Japan’s Hokkaido Gas will soon receive its first carbon-neutral LNG cargo from compatriot trader Mitsui & Co as it looks to further slash emissions.
This is the first carbon-neutral LNG shipment for both of the firms. It is a part of a 10-year supply deal signed between the duo back in 2017.
Mitsui and Hokkaido Gas said in two separate statements they agreed on the carbon-neutral LNG shipment on February 26 but they did not provide any additional information regarding the deal.
In addition, Mitsui will deliver the LNG shipment to the Hokkaido Gas-operated Ishikari LNG terminal located on Japan’s second-largest Island on March 18.
Tre trading firm will offset the carbon emissions (about 210,000 t) on a life cycle basis including feed gas production, liquefaction and combustion by using carbon credits. Mitsui said it purchased the carbon credits from an international forest conservation project.
To remind, Hokkaido Gas started receiving LNG from Mitsui in April 2019 as part of the long-term deal mentioned above.
The gas utility receives about three cargoes per year or 200,000 tonnes of LNG.
Moreover, Hokkaido Gas says the carbon-neutral LNG cargo would account for about 10 percent of all the volumes it gets per year.
