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‘Carbon Neutral’ LNG Demand Soars in Asia Despite Criticism

Energy giants are using carbon offsets to “green” their gas shipments. This year has already seen twice as many transactions as 2019 and 2020 combined.

Japan's First LNG Shipment from Dominion Energy's Cove Point Project
Photographer: Tomohiro Ohsumi/Bloomberg

Liquefied natural gas shipments tagged “carbon neutral” are gaining popularity among Asian buyers, despite criticism that the offsets used to justify the label don’t actually cancel out planet-warming emissions generated by the fossil fuel.

In the past month alone, BP Plc and Malaysia’s Petroliam Nasional Bhd delivered so-called green cargoes to customers in Taiwan and Japan, respectively. Twice as many “carbon neutral” LNG shipments have changed hands so far this year than 2019 and 2020 combined, according to a tracker by BloombergNEF.