Energy major BP has shipped its first carbon offset LNG cargo in a deal with US producer and terminal operator Sempra LNG and infrastructure developer Infraestructura Energetica Nova (IEnova).
The shipment — to be sourced from BP's global portfolio — was slated to be delivered to Sempra LNG’s Energia Costa Azul terminal in Baja, Mexico, on Friday 16 July.
Kpler data shows the 174,000-cbm newbuilding BW Helios in laden condition and scheduled to arrive at the terminal today. The vessel loaded its cargo at the Atlantic LNG plant in Trinidad.
Measuring GHG
BP said this is the first delivery under its new offer and Sempra LNG’s first carbon offset LNG cargo import to Mexico.
The major said the CO2 and methane emissions associated with the LNG cargo, from wellhead to discharge terminal, will be estimated using its greenhouse gas quantification methodology for LNG.
"The methodology has been developed following relevant international standards and may be updated from time to time," BP said.
The company said the estimated emissions will be offset by retiring a corresponding amount of carbon credits, sourced from a Mexican afforestation project from its vetted portfolio of offsets on behalf of Sempra LNG.
BP executive vice president Carol Howle said: “Natural gas has a key role to play in getting the world to net zero.
"The development and continuous improvement of a clear and reliable methodology for quantifying the carbon intensity of our LNG supply chain is an important step in helping our customers deliver their sustainability goals and supports our ambition to help the world get to net zero," Howle added.
BP senior vice president for gas and power trading international Sharon Weintraub said delivering carbon offset LNG is part of meeting growing customer demands for new energy solutions as they pursue their sustainability strategies.
Growing demand
The major has set specific GHG reductions and other aims for 2030 in support of its ambition to be a net-zero company by 2050 or sooner. But BP added that it does not intend to rely on carbon credits to meet its 2030 aims.
Sempra LNG has set a goal to operate its existing LNG infrastructure at a GHG emissions intensity 20% less than its 2020 baseline and expects to establish additional targets by 2025, as the company bring more projects online.
IEnova and Sempra LNG, which are constructing liquefaction facilities that will be located adjacent to Energia Costa Azul, said they will continue diversifying their offerings, including developing bundled carbon offset LNG products to help meet customers’ demand.
BP's first delivery follows a growing surge in uptake of carbon-neutral LNG shipments as buyers and sellers move to decarbonise their energy businesses.
This week, Shell signed what it said is the first term contract for carbon-neutral LNG with PetroChina.
Under the five-year agreement, Shell will offset the estimated life-cycle CO2 emissions for each cargo using nature-based carbon credits.
