Coal-to-gas shift: LNG key to cutting power sector emissions in Asia

Commissioned by the Asia Natural Gas & Energy Association (ANGEA), of which Woodside is a member, the research finds that a modest increase of 8–16% in energy system investment, leveraging LNG and renewables to replace coal, could deliver up to a 38% reduction in power sector emissions.

Focusing on Japan, Vietnam and the Philippines, the study explores power system transition challenges and realistic coal phase-down pathways through to 2050.

Gareth Wright, Head of Climate Strategy and Engagement, who also chairs ANGEA’s carbon intensity working group, highlights the opportunity for Woodside’s LNG to play a key role. “One of the standout aspects of the study is that LNG from Australia, the US and Qatar had 47 per cent lower carbon intensity on average than coal used for power generation in Japan, the Philippines and Vietnam,” Gareth explains.

"Given that more than 90 per cent of Asia’s power sector emissions are from coal-fired power, the positive impact on decarbonisation of coal-to-gas switching is very evident."

The study identifies that a combination of increased use of LNG in support of the expansion of renewable energy offers a practical and affordable way to phase out coal and achieve significant decarbonisation over the next 10 years.

Moreover, the study finds the balanced approach could support the retirement of 50 per cent of coal-fired power by 2035 in the markets studied.

Demand for Woodside’s LNG from major Asian energy customers remains strong, with four new long-term supply agreements signed since early 2024. These agreements will see our LNG supplied to Asian customers through the next decade and into the 2040s.

Gareth emphasises the importance of collaboration to navigate the energy transition. “There are clear opportunities for LNG supply nations and countries in Asia to work together on energy solutions, helping to develop gas-to-power capabilities and infrastructure,” he points out. “This is particularly the case for countries like Vietnam and the Philippines, which have only started importing LNG in recent years.

“It’s essential that LNG is recognised as a fuel that is critical to the phaseout of coal-fired power in Asia – not only by the countries that will be taking decisions to use more gas but also the nations that will supply them. This isn’t just a theoretical pathway to reducing emissions from power generation – the option of using more LNG is available, it’s cost effective, and it would have a real impact.”