Shell to Supply PetroChina with Carbon Neutral LNG

Susanna Twidale
Monday, July 12, 2021

Oil major Shell has signed a five-year contract with PetroChina to supply the Chinese company with carbon-neutral liquefied natural gas (LNG) cargos, Shell said on Monday.

Many companies, particularly those in the fossil fuel industry are using tools such as carbon offsets to compensate for emissions they are unable to cut in their operations.

For each cargo delivered under the agreement the two companies will "cooperate to offset life-cycle carbon dioxide equivalent (CO2e) emissions generated across the LNG value chain, using high-quality carbon credits from nature-based projects," Shell said.

Nature-based offset projects such as reforestation, protect, transform or restore land and enable nature to add oxygen and absorb carbon dioxide emissions.

The announcement came as PetroChina received its first carbon-neutral LNG cargo at Dalian port of China, Shell said.

"This first term deal is an important step in scaling up the market for carbon-neutral LNG and we are very grateful to our valued partner PetroChina for their collaboration in enabling this industry milestone," Steve Hill, Executive Vice President Shell Energy said in a press release.

Shell said the offsets would come from its own portfolio of nature-based emission reduction projects.

Many environmental groups are sceptical about the use of carbon offsets and warn the ability to pay for emission reductions elsewhere could prolong the use of fossil fuels widely blamed for climate change.

The 2015 Paris Agreement on climate change aims to cap the rise in temperatures to as close as possible to 1.5 degrees Celsius above pre-industrial times which scientists say will require transforming the world into a net zero economy by 2050.

(Reporting by Susanna Twidale, editing by Louise Heavens)

Categories: Offshore LNG Asia

Related Stories

India Seeks $30B from Reliance, BP Over Gas Shortfall at Offshore Fields

DOF Bags Two Deals in Asia-Pacific Region

Fugro Nets Mubadala Energy’s Deepwater Gas Job in Asia

Japan’s JERA Signs First Long-Term LNG Deal with India’s Torrent Power

Eni Expands Asian Footprint with Long-Term LNG Contract in Thailand

MODEC Forms Dedicated Mooring Solutions Unit

Yinson Production Nets DNV Approval for New FPSO Hull Design

Hanwha Ocean Enlists ABB for Singapore’s First Floating LNG Terminal

DOF Secures Moorings Hook-Up Job in Asia Pacific

Synergy Marine Group Completes Conversion of LNG Vessel to FSRU

Current News

Vantris Energy Lands Petronas Job on Malaysia’s Offshore Fields

Murphy Oil Appraisal Well Boosts Resource Outlook at Field off Vietnam

Viridien Kicks Off Multi-Client Reimaging Program off Malaysia

Petrovietnam Agrees First-Ever LNG Term Deal with Shell

ADNOC Takes FID on SARB Deep Gas Project Offshore Abu Dhabi

Jereh Group Delivers Oil Separation Systems for Petrobras’ FPSO Units

Offshore Rig Outlook: As 2025 Challenges Fade, Path Ahead Brightens

Offshore Energy and Boosting the Energy Efficiency of Water Processes

Low Demand, High Supply Keeps Asia LNG Spot Prices Flat

Following Big Loss in 2025, Oil Steadies

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com