Cheniere delivers its first carbon-neutral LNG cargo to Shell
U.S. LNG export project developer Cheniere has supplied a carbon-neutral cargo to Shell from its Sabine Pass LNG facility in Louisiana.
The delivery to Shell was made as part of the two companies’ long-term LNG sale and purchase agreement.
Both Cheniere and Shell joined forces to offset the full lifecycle greenhouse gas (GHG) emissions associated with the LNG cargo by retiring nature-based offsets to account for the estimated CO2e emissions produced through the entire value chain, from production through use by the final consumer.
Cheniere noted in its statement that the carbon-neutral LNG cargo was delivered to Europe in early April.
Offsets used were bought from Shell’s global portfolio of nature-based projects with Cheniere purchasing the portion attributable to estimated CO2e emissions associated with activities upstream of the FOB delivery point, including production and liquefaction.
Nature-based projects protect, transform or restore land and enable nature to add oxygen and absorb more CO2 emissions from the atmosphere. Each carbon offset is subject to a third-party verification process and represents the avoidance or removal of 1 tonne of CO2e.
Earlier this year, Cheniere informed it intends to provide its LNG customers with GHG emissions data associated with each LNG cargo produced at its liquefaction facilities through the company’s Cargo Emissions Tags (CE Tags), beginning in the first half of 2022.