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PETRONAS delivers its first carbon neutral LNG cargo

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LNG Industry,

PETRONAS has completed the delivery of its maiden carbon LNG cargo to Shikoku Electric. The cargo was delivered from the PETRONAS LNG Complex (PLC) in Bintulu and was received yesterday at the Sakaide LNG terminal in Shikoku Island, Japan.

PETRONAS has offset the estimated lifecycle carbon footprint of the LNG cargo through renewables-based carbon credits for the emissions generated from upstream gas exploration and production, transportation, liquefaction, and shipping of the cargo.

Additionally, the carbon credits used by PETRONAS for the delivery were certified through a rigorous verification process under the Verified Carbon Standard programme, which is globally recognised and has been adopted by energy players and producers.

PETRONAS President & Group Chief Executive Officer, Tengku Muhammad Taufik said, “Reflecting our support of the energy transition and in line with our Statement of Purpose, PETRONAS will continue diversifying our products and offerings to the market, while transforming ourselves to be a cleaner and more sustainable energy provider.

“We are grateful to have collaborated with Shikoku Electric on the delivery of our very first carbon neutral LNG cargo that coincides with the date of our 47th anniversary. For PETRONAS, this is a significant milestone as we forge ahead to deliver cleaner energy solutions that fuel progress in a responsible manner,” he added.

In the LNG industry, carbon neutral LNG is seen as a catalyst to spur greater carbon commitments, with a growing number of LNG consumers seeking ways to reduce their carbon footprint. As an integrated energy player, PETRONAS actively seeks collaborations with buyers and end users to achieve their sustainability goals.

Commenting on the delivery, President of Shikoku Electric, Keisuke Nagai said, “We have a good relationship with PETRONAS for the past 15 years. We are delighted that PETRONAS has embarked on this journey which marks a significant milestone as the LNG industry is transitioning towards a more sustainable future.”

Above and beyond the maiden carbon neutral LNG cargo, PETRONAS is also reducing its carbon footprint throughout its LNG and gas value chain. These carbon reduction efforts, among others, include powering the PLC with 90 MW of hydroelectricity, conducting flare recovery as well as carbon capture and storage from offshore gas fields.

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