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Cheniere touts ESG progress

US US LNG producer Cheniere Energy has pro- academic institutions on the quantification,
vided an update on its progress on environmen- monitoring, reporting and verification (QMRV)
tal, social and governance (ESG) initiatives in its of GHG emissions at gas output sites.
2020 corporate responsibility report, ‘Built for These steps are being taken ahead of
the challenge’, which was published this week. Cheniere’s roll-out of CE tags, which will quan-
This is the company’s second corporate respon- tify the estimated emissions from the wellhead
sibility report, illustrating that while its focus on to the cargo delivery point. This task is made
ESG has only emerged recently, it is increasingly more challenging by the segmented nature of
becoming a priority. the LNG value chain in the US, with multiple
Cheniere – the US’ largest exporter by far of players involved in the production and trans-
LNG – talked up recent efforts to integrate cli- portation of the gas that is used as feedstock
mate considerations into its business strategy at liquefaction terminals. However, Cheniere’s These steps
and reiterated its plans to provide customers new collaboration with producers shows that
with cargo emissions (CE) tags from 2022. upstream operators are increasingly willing to are being
The company presented six focus areas in the participate in the quantification of emissions.
report – climate, environment, team, health and “We believe that increased transparency taken ahead of
safety, community and governance. The report across the industry is key to competition and
also included three global issue features on the improvement,” stated Cheniere’s president and Cheniere’s roll-
energy transition; diversity, equity and inclu- CEO, Jack Fusco, in the company’s latest corpo- out of CE tags.
sion; and the company’s response to the coro- rate sustainability report.
navirus (COVID-19) pandemic.
Among the achievements highlighted in the Another train
report, Cheniere noted that it had seen a reduc- Separately, the US Federal Energy Regulatory
tion of over 33% in Scope 1 greenhouse gas Commission (FERC) has given Cheniere per-
(GHG) emissions intensity – stemming directly mission to take the necessary steps to put the
from its operations – since starting LNG exports sixth liquefaction train at its Sabine Pass LNG
in 2016. The company added that it had main- terminal in Louisiana into service.
tained methane intensity at less than 0.02% over Cheniere said previously that Train 6 would
the past four years. enter commercial service in 2022 but analysts
This comes as Cheniere steps up efforts to have suggested that the unit could start produc-
monitor and report on its GHG emissions. The ing LNG in test mode later this year.
company released a climate scenario analysis in The liquefaction capacity of Sabine Pass will
April. Then in June it said that it would collabo- rise to around 30mn tonnes per year (tpy) once
rate with five natural gas producers and several Train 6 enters service.™

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