Shell signs contract with PetroChina to supply carbon-neutral LNG

By Editor


Oil major Shell has signed a five-year contract with PetroChina to supply carbon-neutral liquefied natural gas (LNG) cargos.

For each cargo delivered under the agreement 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, Shell said.

The announcement came as PetroChina received its first carbon-neutral LNG cargo at Dalian port of China, Shell said.

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, Steve Hill, Executive Vice President Shell Energy said in a press release.

Shell said the offsets would come from its own portfolio of nature-based emission reduction projects.

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