Page 4 - GLNG Week 27 2021

GLNG COMMENTARY GLNG

Japan counts on CNL to

help offset emissions

The country’s natural gas buyers have begun importing carbon-neutral
LNG (CNL) as they explore methods to reduce their carbon footprints

ASIA HEAVYWEIGHT liquefied natural gas (LNG) offset all of the emissions associated with the
importer Japan is ramping up efforts to slash production, transport, processing and end-use
carbon emissions connected to its imports of of the Japanese company’s LNG purchases.
WHAT: the fuel. The carbon credits are generated by the Anglo-
Osaka Gas and Tokyo The East Asian country was the world’s larg- Dutch super-major’s various nature-based projects
Gas aim to supply their est importer of the super-chilled fuel last year, throughout the world that help reduce or avoid
industrial and wholesale and while it appears set to lose that crown to greenhouse gas (GHG) emissions. Shell acquired
clients with CNL. China this year, the country will continue to be its first nature-based solutions business last year
one of the driving forces of the international gas when it bought 100% of Select Carbon, a special-
WHY: market for many years to come. ist company that partners with Australia’s farmers,
Japan has pledged With that in mind, coupled with the govern- pastoralists and other landowners to develop car-
to achieve net-zero ment’s pledge last year that the country would bon-free farming projects.
emissions by 2050. be carbon neutral by 2050, Japan’s gas import- Osaka Gas added that it would begin sup-
ers have begun pushing to reduce the emissions plying carbon-neutral city gas subsidiary Dai-
WHAT NEXT: connected to their LNG purchases. gas Energy’s customers from August 1. Daigas
While carbon credits are has signed a number of agreements with clients
helping to deliver the CNL strategy since April 1 to begin supplying carbon-neutral
first few cargoes of CNL, Osaka Gas said on July 6 that it had received city gas and has also wrapped up deals to start
technologies such as its first cargo of carbon-neutral LNG (CNL) at wholesaling carbon-neutral city gas and CNL to
CCUS will become more its Senboku LNG Terminal, with the shipment a collection of gas utilities.
important over time. coming from Brunei LNG under a deal signed The executive vice-president of energy solu-
with Royal Dutch Shell. tions subsidiary Shell Energy, Steve Hill, said the
The 1.8mn tonne per year (tpy) Brunei LNG deal with Osaka Gas served as a “unique” exam-
terminal is a joint venture between the Brunei ple of collaborative action across the gas sector
government with 50% and Shell and Mitsubishi value chain.
each with a 25% stake. The Amani LNG car- He said: “Shell, Brunei LNG and Osaka Gas
rier delivered the cargo, which was also Brunei have collaborated to offset lifecycle [carbon
LNG’s first shipment of CNL. dioxide equivalent] CO2e emissions of this
Osaka Gas said that under the deal Shell had cargo, which is an important step in growing the
agreed to use its nature-based carbon credits to market for carbon-neutral LNG.”

P4 www. NEWSBASE .com Week 27 09•July•2021