Exactly what hydrogen means for the future of natural gas remains a burning question as the energy transition unfolds.

The potential for hydrogen has loomed for decades, but it has yet to be realized in large measure because of its relatively high costs. 

More regulations and government subsidies to galvanize a shift away from fossil fuels, coupled with mounting pressure from investors to slash emissions and pledges from private companies to achieve net-zero emissions, is providing unprecedented motivation to further explore hydrogen’s potential as an energy source. Rapidly advancing technology may also make hydrogen more feasible in the coming years.

Although hydrogen remains in its infancy, the fuel poses longer-term financial risks for LNG and pipeline gas exporters in...