Examining The Sustainability Implications of Global LNG Trade Through A PESTLE Analysis of Political, Economic, Social, Technological, Legal, and Environmental Drivers

Abstract

Sustainable maritime transport is a growing concern for the International Marine Organization (IMO) as it seeks to align with the Sustainable Development Agenda of 2030. LNG energy is still within the fossil fuel family; however, it is a better energy source than fossil fuel resources like coal or oil. Consequently, since the use of LNG for energy sources is projected to continue substituting other fossil fuels and play a role in the reduction of carbon emissions, sustainable shipping and LNG trade are critical to address. This paper is a qualitative study that adopts a PESTLE analysis of global LNG Trade and the implications on sustainability. To examine how to achieve a sustainable balance, on how LNG shipping and trade activities operate to meet the present demand for LNG without compromising the sustainable state of future generations. The study reveals that global LNG trade operates within a multifaceted web of forces, each carrying significant implications for sustainable shipping and trade across generations. Geopolitical tensions continue to disrupt trade routes, while market volatility, social equity concerns, and mounting environmental pressures collectively challenge the industry's sustainability trajectory. Nevertheless, accelerating technological innovation signals a growing industry commitment to decarbonization.