West Yorkshire Pension Fund defends US gas investments despite 'no fossil fuel developments' pledge
West Yorkshire Pension Fund has defended its investment in controversial US gas infrastructure despite having a commitment to not funding new fossil fuel developments.
The Bureau of Investigative Journalism has shared findings with The Yorkshire Post which reveal WYPF is among 60 local government pension funds which have invested a collective £8bn into funds that are paying for the rapid construction of gas infrastructure on the Gulf Coast.
WYPF, which has assets of over £18bn, said in February 2024 that it would not fund new fossil fuel developments and “in particular, WYPF will not be lending to the oil, gas and coal sector and will continue to work with other like-minded investors to demand a similar approach from the banking industry”. It also committed to reviewing its existing holdings in the oil and gas sector.
UK pension funds have supported the expansion of liquefied natural gas (LNG) terminals in the US for years. In 2019, an infrastructure fund called Stonepeak put up $1.3bn to complete the construction of the Calcasieu Pass gas terminal in the south-west corner of Louisiana.
Scores of these terminals are now popping up along the 1,200-km stretch of Louisiana and Texas’ coastline, a building frenzy turbo-charged by Donald Trump’s second term.
LNG is a fossil fuel which often promoted as a cleaner alternative to traditional alternatives like oil and diesel. However, a peer-reviewed study published in 2024 said it is 33 per cent worse in terms of planet-heating emissions over a 20-year period compared with coal.
It makes up more than 20 per cent of the UK’s imported gas and the Government said last year that it will continue to have an “important role” in the medium-term.
Records analysed by The Bureau of Investigative Journalism show WYPF has a collective £100m commitment to three separate Stonepeak funds, including one which was connected to the Calcasieu Pass scheme.
Since starting operations, Calcasieu Pass has reported hundreds of emissions violations and paid authorities a $245,000 settlement.
In 2025, it was announced Stonepeak was providing billions in funding and taking a 40 per cent stake in a LNG production and export terminal being built near Lake Charles in Louisiana.
WYPF also made a £50m commitment to Antin Infrastructure Fund V in December 2024. It was announced earlier this month that the Antin fund had acquired Sapphire Gas Solutions, which is involved in transporting and storing LNG and compressed natural gas.
When asked about its investments, a spokesperson said it considers LNG to be a “transition fuel”.
They said "WYPF has an ESG policy which takes account of the current status and role of gas and oil within the energy transition, particularly with regard to reliability, affordability and coal displacement.
“We consider LNG as a 'transition fuel' because it is seen as a bridge between today’s fossil‑fuel‑dominated energy system and a future low‑ or zero‑carbon one. When burned for power or heat, natural gas emits less CO2 than coal and oil. Moreover, gas fired plants (including those using LNG) complement renewables since they can ramp up and down quickly, and support grid reliability and balancing.
“Our investments include broad energy infrastructure, rather than solely generation assets. The energy transition is not just about what generates power, but how energy moves, balances, and is secured. Infrastructure can be technology‑agnostic and benefits under almost all plausible transition pathways: including grid expansion, storage (batteries, pumped hydro), interconnectors for system flexibility and repurposing gas networks for hydrogen / CO2 networks. Generation technologies may change or be leapfrogged; networks and system assets remain essential.
“We aim to support managers who support an orderly transition to net zero, reduce real world harm, and avoid locking in long term emissions. Investment also relies on managers being appropriate stewards of the assets they hold. Our investment criteria include consideration of governance of assets and social outcomes as well as the environment.
“We cannot discuss individual assets or business plans for managers that are in our portfolio. All managers are appropriately diligenced prior to investment, seeking to ensure that both the type of asset they invest in as well as the way they manage these assets are aligned with the beliefs and policies of WYPF.”
But questions have been raised about WYPF’s investment strategy in light of its 2024 commitment.
Councillor Andrew Scopes, who sits on an advisory panel for West Yorkshire Pension Fund, said: “We need to be looking beyond the possible short-term gains, at the long-term risk.”
Jane Thewlis, a retired social worker and a member of the WYPF scheme, said: “The UK could be funding a safer, healthier future for all via renewable energy generated in the UK that is cheap, safe, clean and owned by us.”