Page 10 - GLNG Week 18 2021

GLNG AMERICAS GLNG

Cheniere delivers carbon-

neutral LNG cargo to Europe

ENERGY US LNG producer Cheniere Energy said this “It is great to see more producers offsetting
TRANSITION week that it had supplied a carbon-neutral cargo their GHG emissions to meet the increasing
of LNG to Royal Dutch Shell under the two com- demand for carbon-neutral LNG,” stated Shell
panies’ long-term sales and purchase agreement Energy’s executive vice-president, Steve Hill.
(SPA). The cargo came from Cheniere’s Sabine “Using high quality nature-based offsets to com-
Pass LNG terminal in Louisiana and was deliv- pensate for emissions that cannot be avoided or
ered to an unspecified location in Europe in early reduced is an important step as we find more
April. ways to reduce emissions across the LNG value
According to Cheniere’s statement, offsets chain.”
used for the cargo were bought from Shell’s The announcement about the cargo came
global portfolio of nature-based projects. on the same day that Cheniere published its
Cheniere purchased the portion of offsets attrib- results for the first quarter of 2021. The company
utable to estimated carbon dioxide equivalent reported net income of $393mn for the quarter,
(CO2e) emissions associated with activities such up 5% from $375mn in the same quarter of 2020.
as the production and liquefaction of the cargo. The company exported 133 cargoes in the latest
The news comes after Cheniere announced quarter, up from 128 a year ago and 130 in the
earlier this year that it would provide its LNG fourth quarter of 2020.
customers with greenhouse gas (GHG) emis- On the company’s earnings call, Cheniere’s
sions data associated with each cargo produced president and CEO, Jack Fusco, noted that
at its liquefaction facilities, beginning in the first Winter Storm Uri, which hit much of the US in
half of 2022. February, had a particularly significant impact
Shell, for its part, is one of the early movers on Texas. Cheniere’s Corpus Christi LNG
in carbon-neutral LNG, and has also delivered a plant, on the Texas Gulf Coast, went offline
handful of such cargoes itself, primarily to Asian for a few days as a result of the storm and the
buyers, since 2019. power outages it caused.™

AUSTRAL ASIA

AGL formally scraps Crib

Point LNG import project

PROJECTS & AUSTRALIA’S AGL Energy said this week that Port Kembla plan in New South Wales having
COMPANIES it was stopping development of its proposed Crib advanced to the site preparation stage to date.
Point LNG import project. The move is not a sur- The Australian Competition and Consumer
prising one, as it comes around a month after the Commission (ACCC) said earlier this year that if
State of Victoria rejected the plan on concerns Port Kembla LNG is built before 2024, this could
over its environmental impact on local wetlands. help plug the supply gap in the southern states
The company said it had already spent and the East Coast market until 2028.
AUD130mn ($100mn) on the project, and AGL is also a power generator, and now needs
would record a pre-tax loss of up to AUD108mn to consider how to meet its gas needs over the
($83mn) in its results for the 2021 fiscal year coming years. This week, the Australian Finan-
owing to the expenditures on the scheme to date. cial Review cited AGL’s interim CEO, Graeme
The Crib Point plan was one of a handful of Hunt, as saying that importing LNG through a
LNG import projects proposed for Australia in rival project was still an option for the company.
anticipation of a shortfall in natural gas supplies “AGL has a highly flexible gas portfolio and
emerging in the coming years. The shortfall is a supply strategy which will enable customer
predicted to materialise despite the fact that the demand to be met from existing and new
country is one of the world’s leading exporters domestic supply sources and proposed third-
of LNG – with liquefaction projects located in a party regasification projects, leveraging LNG
different, remote part of the country. supply options developed for the Crib Point gas
The remaining LNG import proposals are all import terminal project,” the company said in a
at an early stage of development, with only the May 3 statement.™

P10 www. NEWSBASE .com Week 18 07•May•2021