BP, Sempra LNG, and InfraestructuraEnergética Nova (IEnova) have entered a contract for the delivery and receipt of the companies’ first carbon offset liquefied natural gas (LNG) cargo.
Sempra LNG said on Thursday that the cargo would be delivered to the Energía Costa Azul terminal in Mexico on Friday, 16 July 2021, and that it would be sourced from BP’s global LNG portfolio.
As global demand for natural gas and LNG is expected to continue to grow, IEnova and Sempra LNG each intend to continue supporting this growth by diversifying their offerings, including developing bundled carbon offset LNG products to help meet customers’ demand.
Justin Bird, CEO of Sempra LNG, said: “We are excited to advance our goal to lower GHG emission intensity at our LNG facilities. Sempra LNG continues to build a strong business portfolio focused on sustainability and the global energy transition”.
Carbon dioxide (CO2) and methane (CH4) emissions associated with the LNG cargo, from wellhead to discharge terminal, will be estimated using BP’s GHG quantification methodology for LNG. The methodology has been developed following relevant international standards and may be updated from time to time.
These estimated emissions will be offset by retiring a corresponding amount of carbon credits, sourced from a Mexican afforestation project from BP’s vetted portfolio of offsets on behalf of Sempra LNG.
Carol Howle, EVP of trading & shipping at BP said: “Natural gas has a key role to play in getting the world to net zero. This new offer further demonstrates our determination to remain one of the world’s leading and most innovative LNG suppliers.
“The development and continuous improvement of a clear and reliable methodology for quantifying the carbon intensity of our LNG supply chain is an important step in helping our customers deliver their sustainability goals and supports our ambition to help the world get to net-zero“.
Sharon Weintraub, SVP, gas and power trading international at BP added: “Delivering carbon offset LNG is an important part of meeting growing global energy demand. For customers, this means access to exciting initiatives that can help them in pursuing their sustainability strategies by quantifying the carbon intensity associated with the LNG supply from BP’s diverse portfolio of LNG sources and then offsetting those emissions“.
More widely, BP has set out specific GHG reductions and other aims for 2030 in support of its ambition to be a net-zero company by 2050 or sooner and to help the world get to net-zero. The company stated that it does not intend to rely on carbon credits to meet its 2030 aims.
