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...