M
ore than 100 countries have pledged to reach net-zero emissions in the next 30 years, but as these countries work to define the scope and priorities, the energy industry faces one of the greatest challenges of the 21st century. How to address global emissions and climate change while meeting the rising demand for energy and furthering economic growth and prosperity? Efforts like deploying all available clean energy technologies – such as renewables, hydrogen, and ammonia – are ongoing. However, natural gas is projected to become one of the largest global energy sources by 2040. As these other technologies mature and are deployed at scale, natural gas will continue to be an important complement to renewable generation and is expected to displace higher carbon-emitting fuels such as coal and oil in a variety of markets well into the future. According to the US Energy Information Administration (EIA), since 2005, shifts in electricity generation from coal to natural gas and renewable energy have reduced cumulative US CO2 emissions by 5475bmillion t, with more than 60% of that reduction occurring due to a shift to natural gas. US LNG is already contributing to lowering global emissions by displacing more carbon-intensive fuel sources, especially in developing markets hungry for reliable energy. Decarbonising the LNG value chain will be key to enhancing the climate benefits of an expanded use of natural gas. Sempra LNG’s infrastructure platform is well-positioned to lead in the energy transition.
Role in the global energy transition Sempra LNG is one of the US’s leading LNG companies. Sempra LNG owns a 50.2% interest in Cameron LNG, a 12bmillion tpy export facility operating in Hackberry, Louisiana (Phase 1) and is working with Cameron LNG on a proposed expansion of the facility (Phase 2) through one additional liquefaction train with an offtake capacity of over 6bmillionbtpy. Sempra LNG and its partners, IEnova and TotalEnergies, are also building the 3 million tpy ECA LNG project (Phase 1) in Baja California, Mexico. ECA LNG Phaseb1 is the only project in the world to achieve a Final Investment Decision (FID) in 2020. ECA Phase 1 has started construction, and the first production of LNG is expected by the end of 2024. Sempra LNG is firmly committed to the proposition that the US’s new role as a global leader in LNG exports can enable the same greenhouse gas (GHG) emissions reductions that the US has demonstrated in the electricity sector worldwide. Beyond the electricity sector, Sempra LNG believes that US LNG exports are critical to quickly lowering emissions in hard-to-decarbonise sectors that are today fuelled by higher emitting coal and oil energy sources. Climate change is a global problem. The EIA projects that 80% of global energy demand
36
