First carbon neutral LNG cargo delivered in Europe
Mar 8, 2021
Shell Global LNG Limited recently took delivery from Gazprom Group of the first ever carbon neutral1 liquefied natural gas (LNG) cargo in Europe.
The cargo was unloaded at the Dragon LNG terminal in Wales and will enable Shell to supply further carbon neutral gas to the United Kingdom domestic market.
An average LNG cargo of about 70,000 tonnes emits approximately 240,000 tonnes of carbon dioxide equivalent (CO2e) across the value chain. High quality nature-based carbon credits have been used and will be retired to offset full lifecycle emissions (including methane) generated – from exploring for and producing the natural gas, to use by the final consumer (all scopes2).
Nature-based projects protect biodiversity, transform or restore land and enable nature to add oxygen and absorb more CO2 emissions from the atmosphere. Each carbon credit generated by these projects is subject to a third-party verification process and represents the avoidance or removal of one tonne of CO2.
“We are grateful to Gazprom for partnering with us in delivering the first carbon neutral LNG cargo in Europe. We have already delivered seven carbon neutral cargoes in Asia and are very excited to be able to now offer this to customers in the UK,” said Steve Hill, Executive Vice President, Shell Energy. “Carbon neutral LNG cargoes are another choice we are offering our customers as they seek to reduce their net carbon footprint well to wheel and also offer the same choice to their end customers. Using nature-based carbon credits to compensate for emissions that cannot be avoided or reduced is an important step as we find more ways to reduce emissions across the LNG value chain.”
“This deal, first ever for Gazprom Group of the kind, closed together with our long term partner Shell confirms once again the ability of the gas industry to contribute to achieving climate goals. Natural gas is the cleanest fossil fuel in terms of emissions. Through the additional efforts to decrease emissions along with the broad activity aimed at offsetting the impact for environment, natural gas will remain a key element of global energy for decades ahead,” said Elena Burmistrova, Deputy Chairman of Gazprom’s Management Committee, Director General of Gazprom Export.
Natural gas emits between 45 and 55% fewer greenhouse gas emissions and less than one-tenth of the air pollutants than coal when used to generate electricity.
1The terms “carbon neutral”, “carbon offset” or “carbon offset compensation” indicate that Shell has engaged in a transaction to ensure that an amount of carbon dioxide equivalent to that associated with the production, delivery and usage of the fuel has been removed from the atmosphere through a nature-based process or emissions saved through avoided deforestation. Further information on Shell’s climate target and investments in natural ecosystems.
2Shell uses the DEFRA (UK Department for Environment, Food and Rural Affairs) conversion rates to calculate LNG emissions needed to be offset for Scope 1, 2 and 3. According to the 2020 DEFRA* conversion rate,1 tonne of LNG emits approximately 3.42 tonnes of CO2e across the value chain, including end use. End use refers to combustion, which comprises about 2.54 tonnes of the total 3.42 tonnes of well-to-wheel emissions. The remaining emissions of 0.88 tonnes are across the value chain from exploration and production to transportation and regasification.
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Notes to editors:
- Gas is one of the few energy sources that can meet growing demand while reducing emissions from industry, the built environment and transport, when replacing coal or liquid fuels. It will continue to play a critical role in sectors where demand is anticipated to grow, such as the long-distance transportation of people and goods.