Cheniere Energy, the US-based LNG company, is to supply carbon-neutral cargo to Royal Dutch Shell. It is a part of a long-term agreement that joins a list of sellers neutralising emissions as several buyers commit to environmental targets.
The carbon-neutral LNG cargo was supplied from Cheniere’s Sabine Pass facility in Louisiana and delivered to Europe in early April. The company had offsets that were bought from Shell’s global portfolio of nature-based projects.
Jack Fusco, chief executive officer of Cheniere, stated that offering climate solutions to customers during its first-quarter earnings call said that offering climate solutions to customers will be a growing portion of their business. Consumers pay a premium to have their emissions neutralised from the wellhead through consumption. He further stated that continued strength in the global LNG market fundamentals and strong results from the first quarter of 2021 would improve the firm’s outlook for the rest of the year and help increase their overall 2021 financial guidance.
Improved market margins allow strong distributable cash flow guidance and are expected to be between $1.6 billion and $1.9 billion in 2021. Cheniere posted a 40 percent increase in the first-quarter earnings from 2020 and boosted its annual guidance by 4.5 percent. The expected gains are now ranging from $4.3 billion to $4.6 billion. The company’s revenue rose to $3.09 billion in the first quarter from $2.71 billion a year ago.
Russian energy giant Gazprom PAO earlier stated that it delivered its first carbon-neutral shipment to Europe. This year, Pavilion signed a long-term contract with Chevron and one with Qatar Petroleum. It requested data on greenhouse gas emissions. In 2020, China National Offshore Oil (CNOCC) bought cargoes with offset carbon emissions from Shell.