Osaka Gas’ first carbon-neutral LNG cargo supplied by Shell

The first carbon-neutral LNG cargo for Brunei LNG and Osaka Gas was delivered by Shell at the Senboku LNG terminal in Japan.

Osaka Gas’s first carbon-neutral LNG cargo supplied by Shell
Courtesy of Osaka Gas

Shell inked an agreement with Brunei LNG for the purchase of a carbon-neutral LNG cargo, as well as a sales agreement with Osaka Gas for delivery of this cargo.

Shell will use nature-based credits to compensate for the emissions associated with the production, transport, and end-use of the cargo.

The cargo was delivered from Brunei to the Senboku LNG terminal in Japan by the LNG carrier Amani.

Osaka Gas plans to start to supply carbon-neutral gas via its subsidiary Daigas Energy from August 2021. It will also supply it to several other gas utilities.

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Hajah Farida Dato Haji Talib, managing director and CEO of Brunei LNG, said, “The integrated collaboration between Brunei LNG, Shell and Osaka Gas marks an important milestone in our journey as a key partner for energy transition, enabling our customers to move towards their net-zero ambition by compensating the full life-cycle CO2e emissions of the cargo. Our carbon-neutral LNG offering is one of our ways to transform the business to be more sustainable, keeping in pace with society’s ambition to tackle climate change.”

Steve Hill, executive vice president, Shell Energy added: “What is unique about this deal is that it is an excellent example of collaborative action across the value chain – a critical need for delivering on climate ambitions. Shell, Brunei LNG and Osaka Gas have collaborated to offset life-cycle CO2e emissions of this cargo, which is an important step in growing the market for carbon-neutral LNG. As more ways to avoid and reduce emissions develop at scale, the industry needs to work together to use high quality nature-based offsets to compensate for greenhouse gas (GHG) emissions along the LNG value chain that are otherwise hard-to-abate.”