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.