Research shows switching coal for LNG in Asia can greatly reduce power sector emissions and that LNG exports from supply countries have net emissions benefits.
Myth
LNG has a greater carbon footprint than coal.
Fact
LNG has significantly lower carbon intensity than coal through the full lifecycle, from production to shipping and end use.
The truth behind the carbon intensity of LNG
Liquefied natural Gas (LNG) is a critical fuel for both energy security and decarbonisation in Asia. With regional gas resources not sufficient to meet rapidly rising demand, LNG imports provide reliable power generation with far fewer emissions than the coal that currently dominates Asia’s energy landscape.
While LNG production, transport and consumption have emissions profiles that must be managed, the lifecycle carbon intensity of LNG has been demonstrated to be significantly lower than coal.
LNG DOES NOT have a larger carbon footprint than coal, as some anti-gas activists, organisations and researchers claim.
Numerous comprehensive studies support this.
LNG’s carbon intensity is much lower than coal
Analysis in 2025 by S&P Global Energy identified LNG as a fuel well-placed to support nations in Asia to shift away from coal and reduce emissions.
The Pathways to Accelerate Power Emissions Reduction in Asia study, found that LNG from Australia, the US and Qatar (Asia’s three biggest suppliers) had an average lifecycle carbon intensity 47% lower than coal being used in power production in Japan, Vietnam and the Philippines.1
For every tonne of CO2 emitted when producing and shipping LNG to Asia, more than 3 tonnes of CO2 emissions were avoided on a lifecycle basis when it replaced coal in power generation.
If Japan, the Philippines and Vietnam used a combination of LNG and renewables to retire half their coal-fired power by 2035, it would have the equivalent emissions reduction impact of removing 58 million passenger cars from the road.
Multiple studies make the case for LNG
The S&P Global Energy analysis adds to a strong collection of international research that demonstrates the lifecycle carbon intensity of LNG is significantly lower than coal.
This includes a 2025 report by the International Energy Agency Assessing Emissions from LNG Supply and Abatement Options which highlighted that 99% of LNG consumed globally in 2024 had fewer lifecycle emissions than coal.
As the IEA states:
“An oft-heard charge made against LNG is that methane emissions along the gas supply chain mean it has a higher life-cycle GHG emissions intensity than coal. IEA analysis does not support this conclusion.”
The IEA estimated that all global “LNG results in about 25% fewer emissions than coal across energy use cases of these fuels” and pointed to compelling data on power generation from LNG. The report stated that “on average, the lifecycle GHG emissions intensity of electricity produced from LNG is around 40% lower than electricity produced from coal” – aided by the higher efficiency of gas-fired power plants.
Similarly, analysis in 2025 by WoodMackenzie – using its own proprietary data and credible third-party sources – found that full lifecycle emissions of US LNG were 48% of the coal equivalent.
Tackling LNG supply chain emissions
The global LNG industry has committed to and invested significantly in decarbonisation of value chains, including carbon capture and storage (CCS) technology in production and advancements in methane emissions detection and management. Leading LNG producers across all major supply regions have achieved methane intensities below 0.2%, with participants in the Oil and Gas Climate Initiative reducing upstream methane intensity by 63% since 2017.
This progress has been driven by advanced leak detection and repair (LDAR) programs that employ satellite monitoring, drones, and optical gas imaging.
Even factoring in upper ranges of methane emissions from select sources, the S&P Global Energy analysis identified that LNG’s lifecycle carbon intensity was around half that of coal.
This means that LNG exports to Asia from major supplier nations have a net emissions benefit from displacing coal.
S&P Global Energy’s analysis incorporated robust inputs from public and proprietary data sources, modelling high and low-emission data sets from major coal and LNG production and supply chains across diverse regions. For LNG, this included accounting for methane leakages throughout the value chain, using a range of reputable sources such as satellite observations, company and government-reported data, and previous third-party studies.
