Shell and Oman LNG have signed an agreement to deliver Oman’s first carbon-neutral LNG cargo
Oman LNG will supply LNG cargo utilising nature-based offsets from a facility in the Omani port city of Sur.
Shell described it as “the first carbon-neutral LNG from the Middle East using nature-based carbon credits to offset the full lifecycle CO2 emissions generated across the LNG value chain.”
The agreement is part of Shell’s ‘Nature-based projects’ carbon offset programme. It is unclear which company is responsible for offsetting the carbon and where this project will be located.
A statement from Shell said, “This collaboration allows Oman LNG to tap into the knowledge and expertise of Shell while it translates Oman LNG’s bold commitment towards knowledge sharing and exploring suitable mechanisms to reduce emissions.”
"When CO2 emissions are hard to abate, they can be compensated through offset from projects that are independently verified to capture or reduce CO2 emissions and create carbon credits, which can be retired to demonstrate an amount of CO2 emissions have been compensated for," Oman LNG said.
Oman LNG has initiated other projects to eliminate its carbon footprint, such as the ongoing Power Project Plant. The move to introduce the gas engine power plant is to conserve natural gas and reduce emissions. Gas savings accumulated through this project are aimed at producing power for the company’s facility with less natural gas by optimising gas resources and reducing resulting emissions.
Oman LNG chief executive Hamed Al Naamany commented “Using high-quality nature-based offsets for Oman LNG’s first carbon-neutral LNG cargo offering is a testimony of our commitment to the environment, and our focus on decarbonisation. We continue to be among the top quartile of the premium LNG market, and aim to remain in this position post-2025”.
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