Lundin Energy recently announced the first sale of certified ‘carbon neutral’ oil from Johan Sverdrip to South Korea’s GS Caltex.
Lundin Energy recently announced the first sale of certified ‘carbon neutral’ oil from Johan Sverdrip to South Korea’s GS Caltex. Certified as carbon neutral at the point of production, the trade marks the first such sale of crude from Norway’s Johan Sverdrup field, one of the world’s lowest carbon emitting offshore oil and gas fields.
Lundin said that its crude from the Sverdrup field had been certified as produced carbon neutral by Intertek Group, which earlier this year approved the Swedish firm’s first carbon neutral cargo from a different North Sea field.
It is expected that the two million barrel cargo will load in July 2021 to be delivered to Korea.
The company also announced that from 2025 onwards all barrels produced by Lundin Energy will be carbon neutral in their production and will be certified as carbon neutrally produced by Intertek under its CarbonZeroTM standard.
Demand for carbon neutral products growing
The trade comes as oil and gas companies across the globe work to diversify their energy portfolio and transition away from fossil fuels.
Companies are coming under increasing pressure from investors, shareholders and lawmakers to speed up their energy transition to renewables and low-carbon solutions.
Nick Walker, President and CEO of Lundin Energy, commented: “Since we sold our first cargo of certified, carbon neutrally produced oil from Edvard Grieg earlier this year, we have seen significant interest in the market for this clearly differentiated product.
“As the energy transition continues to accelerate, providing certified, zero emission produced barrels to our customers ensures that they can continue the decarbonisation pathway, delivering a differentiated product to their end users.”
The Sverdrup oil platforms are powered by hydroelectric electricity from land and thus only emit 0.45 kilograms of CO2 emissions per barrel of oil equivalent for full life of field emissions, approximately 40 times lower than the world average, Lundin said.
According to the company, this means there will be no net emissions released during the future production of Lundin Energy’s Johan Sverdrup net barrels, which amounts to approximately 100 thousand barrels of oil per day (Mbopd) today.
This will increase to approximately 150 Mbopd when Phase 2 of the field comes on stream in the fourth quarter of 2022.
“Lundin Energy has then taken the further step to neutralise net residual emissions using high quality, natural carbon capture projects,” the company said. Lundin’s oil is deemed carbon neutral from exploration and development, but the major emissions from the oil’s final use are not included in this assessment.
Carbon neutral oil could ease the energy transition
Commenting on the purchase, Saehong Hur, President and CEO of GS Caltex Corporation, said: “At GS Caltex, we are striving to reduce our carbon footprint as part of our commitment to good environmental, social and governance practices.
“In line with our efforts to expand environmentally-friendly activities, the purchase of Lundin Energy’s certified carbon neutrally produced crude oil is another meaningful step on our path toward a more sustainable and green economy.”
At present, Lundin holds a 20% stake in Equinor-operated Johan Sverdrup, western Europe’s largest oilfield and the second in Norway to have its emissions independently certified by Intertek, under its CarbonClearTM standard.
As organisations move towards the next phase of their energy journey, digital tools like FutureOn’s FieldTwin Design, which is used by Lundin, enables oil and gas companies to approach subsea field development from a new and more innovative perspective.
By facilitating the easy exchange of data and providing high-quality visuals, project teams can use FieldTwin Design to collaborate more effectively when it comes to the exploration, development and operation of a field.
Digital twin technology will play a pivotal role in the oil and gas industry’s future by optimising how projects are planned, executed and run right through to decommissioning. Tools like FieldTwin Design help teams meet their key milestones in the fastest and safest way possible.