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Shell signs five-year carbon-neutral LNG agreement with PetroChina

Shell Eastern Trading(Shell) has signed a five-year agreement with PetroChina International(PCI) for the supply of so-called carbon-neutral LNG. For each cargo delivered under this agreement, PCI and Shell will cooperate to offset life-cycle carbon dioxide equivalent (CO2e) emissions generated across the LNG value chain, using carbon credits from nature-based projects.

Commenting on the agreement, Steve Hill, executive vice president at Shell Energy, stated “Since delivering the world’s first carbon-neutral LNG cargoes in 2019, we have collaborated with producers and buyers across the globe for 13 other carbon-neutral LNG cargoes. 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.”

In 2020 Chinese LNG imports reached 67m tonnes and are expected to nearly double by 2040 according to Shell’s most recent LNG outlook report.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.
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