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Tokyo Gas reaches agreement with Shell for the supply of carbon neutral LNG

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Tokyo Gas Co., Ltd has announced that it has executed a master agreement with Shell Eastern Trading (Pte) Ltd for the supply of carbon-neutral LNG. This is a first for Japan.

Under this agreement, with regard to the supply of carbon-neutral LNG, Shell’s carbon credits will reportedly be used to compensate the full carbon dioxide emissions generated – from exploring for and producing the natural gas to use by the final consumer. Tokyo Gas claims that the carbon credits are bought by Shell from a global portfolio of nature-based projects, and each carbon credit is subject to a third-party verification process.

By receiving the supply of carbon-neutral LNG, Tokyo Gas claims that it will strengthen its effort towards a low carbon society, as well as providing a new low carbon product.

Kentaro Kimoto, Tokyo Gas’s Managing Executive Officer, said: “In addition to the widespread expansion of natural gas with its character of having the least carbon dioxide emission among fossil fuels, we will continue our effort to realise the low carbon society as well as providing a new value to our customers by introducing carbon neutral LNG as a new effort. We are very pleased to work on new initiative together with Shell who are focused in their efforts to provide more and cleaner energy.”

Slavko Preocanin, Shell LNG Marketing & Trading’s Vice President, added: “Carbon neutral LNG cargoes are another choice we are offering our customers, as they seek to address their carbon dioxide emissions today. In turn, they are then able to offer the same to their customers who increasingly want to reduce the net carbon footprint of their energy use. This deal will set the ground for us to further develop this offering and we are pleased to be able to make this pioneering first step possible for our valued partner Tokyo Gas.”

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