Russian state-owned Gazprom Group recently delivered to partner Royal Dutch Shell plc what the companies said is the first-ever carbon-neutral liquefied natural gas (LNG) cargo in Europe.

Shell LNG

Shell said Monday the cargo was unloaded at the Dragon LNG terminal in the UK, which would enable the supermajor to supply more carbon-neutral gas to the domestic market. Shell holds a 50% ownership and a 50% capacity stake in the Welsh terminal.

The full lifecycle emissions associated with the cargo were offset using “nature-based” carbon credits, Shell said. The company did not elaborate on the specific investments, but each carbon credit generated by the projects is subject to third-party verification.

Shel estimated an average LNG cargo of about 70,000 metric tons (Mt) would emit around 240,000 Mt of carbon dioxide equivalent across the value chain. 

Global LNG suppliers are eager to find ways to lower the carbon footprints of their cargoes. In its recent LNG Outlook, Shell forecast that more than half of future LNG demand in 2040 would be from countries with net-zero emissions targets.

Shell, the world’s largest LNG trader, has delivered at least seven carbon-neutral gas cargoes into Asia. Last year, French supermajor Total SE delivered its first carbon-neutral cargo to China National Offshore Oil Corp.More recently, global trader Vitol said it would offer carbon offsets for its LNG cargoes. In addition, Cheniere Energy Inc. has unveiled a scheme to provide information on the emissions associated with its LNG shipments.