Spark Commodities launches carbon neutral LNG freight rate

European Energy Exchange AG

10/12/2020 10:07

SINGAPORE, Dec 10 (Reuters) - Liquefied natural gas (LNG)
freight platform Spark Commodities said on Thursday that it has
launched the world's first carbon neutral LNG freight rate as
the energy transition towards cleaner fuel speeds up.
    The new freight rate will combine its current spot LNG
freight assessments with relevant carbon costs to provide a
better understanding of LNG freight rates and their relationship
with carbon offsetting, the company said. 
    As part of the new rate, Spark has built a carbon impact
calculator which will enable companies to evaluate the
environmental impact of each LNG freight voyage and the
associated economic costs of transitioning to carbon neutral LNG
freight, the company said.
    "LNG freight represents 3-5% of the total carbon emissions
for each produced, delivered and burned LNG cargo," Spark said.
    Leading industry traders and consumers have been seeking
more transparency on carbon and methane emissions in the gas
value chain amid a global decarbonisation push.    
    Spark Commodities is a joint venture between data
intelligence firm Kpler and Powernext, which is part of the
European Energy Exchange (EEX), Europe's biggest power futures
market which also offers natural gas products.
    EEX is a subsidiary of Germany's Deutsche Boerse AG
 DB1Gn.DE   exchange group.

 (Reporting by Jessica Jaganathan; editing by Emelia
Sihtole-Matarise)
 ((Jessica.Jaganathan@thomsonreuters.com; +65 6870 3822; Reuters
Messaging: jessica.jaganathan.thomsonreuters.com@reuters.net;
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