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Shell delivers first carbon-neutral LNG to Taiwan under GIIGNL framework

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LNG Industry,

The LNG industry is making progress in adopting the comprehensive framework developed by GIIGNL aimed at promoting verified and consistent quantification of greenhouse gas (GHG) emissions based on established standards and methodologies, GIIGNL has announced.

Shell Eastern LNG’s has delivered of a pilot carbon-neutral LNG cargo from the Gorgon Project in Australia to CPC Corporation, Taiwan, which is aligned to the GIIGNL’s Monitoring, Reporting and Verification (MRV) and GHG-Neutral Framework launched in November 2021. The framework creates a transparent practice to declare GHG neutral cargoes through an independently verified cargo statement which sets out both emissions and offsets.

Steve Hill, EVP Energy Marketing, Shell, stated: “This pilot shipment has helped us to learn about how best to use this comprehensive tool for increasing transparency and accuracy in quantifying and reporting emissions associated with LNG cargoes. We are very grateful to our long-term partner CPC Corporation, Taiwan, for their interest and collaboration in this pilot phase. We are working with other partners on developing our understanding on adopting it.”

Shun-Chin LEE, Chairman of CPC Corporation, Taiwan, stated: “It is a great pleasure to receive the trial cargo under the GIIGNL framework. This is an important step in improving transparency and accountability of GHG neutral LNG and it is a step forward not just for us, but for the LNG industry as a whole. Demand for addressing GHG emissions from energy use is increasing downstream in Taiwan, and we are keen to find new and better ways of meeting this demand.”

GIIGNL President, Abiteboul, said: “As LNG is becoming increasingly vital to ensure energy security in the world, it is imperative that our sector consistently and collaboratively accounts for emissions across the entire value chain. The Framework assists the industry in achieving greater transparency and accuracy in reporting and compensating for emissions and we are very happy to see the first application of the GIIGNL Framework. We will continue to work collectively with our members on the learnings and improve the Framework with due consideration to the feedback from the pilot phase.”

In line with the Framework’s requirement for a claim of ‘GHG-neutral LNG’, Shell has quantified the GHG footprint of this LNG cargo on the full lifecycle in accordance with ISO 14067:2018 (carbon footprint of products) requirements and guidelines for quantification, as well as meeting the international standard PAS2060:2014 (specification for the demonstration of carbon neutrality).

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