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

Singapore’s Carbon Credit Market Surging At 21% CAGR

Late last year, the Ministry of Sustainability, and the Environment (MSE) and the National Environment Agency (NEA) had rolled out the Eligibility Criteria under...

Toucan Launches World’s First Liquid Market for Biochar Carbon Credits

Digital platform Toucan.earth is set to launch the world's inaugural 'liquid' market for biochar credits, in response to escalating interest from carbon credit buyers...

Spectaire Holdings’s Innovative Tech Helps Truckers Generate Carbon Credits

Spectaire Holdings Inc., a global leader in air quality monitoring and emissions reduction technologies, has announced a significant development in response to the mounting...

Oxford Revises Principles for Net Zero Aligned Carbon Offsetting

A team of Oxford University researchers has released an updated version of the flagship guidance on credible and net zero-aligned carbon offsetting. First published...
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...