GS Energy, Tokyo Gas to Buy Carbon Neutral LNG from Shell

South Korean GS Energy and Tokyo Gas have signed an agreement with Shell Eastern Trading for delivery of one cargo each of carbon neutral LNG, Shell said June 18.

Nature based carbon credits will be used to compensate the full carbon dioxide (CO₂) emissions generated – from exploring for and producing the natural gas, to use by the final consumer. The cargoes which will be delivered by July 2019, will provide enough carbon neutral energy to power nearly 300,000 homes for a full year, Shell added. 

According to Shell, nature-based projects protect, transform or restore land and enable nature to add oxygen and absorb more CO₂ emissions from the atmosphere. Each carbon credit is subject to a third-party verification process and represents the avoidance or removal of 1 metric ton of CO₂. Credits used for this deal are bought from Shell’s global portfolio of nature-based projects, including Katingan Peatland Restoration and Conservation Project in Indonesia and Cordillera Azul National Park Project in Peru, Shell said.

These projects also have extra benefits such as offering alternative sources of income to local communities, improving soil productivity, cleaning air and water, and maintaining biodiversity, it said.