BP delivers ‘carbon offset’ LNG cargo to Taiwan’s CPC

BP has delivered what it described as a 'carbon offset' LNG cargo to Taiwanese state-controlled energy firm CPC's 10.5mn t/yr Yung An terminal, in its first such delivery to the Asia-Pacific region.

The CO2 and methane emissions associated with the LNG cargo from wellhead to discharge terminal were estimated using BP's greenhouse gas (GHG) quantification methodology for the specific source and voyage, the firm said. It will retire credits for the cargo from its ‎carbon trading portfolio.

BP's quantification methodology takes into account 'relevant international standards' and incorporates 'input from third-party experts', it said.

BP has a term contract agreement to supply CPC with 750,000 t/yr of LNG over 2017-21 on a des basis. It did not mention the source or size of the 'carbon offset' cargo, which was delivered this month.

This is CPC's fourth receipt of an LNG cargo for which all associated carbon emissions have been offset. The firm last month secured a 'carbon neutral' LNG from Italian energy firm Eni, following its purchase of two 'carbon neutral' LNG cargoes from Shell in 2020.

BP's first delivery of a 'carbon offset' LNG cargo was to US firm Sempra LNG at Mexico's 3.25mn t/yr Energia Costa Azul liquefaction facility in July.

The recent increase in the number of LNG deals for what the participants describe as 'carbon neutral' or 'carbon offset' cargoes comes amid a call by the Paris-based International Energy Agency for greater transparency and standardisation on monitoring, reporting and verifying the GHG emissions associated with such cargoes.

There have been at least two 'carbon neutral' LNG initiatives announced this month. Japanese upstream firm Inpex announced on 1 September that it would deliver a 'carbon neutral' LNG cargo to domestic gas distributor Shizuoka Gas at the 2.8mn t/yr Sodeshi LNG receiving terminal in Shimizu port on 4 September.

Japanese shipping firm Mitsui OSK Lines also announced early this month that it would be switching to the use of 'carbon neutral' LNG for one of its tugboats as part of its efforts to reduce GHG emissions in the shipping industry.

By Joey Chua