Page 5 - GLNG Week 15 2021
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GLNG COMMENTARY GLNG
Gas and 14 other companies that use city gas associated GHG emissions from wellhead to
across various industries. discharge port. The company is also working
As with Total, the latest news on Tokyo Gas with others to develop a methodology to quan-
illustrates progress on an initiative that was tity and calculate emissions from LNG.
already underway. The company, which is the Details of who supplied this first carbon-neu-
largest seller of city gas in Japan, bought its first tral cargo to Pavilion were not disclosed. How-
carbon-neutral LNG cargo in 2019, when such ever, the company said the emissions from the
cargoes were still in their infancy. Now Tokyo cargo would be offset by retiring a correspond-
Gas says it expects to see a rise in demand for ing amount of carbon credits sourced from its
carbon-neutral LNG from end-users. portfolio of carbon offset projects. It added that
The company started supplying 800,000 cubic the credits used for the offset are from Natural
metres per year of carbon-neutral city gas to the Climate Solutions projects certified under the
Yakult Central Institute on April 1, marking the Verified Carbon Standard (VCS) and Climate,
first use of carbon-neutral city gas supply to the Community and Biodiversity Standard (CCB)
Japanese beverage industry. This comes as the – Evio Kuinaji Ese’Eja Cuana in Peru and
Japanese government has called on the country’s Liangdu Afforestation in China. Both projects
industrial sectors to decarbonise their heating are designed for the protection and restoration
demand, and indeed has identified carbon-neu- of forests, according to Pavilion. Those moving
tral LNG as being among the possible solutions.
As for the carbon-neutral LNG cargo received What next? forward with
by Toho Gas, the shipment is reported to have LNG players typically do not discuss commer- initiatives to
been supplied by Diamond Gas International, cial arrangements, including the prices paid for
a subsidiary of Mitsubishi, which also bought their LNG supplies, and the recent deliveries and decarbonise LNG
the credits to offset the cargo’s emissions. Few other developments are no different. Nonethe-
other details related to this cargo have emerged, less, carbon-neutral cargoes will be more costly include some
but it illustrates the gradual growth of the car- than standard LNG deliveries, and there is scep-
bon-neutral LNG trade in Japan. ticism over how many players will be willing major players.
to buy such cargoes when economics remain
Pavilion’s plan important.
The delivery of a carbon-neutral LNG cargo to On the other hand, those moving forward
Pavilion also comes as no surprise, given that the with initiatives to decarbonise LNG include
Singaporean company launched a tender a year some major players, and their participation
ago for LNG deliveries with their carbon emis- will almost certainly help carbon-neutral LNG
sions quantified. The eventual goal of this was to become more widespread. As deadlines for
carbon neutrality. national decarbonisation targets loom, the pres-
Pavilion subsequently reached two sepa- sure to embrace carbo-neutral LNG will likely
rate supply deals – one with Qatar Petroleum rise.
(QP) and one with Chevron – that involve each That said, carbon-neutral LNG is still in its
cargo being accompanied by a statement of its early days, and much is unknown.
Week 15 16•April•2021 www. NEWSBASE .com P5
