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Carbon neutral LNG industry is ramping up efforts to illustrate the
Royal Dutch Shell announced this week that it role natural gas can play in the energy transition.
had agreed to deliver two cargoes of carbon-neu-
tral LNG to a subsidiary of China National Off- If you’d like to read more about the key events shaping
shore Oil Corp. (CNOOC). The delivery, to the global LNG sector then please click here for News-
CNOOC Gas & Power Group, will mark the Base’s GLNG Monitor.
first carbon-neutral LNG to reach the Chinese
mainland. Hopes of recovery in Latin America
Shell said all emissions from exploring for Several countries in Latin America are looking
and producing the natural gas used as feedstock to recover momentum after suffering losses,
for the LNG, as well as the use of the fuel by the either from the coronavirus pandemic or other
final consumers, are offset by credits from a incidents. Shell has agreed
variety of nature-based projects. These include Argentina’s government is currently in
afforestation projects in China’s Qinghai and negotiations with several oil companies on the to deliver two
Xinjiang provinces that the company supports. resumption of payments under the “Plan Gas”
Shell has been supplying a small number of programme. The programme is designed to sup- cargoes of
carbon-neutral LNG cargoes to buyers since port the development of natural gas fields in the carbon-neutral
June 2019. The first buyers of these cargoes were Vaca Muerta shale formation, which have seen
Tokyo Gas and South Korea’s GS Energy. Shell production decline as a result of the virus out- LNG to CNOOC
supplied a third carbon-neutral cargo to Taiwan’s break, and officials in Buenos Aires hope that
CPC in March. the extra financial support will help the coun-
The cargoes being delivered to CNOOC will try avoid a supply shortage during the winter. It
be auctioned through the Shanghai Petroleum would run for four years, past the end of Presi-
and Gas Exchange (SHPGX), which Shell said dent Alberto Fernández’s current term.
would offer many downstream gas buyers the In Guyana, ExxonMobil has brought oil
opportunity to decarbonise their energy use. production levels back up at the offshore Liza
No date has been disclosed for the auction, field. It has resolved glitches with some of the
and the size of the cargoes has not been spec- gas-compression systems that forced it to take
ified either. However, Shell said the cargoes a re-injection well offline earlier in the month.
would provide enough energy to power nearly Output is back up to 80,000 bpd, according to
300,000 homes for an entire year. Separately, the head of Guyana’s Environmental Protection
the super-major has said that an average LNG Agency (EPA).
cargo of around 70,000 tonnes results in roughly Brazil, meanwhile, has kicked off the sale
240,000 tonnes of carbon dioxide (CO2) emis- process for a group of offshore oilfields after
sions across the value chain. postponing another tender earlier in the year.
It has not yet been disclosed what additional State-owned Petrobras is offering up its 100%
costs may be involved in producing and selling stake in the group, which includes the Atum,
carbon-neutral LNG. However, it comes as the Curima, Espada and Xareu sites.

Week 25 24•June•2020 www. NEWSBASE .com P9