https://www.miningweekly.com

Woodside delivers first carbon offset cargo

15th March 2021

     

Font size: - +

PERTH (miningweekly.com) – Oil and gas major Woodside and its joint venture (JV) partners in the Pluto liquefied natural gas (LNG) project have delivered the first cargo of carbon offset condensate to independent commodity trading company Trafigura.

Woodside noted that the carbon dioxide (CO2) equivalent emissions associated with extraction, storage and shipping of the 650 000 bbl cargo will be offset through a combination of efficiency measures, which reduce emissions, and surrender of high-quality carbon offsets.

Trafigura is working with the vessel owner to minimise actual emissions associated with transporting the cargo.

High-quality carbon offsets have been sourced from nature-based projects located in the Asia-Pacific region, independently validated and verified by the Gold Standard or Verified Carbon Standard, Woodside told shareholders on Monday.

CO2 equivalent emissions generated by extraction, storage and shipping of the cargo will be calculated jointly by Woodside and Trafigura.

Calculation of emissions associated with extraction and storage will be based on data gathered by Woodside, as operator of Pluto LNG. Calculation of carbon emissions associated with shipping will be based on data collated by Trafigura, specific to the cargo voyage.

Woodside VP for marketing, trading and shipping Mark Abbotsford said this could be the first carbon offset condensate cargo traded globally, demonstrating opportunities for carbon offset condensate.

“The transaction brought all the participants in the joint venture responsible for producing the condensate together with the customer, a global trading company, in support of our recently announced emissions reduction targets.

“We are pleased to be partnering with Trafigura, Kansai Electric and Tokyo Gas to deliver our first carbon offset condensate cargo. The transaction provided an opportunity to further develop our carbon offset marketing capability and gain an understanding of the carbon market in its early phases,” he said.

In addition to the transaction, Woodside and Trafigura have signed a non-binding memorandum of understanding (MoU) to explore opportunities for carbon management in the marketing of carbon offset condensate, crude oil and liquefied petroleum gas in the future.

“The MoU is consistent with Woodside’s and Trafigura’s respective objectives to explore a market for carbon offset products over the long term and reduce emissions intensity across the value chain,” Abbotsford said.

Edited by Creamer Media Reporter

Comments

The content you are trying to access is only available to subscribers.

If you are already a subscriber, you can Login Here.

If you are not a subscriber, you can subscribe now, by selecting one of the below options.

For more information or assistance, please contact us at subscriptions@creamermedia.co.za.

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION