Chevron says delivers first offset-paired LNG cargo from Gorgon

Chevron said it had delivered its first offset-paired or carbon-neutral LNG cargo from its giant Gorgon plant in Western Australia.

According to a statement on Thursday, Chevron U.S.A. Inc. (Singapore Branch), a unit of Chevron, has supplied the shipment to Taiwan’s CPC.

Chevron said it would fully offset greenhouse gas emissions for the Gorgon cargo via the “retirement of high-quality nature-based and energy efficiency offsets in Cambodia, Indonesia and Nepal.”

It would offset the emissions via the surrender of Verra certified offsets, namely the Katingan Peatland Restoration and Conservation Project in Indonesia, the Southern Cardamom REDD+ Project in Cambodia, and the Energy Efficient Cooking Solution in Nepal, Chevron said.

For this cargo, Chevron’s Scope 1 and 2 emissions (emissions from upstream production, transportation, liquefaction and shipping) were calculated based on methodology jointly developed by Chevron, Pavilion Energy Trading & Supply, and QatarEnergy in 2021, it said.

Moreover, Chevron said it had calculated Scope 3 emissions based on PACE Global report for regas and distribution and IPCC 2006 emission factor for combustion.

The firm did not provide any further information regarding the LNG cargo.

More offset-paired cargoes to come

“Chevron’s first full lifecycle emissions offset cargo advances our net zero ambitions and represents a significant milestone in Chevron’s relationship with CPC Corporation,” John Kuehn, president of Chevron Supply and Trading, said.

“We share the view that the future of energy is lower carbon and expect this offset-paired cargo to be the first of many as we leverage our capabilities, assets, and customer relationships to deliver energy solutions to a growing world,” Kuehn added.

Chevron’s two Australian LNG export projects, Gorgon and Wheatstone, have shipped 87 cargoes in the first half of 2022, a rise when compared to the previous year.

Earlier this year, Chevron said it expects to have “strong” operational performance this year at its 15.5 mtpa Gorgon LNG facility in Western Australia, following several train shutdowns during the last two years. The firm also completed major turnaround on all three trains.

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