Shell to supply PetroChina with carbon neutral LNG
News wire -- Oil major Shell has signed a five-year contract with PetroChina to supply the Chinese company with carbon-neutral liquefied natural gas, LNG, cargos, Shell has said.
Many companies, particularly those in the fossil fuel industry are using tools such as carbon offsets to compensate for emissions they are unable to cut in their operations.
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.
Nature-based offset projects such as reforestation, protect, transform or restore land and enable nature to add oxygen and absorb carbon dioxide emissions.
The announcement came as PetroChina received its first carbonneutral LNG cargo at Dalian port of China, Shell said.
Shell said the offsets would come from its own portfolio of nature-based emission reduction projects.
Many environmental groups are sceptical about the use of carbon offsets and warn the ability to pay for emission reductions elsewhere could prolong the use of fossil fuels widely blamed for climate change.