Page 16 - AsianOil Week 33 2021

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Eni to supply carbon- neutral cargo to Taiwan
PROJECTS & COMPANIES
ITALY’S Eni announced this week that it had agreed to supply a carbon-neutral LNG cargo to Taiwan’s CPC. News of such cargoes – while still comparatively unusual – have gradually become more commonplace over the past year or so amid the accelerating energy transition.
Eni said the LNG for the cargo would be sourced from Indonesia’s Bontang liquefaction terminal, under the Italian company’s contract with Eni Muara Bakau, the joint venture that owns and operates the Jangkrik gas field. Eni is the operator of the joint venture.
The cargo will be delivered to the Yung An receiving terminal in Taiwan.
The company said that the cargo’s emis- sions would be calculated using its own proprietary methodology, and would be cer- tified as carbon-neutral under the PAS2060 standard. Emissions stemming from the entire value chain of the cargo – from pro- duction, liquefaction and shipping to regas- ification, distribution and end use – will be
offset via the retirement of “high-quality” nature-based credits.
For this cargo, the credits will be sourced from two REDD+ projects – the Luangwa Com- munity Forest project in Zambia and the Kulera Landscape REDD+ project in Malawi. US-based Verra will certify the carbon dioxide (CO2) vol- umes that the projects will offset.
The delivery is part of Eni’s long-term decar- bonisation strategy, which envisions the com- pany reaching net zero GHG emissions by 2050. The target includes Scope 3 emissions – those stemming from the use of Eni’s products by its customers. Decarbonisation targets that incor- porate Scope 3 emissions are considered more ambitious and more challenging to achieve than goals limited to Scope 1 and 2 – respectively direct emissions and indirect ones associated with the use of electricity, heating or cooling.
Eni has intermediate targets across all three scopes of emissions – to reduce them by 25% rel- ative to 2018 levels by 2030 and 65% by 2040.™
Australian LNG exports to China hit record high
OCEANIA
PERFORMANCE
AUSTRALIAN LNG exports to China have risen to record highs despite ongoing trade ten- sions between the two countries.
A monthly report from consultancy Ener- gyQuest, which cited customs data, said Aus- tralia had supplied a record 30.7mn tonnes of LNG to China in the 2020-21 fiscal year, which runs from July 1 to June 30. This marks a 7.3% increase year on year (y/y) in shipments and means that, for the first time, China has over- taken Japan as Australia’s largest buyer of LNG. The shipments were valued at AUD15.6bn ($11.3bn).
Australian exports to China were higher than recorded in disclosed contracts, which are worth 19.4mn tonnes, EnergyQuest noted. Almost all of the projects that have contracts with Chinese buyers supplied above their contractually agreed volumes according to the consultancy. Every other Australian LNG project also supplied car- goes to Chinese buyers, even without contracts, it said. The additional supplies came from port- folio volumes and spot sales.
Overall Australian LNG supplies to North Asia – China, Japan, South Korea and Taiwan – also hit a record high of 72.4mn tonnes in the 2020-21 fiscal year. This happened despite the hit that the LNG market took as a result of the coro- navirus (COVID-19) pandemic last year.
The statistics come as China continues on its path towards becoming the world’s largest importer of LNG, overtaking Japan. China imported a total of 76.1mn tonnes in the 12 months up to June 2021, compared with 63.6mn tonnes in the previous 12-month period, according to EnergyQuest. This marks a rise of 19.6% y/y.
The rise in LNG trade between Australia and China defies warnings that this trade could suffer as the two countries remain at odds over broader trade issues and bring in a series of retaliatory measures against each other that have affected other industries. Since the spring of 2020, Beijing has curbed Austral- ian beef imports, while levying tariffs on bar- ley and wine from the country.™
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w w w . N E W S B A S E . c o m Week 33 19•August•2021