A deal has been signed by CNOOC to receive two carbon neutral LNG cargoes from Shell. This is China's first such LNG receipts. To provide downstream gas users with the opportunity of decarbonising their use of LNG, CNOOC intends to auction these cargoes on the Shanghai petroleum and natural gas exchange (SHPGX). The dates for the auction were not disclosed.
The transaction and the settlement arrangements will be monitored by SHPGX. To power nearly 300,000 homes for a full year, the cargoes will provide enough carbon neutral energy.
CNOOC has supply agreements with Shell totalling around 8.6 million t/yr of LNG, of which some is supplied from the 8.5 million t/yr Shell-operated Queensland Curtis LNG (QCLNG) in Australia. It also has a 50 percent stake in train one of QCLNG.
Shell has previously supplied carbon neutral LNG cargoes to other northeast Asian consumers. It supplied Taiwan's state-owned CPC with cargo in March. In June last year, Shell supplied one cargo each to South Korea's GS Energy and Japanese utility Tokyo Gas. The firms received these cargoes by July last year.
