Shell Receives Europe's First Carbon-Neutral LNG Cargo
Shell has received from its Russian partner Gazprom the first ever carbon-neutral LNG cargo to be delivered to Europe, the Anglo-Dutch major reported on March 8.
The cargo was unloaded at the Dragon LNG terminal in Wales, in the UK. Shell noted that an average LNG cargo of around 70,000 metric tons (mt) emits 240,000 mt of CO2 equivalent across the value chain from production to the end user. High quality nature-based carbon credits have been used and will be retired to offset these emissions, it said. Carbon credits are generated from various projects that capture or avoid CO2 emissions and are verified by third parties.
Gazprom identified the credits used as Verified Carbon Standards and Climate, Community and Biodiversity emission certificates.
“We are grateful to Gazprom for partnering with us in delivering the first carbon neutral LNG cargo in Europe. We have already delivered seven carbon neutral cargoes in Asia and are very excited to be able to now offer this to customers in the UK," Steve Hill, vice president at Shell Energy, commented. “Carbon neutral LNG cargoes are another choice we are offering our customers as they seek to reduce their net carbon footprint well-to-wheel and also offer the same choice to their end customers. Using nature-based carbon credits to compensate for emissions that cannot be avoided or reduced is an important step as we find more ways to reduce emissions across the LNG value chain.”
Gazprom Export boss Elena Burmistrova said the deal "confirms once again the ability of the gas industry to contribute to achieving climate goals." And as the "cleanest fossil fuel in terms of emissions," and with further efforts to decarbonise and offset emissions in hand, "natural gas will remain a key element of global energy for decades ahead," she said.
Gazprom revealed it was planning to deliver the carbon-neutral cargo earlier this month. The company is partnered with Shell at the 11mn mt/yr Sakhalin LNG terminal near Japan, but did not say where this cargo was produced.