Woodside Petroleum Ltd. and its Japanese partners have shipped their first cargo of carbon offset condensate to commodity trader Trafigura from the Pluto LNG plant in Western Australia, the company said on March 15.
The transaction marks the next step by Australia’s biggest independent gas producer toward its goal of net zero greenhouse gas emissions by 2050 while continuing to produce fossil fuels. Trafigura said the deal marks its first carbon offset shipment.
The carbon dioxide-equivalent emissions from extracting, storing and shipping of the 650,000-barrel condensate cargo will be offset through the surrender of carbon credits from independently validated nature-based projects in the Asia-Pacific and efficiency measures, Woodside said.
Woodside will calculate the emissions tied to extraction and storage, while Trafigura will collate data on emissions associated with shipping of the cargo.
Other companies, including Royal Dutch Shell and Total SA, have sold carbon neutral LNG cargoes, but this is believed to be the first carbon offset cargo of condensate, which is similar to a very light crude oil.
“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,” Mark Abbotsford, Woodside vice-president marketing trading and shipping, said in a statement.
Trafigura said it is also developing a carbon-offset offering for other oil products for customers around the world.
Woodside has signed deals this year with Germany’s Uniper and RWE to collaborate on potential carbon-neutral LNG.
Woodside’s Pluto LNG partners are Australian units of Kansai Electric Power and Tokyo Gas.
Recommended Reading
Trump Says He Will Double Tariffs on Canadian Metals to 50%
2025-03-11 - President Trump said he would double his tariffs on Canadian steel and aluminum products in response to Ontario placing a 25% tariff on electricity supplied to the U.S.
ADNOC Contracts Flowserve to Supply Tech for CCS, EOR Project
2025-01-14 - Abu Dhabi National Oil Co. has contracted Flowserve Corp. for the supply of dry gas seal systems for EOR and a carbon capture project at its Habshan facility in the Middle East.
Enchanted Rock’s Microgrids Pull Double Duty with Both Backup, Grid Support
2025-02-21 - Enchanted Rock’s natural gas-fired generators can start up with just a few seconds of notice to easily provide support for a stressed ERCOT grid.
McDermott Completes Project for Shell Offshore in Gulf of Mexico
2025-03-05 - McDermott installed about 40 miles of pipelines and connections to Shell’s Whale platform.
US Drillers Cut Oil, Gas Rigs for First Time in Three Weeks
2025-03-28 - The oil and gas rig count fell by one to 592 in the week to March 28.