top of page

The growing pains facing the LNG industry

By Ava Feer

WASHINGTON – “It’s certainly not a solution,” said William Snape, an environmental law professor at American University’s Washington College of Law, on liquefied natural gas or LNG.

LNG is a relatively new commodity seen as a bridge between the current world, which is highly dependent on fossil fuels, and a future world more dependent on green energy sources such as wind and solar. 

The industry has boomed in recent years and American energy companies have profited greatly because the U.S. contains massive reserves of cheap natural gas that can be converted into LNG. But, the young industry has been facing growing pains lately, which hints at its uncertain future. 

LNG is a cleaner fossil fuel that is created in a complex chemical process. Cheap natural gas is cooled to an exceedingly cold temperature, allowing the gas to become a liquid. Once a liquid, the gas is easily transportable and stored in large tanks that are essentially climate controlled and able to maintain that cold temperature. Once needed and at its destination, the LNG is converted back into gas through a warming process.

All over the world, plants that convert natural gas into LNG are being built. In 2018 alone, 48 billion cubic meters was added to the world’s liquefaction capacity, an increase from 41 billion in 2017. The LNG export market is also seeing an increase in demand, particularly from Asia, as more developing countries turn towards natural gas for their energy needs.

So much LNG is being made that the market is possibly headed towards a glut. This could drive down the cost of LNG and is something this new industry must reckon with.

Harry Sullivan, a law professor at Texas A&M University who specializes in energy issues, believes the glut is already here, but he added that even so, projections show a “rosy future” for LNG.

James Duncan has been in the energy business for over 40 years. He is currently the adviser to the director at Columbia University’s International Research Institute for Climate and Society. Duncan is also aware of the massive supply of LNG and its accompanying infrastructure, but when it comes to energy generation he said, “I think we will need all of it,” and believes the LNG market will continue to grow.

Since the U.S. has an over-supply of natural gas, it is a net-exporter of LNG and profits greatly from exporting it to places like Asia. Greg Bean, director of the Gutierrez Energy Management Institute at the University of Houston, does not see this changing drastically. Bean believes, “LNG exports are likely to continue to grow significantly.”

Within the industry and outside of it, there is a lack of consensus surrounding how long the world needs and should have this bridge in the face of rising sea levels and other negative effects of climate change.

Snape does not believe the world has much time to continue using fossil fuels, saying in his book filled office, “We are in dire straits.” Snape added that the world must rapidly change its manner of energy consumption.  

Duncan would like to see a world more dependent on green energy sources, but doubts the business is ready for challenges, stemming from consumers and technological problems, it does not have answers to.

People are “used to driving to the corner, filling up their car within 10 minutes and being on their way,” but “we’re nowhere near that, when it comes to other sources of energy,” said Duncan.

Duncan also pointed out the challenges that come with the collecting and storing of green energy, which he said “we are very inefficient at.” Solar and wind energy is easily captured on days when it is sunny and windy. However, how to store that captured energy for use on days when it is not sunny or windy is a problem that has yet to be solved.

Mukul Bhatia, director of the Berg-Hughes Center for Petroleum and Sedimentary Systems at Texas A&M University, believes the necessary technological advancements that would allow for the storing of green energy, are still decades away. Until then, he foresees the continued use of LNG and other fossil fuels.

Daniel Fiorino directs the Center for Environmental Policy at American University. On LNG’s bridge like role, Fiorino believes, “We should try to make it a reasonably short bridge,” and that efforts going into developing the LNG industry would be better directed towards further researching and developing green energy sources.  

There is a disconnect between the current technology available to make green energy sources viable and a want for change in our energy sources due to climate change.

One of the most talked about benefits of LNG, is how it is a cleaner fossil fuel compared to oil and coal. LNG releases less carbon dioxide emissions compared to other fossil fuels, which is notable because it is generally accepted that carbon dioxide emissions are a large contributor to climate change.  

While this is the case, Snape, had a blunt take on LNG’s cleanliness saying, “I think it is not a clean fossil fuel.”

Additionally, LNG does not spill the way oil does, if LNG were to spill, it would simply evaporate into a gas because that is its natural state. This can benefit the environment since oil spills are disastrous for wildlife and the ecosystems they live in.

However, Fiorino pointed out that LNG facilities still have a negative impact on coastal ecosystems and took issue with the fact that while LNG still harms the environment, it is being passed off as a cleaner fossil fuel.

What is being witnessed is a fundamental difference in opinion in how and what form the world’s energy sources should look like in the coming years, while facing climate change.

The U.S. is one of the top exporters of LNG in the world – and because of that, inhabits an important place in the debate only now underway.  

Duncan sums up the uncertainty well saying, “We are building this bridge. We know where it comes from. We don’t know where it goes.”

William Snape, an environmental law professor, sits in his office at American University’s Washington College of Law campus. Snape believes the world is more than ready to stop heavily relying on fossil fuels for its energy needs.

(Photo by Ava Feer)


bottom of page