Vitol Offers Green LNG to Customers
Vitol announced on March 1 it would offer its customers so-called green LNG cargoes that have had their CO2 emissions offset from wellhead to the terminal (delivered ex ship).
The Dutch commodities trader will offset the emissions by cancelling verified emissions reduction (VER) certificates, awarded to projects that decrease or avoid CO2 emissions. VER certificates are issued by the UN Clean Development Mechanism, Verified Carbon Standard (VERRA), Gold Standard, American Carbon Registry, China Green House Gas Voluntary Emission Reduction Programme and Climate Action Reserve.
The option will be available to all of Vitol's customers. The emissions that are offset will be estimated using Wood Mackenzie's LNG Emissions Tool. The VER certificates will be sourced from Vitol's existing portfolio and the wider market.
"Vitol’s established presence in carbon markets has enabled us to construct a compelling offering for LNG customers looking to mitigate emissions," the trader said. "The bar for transitional energy solutions is rightly being raised and we are delighted to be able to add green LNG to our portfolio."
Demand for carbon-mitigating energy solutions will only grow, Vitol said, as the world strives towards carbon neutrality. The price of the European emissions trading certificate has risen sharply in recent weeks, reflecting a world where carbon emissions from oil, gas and coal consumption are to be progressively cut.
"With the growing focus on LNG-related emissions, we are delighted that the LNG Emissions Tool has been chosen as the independent source of LNG-related emissions estimates which will be used by Vitol and its customers in the offset process," Wood Mackenzie added.