Page 10 - FSUOGM Week 10 2021

FSUOGM PIPELINES & TRANSPORT FSUOGM

Shell, Gazprom deliver Europe's

first carbon neutral LNG

EUROPE ROYAL Dutch Shell and Russia’s Gazprom have Sakhalin LNG plant in the Russian Far East, but
delivered the first ever cargo of carbon-neu- neither has said where the cargo originated.
The cargo arrived at the tral LNG to Europe, as both companies look
Dragon LNG terminal in to improve their environmental credentials to LNG bunkering
Wales. make their gas more attractive to buyers. Shell and Gazprom’s oil arm Gazprom Neft are
Shell announced taking delivery of the cargo also promoting the use of LNG as a shipping
from Gazprom on March 8. The shipment was fuel as a means of combatting emissions. Heavy
unloaded at the Dragon LNG terminal in Wales, fuel oil has dominated global shipping for dec-
in the UK. ades, but shipowners are now turning to LNG
LNG cargoes can be classified as neutral if and other alternatives in the face of increasingly
their lifecycle CO2 emissions from wellhead to stringent environmental regulation.
combustion are offset with the use of carbon Shell said on March 4 it had chartered an
credits, third party-verified certificates issued to LNG bunkering vessel under construction in
projects that capture or avoid emissions. Several Spain to provide its customers greater flexibility
such cargoes have been delivered to Asia but along the key trade routes. The company already
this is the first to arrive at a European market. has six LNG bunkering ships in operation or
According to Shell, a typical 70,000 tonne LNG about to enter service, making it the biggest LNG
cargo emits around 240,000 tonnes of CO2 bunkerer in the world, and it aims to double that
equivalent greenhouse gas (GHG) emissions. number by 2025.
“We are grateful to Gazprom for partnering The latest vessel will be operated by Norway’s
with us in delivering the first carbon-neutral Knutsen and will use the Enagas LNG terminal
LNG cargo in Europe. We have already deliv- in Barcelona for loading and supplying LNG. Its
ered seven carbon-neutral cargoes in Asia and LNG storage capacity is 5,000 cubic metres.
are very excited to be able to now offer this to Spain has seen a rapid growth in LNG bun-
customers in the UK,” Steve Hill, vice president kering in recent years, with the number of refu-
at Shell Energy, commented. “Carbon-neutral elling operations off its coast reaching 741 last
LNG cargoes are another choice we are offering year, up from a mere 199 in 2019, Iberian gas
our customers as they seek to reduce their net association Gasnam estimates. LNG bunkering
carbon footprint well-to-wheel and also offer the is becoming more popular not only with local
same choice to their end customers. shipping but also across the Mediterranean and
“Using natural-based carbon credits to com- for trade between Asia and Europe.
pensate for emissions that cannot be avoided or Shell has so far completed ship-to-ship LNG
reduced is an important step as we find more bunkering 400 times in seven countries and eight
ways to reduce emissions across the LNG value ports, including Rotterdam, Barcelona, Tenerife,
chain,” he continued. La Spezia, Gothenberg and most recently Jack-
Gazprom Export head Elena Burmistrova sonville in Florida. It plans to start providing the
added that the deal “confirms once again the service in Singapore and Florida’s Port Canav-
ability of the gas industry to contribute to achiev- eral this year, and recently obtained a bunkering
ing climate goals.” Natural gas is the cleanest fos- licence in Gibraltar.
sil fuel and with further efforts to decarbonise Gazprom Neft, meanwhile, is just about to
and offset the fuel underway, it “will remain a make its foray into LNG bunkering. It launched
key element of global energy for decades ahead,” Russia’s very first LNG bunkering vessel in
she said. December, with sea trials scheduled for this
Gazprom confirmed earlier this month that spring. The ship will join Gazprom Neft’s con-
it was working with Shell to dispatch the car- ventional bunkering fleet in the second half of
bon-neutral LNG cargo. The two companies the year, operating at ports in the Gulf of Finland
are partners at the 11mn tonne per year (tpy) and in the Baltic Sea. ™

P10 www. NEWSBASE .com Week 10 10•March•2021