Adapting LNG business models in a fragmented energy and policy landscape

Commitments contained in the EU-US trade deal point to a long-term future of co-operation on energy. However, policy misalignments on the energy transition and divergence on climate commitments may yet complicate these prospects. Across the world, energy policy is fluctuating faster than asset cycles, while expectations around emissions transparency, certification credibility and methane performance are inconsistent.

During this roundtable session, participants will examine short- and long-term LNG business models in a rapidly-evolving geopolitical environment. How are policy signals impacting the viability of new projects, appetites for long-term offtake agreements, and easing or exacerbating immediate term price pressures? In unpredictable times, how can sellers safeguard long-term value while satisfying buyer optionality? And where should commercial frameworks adjust to keep LNG investments appealing and bankable in a world that demands greater transparency and collaboration on energy transition objectives?

Hosted by

Demand growth, emissions reductions: LNG and the global energy transition

Global energy consumption is continuing to rise, driven not only by population growth and economic activity but also new sectors, including AI and data centres, which are super-charging electricity demand. Consequently, the world is struggling to move off a 2.6°C global warning pathway and emissions remain stubbornly high.

Through this, LNG is continuing to play a pivotal and well-established role in both balancing energy supply and supporting an orderly, growth-enabled energy transition. LNG’s environmental credentials are also increasingly recognised. It has emerged as the fuel of choice for many shipowners, offering practical and affordable emissions reductions in a heavy emitting sector. Companies and policy makers are driving significant progress in methane mitigation and abatement across the LNG value chain. Carbon capture and storage technologies are maturing, helping to reduce LNG’s Scope 1 and 2 emissions and offering the potential to deliver massive reductions in Scope 3 emissions. Low-carbon and renewable gases are also offering an alternative for consumers without access to CCS.

But the industry must still contend with negative perceptions, popular misgivings and mixed international policy signals. During this roundtable, participants will consider the continued importance of developing technologies and market mechanisms to ensure progress in lowering the carbon intensity of delivered LNG. Further thought will be given to the arguably more complex challenge of winning hearts and minds. Anticipated lower delivered gas and LNG prices over the next few years will likely go a long way in winning over sceptics. But can the industry also tell a more compelling story about LNG as an enabler of lower carbon economic growth, and win over those as yet unconvinced?