HomeCarbon NewsShell Signs Contract For Carbon Neutral LNG with PetroChina

Shell Signs Contract For Carbon Neutral LNG with PetroChina

Shell announced that it has signed a five-year contract with PetroChina to supply the Chinese company with carbon-neutral liquefied natural gas (LNG) cargos.

Many businesses, particularly those in the fossil fuel industry, are using carbon offsets to compensate for emissions that they are unable to reduce in their operations.

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” for each cargo delivered under the agreement, according to Shell.

Offset projects based on nature, such as reforestation, protect, transform, or restore land, allowing nature to add oxygen and absorb carbon dioxide emissions.

Shell made the announcement as PetroChina received its first carbon-neutral LNG cargo at China’s Dalian port.

“This first term deal is an important step in scaling up the market for carbon-neutral LNG, and we are extremely grateful to our valued partner PetroChina for their collaboration in enabling this industry milestone,” said Steve Hill, Executive Vice President Shell Energy, in a press release.

Shell stated that the offsets would come from its own portfolio of emission-reduction projects in nature.

Many environmental groups are dubious of the use of carbon offsets, warning that the capacity to pay for emission reductions elsewhere may extend the use of fossil fuels, which are largely blamed for climate change.

The 2015 Paris Agreement on Climate Change intends to limit temperature rises to 1.5 degrees Celsius beyond pre-industrial levels, which scientists predict will necessitate transitioning the world into a net zero economy by 2050.

Most Popular
LATEST CARBON NEWS

Expert Predicts ‘Double-Digit’ Price Hike for CCP-Labeled Carbon Credits

The Integrity Council for the Voluntary Carbon Market's (ICVCM) issuance of Core Carbon Principle (CCP) labels could significantly impact the price of carbon credits,...

PM Narendra Modi and Elon Musk to Announce Historic EV Deal

The world's two renowned and powerful figures PM Narendra Modi and Elon Musk will meet in India on April 22. Their camaraderie began back...

FERC Grants Waiver for Solar Project Amidst Local Resistance

The Federal Energy Regulatory Commission (FERC) has granted a waiver to PJM Interconnection LLC, allowing a 210-MW solar project in Indiana to relocate to...

America to See a Surge in Renewable Capacity in 2024

The United States is poised for a significant boost in renewable energy capacity by over 67 gigawatts (GW) in 2024, driven by policy shifts...
CARBON INVESTOR EDUCATION

What Is COP28? Key Issues to Watch Out at 2023 Climate Summit

After a record-breaking year of devastating effects of climate change, from record wildfires in Greece and Canada to floods in Libya, the United Nations...

Climate Disclosure: New Corporate Standards for a Net Zero World

As part of the world’s continued efforts to combat climate change and transition towards net zero, one important piece of the puzzle is new...

Carbon Pricing: Understanding The Economics and Trends of Fighting Climate Change

As global temperatures continue to rise, the urgency surrounding climate policies has intensified, thrusting carbon pricing into the limelight of climate discussions. The race to...

The EU Corporate Sustainability Reporting Directive (CSRD): Key Things to Know

Companies operating in the European Union will have to deal with new non-financial and sustainability reporting requirements starting January 2024 with the EU's Corporate...