Cheniere Energy Inc, said on Thursday it would quantify carbon emissions from its suppliers and production sites and supply the information to customers.
LNG buyers have begun asking suppliers for natural gas sourcing data and greenhouse gas emissions to reduce their own carbon footprints. Several LNG producers are proposing adding carbon capture and storage alongside their LNG projects.
Cheniere said it signed agreements with five natural gas producers and several academic institutions to implement quantification, monitoring, reporting and verification of greenhouse gas emissions.
The initiative aims to improve the overall understanding of LNG’s contribution to greenhouse gas emissions and advance monitoring technologies. Cheniere has said it plans to provide cargo emissions tags to its customers beginning in 2022.
Consumers are increasingly committing to environmental targets and paying a premium to have emissions neutralized from wellhead through consumption, for which they request certification.
Cheniere supplied last month its first carbon-neutral LNG cargo to Royal Dutch Shell Plc as part of a long-term agreement.
LNG developer NextDecade Corp is working with Project Canary to certify the greenhouse gas intensity of LNG to be sold from its proposed Rio Grande plant. Gazprom PAO earlier delivered its first carbon-neutral LNG shipment to Europe.
Ground-based, aerial and satellite monitoring technologies will be used to establish baseline emissions levels, Cheniere said.
Aethon Energy, Ascent Resources, EQT Corp and Pioneer Natural Resources Co have agreed to join in an emissions monitoring program.
“Collaboration with our natural gas suppliers is a key component of Cheniere’s focus on quantifying and improving environmental performance,” said Cheniere CEO Jack Fusco.
The project is supported by researchers from the Payne Institute for Public Policy, Harrisburg University of Science and Technology, SLR International and monitoring technology providers Montrose Environmental, SeekOps, Bridger Photonics Inc and GHGSat.
(Reuters reporting by Sabrina Valle in Sao Paulo Additional reporting by Scott DiSavino in New York Editing by Matthew Lewis)
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