Banks and liquefied natural gas (LNG)
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What is LNG?

The global production of liquified natural gas (LNG) has taken a sharp increase in recent years. LNG is natural gas that is purified and then liquified by cooling to about -160°C. The gas can then be transported over sea, after which it is re-gasified and fed to the local gas pipeline infrastructure. This way, the gas that is produced in locations distant from pipelines or where pipelines cannot be constructed can still make it to the market.

Proponents of LNG often claim that the burning of the resulting gas causes half the climate impact compared to burning coal. However, the climate impact is much higher when the entire lifecycle of LNG is considered, including production, the very energy-intensive liquefaction, shipping and re-gasification. Furthermore, since LNG consists predominantly of the powerful greenhouse gas methane, leakages of only 2-3%, which analysts easily foresee, will make LNG as bad for the climate as coal. The environmental impact of drilling for gas, the LNG carriers and LNG terminals is also enormous. The dredging and waste disposal of LNG facilities takes a heavy toll on public health and often destroys the local ecosystem.

Banks and LNG

The severity of the climate crisis requires that banks must urgently take steps to disengage from financing all business activities and projects that continue the world's reliance on fossil fuels. Banks must therefore end support for all new LNG projects and implement a full phase-out for financing LNG projects in line with the Paris climate agreement.

The world’s biggest financiers of LNG are Morgan Stanley, Citi, and JP Morgan Chase. Morgan Stanley has financed the LNG sector with USD 13.39 billion since the signing of the Paris Climate Agreement (2016-2021), while the latter two have both provided approximately USD 8.5 billion in financing during that time. 

Bank policies on LNG are assessed below. These assessments follow the methodology of our Banking on Climate Chaos 2022 report, published in March 2022. The details section in the table contains further detail on the exact scoring per bank, as well as an overview of relevant policies.

See here for banks' exposure to the LNG sector during 2016-2021. 

Bank policy scores on LNG

BankLast update
Country
Score
Ranking
Details
Agricultural Bank of China
2021-03-24
CHN
0
Laggard
ANZ
2021-03-24
AUS
0
Laggard
Bank of America
2021-03-24
USA
0
Laggard
Bank of China
2021-03-24
CHN
0
Laggard
Bank of Communications
2021-03-24
CHN
0
Laggard
Bank of Montreal (BMO)
2021-03-24
CAN
0
Laggard
Barclays
2021-03-24
GBR
0
Laggard
BBVA
2021-03-24
ESP
0
Laggard
BNP Paribas
2021-03-24
FRA
3
Laggard
Canadian Imperial Bank of Commerce (CIBC)
2021-03-24
CAN
0
Laggard
China CITIC Bank
2021-03-24
CHN
0
Laggard
China Construction Bank
2021-03-24
CHN
0
Laggard
China Everbright Bank
2021-03-24
CHN
0
Laggard
China Merchants Bank
2021-03-24
CHN
0
Laggard
China Minsheng Bank
2021-03-24
CHN
0
Laggard
Citi
2021-03-24
USA
0.5
Laggard
Commerzbank AG
2021-03-24
DEU
0.5
Laggard
Commonwealth Bank of Australia
2021-03-24
AUS
0.5
Laggard
Crédit Agricole
2021-03-24
FRA
0
Laggard
Crédit Mutuel
2021-03-24
FRA
1
Laggard
Credit Suisse Group
2021-03-24
CHE
0
Laggard
Danske Bank
2021-03-24
DNK
0
Laggard
DBS Bank
2021-03-24
SGP
0
Laggard
Deutsche Bank
2020-03-01
DEU
0
Laggard
DNB
2021-02-01
NOR
0
Laggard
DZ Bank
2021-03-24
DEU
0
Laggard
Goldman Sachs
2021-03-24
USA
0
Laggard
HSBC
2021-03-24
GBR
0
Laggard
Industrial and Commercial Bank of China (ICBC)
2021-03-24
CHN
0
Laggard
Industrial Bank of China
2021-03-24
CHN
0
Laggard
ING
2021-03-24
NLD
0
Laggard
Intesa Sanpaolo
2021-03-24
ITA
0
Laggard
JPMorgan Chase
2021-03-24
USA
0
Laggard
Jyske Bank
2021-02-01
DNK
0
Laggard
Lloyds Banking Group
2021-03-24
GBR
0
Laggard
Mitsubishi UFJ Financial Group (MUFG)
2021-03-24
JPN
0
Laggard
Mizuho
2021-03-24
JPN
0
Laggard
Morgan Stanley
2021-03-24
USA
0.5
Laggard
National Australia Bank
2021-03-24
AUS
0
Laggard
Natixis
2021-03-24
FRA
0.5
Laggard
NatWest
2021-03-24
GBR
0.5
Laggard
Nedbank Group
2021-04-22
ZAF
0
Laggard
Nordea
2021-09-09
FIN
0
Laggard
Nykredit
2021-02-01
DNK
0
Laggard
OCBC
2020-03-01
SGP
0
Laggard
Ping An Bank
2021-03-17
CHN
0
Laggard
Postal Savings Bank of China
2021-03-24
CHN
0
Laggard
Rabobank
2021-03-24
NLD
1
Laggard
Royal Bank of Canada (RBC)
2021-03-24
CAN
0
Laggard
Santander
2021-03-24
ESP
0.5
Laggard
Sberbank
2021-03-24
RUS
0
Laggard
Scotiabank
2021-03-24
CAN
0
Laggard
Shanghai Pudong Development Bank
2021-03-24
CHN
0
Laggard
Shinhan Financial Group
2021-03-24
KOR
0.5
Laggard
Skandinaviska Enskilda Banken (SEB)
2021-02-01
SWE
0
Laggard
Société Générale
2021-03-24
FRA
0.5
Laggard
Sparebank 1 SR-Bank
2021-02-01
NOR
0
Laggard
Standard Chartered
2021-03-24
GBR
0
Laggard
State Bank of India
2021-03-24
IND
0
Laggard
Sumitomo Mitsui Banking Corporation (SMBC)
2021-03-24
JPN
0
Laggard
Sumitomo Mitsui Trust Holdings
2021-03-24
JPN
0
Laggard
Svenska Handelsbanken
2021-02-01
SWE
0
Laggard
Swedbank
2021-02-01
SWE
0
Laggard
Sydbank
2021-02-01
DNK
0
Laggard
TD
2021-03-24
CAN
0
Laggard
Truist Financial Corporation
2021-03-24
USA
0
Laggard
UBS
2021-05-03
CHE
0.5
Laggard
UniCredit Group
2021-03-24
ITA
3
Laggard
United Overseas Bank
2021-03-24
SGP
0
Laggard
US Bancorp
2021-03-24
USA
1
Laggard
Wells Fargo
2021-03-24
USA
0.5
Laggard
Westpac
2021-03-24
AUS
0
Laggard
Explanation

The point-based policy ranking assesses bank policies in four ways:

1) Restriction on direct financing for LNG projects.

  • None (0), weak exclusion (1), strong exclusion (3)

2) Restriction on financing for companies that expand LNG.

  • None (0), weak exclusion (2), strong exclusion (4)

3) The bank’s commitment to phase-out financing for LNG.

  • None (0), reduction (1.5), weak phase-out (3), strong phase-out (5)

4) The bank’s commitment to exclude companies active in LNG above a certain threshold.

  • None (0), enhanced due diligence (0.5), weak exclusion threshold (2), strong exclusion threshold (5), full exclusion (6)

A bank can obtain a total of 18 policy points for its LNG policy. Based on this score banks are then classified as laggards, followers, front runners or leaders.

Laggard
Follower
Front runner
Leader
0 - 4.5 points
5 - 9 points
9.5 - 13.5 points
14 - 18 points

 

Banks excluding finance for LNG

A number of banks have already taken steps to fully or partially exclude LNG projects or companies involved in LNG operations from their investments. The table below lists banks that have taken such steps.  

Exclusion table LNG

BankLast update
Country
Project
Company
Details
BNP Paribas
2021-03-24
FRA
Crédit Mutuel
2021-03-24
FRA
Rabobank
2021-03-24
NLD
UniCredit Group
2021-03-24
ITA
US Bancorp
2021-03-24
USA
Explanation

This table lists banks that have adopted a full ( ) or partial ( ) exclusion policy for LNG projects and/or companies. Click on 'Details' for the rationale of this assessment for each bank.

 

Feedback welcome

Our policy assessments are always a work in progress and we very much welcome any feedback, especially from banks included in them. You can of course also contact us for more information on specific scores and the latest policy changes. Please get in touch at climate@banktrack.org.

News

| |
Type:
Year:
blog
external news
our news

Intesa Sanpaolo’s new board of directors brings in fossil fuels and agribusiness

News highlights the urgent need to close the revolving door between environmentally destructive industries and finance
2022-04-12 | Italy | ReCommon
blog
external news
our news

Gulf Coast communities fighting the massive buildout of fracked gas exports

A Banking on Climate Chaos 2022 case study
2022-04-05 | BankTrack, Rainforest Action Network, Sierra Club
blog
external news
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JBIC and private banks must reconsider decision to finance LNG Canada project

NGOs strongly condemn JBIC’s decision to provide public finance that ignores climate crisis and rights of Indigenous peoples ahead of COP 26
2021-10-29 | 350.org Japan, Friends of the Earth Japan, JACSES, Kiko Network, Mekong Watch
blog
external news
our news

Mozambique LNG project delayed by 'at least a year' due to security issues: Total

2021-04-29 | London | S&P Global
blog
external news
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UK Export Finance faces review over US$1bn support for Mozambique LNG project

2021-04-27 | Global Trade Review
blog
external news
our news

Mozambique: ExxonMobil will only decide in investment in two years – Fitch

2021-04-23 | Macau Business
blog
external news
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Insurgency threatens Mozambique’s historic natural gas investment boom

2021-04-15 | CNBC
blog
external news
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Infographic: Mozambique’s LNG Forecast

2021-04-01 | Africa Oil & Power
blog
external news
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Thousands seek refuge at Total Mozambique LNG site after attack

2021-03-31 | Bloomberg
blog
external news
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Palma attacks: Total stops work at Mozambique LNG as workers and locals flee brutal assault by Islamist insurgents

https://www.upstreamonline.com/safety/palma-attacks-total-stops-work-at-mozambique-lng-as-workers-and-locals-flee-brutal-assault-by-islamist-insurgents/2-1-988744
2021-03-28 | Upstream online
blog
external news
our news

There’s $120 Billion at Stake in an Overlooked War in Mozambique

2021-03-25 | Bloomberg
blog
external news
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Insurgents in attack near Mozambique LNG site hours after Total said safe for workers' return

2021-03-25 | Upstrean online
blog
external news
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Total to resume Mozambique LNG work after security reinforced

2021-03-24 | Reuters
blog
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Banking on Climate Chaos 2021: World’s 60 largest banks have poured USD 3.8 trillion into fossil fuels since Paris Agreement

Even amidst the global economic downturn, fossil fuel financing numbers were higher in 2020 than 2016
2021-03-24 | Nijmegen | BankTrack, Indigenous Environmental Network, Oil Change International, Rainforest Action Network, Reclaim Finance, Sierra Club
blog
external news
our news

FoE pursues UK over Mozambique LNG funding

2021-03-22 | Energy Voice
blog
external news
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Risky business: investment and insurgency in Mozambique

2021-03-16 | Offshore Technology
blog
external news
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Total has target date for staff remobilisation to Mozambique LNG site

2021-03-11 | Upstrean online
blog
external news
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JBIC joins US$894 million loan pact for Mozambique LNG project

2021-03-03 | The Asset
blog
external news
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Mozambique, mercenaries accused of war crimes

2021-03-02 | Energy Voice
blog
external news
our news

Rovuma LNG: Still no sanction date in sight for delayed Mozambique mega project

2021-02-22 | Upstrean online
blog
external news
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Mozambique LNG project on track, Total confirms

2021-02-16 | Pumps Africa
blog
external news
our news

Violence Creeps Toward $20B Mozambique LNG Project

2020-09-18 | Bloomberg
blog
external news
our news

FoE challenges UK on Mozambique LNG lending

2020-09-07 | Energy Voice
blog
external news
our news

Banking on Climate Change – Fossil Fuel Finance Report Card 2020

New report reveals global banks funneled USD 2.7 trillion into fossil fuels Since Paris Climate Agreement, with financing on the rise each year 
2020-03-18 | Nijmegen | BankTrack, Indigenous Environmental Network, Oil Change International, Rainforest Action Network, Reclaim Finance, Sierra Club
blog
external news
our news

Banking on Climate Change – Fossil Fuel Finance Report Card 2019

World's top banks have poured $1.9 trillion into fossil fuel financing since the Paris Agreement was adopted, with financing on the rise each year
2019-03-20 | Nijmegen, the Netherlands | BankTrack, Honor the Earth, Indigenous Environmental Network, Oil Change International, Rainforest Action Network, Sierra Club

Documents

Type:
Year:
our publications

Signez l’appel mondial : Stop au financement bancaire des énergies fossiles

Traduction : L'appel mondial
2022-01-20 00:00:00 | BankTrack
ngo documents

Nervous Money: Global LNG Terminals Update 2021

2021-06-24 00:00:00 | Global Energy Monitor
our publications

Banking on Climate Chaos 2021

Fossil Fuel Finance Report
2021-03-24 00:00:00 | BankTrack, Indigenous Environmental Network, Oil Change International, Rainforest Action Network, Reclaim Finance & Sierra Club
our publications

Banking on Climate Change - Fossil Fuel Finance Report 2020

2020-03-18 00:00:00 | Rainforest Action Network, BankTrack, Indigenous Environmental Network, Oil Change International, Reclaim Finance, Sierra Club
other documents

Banking on Climate Change - Fossil Finance Report Card 2020 [Excel sheet]

Excel sheet with detailed bank policy scores
2020-03-18 00:00:00 | BankTrack, Rainforest Action Network, Indigenous Environmental Network, Oil Change International, Reclaim Finance, Sierra Club
ngo documents

Banks: High Carbon, Hidden Risks

2017-09-25 00:00:00 | Rainforest Action Network
our publications

Banking on Climate Change 2017

Fossil Fuel Finance Report Card 2017
2017-06-21 00:00:00 | Rainforest Action Network, BankTrack, Sierra Club, Oil Change International
our publications

UBS Fossil Bank Briefing 2017

2017-05-04 00:00:00 | BankTrack, Greenpeace, Waterkeeper Alliance
our publications

Credit Suisse Fossil Bank Briefing 2017

2017-04-28 00:00:00 | BankTrack and Greenpeace
our publications

Shorting the Climate

Fossil Fuel Finance Report Card 2016
2016-06-14 00:00:00 | BankTrack, Rainforest Action Network, Sierra Club, Oil Change International
ngo documents

Financing Reef Destruction

How banks are using our money to destroy a natural icon
2013-05-02 00:00:00 | Market Forces