A New Energy Battleground: Insurance for LNG Terminals
Environmental groups, including Public Citizen and Rainforest Action Network, are launching a campaign to pressure insurance companies to stop covering liquefied natural gas (LNG) terminals along the Gulf Coast. They argue that insuring these facilities contradicts insurers' goals for net-zero greenhouse gas emissions. The campaign focuses on Freeport LNG, a facility in Texas, which experienced an explosion last year and is insured by major companies such as American International Group (AIG) and Lloyd's of London. The environmentalists aim to make it more difficult and expensive for LNG exporters to obtain insurance for their facilities, hoping to stop underwriting new plants and the expansion of existing ones. Insurers and LNG companies defend LNG as a necessary part of the transition to lower-emissions energy and argue that they support the energy sector's transition to cleaner technologies. The campaign intends to pressure insurers and investors through protests and other tactics to withdraw support for gas pipelines and export facilities.