A contract has been entered into by S.A.B. de C.V (IEnova) for the delivery and receipt of the companies’ first carbon offset liquefied natural gas (LNG) cargo.
The cargo will be source from BP’s global LNG portfolio and delivery is expected to be received at the Energia Costa Azul (ECA) terminal in Mexico today, July 16th, 2021.
The two companies intend to diversify their offerings as global interest increases and demand grows with regards to the LNG sector. One method of diversification includes developing bundled carbon offset LNG products.
Speaking about the contract, Justin Bird, CEO, Sempra LNG, said, “We are excited to advance our goal to lower GHG emission intensity at your LNG facilities.”
“Sempra LNG continues to build a strong business portfolio focused on sustainability and the global energy transition.”
BP’s greenhouse gas (GHG) quantification methodology for LNG, developed following relevant international standards, will estimate carbon dioxde (CO2) and methane (CH4) emissions associated with the LNG cargo, from wellhead to discharge terminal.
Carbon credits sourced from a Mexican afforestation project will offset any estimated emissions. The project is from BP’s vetted portfolio of offsets on behalf of Sempra LNG.
Commenting on the offer, Carol Howle, EVP of trading & shipping, BP, said, “Natural gas has a key role to play in getting the world to net zero.”
“This new offer further demonstrates our determination to remain one of the world’s leading and most innovative LNG suppliers.”
She went on to say that the development and continuous improvement of a clear and reliable metholodgy for quantifying the carbon intensity of their LNG supply chain is an important step in helping their customers deliver their sustainability goals and supports their ambition to help the world get to net zero.
By aiming to become a net zero company by 2050 or sooner, to meet its 2030 GHG reduction goals bp does not intend to rely on carbon credits.
Sharon Weintraub, SVP, gas and power trading international, bp, said, “Delivering carbon offset LNG is an important part of meeting growing global energy demand.”
“For BP, this is part of continuing to meet growing customer demands for new energy solutions that will amplify value for our business.”
Excited to be working with Sempra LNG, Tania Ortiz, CEO, IEnova, expressed excitement as having the opportunity to deliver LNG sustainably to customers in Mexico.
Liquefaction facilities located adjacent to ECA are currently being constructed by Sempra LNG and IEnova. ECA will continue to serve the needs of its existing customers, including from the receipt of multiple LNG cargoes each year. This is pursuant to a long-term sales and purchase agreement between bp and its partners in Tangguh LNG and Sempra LNG.
With aims to operate its existing LNG infrastructure at a GHG emissions intensity 20% less than its 2020 baseline, Sempra LNG expect to establish additional goals by 2025.