An affiliate of Shell plc has delivered the first emissions-neutral cargo under a framework launched last year by the International Group of LNG Importers (GIIGNL) to better standardize shipments. 

Shell LNG

GIIGNL said the pilot cargo was supplied by Chevron Corp.’s Gorgon export facility in Australia to state-owned CPC Corp. in Taiwan. 

“This pilot shipment has helped us to learn about how best to use this comprehensive tool for increasing transparency and accuracy in quantifying and reporting emissions associated with liquefied natural gas cargoes,” said Shell’s Steve Hill, executive vice president of energy marketing. He added that Shell is working with other partners to better understand and adopt the framework.

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GIIGNL’s members handle roughly 90% of all LNG imports worldwide. The group unveiled the framework in November 2021. It sets out criteria for both reporting and offsetting greenhouse gas emissions. 

Shell delivered the first so-called carbon-neutral LNG cargo in 2019 and dozens have been delivered since. However standards have varied widely, making it difficult to determine how much carbon has been mitigated, emitted or offset. 

GIIGNL said its framework promotes verified and consistent quantification of greenhouse gas (GHG) emissions across the entire LNG value chain, from extraction of natural gas, liquefaction, shipping and regasification to final consumption. It allows entities to declare GHG-neutral cargoes through an independently verified cargo statement, which sets out both emissions and offsets. 

GIIGNL’s framework doesn’t replace any established standards or methodologies for GHG emissions calculation, footprint determination and offsetting. It integrates established international standards and methodologies while providing additional criteria. 

Chevron, Pavilion Energy Trading & Supply Pte. Ltd. and Qatar Energy in 2021 published a methodology for quantifying and reporting the GHG emissions of delivered LNG cargoes the same day GIIGNL rolled out its framework. The companies said at the time that their methodology complements other efforts being developed to better report and curb cargo emissions — specifically GIIGNL’s framework. 

Deliveries of emissions-neutral cargoes are expected to continue increasing as governments work to fulfill net-zero pledges. 

“Demand for addressing GHG emissions from energy use is increasing downstream in Taiwan, and we are keen to find new and better ways of meeting this demand,” said CPC Chairman Shun-Chin Lee.