July 2015, Vol. 242, No. 7

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Carbon Emission Regulations Could Jeopardize LNG Projects

Natural gas is increasingly being viewed as one of the most important sources of fuel in the coming decades. That is why Royal Dutch Shell, an oil major, made a huge bet onLNG when it decided to purchase BG Group, which has major holdings in LNG projects in Australia and East Africa. But what if the industry’s expectations for the growth in LNG demand are wildly optimistic? At issue is how deep governments around the world cut their carbon emissions in an effort to slow climate change. Natural gas does offer some climate benefits over coal as a source of electricity – it burns cleaner and releases less carbon dioxide. However, it is still a fossil fuel and carbon restrictions c

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