Royal Dutch Shell plc said Monday that it has signed the world’s first term contract to supply carbon-neutral liquefied natural gas (LNG) to a PetroChina Co. Ltd. subsidiary. 

Shell Update

Shell said it signed a five-year agreement with PetroChina International Co. Ltd. (PCI). It did not say how much carbon-neutral LNG would be supplied or when the agreement would begin. But Shell said it would work with PCI to offset carbon dioxide equivalent (CO2e) emissions from each cargo across the LNG value chain using carbon credits from nature-based projects.

Shell said nature-based projects, such as those in the forestry or agriculture sectors, protect, transform or restore land to add oxygen and absorb more carbon dioxide emissions from the atmosphere. Each carbon credit is subject to a...