Liquefied natural gas (LNG) is recognized globally as a fuel with lower emissions than coal, but this advantage becomes clearer when all stages of production, from extraction to consumption, are accurately calculated. The recent report from the International Energy Agency dated September 2026 estimates the average emission intensity of the LNG supply chain at 18.6 grams of carbon dioxide per megajoule of delivered gas.
The Economic Importance of Natural Gas for Iran
Iran, as one of the largest holders of gas reserves in the world, faces challenges such as growing domestic consumption, export limitations, and the need for investment in infrastructure. Evaluating gas solely as a less polluting fuel than coal does not provide a complete picture of its true value. Consumption efficiency, methane leak mitigation, and access to export markets are key factors in converting this potential advantage into revenue and energy security.
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How Natural Gas Emissions Are Calculated
The International Energy Agency report considers five main stages for calculating LNG emission intensity: extraction and initial transport, liquefaction, maritime transport, regasification, and gas leakage throughout the supply chain. The average emission intensity of 18.6 grams of CO₂ per megajoule serves as a metric for assessing the quality of the supply chain. This figure should be regarded as an “emission intensity” that allows for the comparison of different supply chains.
However, the report clearly states that emissions from the distribution of gas after regasification and its final combustion in power plants, factories, or buildings are not included in this figure. Therefore, a more comprehensive calculation that includes all stages of the supply chain is needed for an accurate understanding of the climate impacts of LNG.
The International Energy Agency has also announced that 95 percent of natural gas consumed in 2024, when considering lifecycle emissions, will have lower emissions compared to coal. These two figures clearly indicate that the climate advantage of gas is real, but it depends on the quality of its production and transportation.
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