Global commodity trader Vitol said Monday it would begin offering customers “green” liquefied natural gas (LNG) cargoes, the latest in a series of announcements aimed at curbing emissions throughout the global gas market.
Vitol said emissions related to the new product offering from the wellhead to delivery point would be managed with carbon offset certificates verified and issued by a third party such as the United Nations Clean Development Mechanism or American Carbon Registry.
All LNG customers, Vitol added, will be offered the opportunity to convert traditional cargoes to so-called green cargoes through the offsets. The emissions to be offset would be estimated using the Wood Mackenzie LNG Emissions Tool, while the certificates would be sourced from Vitol’s existing portfolio and the broader market.
“This demonstrates how our established portfolio of carbon projects can add value to our wider energy customers,” said Head of Emissions Trading Michael Curran. “We anticipate demand for carbon-mitigating energy solutions to grow as the world focuses on achieving net-zero.”
Vitol has worked in the carbon market for over a decade. In addition to participating in both compliance and voluntary markets, the trading house has invested in a portfolio of carbon offsetting projects around the world.
The company’s announcement follows several others since last year. The largest U.S. exporter, Cheniere Energy Inc., said last week it would begin providing customers greenhouse gas emissions data for each LNG cargo loaded at its terminals. Chevron Corp. and Qatar Petroleum have also recently entered supply deals with Pavilion Energy Trading & Supply Pte. Ltd. that require them to detail the emissions generated to produce and deliver cargoes. Other major global LNG suppliers have also started offering carbon-neutral cargoes offset with emissions certificates.
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