Shell pens five-year carbon-neutral LNG deal with PetroChina

Shell has signed a five-year agreement to deliver carbon-neutral LNG to China's PetroChina, the Anglo-Dutch major reported on July 12, without specifying volumes.

The companies have agreed to offset CO₂ emissions generated across the value chain of each LNG cargo using third part-accredited credits produced at nature-based projects in Shell's global portfolio.

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Shell is the most active trader of CO₂ and greenhouse gas neutral LNG cargoes, selling at least six shipments since July 2019 and buying another three, according to the International Energy Agency. 

"This first term deal is an important step in scaling up the market for carbon-neutral LNG," Shell Energy's vice president, Steve Hill, commented.

PetroChina said the deal would help towards China's ambition to reduce emissions to net zero by 2060.