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

Yinson Production Secures $1.17B Refinancing for FPSO Maria Quitéria

MODEC and Terra Drone Renew FPSO Drone Inspection Partnership

Yinson Production Closes $1B Investment to Drive Further Growth

Wood JV Gets EPC Job for Shell off Brunei

Chuditch Gas Field Drilling Ops Get Delayed to Next Year

CDWE Wraps Up Pin Pile Installation Job for Taiwanese Offshore Wind Farm

Scarborough FPU's Topsides and Hull Come Together in Major Engineering Feat (Video)

China's ENN, Zhenhua Oil Ink LNG Supply Deals with ADNOC

MODEC Wins ExxonMobil Guyana’s Hammerhead FPSO Contract

Sapura Energy Nets $22.6M in Offshore Support Vessel Contracts

Current News

One Shelf Drilling Rig Up for New Job in India, Other for Disposal

Four Jack-Up Drilling Rig Deals Set to Bring In $129M for Borr Drilling

PTTEP Hires Velesto’s Jack-Up Rig for Drilling Campaign off Malaysia

Yinson Production Secures $1.17B Refinancing for FPSO Maria Quitéria

Centrica and Thailand’s PTT Ink Long-Term LNG Supply Deal

Petrovietnam, Partners Sign PSC for Block Off Vietnam

Japan Protests China’s New Oil and Gas Construction Activities in East China Sea

CNOOC Signs Hydrocarbons Exploration and Production Deal with Kazakhstan

Thailand's PTT to Buy LNG from Glenfarne's Alaska LNG Project

Woodside and Jera Agree LNG Cargoes Supply for Japan’s Winter Period

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