Page 5 - AsianOil Week 16 2021

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transition,” commented Total’s president of Pavilion’s plan
exploration and production, Arnaud Breuillac. The delivery of a carbon-neutral LNG cargo to
Siemens’ executive vice-president of indus- Pavilion also comes as no surprise, given that the
trial applications, Thorbjörn Fors, said the part- Singaporean company launched a tender a year
ners would look at how they can competitively ago for LNG deliveries with their carbon emis-
reduce the carbon footprint of brownfield and sions quantified. The eventual goal of this was
greenfield LNG projects alike. carbon neutrality.
Total notes that it is the world’s second-largest Pavilion subsequently reached two separate
privately owned LNG player, with a global port- supply deals – one with Qatar Petroleum (QP)
folio anticipated to reach nearly 50mn tonnes and one with Chevron – that involve each cargo
per year (tpy) by 2025 and a global market share being accompanied by a statement of its associ-
of around 10%. Its push to decarbonise LNG ated GHG emissions from wellhead to discharge
therefore has the potential to have a significant port. The company is also working with others to
and far-reaching impact. develop a methodology to quantity and calculate
emissions from LNG.
Japanese push Details of who supplied this first car-
For Japan, one of the leading importers of LNG, bon-neutral cargo to Pavilion were not
decarbonising the fuel is one of numerous steps disclosed. However, the company said the
being explored as the country targets net-zero emissions from the cargo would be offset by
greenhouse gas (GHG) emissions by 2050. The retiring a corresponding amount of carbon
latest moves being reported this week come after credits sourced from its portfolio of car-
the Carbon Neutral LNG Buyers Alliance was bon offset projects. It added that the credits
formed in March. The alliance includes Tokyo used for the offset are from Natural Climate
Gas and 14 other companies that use city gas Solutions projects certified under the Veri-
across various industries. fied Carbon Standard (VCS) and Climate,
As with Total, the latest news on Tokyo Gas Community and Biodiversity Standard
illustrates progress on an initiative that was (CCB) – Evio Kuinaji Ese’Eja Cuana in Peru
already underway. The company, which is the and Liangdu Afforestation in China. Both
largest seller of city gas in Japan, bought its first projects are designed for the protection and
carbon-neutral LNG cargo in 2019, when such restoration of forests, according to Pavilion.
cargoes were still in their infancy. Now Tokyo
Gas says it expects to see a rise in demand for What next?
carbon-neutral LNG from end-users. LNG players typically do not discuss commer-
The company started supplying 800,000 cial arrangements, including the prices paid for
cubic metres per year of carbon-neutral city gas their LNG supplies, and the recent deliveries and
to the Yakult Central Institute on April 1, mark- other developments are no different. Nonethe-
ing the first use of carbon-neutral city gas supply less, carbon-neutral cargoes will be more costly
to the Japanese beverage industry. This comes than standard LNG deliveries, and there is scep-
as the Japanese government has called on the ticism over how many players will be willing
country’s industrial sectors to decarbonise their to buy such cargoes when economics remain
heating demand, and indeed has identified car- important.
bon-neutral LNG as being among the possible On the other hand, those moving forward
solutions. with initiatives to decarbonise LNG include
As for the carbon-neutral LNG cargo received some major players, and their participation
by Toho Gas, the shipment is reported to have will almost certainly help carbon-neutral LNG
been supplied by Diamond Gas International, a to become more widespread. As deadlines for
subsidiary of Mitsubishi, which also bought the national decarbonisation targets loom, the pres-
credits to offset the cargo’s emissions. Few other sure to embrace carbo-neutral LNG will likely
details related to this cargo have emerged, but it rise.
illustrates the gradual growth of the carbon-neu- That said, carbon-neutral LNG is still in its
tral LNG trade in Japan. early days, and much is unknown.™

Week 16 22•April•2021 www. NEWSBASE .com P5