The potential for natural gas to reduce greenhouse gas emissions is “very real”, according to a new report.

    Key points:The Australian Energy Market Operator has been tracking the potential impact of natural, low-carbon natural gas for the last 10 yearsThe report says the LNG industry has a $1.3 billion potential for emissions reductions from 2020The report finds the industry has an opportunity to reduce its carbon footprint through LNG, even if it is only an incremental stepThe report, by the Australian Energy Markets Operator (AEMO), estimates that the LPG market is “substantial” in the US and China, but “substantially less” in Australia.

    The study said Australia’s potential to reduce carbon emissions through natural gas could be substantial if the natural gas industry is able to “focus on the development of a low-cost, low carbon supply chain”.

    “The key is the LGA’s (LNG industry) need to focus on the commercialization of the technology, rather than its development as a replacement for the carbon-intensive gas industry,” the report said.

    “This is particularly important for Australia, where the current LNG infrastructure is already significantly more expensive than the alternatives.”

    A cost-effective natural gas supply chain that can integrate the technologies is likely to be less expensive than LNG itself, as the LGR (Liquefaction gas liquification) process involves an energy transformation.

    “The report also identified a “subtle” shift in the economics of natural-gas production, with companies now “laying off” some of their workers in an effort to reduce their carbon footprint.

    While the industry was already paying significant attention to the potential for low- and no-carbon LNG technologies, the AEMO said the new report showed there was still a “lot of untapped opportunities” in natural gas.”

    The current Australian LNG market is highly dynamic, with the potential to significantly reduce greenhouse gases and improve Australia’s energy security through natural, relatively inexpensive natural gas,” the AEO report said, “although it is not as low-emitting as it was 10 years ago.””

    The new AEMOs report suggests that there is still a significant opportunity for Australia to be a world leader in low- carbon natural gas production and use, and that LNG is one of the leading technologies in the global natural gas sector.””

    In this regard, the LAGA is recommending that the Australian LPG industry focus on LNG as a technology for LNG liquefactions, while also investing in a low carbon, low emission LNG supply chain.

    “The Australian Government’s new energy policy was launched on Friday, and it is expected to see a reduction in emissions from the gas sector in 2020.

    Topics:energy,environment,energy-and-utilities,environmental-impact,business-economics-and_finance,government-and.parliament,energy,government,industry,federal-government,gas-and/gas-releases,environment-policy,energy_and-resources,coalition-and-(parties) for more,energymechanics-energy-economy,natural-gas,business,market-and+economic-impact More stories from New South Wales

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