News

8 March 2021

Gazprom Group Completes First Ever Carbon-Neutral LNG Delivery in Atlantic Basin

Gazprom Group on 8th March delivered the first carbon-neutral cargo of LNG in the Atlantic Basin. The cargo of Russian origin LNG was delivered to Royal Dutch Shell at the Dragon terminal in the United Kingdom by Gazprom Global LNG Limited.

Under the carbon-neutral arrangements, Gazprom and Shell in partnership offset the carbon footprint of the cargo with VCS (Verified Carbon Standards) and CCB (Climate, Community and Biodiversity) emission certificates. Nature-based carbon credits have been used and will be retired. This allowed the LNG delivered within the deal to achieve full carbon neutrality through offsetting all emissions that arise across the full ‘well to wheel’ cycle, from exploration and production through to transportation and end-use.

“This deal, first ever for Gazprom Group of the kind, closed together with our long term partner Shell confirms once again the ability of the gas industry to contribute to achieving climate goals. Natural gas is the cleanest fossil fuel in terms of emissions. Through the  additional efforts to decrease emissions along with the broad activity aimed at offsetting the impact for environment natural gas will remain a key element of global energy for decades ahead”, said Elena Burmistrova, Deputy Chairman of Gazprom’s Management Committee, Director General of Gazprom Export.

“We are grateful to Gazprom for partnering with us in delivering the first carbon neutral LNG cargo in Europe. We have delivered seven carbon neutral cargoes in Asia and are very excited to be able to now offer this to customers in the UK.” said Steve Hill, Executive Vice President, Shell Energy. “Carbon neutral LNG cargoes are another choice we are offering our customers as they seek to reduce their net carbon footprint well to wheel and also offer the same choice to their end customers. Using nature-based carbon credits to compensate for emissions that cannot be avoided or reduced, is an important step as we find more ways to reduce emissions across the LNG value chain.”

 

Background

Gazprom Global LNG Limited is a subsidiary of Gazprom Marketing and Trading, itself a subsidiary of Gazprom Export LLC and part of the Gazprom Group. Its activity focuses on international LNG trade from the Gazprom Group portfolio.

Royal Dutch Shell plc is a British-Dutch multinational oil and gas company acting in exploration, production and marketing of hydrocarbons in over 70 countries.

The Verified Carbon Standard (VCS) is the certification standard for СО2 emissions developed and administered by non-profit corporation Verra.

The Climate, Community and Biodiversity (CCB) is the projects certification standard aimed at greenhouse gases emissions reduction, developed and administered by The Climate, Community & Biodiversity Alliance.

 

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