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Shell to supply carbon neutral LNG to Tokyo Gas



Tokyo Gas Co. Ltd and GS Energy have signed an agreement with Shell Eastern Trading Ltd for the supply of carbon neutral LNG.

The deal with Tokyo Gas and GS Energy will be the first in the world to deliver carbon neutral LNG and will be achieved through the use of carbon credits
(Image via Shell)

Under the agreement, one cargo each of liquefied natural gas will be shipped, with carbon credits used to compensate the full CO2 emissions generated from exploration and production of the natural gas.

Each cargo is said to contain enough energy to power 300,000 homes for a full year.

Tokyo Gas claim that this supply will help strengthen its effort towards a low carbon society. They say that the carbon credits are bought by Shell from a global portfolio of nature-based projects, with each credit subject to a third-party verification process and representing the avoidance or removal of 1 tonne of CO2.

“Carbon neutral LNG cargoes are another choice we are offering our customers, as they seek to address their CO2 emissions today. In turn, they are then able to offer the same to their customers who increasingly want to reduce the net carbon footprint of their energy use,” said Slavko Preočanin, Vice President Shell LNG Marketing & Trading. 

“This deal will set the ground for us to further develop this offering and we are pleased to be able to make this pioneering first step possible for our valued partners Tokyo Gas and GS Energy.”

Peru's Cordillera Azul National Park is one of the locations for protection, transformation or restoration funded by carbon credits
(Image via Wikimedia)

Projects involved in the scheme include the Katingan Peatland Restoration and Conservation Project in Indonesia and the Cordillera Azul National Park Project in Peru.

The projects are intended to protect, transform or restore land in ways that will enable nature to thrive, thereby adding oxygen to and absorbing CO2 from the atmosphere. Additional benefits include providing alternative sources of income to local communities, improving soil productivity, cleaning air and water, and maintaining biodiversity.

“In addition to the widespread expansion of natural gas with its character of having the least carbon dioxide emission among fossil fuels, we will continue our effort to realise the low carbon society as well as providing a new value to our customers by introducing carbon neutral LNG as a new effort,” said Kentaro Kimoto, Managing Executive Officer of Tokyo Gas.

“We are very pleased to work on new initiative together with Shell who are focused in their efforts to provide more and cleaner energy.”

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Shell to supply carbon neutral LNG to Tokyo Gas - Time to read 3 min
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