Reducing greenhouse gas emissions is a global problem requiring a global solution. Woodside’s delivery of LNG to global markets is a key part of that solution.
LNG is a unique source of energy. It is less emissions intensive than all other fossil fuels and is able to contribute directly to the global reduction of greenhouse gas emissions when it is used to replace more emissions intensive fuels, such as coal.
For every tonne of carbon dioxide emitted in the production of LNG in Australia, at least four tonnes of carbon dioxide emissions in customer countries are avoided when LNG is used to displace coal-fired power generation.
This is even greater in China, where the impact of displacing coal with LNG for power generation ranges between 5.5 tonnes and 9.5 tonnes.
Independent studies have predicted that if Australian LNG exports grow in line with industry forecasts over the next 10 to 15 years, global emissions could be reduced by as much as 140 million tonnes.
This potential reduction would represent a substantial proportion of the Australian Government’s 2050 target to reduce Australia’s emissions to 60% of 2000 levels. By expanding its LNG exports, Australia can take a lead role in reducing global greenhouse emissions in accordance with the fundamental principles of the United Nations Framework Convention on Climate Change.
Over the next decade, natural gas offers an opportunity for the transition to a lower emission global economy. In time, this will be complemented by gains made in the clean coal and renewable technologies.
The LNG industry brings with it advanced technological skills, including those needed to support carbon capture and storage. Many of the challenges facing clean coal technology will be supported by the knowledge and skills available through the LNG industry.
Additional Information
The WorleyParsons Greenhouse Gas Emissions Study of Australian LNG was prepared in the context of the proposed Australian Government's Carbon Pollution Reduction Scheme (CPRS) during 2008.
The study can be found here:
Its conclusions, that gas is a cleaner-burning fossil fuel than coal, were also supported in a study conducted by PACE, an independent energy and carbon consulting firm. A link to this study is included below.