Environmental, Social and Operational Benefits derived from the use of Liquefied Natural Gas (LNG)

November 28, 2024

In the context of the energy transition towards cleaner and more sustainable sources, Liquefied Natural Gas (LNG) has gained relevance as a cleaner alternative to other fossil fuels. Although it is a hydrocarbon, LNG offers important environmental and social benefits, especially in a world that focuses its efforts on mitigating the effects of climate change and improving living conditions in vulnerable communities. This article analyzes the benefits of LNG for the environment, society and logistics operations, with emphasis on its application and regulation in Mexico.

Environmental Benefits of LNG

One of the main advantages of LNG is its lower environmental impact compared to other fossil fuels such as coal and oil. Being a low-temperature form of natural gas, it has a chemical composition that makes it less polluting when burned. Its most notable benefits include a reduction in greenhouse gas emissions, which has made it an option that helps counteract global warming.

LNG reduces polluting emissions, such as nitrogen oxides (NOx) and sulfur dioxide (SO₂), responsible for health problems and air deterioration in many cities. This change improves air quality, especially in urban or industrial areas.

In Mexico, specific regulations have been established to mitigate the environmental impact of LNG, promoting its use in a way that favors the energy transition and sustainability. The Energy Regulatory Commission (CRE), the National Agency for Industrial Safety and Environmental Protection of the Hydrocarbon Sector (ASEA) and other government entities have implemented policies to guarantee that the process of obtaining, transporting and using LNG does not harm the environment. However, it is essential to carry out a thorough review of the regulation to guarantee its effective compliance, avoiding overregulation and simplifying administrative procedures.

Social Benefits of LNG

The social impact of LNG is also significant, especially in areas where traditional energy infrastructure does not reach, such as gas pipelines. In rural or peripheral regions of Mexico, LNG has become a viable solution to cover energy demand. When transported in liquid form in ships, iso and other vehicles, LNG reaches places far from the gas pipeline network, which is crucial for the development of these areas.

In addition, the generation of jobs linked to the production, transportation and distribution of LNG is another obvious benefit. The construction of liquefaction plants, regasification terminals and transport-related activities create thousands of direct and indirect jobs, which can positively transform local economies.

LNG can also be an engine for community empowerment. By generating employment and boosting the local economy, it encourages the participation of citizens in the economic and social development of their regions. Investment in LNG infrastructure, such as terminals and regasification plants, promotes economic inclusion and contributes to social development in historically lagging areas.

Regarding social regulation in Mexico, there are initiatives to ensure that the social impact of LNG is managed responsibly. The Social Management Programs, promoted by the government and companies in the energy sector, seek to guarantee that communities are informed, consulted and benefit directly from the projects. These programs ensure that social benefits are equitable, fair and effective over time.

Benefits in LNG Operation

From an operational point of view, LNG offers great supply flexibility. Unlike other energy sources that depend on fixed infrastructure, LNG can be transported by sea and land, allowing countries and companies to diversify their sources of supply. In Mexico, the possibility of importing LNG from different regions favors energy security, guaranteeing a constant supply at competitive prices.

Logistical efficiency is also key. The transportation of LNG by land and sea has been optimized thanks to the improvement of port and transportation infrastructure, improving the supply chain, which facilitates its distribution in national and international markets.

As the country diversifies its energy sources and reduces its dependence on polluting fuels, LNG is positioned as a key option to guarantee an effective energy transition. In 2024, LNG infrastructure is expected to continue expanding, with new projects in the energy sector that will allow Mexico to harness its potential to meet domestic demand and improve its energy exports.

Conclusion

LNG has a positive impact on both the environment and society and energy operations, especially in a context like Mexico. With its benefits in terms of emissions reduction, access to cleaner energy in regions without adequate infrastructure, and job creation, LNG is emerging as a key option for the future. Its use must continue to be regulated and managed in a way that maximizes social and environmental benefits, promoting a fairer and more sustainable energy transition for all.

 

By the Environmental Permits Manager, Adriana Razo-García from Énestas – Raw Materials and Fuels.