- shell and PetroChina sign world’s first term contract for carbon-neutral LNG
- a five-year agreement with PetroChina for the supply of carbon-neutral LNG
PetroChina received its first carbon-neutral liquefied natural gas (LNG) cargo at Dalian port of China, after signing the industry’s first term contract for carbon-neutral LNG supply with Shell says an article on Shell.
Five-year agreement
Shell Eastern Trading Pte Limited (Shell) has signed a five-year agreement with PetroChina International Co. Ltd. (PCI) for the supply of 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 chain3, using high-quality carbon credits from nature-based projects.
The carbon credits used to offset life-cycle CO2e emissions generated from the cargo delivered today, come from Shell’s global portfolio of emission reduction projects, that protect and enhance forests in China and other parts of the world.
Low-carbon development strategy
Commenting on the agreement, Mr. Tian Jinghui, Executive Chairman of PCI stated “In pursuit of the carbon neutrality goal, PetroChina is committed to a green and low-carbon development strategy. We are pleased to partner with Shell, through this cooperation in carbon-neutral LNG, in realizing the long-term objective of net-zero emission for the energy industry.”
Commenting on the agreement, Steve Hill, Executive Vice President 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.”
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Source: Shell
