GS Energy and Tokyo Gas have signed an agreement with Shell Eastern Trading for delivery of one cargo each of liquefied natural gas (LNG).
Nature-based carbon credits will be used to compensate the full carbon dioxide (CO2) emissions generated – from exploring for and producing the natural gas, to use by the final consumer, Shell’s statement reads noting the two cargoes will be carbon neutral.
The cargoes which will be delivered by July 2019, will provide enough energy to power nearly 300,000 homes for a full year.
Slavko Preočanin, vice president Shell LNG Marketing & Trading, said, “This deal will set the ground for us to further develop this offering and we are pleased to be able to make this pioneering first step possible for our valued partners Tokyo Gas and GS Energy.”
Each carbon credit is subject to a third-party verification process and represents the avoidance or removal of 1 tonne of CO2. Credits used for this deal are bought from Shell’s global portfolio of nature-based projects, including Katingan Peatland Restoration and Conservation project in Indonesia and Cordillera Azul National Park project in Peru.
More and more people are looking for ways to reduce their personal carbon footprint. Offsetting enables individuals and organizations to compensate for the emissions they cannot avoid, by supporting worthy projects that reduce emissions somewhere else.
The transition to a low-carbon energy future requires a range of solutions across the global energy system, from electricity generation to industry and transport. LNG plays its role by providing a readily available source of gas for use in these sectors, bringing the benefits of being the cleanest-burning hydrocarbon, producing half the greenhouse gas emissions and less than one-tenth of the air pollutants of coal.