LNG industry must prioritise decarbonisation across the entire value chain

In an exclusive interview with Energy Connects ahead of the 24^th World LNG Summit & Awards, Masataka Yarita, Director, Energy Research Division and Head of Methane Management Taskforce at Japan Organization for Metals and Energy Security (JOGMEC), shares his insights on the CLEAN initiative on methane abatement, why decarbonisation efforts within the LNG industry must extend across the value chain, and JOGMEC’s role in supporting the transition to a low-carbon future in Japan and beyond.

Why is it critical for the industry to prioritise the decarbonisation of the LNG value chain?

LNG has been a well-balanced energy source in terms of stability, affordability, low pollution and low carbon emissions. Many countries, including South Korea and Japan, have used LNG for energy transition and it will play a similar role in emerging economies in the future. Developed countries are also expected to use LNG as an important complement to the intermittency of renewable energy. On the other hand, the global momentum towards decarbonisation is expected to increase further, and it will be crucial to ensure LNG can deliver intended climate benefits.

Top-down data on methane emission status obtained from satellites and bottom-up data on direct measurement obtained from each project should be mutually complemented to optimise measurement in a manner that takes economic rationality into consideration. JOGMEC and Woodside Energy have just begun matching methane management needs and technology seeds to solve methane emission issues. The CLEAN Initiative is expected to serve as a platform for such collaboration.
- Masataka Yarita

In addition, decarbonisation efforts of the LNG industry have been taken in the upstream and midstream (liquefaction) facilities. However, awareness of methane emission reduction for downstream sector (industries, power generating companies) were limited or mainly focused on safety issues. It is important to recognise efforts in the entire value chain.

Could you share more insights on the findings from JOGMEC and the ‘CLEAN’ initiative on methane abatement?

The initiative was launched in 2023 by two large LNG importers, JERA of Japan and KOGAS of South Korea, and one coordinator, JOGMEC.

As a part of the initiative, a questionnaire on methane emissions was sent to 20 major LNG projects. Around 80% of LNG projects responded – including those of who are not willing to disclose the data or are not collected the data – to the questionnaire and 35% of major LNG projects provided methane emission data.

Based on the provided data, JOGMEC compiled information on methane emissions and reduction efforts on a project basis for the first time in the world, based on the results of a survey on methane emission reductions among producers as the CLEAN Annual Report 2024. This initiative was expanded in 2024 and welcomed 22 additional companies to the coalition.

The methane intensity target for the Japanese LNG value chain is around 0.2%, calculated by a weighted average of the OGMP 2.0 reported data. South Korea is similarly around 0.19%.

What role is JOGMEC playing in supporting the transition to a low-carbon future in Japan and beyond?

It is important to make LNG with methane emission reduction measures competitive by allowing more LNG projects to disclose data under the CLEAN initiative. There are three main future developments to achieve this.

First, it is important to introduce best practices for methane emission reduction measures to be implemented in many LNG projects, and to encourage those of who have not yet taken action to do so. There is a question of who should pay the cost of methane emission reduction measures, but according to the IEA, about 40% of methane emissions from fossil fuels can be addressed at net zero cost. As a first step, we encourage the further development of measures that can be taken without such additional cost burdens and without large investments.

In addition, the next step is to further spread the importance of methane management in LNG consuming countries. At the LNG Production and Consumption Conference held in Hiroshima, Japan on October 6, the 22 new Japanese utility companies announced their participation in the CLEAN Initiative and this should be extended to other large LNG importing countries.

The final point, but not least, is about data optimisation. Top-down data on methane emission status obtained from satellites and bottom-up data on direct measurement obtained from each project should be mutually complemented to optimise measurement in a manner that takes economic rationality into consideration. JOGMEC and Woodside Energy have just begun matching methane management needs and technology seeds to solve methane emission issues. The CLEAN Initiative is expected to serve as a platform for such collaboration.

What are you looking forward to at the World LNG Summit and Awards 2024 in Berlin?

The World LNG Summit & Awards 2024 is just a couple of weeks away, taking place from December 9-12 in Berlin. The 24^th edition is the meeting place for senior LNG leaders from across the global value chain to define the critical role LNG, gas and renewable fuels will play in delivering energy security, economic stability, and the ongoing drive for decarbonisation. I am particularly looking forward to discussing LNG’s credentials as a lower carbon fuel that has earned it the reputation as a key enabler of the energy transition within the industry.

• Click here to register as a delegate and attend the 24^th World LNG Summit & Awards from 9-12 December 2024 at the Hotel Adlon Kempinski Berlin, Germany