The use of carbon offsetting is increasingly catching on in
segments of the maritime and fuel industries as companies look to enhance their
environmental positioning. A recent shipment of 650,000 barrels of condensate
is being billed as the world’s first delivery using carbon offset and is the
first step in a new partnership between Australia’s Woodside Burrup and global
commodity trader Trafigura for carbon management in the marketing of carbon
offset condensate, crude oil, and liquefied petroleum gas.
Woodside and the participants of its Pluto LNG joint
venture, Kansai Electric Power Australia and Tokyo Gas Pluto, worked together
to deliver the first cargo of carbon offset condensate loaded at Pluto LNG in
Western Australia to Trafigura. The carbon dioxide equivalent emissions
associated with extraction, storage, and shipping of the cargo will be offset
through a combination of efficiency measures, which reduce emissions, and
surrender of high-quality carbon offsets. Trafigura is also working with the
vessel owner to minimize actual emissions associated with transporting the
cargo and Woodside and Trafigura are working jointly to calculate the carbon
dioxide equivalent emissions generated by extraction, storage, and shipping of
the cargo.
Trafigura reports that high-quality carbon offsets were
sourced from nature-based projects located in the Asia-Pacific region,
independently validated and verified by the Gold Standard or Verified Carbon
Standard.
“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,” said Woodside Vice President Marketing Trading & Shipping
Mark Abbotsford.
Woodside and Trafigura also announced that they have signed
a non-binding memorandum of understanding to explore opportunities for carbon
management in the marketing of carbon offset condensate, crude oil, and
liquefied petroleum gas in the future.
“We’ve set ambitious targets to reduce our operational
greenhouse gas emissions and by working with Woodside, which has similar
ambitions, it is now possible to offset emissions associated with the cargo
from wellhead to delivery. We are developing this offering for other oil products
for our customers around the world,” said Dmitri Croitor, Global Head of
Naphtha and Condensates for Trafigura.