Petronas to deliver three carbon-neutral LNG cargoes to China’s Shenergy

Malaysian energy giant Petronas said it would supply three carbon-neutral LNG cargoes to China’s Shenergy by March next year.

The firm said in a statement its unit Petronas LNG had signed the deal to deliver the cargoes to Shenergy’s terminals in Shanghai.

Petronas would start the carbon-neutral LNG deliveries in October, its first such LNG supply to China.

Also, it would supply the shipments from its giant 30 mtpa Bintulu LNG complex in Malaysia.

The energy major did not provide any additional information regarding the shipments.

It had delivered its maiden carbon-neutral LNG cargo to Japan’s Shikoku Electric in August, offsetting the estimated carbon footprint of the LNG cargo through renewables-based carbon credits.

In January 2020, Petronas signed a heads of agreement with Shenergy to supply about 1.5 mtpa of LNG to the latter’s Wuhaogou receiving terminal in China.

The LNG supply deal also involved a shipping collaboration to construct and charter new mid-sized LNG vessels as the Wuhaogou terminal can only receive vessels up to 90,000 cbm capacity.

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