Cheniere Announces Publication of Updated Peer-Reviewed LNG Life Cycle Assessment

Business Wire 12-Nov-2024 8:00 AM

Gas-pathing algorithm and further integration of measurement data improve supply chain-specific tracking of greenhouse gas emissions

Cheniere Energy, Inc. ("Cheniere" or the "Company") (NYSE:LNG) today announced the publication of an updated life cycle assessment (LCA) study for greenhouse gas (GHG) emissions intensities of the Company's liquefied natural gas (LNG). This peer-reviewed study includes a novel gas-pathing algorithm that further improves the modeling of GHG emissions across Cheniere's supply chain, utilizing actual operational data. The study also leverages the Company's multi-year Quantification, Monitoring, Reporting and Verification (QMRV) program by integrating measurement data from the Company's facilities and collaborations with natural gas producers, midstream providers, shippers and experts at leading academic institutions.

The enhanced study has been published in the American Chemical Society's Sustainable Chemistry & Engineering Journal, and it builds upon Cheniere's first LCA study, published in 2021.

The updated study deploys an algorithm that models natural gas pathways throughout Cheniere's supply chain in 2022, from the natural gas production basin, through the transmission network, to the Company's Sabine Pass and Corpus Christi liquefaction facilities in the Gulf Coast region, utilizing data on gas purchases, transportation capacity and gas flows. This analysis enhances the understanding of supply chain emissions and improves the quality of GHG emissions intensity estimates for Cheniere's LNG.

The study models cases with conventional emissions inventory inputs and measurement data. It finds in all cases that the 2022 GHG emissions intensity of Cheniere's delivered LNG is lower than those presented in the U.S. Department of Energy's National Energy Technology Laboratory (NETL) 2019 study. By incorporating emissions measurement data from across the supply chain into the LCA, the study finds the emissions intensities of Cheniere's LNG, when used in importing countries for power generation, are 20-28% lower than the NETL study. The study also finds that integration of measurement data into LCAs is critical to accurately characterize the differences in GHG emissions from natural gas supply chains.

"This study reinforces the environmental competitiveness of Cheniere's LNG, while demonstrating the value of direct emissions measurement to better understand the environmental footprint of LNG and identify areas for improvement," said Jack Fusco, Cheniere's President and Chief Executive Officer. "We are charting a path forward with concrete data, science and actions to ensure LNG and natural gas continue to play a role in the global transition to a lower-carbon future for decades to come."

The updated study is co-authored by individuals from the University of Texas at Austin's Energy Emissions Modeling and Data Lab, Queen Mary University of London's School of Engineering and Materials Science, Colorado School of Mines' Payne Institute for Public Policy, Rystad Energy, KeyLogic Systems and Cheniere.

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 September 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.

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