Sakhalin LNG terminal to send its first carbon-neutral cargo to Toho Gas

Russia’s Sakhalin-2 LNG export terminal, operated by Gazprom, will soon ship its first carbon-neutral liquefied natural gas cargo to Japan’s Toho Gas, as part of a deal revealed on Tuesday.

Sakhalin Energy, the operator of the Prigorodnoye facility, said in a statement it has signed the deal with Toho Gas during the Sakhalin Oil and Gas 2021 Far Eastern Energy Forum.

The first shipment of the carbon-neutral/offset LNG cargo from the Sakhalin-2 project would take place in early October, it said.

Also, the firm said it would send the shipment aboard Sovcomflot’s 145,000-cbm LNG carrier Grand Aniva to the Chita LNG terminal in Aichi prefecture.

Sakhalin Energy did not reveal any additional information regarding the shipment.

The firm said earlier this year it had planned to start offering carbon-neutral LNG cargoes to its clients as part of its “green LNG” strategy which aims to reduce the carbon footprint of the Sakhalin-2 project.

The Sakhalin-2 LNG facility produced and shipped record 11.6 million tonnes of LNG last year. This is equivalent to 178.6 standard cargoes.

It started producing LNG back in 2009 with a design capacity of 9.6 mtpa, but due to technical improvements and upgrades, together with weather and temperature conditions, production rose by 20 percent.

Moreover, most of these volumes land in Japan, followed by South Korea, Taiwan, and China.

Sakhalin Energy’s shareholders include operator Gazprom, major partner Shell, and Japan’s Mitsui and Co., and Mitsubishi Corporation.

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