MOSCOW (MRC) -- Italy's Eni said Aug. 6 it had agreed to deliver a carbon-neutral LNG cargo to Taiwan's CPC Corp. at the Yung An receiving terminal as the Italian company looks to move forward with its decarbonization strategy, reported S&P Global.
A number of global LNG players have started offering carbon-neutral LNG cargoes, including Shell, BP and Russia's Gazprom, as buyer interest in securing greener LNG continues to grow.
Eni said it would source the LNG from the Bontang liquefaction facility in Indonesia as part of its contract with Eni Muara Bakau, the joint venture operated by Eni that owns and operates the Jangkrik gas field.
"This is a milestone transaction for Eni, which shows how the company is moving forward in its decarbonization strategy while creating value for its LNG portfolio through own equity projects," it said in a statement.
The greenhouse gas emissions related to the entire value chain of the LNG cargo are to be offset through the retirement of high-quality nature-based credits, Eni said.
Eni's long-term strategy aims to achieve full carbon neutrality in its products and operations by 2050, with intermediate reduction targets of net lifecycle emissions (Scope 1, 2, 3) of 25% by 2030 and 65% by 2040 compared with 2018 levels.
As MRC informed previously, Italian energy group Eni is evaluating conversion of its Livorno refinery in northwest Italy into a biorefinery, as part of the Italian company's wider strategy to make its activities more environmentally sustainable. Eni has already converted two of its Italian refineries and is looking to almost double its biorefining capacity to around 2 million mt/year by 2024, and expand this to at least five times by 2050, as part of its pledge to achieve complete carbon neutrality by 2050.
Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.
According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 953,400 tonnes in the first five months of 2021, which virtually corresponded to the same figure a year earlier. High density polyethylene (HDPE) shipments decreased. At the same time, PP shipments to the Russian market were 607,8900 tonnes in January-May 2021, up by 33% year on year. Shipments of homopolymer PP and PP block copolymers increased, whereas deliveries of PP random copolymers decreased.
Eni, abbreviation of Ente Nazionale Idrocarburi, in full Eni SpA, Italian energy company operating primarily in petroleum, natural gas, and petrochemicals. Established in 1953, it is one of Europe's largest oil companies in terms of sales.
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