Sakhalin’s 1st Neutral/Offset LNG Cargo Delivered

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  • Japanese utility Toho Gas has received the first carbon-neutral/offset LNG cargo from the Russian LNG producer Sakhalin Energy.
  • Sovcomflot’s LNG carrier Grand Aniva arrived at the Chita Terminal in Aichi Prefecture, Japan.
  • It brought the first Sakhalin Energy’s carbon-neutral/offset LNG cargo, delivering it to Toho Gas.

Grand Aniva, the Russian LNG carrier, has arrived at the Chita Terminal in Aichi Prefecture, Japan, with Sakhalin Energy’s first carbon neutral/offset LNG cargo, reports LNG Industry.

It is delivered to the Japanese company Toho Gas to be supplied as carbon neutral city-gas to its customers.

Initiatives to reduce carbon emissions

According to Roman Dashkov, Sakhalin Energy’s Chief Executive Officer, the fact that the Japanese customers are seeking mutually acceptable commercial solutions in compensating the carbon footprint of the supplied energy sources is mainly caused by Japanese government announcing carbon neutrality by 2050.

Successful cooperation with the Asia-Pacific customers and Sakhalin Energy’s work on decarbonising the entire LNG chain from production to final usage of end-users, allows to bring Sakhalin gas supplies to Japan to the next stage. It is not only an achievement of the present day, but also the shaping of the long-term outlook for the company’s commercial strategy, which involves supplies of carbon neutral/offset LNG as a competitive standard offer for many years ahead,” Roman Dashkov stressed.

The Head of the responsible industry programme at the World Wildlife Fund, Alexey Knizhnikov, points out the trend towards a stronger climate agenda. In his opinion, it will significantly impact the operation of the leading oil and gas companies and is now in demand among many world-class businesses.

Pilot carbon trading system

Sakhalin Energy has been demonstrating the best industrial and environmental practices both at the national and international levels for a long time. We see the supply of the first Sakhalin-2 carbon neutral/offset LNG cargo as one of the examples. But it is important that the company is not limited only to offset projects, but more actively develops initiatives leading to a reduction in emissions,” said Alexey Knizhnikov.

The carbon neutrality/offset of the first Sakhalin-2 LNG cargo was achieved by purchasing carbon credits from one of the company’s shareholder’s affiliates, Gazprom Marketing & Trading Ltd.

In addition, Sakhalin Energy is considering the possibility of obtaining Russian carbon credits using a pilot carbon trading system on Sakhalin, and the possibility to generate carbon units as a result of solutions based on the environmental assets.

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Source: LNG Industry

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