Full Title: Methane Emissions and the Gas Ecosystem: Buyers, Sellers, and Banks
Author(s): Ben Cahill, Nikos Tsafos, Ian Barlow
Publisher(s): Center for Strategic & International Studies (CSIS)
Publication Date: December 17, 2021
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Description (excerpt):
This paper covers three broad topics and offers several conclusions on methane emissions and global gas. First, the paper analyzes how companies make commercial decisions on gas projects, including how buyers judge project risks and viability, as well as the most important elements of contract negotiations. It also considers how the methane intensity of gas supply might fit into the array of issues that buyers and sellers negotiate. Second, the paper outlines several important aspects of LNG project finance to show how projects are typically funded, as well as the types of public and private companies and financial backers that play a role. Details from selected LNG projects around the world provide a sense of the financial institutions that are active in this space. A third section offers a typology of major players in global gas, outlining their commercial scale, key projects, role in the domestic gas sector, and climate and methane commitments. Finally, the report offers conclusions and preliminary suggestions on how to engage this diverse array of actors on methane emissions, and what incentives might change their gas purchasing and investment decisions.