![]() The news of Total's shipment came as Santos chief executive Kevin Gallagher met resistance from a UK climate expert on his assertion during a Credit Suisse webinar that the place of natural gas in the energy mix was secure "for decades to come". Gas exporters are equally keen to find ways to offset the climate impact of their product as they battle to secure the prospects for LNG amid intensifying pressure on its environmental credentials. Total's shipment, which was reported late on Tuesday by the French energy giant, probably cost about $US2.4 million to offset, based on 3.5 billion cubic feet of gas, 640 kilograms of CO2 per tonne of LNG and $US51 per tonne of carbon, noted Bernstein analyst Neil Beveridge. The cost is "not cheap but it’s the price of doing business in a net zero world," Bernstein analyst Oswald Clint said, pointing to the restated commitments last week by big LNG buyers such as Tokyo Gas and JERA to decarbonise operations by 2050 but to keep gas as an important part of the energy mix. The shipment is about the fifth carbon-neutral LNG cargo worldwide so far, according to Bernstein Research, which expects the trend to take off despite an additional cost that averages about $US2.5 million ($3.5 million) per trip. Total's first carbon-neutral cargo of LNG was delivered on the La Seine tanker from Australia to China. ![]() ![]() ![]() Total shipped the cargo from the Ichthys LNG plant in Darwin to the Dapeng terminal in China, with the carbon emissions involved countered by offsets sourced in China and Zimbabwe. Australia shipped its second carbon-neutral cargo of liquefied natural gas in what some analysts expect will become a big trend as energy users strive towards net zero emissions and producers battle to extend the life of gas in the energy mix. ![]()
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