions. However the firm advised Reuters the economics are unsure.

“There have to be prospects which can be prepared to help the income necessities to cowl the associated fee to finance, construct and function the power and to offer acceptable returns on invested capital,” spokesperson Susan Richardson mentioned.