BP Gas Marketing Ltd., Sempra LNG and Infraestructura Energética Nova (IEnova) have entered into a contract for the delivery and receipt of the first carbon offset LNG cargo sourced from BP's global LNG portfolio, the companies announced July 15.
The cargo, shipped under an agreement reached between the companies, is expected to be delivered to the Energía Costa Azul (ECA) terminal in Mexico on July 16.
BP will use its GHG quantification methodology for LNG to estimate CO2 and methane emissions associated with the LNG cargo, from wellhead to discharge terminal. These estimated emissions will be offset by retiring a corresponding amount of carbon credits, sourced from a Mexican afforestation project from BP's vetted portfolio of offsets on behalf of Sempra LNG.
This delivery is a part of BP's initiatives to reduce specific GHG reductions and other aims for 2030 in support of its ambition to be a net-zero company by 2050 or sooner and to help the world get to net zero. BP does not intend to rely on carbon credits to meet its 2030 aims.
Carol Howle, EVP of trading and shipping at BP said, "Natural gas has a key role to play in getting the world to net zero...The development and continuous improvement of a clear and reliable methodology for quantifying the carbon intensity of our LNG supply chain is an important step in helping our customers deliver their sustainability goals and supports our ambition to help the world get to net zero."
Global demand for natural gas and LNG is expected to continue to grow. IEnova and Sempra LNG each intend to continue supporting this growth by diversifying their offerings, including developing bundled carbon offset LNG products to help meet customers' demand. Additionally, Sempra LNG has established a goal to operate its existing LNG infrastructure at a GHG emissions intensity 20% less than its 2020 baseline and expects to establish additional goals by 2025, as the company continues to grow and bring more projects online.
"We are excited to advance our goal to lower GHG emission intensity at our LNG facilities," said Justin Bird, CEO of Sempra LNG, adding that the company continues to build a strong business portfolio focused on sustainability in line with the broader energy transition.
Tania Ortiz, CEO of IEnova added: "We are pleased to work with Sempra LNG to help deliver the much-needed natural gas to customers in Mexico in a sustainable manner. We are always looking for new ways we can create value not only through the safe and responsible operation of our facilities, but also by contributing toward the energy transition."
Sempra LNG and IEnova are currently constructing liquefaction facilities that will be located adjacent to ECA. Although this carbon off-set LNG cargo is from BP's global LNG portfolio, ECA will continue to serve the needs of its existing customers, including from the receipt of multiple LNG cargoes each year pursuant to a long-term sales and purchase agreement between BP and its partners in Tangguh LNG and Sempra LNG.
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