Cheniere Establishes Methane Emissions Intensity Target for its Liquefaction Assets

Rhea-AI Summary

Cheniere Energy (NYSE: LNG) has announced a voluntary Scope 1 annual methane intensity target for its liquefaction facilities, aiming to maintain 0.03% per tonne of LNG produced across its U.S. Gulf Coast facilities by 2027. The target is based on comprehensive emissions measurement data, including approximately 50 aerial measurements conducted over 16 months. The company has also updated its LNG life cycle assessment, showing lower supply-chain specific GHG emissions intensity compared to the U.S. Department of Energy's NETL 2019 study. This initiative aligns with Cheniere's Gold Standard membership requirements in the UN Environment Programme's Oil & Gas Methane Partnership 2.0.

Positive

• Establishment of measurable methane emissions reduction target
• Lower GHG emissions intensity compared to NETL 2019 study benchmarks
• Implementation of comprehensive emissions measurement program with 50 aerial measurements

Negative

• None.

Insights

Environmental Policy Analyst

This methane emissions intensity target announcement represents a significant strategic move for Cheniere. The target of 0.03% methane emissions per tonne of LNG by 2027 is notably ambitious and measurement-based, leveraging data from 50 aerial measurements over 16 months. The Gold Standard alignment under UNEP's OGMP 2.0 adds credibility to this commitment.

The updated life cycle assessment showing lower GHG emissions intensity compared to the NETL 2019 study positions Cheniere favorably in the increasingly ESG-conscious global energy market. This could strengthen the company's competitive position, particularly in Europe where environmental standards are stringent. For investors, this demonstrates proactive risk management against potential future carbon regulations and positions the company to capture premium pricing in markets that value lower-emission LNG.

Energy Market Analyst

Cheniere's measurement-based approach to emissions targeting is strategically significant in the evolving LNG market. With increasing global scrutiny on methane emissions and several countries implementing methane regulations, this positions Cheniere as an industry leader in emissions transparency and reduction. The peer-reviewed LCA validation adds scientific credibility to their environmental claims, potentially providing a competitive advantage in price-sensitive markets where emissions performance is becoming a differentiator.

Measurement-informed Scope 1 target builds upon Cheniere's climate strategy

HOUSTON--(BUSINESS WIRE)-- Cheniere Energy, Inc. (“Cheniere” or the “Company”) (NYSE: LNG) today announced it has set a voluntary, measurement-informed Scope 1 annual methane intensity target for its liquefaction facilities. The Scope 1 methane target builds upon the Company’s robust climate strategy and leverages data from its multi-scale emissions measurement and mitigation programs. The methane target is consistent with the requirements to achieve Gold Standard under Cheniere’s membership in the United Nations Environment Programme’s (UNEP) Oil & Gas Methane Partnership (OGMP) 2.0.

Cheniere aims to consistently maintain a Scope 1 annual methane emissions intensity of 0.03% per tonne of liquefied natural gas (LNG) produced across its two U.S. Gulf Coast liquefaction facilities by 2027. Using measured emissions data to inform methane targets represents an important element in Cheniere’s strategy and moves the industry forward in its climate performance.

Cheniere’s Quantification, Monitoring, Reporting and Verification (QMRV) projects — including data from approximately 50 aerial measurements of the Company’s operations at its liquefaction facilities performed over a 16-month period — informed the process of establishing the methane target.

“Cheniere’s LNG plays a critical role in meeting the world’s growing need for secure and reliable energy, while supporting the transition to a lower-carbon future,” said Jack Fusco, Cheniere’s President and Chief Executive Officer. “Our methane emissions intensity target reflects our commitment to leverage measurement-informed emissions data to improve the climate competitiveness of our LNG and ensure the long-term resilience of our business.”

In addition, Cheniere has updated its peer-reviewed LNG life cycle assessment (LCA), originally published in 2021. The new study has been accepted by a top-tier academic journal and is expected to be published soon. The updated LCA finds that in all cases the supply-chain specific GHG emissions intensity of Cheniere’s LNG is lower than those presented in the U.S. Department of Energy’s National Energy Technology Laboratory (NETL) 2019 study.

Cheniere’s broader climate strategy focuses on a data- and science-based approach to identifying potential emissions reduction opportunities. The Company collaborates with suppliers throughout the LNG value chain, scientific experts, leading academic institutions and customers to inform, understand and improve the characterization of emissions performance and identify potential mitigation measures across the supply chain.

For more information on Cheniere’s Climate and Sustainability strategy and initiatives, visit cheniere.com/our-responsibility/climate

About Cheniere

Cheniere Energy, Inc. is the leading producer and exporter of liquefied natural gas (“LNG”) in the United States, reliably providing a clean, secure, and affordable solution to the growing global need for natural gas. Cheniere is a full-service LNG provider, with capabilities that include gas procurement and transportation, liquefaction, vessel chartering, and LNG delivery. Cheniere has one of the largest liquefaction platforms in the world, consisting of the Sabine Pass liquefaction facility, wholly-owned by its subsidiary Cheniere Energy Partners, L.P. (NYSE: CQP), and the Corpus Christi liquefaction facility, each on the U.S. Gulf Coast with total combined production capacity of approximately 45 million tonnes per annum (“mtpa”) of LNG in operation and an additional 10+ mtpa of expected production capacity under construction. Cheniere is also pursuing liquefaction expansion opportunities and other projects along the LNG value chain. Cheniere is headquartered in Houston, Texas, and has additional offices in London, Singapore, Beijing, Tokyo, and Washington, D.C.

For additional information, please refer to the Cheniere website at www.cheniere.com and Quarterly Report on Form 10-Q for the quarter ended June 30, 2024, filed with the Securities and Exchange Commission.

Forward-Looking Statements

This press release contains certain statements that may include “forward-looking statements” within the meanings of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical or present facts or conditions, included herein are “forward-looking statements.” Included among “forward-looking statements” are, among other things, (i) statements regarding Cheniere’s financial and operational guidance, business strategy, plans and objectives, including the development, construction and operation of liquefaction facilities, (ii) statements regarding regulatory authorization and approval expectations, (iii) statements expressing beliefs and expectations regarding the development of Cheniere’s LNG terminal and pipeline businesses, including liquefaction facilities, (iv) statements regarding the business operations and prospects of third-parties, (v) statements regarding potential financing arrangements, (vi) statements regarding future discussions and entry into contracts, (vii) statements relating to Cheniere’s capital deployment, including intent, ability, extent, and timing of capital expenditures, debt repayment, dividends, share repurchases and execution on the capital allocation plan and (viii) statements relating to our goals, commitments and strategies in relation to environmental matters. Although Cheniere believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Cheniere’s actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in Cheniere’s periodic reports that are filed with and available from the Securities and Exchange Commission. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Other than as required under the securities laws, Cheniere does not assume a duty to update these forward-looking statements.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241028400093/en/

Cheniere Energy, Inc.

Investors

Randy Bhatia, 713-375-5479

Frances Smith, 713-375-5753

Media Relations

Eben Burnham-Snyder, 713-375-5764

Bernardo Fallas, 713-375-5593

Source: Cheniere Energy, Inc.

FAQ

What is Cheniere's (LNG) new methane emissions target for 2027?

Cheniere aims to maintain a Scope 1 annual methane emissions intensity of 0.03% per tonne of LNG produced across its U.S. Gulf Coast liquefaction facilities by 2027.

How many aerial measurements did Cheniere (LNG) conduct for its emissions data?

Cheniere conducted approximately 50 aerial measurements of its liquefaction facilities operations over a 16-month period.

How does Cheniere's (LNG) emissions performance compare to the NETL study?

Cheniere's updated LCA shows that its supply-chain specific GHG emissions intensity is lower than those presented in the U.S. Department of Energy's NETL 2019 study.