BP Delivers First Carbon-Offset LNG Cargo to Mexico

The LNG carbon-credit plan is just part of the operator’s overall ambition to be a net-zero company by 2050 or sooner.

The BP cargo landed at Energia Costa Azul last week.
SOURCE: Energia Costa Azul

BP has entered a contract with Sempra Energy and Mexico’s Infraestructura Energetica Nova for delivery of the company's first carbon-offset liquefied natural gas cargo. The cargo was delivered on 16 July to the Energia Costa Azul terminal, a joint venture between Sempra and IEnova, in Mexico’s Baja California.

The cargo will be sourced from BP’s global LNG portfolio, and its estimated emissions will be offset using carbon credits sourced from a BP forest creation project in Mexico.

“We are excited to advance our goal to lower GHG [greenhouse-gas] emission intensity at our LNG facilities,” said Justin Bird, chief executive of Sempra LNG. “Sempra LNG continues to build a strong business portfolio focused on sustainability and the global energy transition.”

Carbon dioxide (CO2) and methane (CH4) emissions associated with the LNG cargo, from wellhead to discharge terminal, will be estimated using BP’s GHG quantification methodology for LNG. The methodology has been developed following relevant international standards and may be updated from time to time.

These estimated emissions will be offset by retiring a corresponding amount of carbon credits, sourced from a Mexican afforestation project from BP’s vetted portfolio of offsets on behalf of Sempra LNG.

“Natural gas has a key role to play in getting the world to net zero,” said Carol Howle, executive vice president of trading and shipping at BP. “This new offer further demonstrates our determination to remain one of the world’s leading and most innovative LNG suppliers. The development and continuous improvement of a clear and reliable methodology for quantifying the carbon intensity of our LNG supply chain is an important step in helping our customers deliver their sustainability goals and supports our ambition to help the world get to net zero.”

Other energy companies have been pursuing carbon-neutral or carbon-offset cargoes. Shell recently signed a 5-year agreement with PetroChina for the supply of carbon-neutral LNG.

More widely, BP has set out specific GHG reductions and other aims for 2030 in support of its ambition to be a net-zero company by 2050 or sooner and to help the world get to net zero. The operator does not intend to rely on carbon credits to meet its 2030 aims.

Separately, Sempra LNG has established a goal to operate its existing LNG infrastructure at a GHG emissions intensity 20% less than its 2020 baseline and expects to establish additional goals by 2025, as the company continues to grow and bring more projects on line.