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LNG enables coal to gas-switch in power generation
Natural gas plays a key role in power generation, since burning natural gas in combined gas-fired powered plants, has proved to be more efficient and cleaner than burning other fossil fuels, like coal.
On a lifecycle basis, studies have concluded that LNG emits around half the greenhouse gas emissions that coal does when burnt to generate electricity.
Compared to a typical new coal plant, natural gas emits 50 to 60% less carbon dioxide (CO2) when combusted in a new efficient natural gas power plant. Using natural gas to substitute all coal consumed in power generation would reduce CO2 emissions by 1,200 Mt. Regions like Asia Pacific, show a huge potential for conversion.
However, the gas industry is challenged by greenhouse gas emissions over the lifecycle of the entire gas value chain. Some claim that the intrinsic benefits of gas may be limited or even negated by upstream methane emissions, and, in the case of Liquefied Natural Gas (LNG), the extra energy required for liquefaction.