Japanese gas company, Osaka Gas Co., Ltd. (Osaka Gas) has announced receival of its first carbon neutral liquefied natural gas (CNLNG) shipment under an agreement signed with Shell Eastern Trading Pte Ltd (Shell).

The cargo was delivered to Senboku LNG Terminal, Japan, on July 6, 2021, from Brunei, where the natural gas for the cargo was produced and liquefied.

Shell’s nature-based credits will be used as compensation for emissions created during the production, transport, processing, and end-use of natural gas, as per the agreement following Osaka Gas’ purchase of LNG.

Speaking about the shipment, Keiji Takemori, Senior Executive Officer, Osaka Gas, said, “We are very pleased we received our first carbon neutral LNG cargo from Shell, a leading supplier of CNLNG.”

“We would like to provide carbon neutral city gas to our customers as a way to enhance the value we offer to them. Through various initiative including CNLNG, we strive to achieve our goal of becoming carbon neutral by 2050 in cooperation with our partners and stakeholder sunder our Carbon Neutral Vision we announced in January.”

LNG cargo delivery

LNG cargo delivery

To supply CNLNG to various customers including Koatsu Chemical Industries, Nippon Sheet Glass, and Nesta Resort, Osaka gas will use its subsidiary, Daigas Energy.

In addition to this, Osaka Gas will also supply wholesale carbon neutral city gas and CNLNG to several gas utility companies.

Steve Hill, Executive Vice President Shell Energy, stated, “We are proud to be working with Osaka Gas for its first carbon-neutral LNG cargo.”

“What is unique about this deal is that it is an excellent example of collaborative action across the value-chain – a critical need for delivering on climate ambitions.”

Hill also said that this collaboration between Shell, Brunei LNG and Osaka gas is an important step in growing the market for carbon-neutral LNG and that continued collaboration is required to compensate for GHG emissions.