Shell Eastern Trading Pte Limited (Shell) has signed a contract for supplying carbon- neutral liquefied natural gas (LNG) to PetroChina International Company (PCI), Shell reported in a press release.
According to the five-year contract’s terms, the two companies will cooperate to balance the life-cycle carbon dioxide equivalent (CO2e) emissions that is produced across the LNG value chain per each shipment.
This came up from Shell’s global portfolio of emission reduction projects, that protect and enhance forests in China and other parts of the world.
Shell also elaborated that the nature-based projects can protect, transform or restore land and enable nature to add oxygen and absorb more CO2 emissions from the atmosphere.
“In pursuit of the carbon neutrality goal, PetroChina is committed to a green and low-carbon development strategy. We are pleased to partner with Shell, through this cooperation in carbon-neutral LNG, in realizing the long-term objective of net zero emission for the energy industry”, said Tian Jinghui, PCI’s Executive Chairman.
“Since delivering the world’s first carbon-neutral LNG cargoes in 2019, we have collaborated with producers and buyers across the globe for 13 other carbon-neutral LNG cargoes. 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”, according to Steve Hill, Shell Energy’s Executive Vice President.