GIIGNL sets framework for reporting on GHG-neutral LNG cargoes

The International Group of LNG Importers (GIIGNL) has launched a framework for a consistent approach and transparent reporting on GHG emissions neutral LNG cargoes.

GIIGNL says this is a comprehensive framework for a consistent industry approach to declaring greenhouse gas neutral LNG cargoes. This came because the practice of declaring LNG cargoes ‘carbon neutral’ is increasing.

The document’s official name is ‘Monitoring, Reporting, and Verification (MRV) and GHG (Greenhouse Gas) Neutral Framework‘. It is a part of a collective industry movement to account for and reduce GHG emissions associated with LNG.

The framework promotes verified and consistent quantification of GHG emissions across the entire value chain; from extraction of natural gas, liquefaction, shipping, regasification to final consumption.

Significantly, it creates a transparent practice to declare GHG-neutral cargoes through an independently verified Cargo Statement. It sets out both emissions and offsets.

GIIGNL promotes avoiding and reducing emissions where possible. Also, if offset, it can compensate for residual emissions that you cannot otherwise reduce or avoid.

“Alongside reducing and offsetting overall emissions, it is our intention that the Framework assists the industry in demonstrating greater transparency,”  said the president of GIIGNL, Jean Abiteboul.

Steve Hill, executive vice president, Shell Energy, is also GIIGNL regional vice president for Americas.“We are keen to start the groundwork on applying this framework to deliver a test ‘GHG neutral’ LNG cargo as defined by the Framework.” 

Michiaki Hirose, chairperson of Tokyo Gas and GIIGNL regional vice president for Asia pointed out that “while corporate strategies to reach GHG neutrality may differ from one company to another, the industry expects to achieve GHG reductions throughout the LNG value chain.” 

Dan Brouillette, president of Sempra Infrastructure and member of the GIIGNL executive committee explained: “The tools and pathways provided within the Framework will help LNG organisations create clear and reliable GHG emissions reporting that can be independently verified, supporting them to make good on their climate commitments.” 

GIIGNL says it recognises the importance of reducing methane emissions. The Framework requires that they are reported separately in the Cargo Statement, alongside all seven Kyoto Protocol GHGs.  

Moreover, the use of the term ‘GHG Neutral’ represents a full life cycle footprint across the entire cargo value chain. 

The Framework does not seek to replace any established standards and methodologies for GHG emissions calculation, footprint determination and offsetting.

Finally, it says it integrates established internationally agreed standards and methodologies; and provides additional criteria for assessing and reporting GHG emissions associated with the specific case of an LNG cargo.