Vitol has launched a Green LNG product for its LNG customers looking to mitigate carbon emissions.
The emissions associated with the cargo, from wellhead to DES delivery, will be offset through the cancellation of Verified Emissions Reductions (VERs). VERs are carbon offset certificates that are verified and issued by one of: UN Clean Development Mechanism, Verified Carbon Standard (VERRA), Gold Standard, American Carbon Registry, China Green House Gas Voluntary Emission Reduction Programme or Climate Action Reserve.
All LNG customers will be offered the opportunity of converting LNG cargoes to Green LNG through offsets. Emissions to be offset will be estimated using the Wood Mackenzie LNG Emissions Tool, which estimates carbon emissions from wellhead to market. The VERs will be sourced from Vitol’s existing portfolio and the wider market.
Pablo Galante Escobar, Head of LNG, Vitol said: “Vitol’s established presence in carbon markets has enabled us to construct a compelling offering for LNG customers looking to mitigate emissions. The bar for transitional energy solutions is rightly being raised and we are delighted to be able to add Green LNG to our portfolio.”
Michael Curran, Head of Emissions Trading, Vitol said: “This demonstrates how our established portfolio of carbon projects can add value to our wider energy customers. We anticipate demand for carbon-mitigating energy solutions to grow as the world focuses on achieving Net Zero.”
Gavin Law, Head of Gas & Power Consulting, Wood Mackenzie said: “With the growing focus on LNG-related emissions, we are delighted that the LNG Emissions Tool has been chosen as the independent source of LNG-related emissions estimates which will be used by Vitol and its customers in the offset process.”
Vitol’s carbon team has been established for over a decade. In addition to participating in both compliance and voluntary markets, Vitol is invested in a growing portfolio of carbon offsetting projects around the world.