First Sakhalin-2 Carbon Neutral/Offset LNG Cargo Delivered to Japan

  • Oct 20, 2021
  • Gulf Oil & Gas

Grand Aniva, the Russian LNG carrier, has arrived at the Chita Terminal in Aichi Prefecture (Japan) with the first Sakhalin Energy’s carbon neutral/offset LNG cargo. It is delivered to the Japanese company Toho Gas to be supplied as carbon neutral city-gas to its customers.

According to Roman Dashkov, Sakhalin Energy’s Chief Executive Officer, the fact that the Japanese customers are seeking mutually acceptable commercial solutions in compensating the carbon footprint of the supplied energy sources is mainly caused by Japanese government announcing carbon neutrality by 2050. That is why all initiatives to reduce carbon dioxide emissions are considered, while helping to save the global environment.

“Successful cooperation with the Asia-Pacific customers and Sakhalin Energy’s work on decarbonising the entire LNG chain from production to final usage of end-users, allows to bring Sakhalin gas supplies to Japan to the next stage. It is not only an achievement of the present day, but also the shaping of the long-term outlook for the ?ompany’s commercial strategy, which involves supplies of carbon neutral/offset LNG as a competitive standard offer for many years ahead,” Roman Dashkov stressed.

The Head of the responsible industry programme at the World Wildlife Fund, Alexey Knizhnikov, points out the trend towards a stronger climate agenda. To his opinion, it will significantly impact the operation of the leading oil and gas companies and is now in demand among many world-class businesses.

“Sakhalin Energy has been demonstrating the best industrial and environmental practices both at the national and international levels for a long time. We see the supply of the first Sakhalin-2 carbon neutral/offset LNG cargo as one of the examples. But it is important that the company is not limited only to offset projects, but more actively develop initiatives leading to a reduction in emissions,” said Alexey Knizhnikov.

The carbon neutrality/offset of the first Sakhalin-2 LNG cargo was achieved by purchasing carbon credits from one of the ?ompany's shareholder’s affiliates, Gazprom Marketing & Trading Ltd. In addition, Sakhalin Energy is considering the possibility of obtaining Russian carbon credits using a pilot carbon trading system on Sakhalin, and the possibility to generate carbon units as a result of solutions based on the environmental assets.