“Carbon Neutral LNG” (CNL) is a relatively new phrase used to describe LNG for which its carbon emissions have been offset by the purchase of carbon credits.
The Carbon Neutral LNG Buyers Alliance, a collaboration between 15 different Japanese companies (including Tokyo Gas), has coined the term, with the goal to increase the use of LNG as well as progress Japan towards a carbon-neutral status by 2050.
China and Japan have both imported carbon-neutral LNG in the past. Shell has been involved in a number of these transactions – the company claims that it supplied the world’s first CNL to Japan’s Tokyo Gas and South Korea’s GS Energy.
Six months ago, it also supplied the China National Offshore Oil Corp (CNOOC) two CNL cargoes as well. Now, in more recent news, the first-ever CNL has been delivered to Europe from Russian gas giant Gazprom to Shell at UK’s Dragon Terminal.
These transactions are not commonplace as of yet; however, both Gazprom and Shell have stated that CLNG purchases will play an essential role in reaching net-zero emissions goals.
Source: Gelber & Associates
Follow on Twitter:Tweets by "GelberCorp"