What It Takes - The Battle to Define Carbon-Neutral and GHG-Neutral LNG

RBN Energy Blogcast

There’s been a slew of high-profile shipments of “carbon-neutral LNG” the past few months, typically involving the use of carbon credits to offset, ton-for-ton, the carbon dioxide equivalent of greenhouse gases released during the production, piping, and liquefaction of natural gas, the shipping of LNG, and often the regasification and ultimate consumption of the gas too. The problem is, there is no widely agreed-to definition for carbon neutral, nor is there a consensus on how to quantify and validate the GHG “footprint” of a specific LNG cargo. Now, an international group representing the world’s LNG importers has established a framework for “GHG-neutral LNG” that it hopes will gain widespread acceptance. Elements of the proposal are sure to be controversial, however, as we discuss in today’s RBN blog.