S&P Global Platts has launched what it claims to be the ‘world’s first’ daily carbon-neutral liquefied natural gas (LNG) price tracker.
The assessment tool tracks the cost of carbon credits purchased to offset the emissions of LNG cargo, making it easier for companies to affordably cut their emissions.
The firm has stated its assessment reflects ‘the most active trade route in the world’, where LNG cargoes are loaded in Australia and delivered to Japan, Korea, Taiwan and China.
To calculate the costs, it uses a weighted average of the estimated emissions per metric tonne of LNG produced from plants in Australia and the average emissions rate for a standard vessel transporting it to Asia.
Ciaran Roe, Global Director of LNG Pricing at Platts, commented: “We are already seeing LNG consumers around the world demand action on emissions associated with LNG use amid an increasingly carbon-conscious economy.
“Providing increased transparency around the carbon footprint of LNG cargoes is vital to aid buyers’ and sellers’ decision-making in the market.
“The next steps for the industry are to decide on the development and implementation of GHG quantification and reporting methodologies, as well as how the industry will lower emissions associated with the production and consumption of LNG.”