Cheniere Works With Shell To Offset GHG Emissions on LNG Cargo

Shell cargo was deemed carbon-neutral because of offsets purchased by the LNG provider from the oil company’s global, nature-based projects.

Shell cargo delivered from Cheniere's Sabine Pass facility.

Cheniere Energy’s Sabine Pass Liquefaction has supplied its first carbon-neutral cargo of liquefied natural gas (LNG) to Shell as part of the companies’ long-term LNG sale and purchase agreement. The service provider worked with the oil company to offset the full life cycle greenhouse-gas emissions associated with the LNG cargo.

The LNG cargo was delivered to Europe in early April. Offsets used were bought from Shell’s global portfolio of nature-based projects with Cheniere purchasing the portion attributable to estimated CO2-equivalent emissions associated with activities upstream of the delivery point, including production and liquefaction.

Nature-based projects protect, transform, or restore land and enable nature to add oxygen and absorb more CO2 emissions from the atmosphere. Each carbon offset is subject to a third-party verification process and represents the avoidance or removal of 1 ton of CO2 equivalent.

“At Cheniere, we’re focused on measuring, reducing, and mitigating emissions, and this first carbon-neutral cargo for Cheniere highlights our efforts to measure and mitigate emissions throughout the LNG value chain,” said Anatol Feygin, executive vice president and chief commercial officer of Cheniere.

Earlier this year, Cheniere announced its intent to provide its LNG customers with greenhouse-gas emissions data associated with each LNG cargo produced at its Sabine Pass and Corpus Christi liquefaction facilities, beginning in the first half of 2022.

The Cheniere offsets are just the latest in a spate of proactive moves by industry regarding its greenhouse-gas emissions. In March, Russian energy giant Gazprom said it delivered its first carbon-neutral shipment to Europe. In the past 7 months, Pavilion signed contracts with Chevron and Qatar Petroleum Trading requesting data on greenhouse-gas emissions. Last year, CNOOC bought its first cargoes with offset carbon emissions.