By Rebecca Delaney

Feb 19 - (The Insurer) - Carriers including Allianz, Axa XL and Scor have drawn criticism from environmental campaign groups for their involvement in providing coverage to a methane export terminal in the southern U.S.

The Calcasieu Pass terminal in southwestern Louisiana is owned by U.S. gas company Venture Global. The liquefaction and export facility began production in 2022.

An insurance certificate obtained by campaign group Rainforest Action Network through a freedom of information request shows that 29 carriers are currently involved in currently providing insurance coverage to the terminal.

Brokered by Marsh USA, the policy runs from March 14, 2024 to March 14, 2025.

The $1 million policy (with a $5 million deductible) covers all risks of physical loss or damage (including flood, earthquake, and boiler and machinery coverage) to real and personal property.

The insurance certificate, made public by French group climate group Reclaim Finance and seen by The Insurer, has drawn criticism from a coalition of environmental activists, with Reclaim Finance calling on Axa and Scor in particular to publicly commit to exclude cover for new LNG export terminals within their underwriting restrictions.

“Freeport LNG, Cameron LNG, Tacoma LNG, Gulf LNG, and now Calcasieu Pass LNG … Where will Axa and Scor’s addiction to liquefied natural gas end?” commented Ariel Le Bourdonnec, insurance campaigner at Reclaim Finance.

“While they claim to be committed to a just transition that benefits everyone, they are blindly insuring an LNG terminal that is destroying the health and economy of the fishing community and local workers.”

Le Bourdonnec continued: “If Axa and Scor are serious about the commitments they have made, they cannot ignore these impacts – and they should update their policies to exclude cover for new LNG export terminals.”

Other European carriers, including Germany’s Allianz and Munich Re, were criticised by campaigners who argued that participation on the policy means the firms are going against their public commitments around underwriting new oil and gas infrastructure.

“Allianz and Munich Re both claim to be climate leaders and here they are again underwriting yet another LNG terminal,” said Regine Richter, insurance campaigner at Urgewald.

“They have heard many times about the problems connected to the LNG export terminals. It is high time to stop supporting this business.”

Companies with public standards around methane emissions have also been denounced for their participation on the policy.

Chubb, which is involved in the policy through its subsidiary Ace American Insurance Company, was the first carrier to publicly require clients to implement evidence-based plans to manage methane emissions, including programmes for leak detection and repair, and the elimination of non-emergency venting.

To date, only Generali (which is not mentioned on the policy in question) has publicly committed to cease underwriting risks related to new LNG export terminals, having extended its fossil fuel underwriting restrictions to exclude midstream and downstream oil and gas companies and infrastructure in October last year.

“Despite Chubb being the first U.S. insurer with a methane gas policy, we continue to uncover that it’s one of the biggest backers behind Gulf methane expansion,” said Ethan Nuss, senior energy finance campaigner at Rainforest Action Network.

“With the devastating threats to Louisiana fisherfolk livelihoods and safety we urge Chubb CEO Evan Greenberg to be a leader and stop insuring methane terminals.”

All parties named on the insurance certificate were contacted for comment. Marsh declined to comment.