Russia’s Sakhalin Energy plans carbon-neutral LNG cargoes

Sakhalin Energy, the operator of Russia’s Sakhalin-2 liquefaction facility in the port of Prigorodnoye, plans to start offering carbon-neutral LNG cargoes to its clients.

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

Gazprom and Shell have earlier this year teamed up on Europe’s first carbon-neutral LNG shipment. Shell has also previously delivered several carbon-neutral shipments in Asia and the latest from the US to Europe.

Based on experience from its shareholders, Sakhalin Energy is looking to include the offering into its portfolio as well.

The company said it has developed the “green LNG” strategy which includes four key lines.

The first includes environment‑based solutions including measures to increase greenhouse gas absorption, such as reforestation and planting of new forests, it said in a statement.

Moreover, the firm plans to raise the efficiency of production processes involved in the reduction of specific emissions.

The third point entails commercial activities related to carbon‑neutral LNG supply while the fourth includes progressive solutions to create an “energy cocktail” based on alternative technologies that “drastically” reduce greenhouse gas emissions, it said.

“These may involve the use of renewable energy sources, hydrogen, and conversion of sea and land transport to liquefied natural gas,” Sakhalin Energy said.

Buyers interested

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 an design capacity of 9.6 mtpa, but due to technical improvements and upgrades, together with weather and temperature conditions, production rose by 20 percent.

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

Sakhalin Energy recently held its regular annual meeting with Japanese buyers where they expressed interest in receiving carbon-neutral LNG cargoes, according to a separate statement.

The customers from Japan include JERA, Tokyo Gas, Toho Gas, Kyushu Electric, Tohoku Electric, Osaka Gas, Hiroshima Gas and Saibu Gas.

Tokyo Gas has also earlier this year said that fifteen Japanese firms have joined forces to establish a carbon-neutral LNG alliance as they seek to further slash emissions.

Most Popular

Venture Global kicks off CP2 LNG site work

US LNG exporter Venture Global said it had initiated full mobilization and started site work at the company’s third LNG export facility, CP2 LNG.

Purus orders LNG carrier in South Korea

London-based Purus Marine has ordered one 180,000-cbm liquefied natural gas (LNG) carrier in South Korea.

Excelerate advances Vietnam LNG talks

US FSRU player Excelerate Energy is moving forward with its plans to supply Vietnam with liquefied natural gas (LNG) supplies from the US.

More News Like This

Shell takes FID on Aphrodite project to supply Trinidad’s Atlantic LNG

A unit of UK-based LNG giant Shell has taken the final investment decision for the development of the Aphrodite gas field to supply Trinidad and Tobago’s Atlantic LNG export plant.

Peru LNG terminal shipped five cargoes in May

Peru LNG’s liquefaction plant at Pampa Melchorita has shipped five liquefied natural gas cargoes in May, two more than in the previous month.

Russian LNG production drops in April

Russian liquefied natural gas (LNG) production decreased in April compared to last year, according to the Russian statistics agency Rosstat.

Shell shareholders re-elect CEO Wael Sawan

Wael Sawan will continue to lead London-based LNG giant Shell following shareholder voting at the company's annual general meeting on Tuesday.