Shell gets Europe’s first carbon-neutral LNG cargo from Gazprom

A unit of energy giant Shell has recently taken delivery from Russia’s Gazprom what it says is the first-ever carbon-neutral LNG cargo in Europe.

Shell Global LNG received the cargo at the Dragon import terminal in Wales, the firm said, adding it would enable it to supply further carbon-neutral gas to the United Kingdom domestic market.

The LNG giant said an average cargo of 70,000 tonnes emits about 240,000 tonnes of carbon dioxide equivalent (CO2e) across the value chain.

“High quality nature-based carbon credits have been used and will be retired to offset full lifecycle emissions (including methane) generated – from exploring for and producing the natural gas, to use by the final consumer,” Shell said.

First for Europe but also for Gazprom

This marks the first European LNG cargo but Shell previously delivered seven carbon-neutral shipments in Asia, said Steve Hill, executive vice president, Shell Energy.

He said carbon-neutral LNG cargoes are another choice the firm offers to its customers as they seek to reduce their net carbon footprint “well to wheel and also offer the same choice to their end customers.”

“Using nature-based carbon credits to compensate for emissions that cannot be avoided or reduced is an important step as we find more ways to reduce emissions across the LNG value chain,” Hill said.

“This deal, first-ever for Gazprom Group of the kind, closed together with our long-term partner Shell confirms once again the ability of the gas industry to contribute to achieving climate goals,” said Elena Burmistrova, deputy chairman of Gazprom’s management committee and head of Gazprom Export.

According to Burmistrova, natural gas is the cleanest fossil fuel in terms of emissions.

“Through the additional efforts to decrease emissions along with the broad activity aimed at offsetting the impact for environment, natural gas will remain a key element of global energy for decades ahead,” she said.

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