Carbon-neutral LNG poised for revival

The drop in shipments is likely to be temporary

The surge in global gas prices since the winter—exacerbated by Russia’s invasion of Ukraine—has dampened interest in carbon-neutral LNG. But the lull will be temporary as discussions between LNG suppliers and consumers for a greener product accelerate, according to speakers at the recent S&P Global Asia Energy Transition conference. Momentum behind offsetting the emissions of LNG cargoes picked up last year, with sales of at least 16 carbon-neutral shipments, nine of which were between June and August. Last summer also saw the milestone of the LNG industry’s first term contract for carbon-neutral volumes, with a five-year deal signed in July between Shell and Chinese NOC Petrochina. Nort