Italian energy giant Eni said it would deliver one carbon-neutral LNG cargo to Taiwan’s CPC Corp at the latter’s Yung-An receiving terminal in Kaohsiung.
Under the deal, Eni will supply the shipment from Indonesia’s Bontang liquefaction terminal as part of the firm’s contract with Eni Muara Bakau, the joint venture operated by the Italian firm which owns and operates the Jangkrik gas field.
Moreover, the cargo would be certified as carbon-neutral according to the internationally recognized PAS2060 standard, Eni said on Friday.
As part of the transaction, Eni will offset the overall GHG emissions related to the entire value chain of the LNG cargo through the retirement of nature-based credits
This includes gas production, transmission, liquefaction, shipping, regasification, distribution, and end-use, it said.
In particular, Eni would source the credits from two REDD+ projects certified by Verra: Luangwa Community Forest project in Zambia and Kulera Landscape REDD+ project in Malawi.
Also, the assessments would include a verification of the projects’ calculated CO2 reductions and/or removals and the criteria of additionality, permanence, leakage and double counting, Eni said.
Eni added it would calculate the GHG emissions of the LNG cargo using the company’s proprietary methodology, that follows a lifecycle approach for the “comprehensive accounting of the GHG emissions” related to energy products sold, whether derived from equity or purchased production.
“Milestone transaction”
“This is a milestone transaction for Eni, which shows how the company is moving forward in its decarbonization strategy while creating value for its LNG portfolio through own equity projects,” the firm said.
Eni’s long-term strategy aims to achieve carbon neutrality in its products and operations by 2050.
On the other side, CPC has already received at least two carbon-neutral LNG cargoes from Shell.
The firm said in a separate statement the cargo arrived at the Yung-An terminal on Friday.