S&P Global Platts has launched the world's first daily carbon-neutral LNG (CNL) price assessment which tracks the cost of carbon credits purchased and retired to offset carbon emissions for an LNG cargo on the world's most active trade route.
The assessment brings transparency to this growing portion of LNG market as the industry seeks to mitigate greenhouse gas emissions and deploy further efforts to reduce the climate impact of their activities.
CNL involves offsetting the carbon emissions associated with the upstream production, liquefaction, transportation and, where required, combustion of the gas through the purchase and retirement of carbon credits, which in turn support the protection and restoration of natural ecosystems or other renewable projects.
"We are already seeing LNG consumers around the world demand action on emissions associated with LNG use amid an increasingly carbon conscious economy," said Ciaran Roe, Global Director of LNG Pricing at S&P Global Platts.
"Providing increased transparency around the carbon footprint of LNG cargoes is vital to aid buyers' and sellers' decision-making in the market," he said.
S&P Global Platts has been publishing daily LNG prices for over a decade. The provider of information, analytics and benchmark prices for commodities and energy markets said it is committed to reviewing its methodology specifications and assumptions on an ongoing basis as the LNG market evolves.
( With inputs from ANI )
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