Australia’s Woodside Petroleum has delivered its first cargo of carbon offset condensate to independent commodity trading company Trafigura.

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Woodside confirmed the delivery of the 650,000- barrel condensate cargo on Monday, which was loaded at its Pluto liquefied natural gas project in Western Australia, where it is also partnered by Japanese companies Kansai Electric and Tokyo Gas.

The Australian producer claims it is the first carbon offset condensate cargo to be traded globally, with carbon dioxide emissions generated by extraction, storage and shipping of the cargo to be jointly calculated by Woodside and Trafigura.

Woodside said the CO2 emissions calculated to be associated with the cargo would be offset through a combination of "efficiency measures” it claims reduce emissions.

Providing further clarification around those efficiency measures, a Woodside spokesperson told Upstream: "Woodside as operator of the Pluto LNG facility will seek to maximise Pluto facility reliability to optimise condensate production per tonne of CO2 equivalent and minimise flaring through the production period."

Woodside also revealed in Monday's announcement the cargo's CO2 emissions would be further offset through the surrender of “high quality carbon offsets”, which it claims have been sourced from nature-based projects located in the Asia-Pacific region.

It added that Trafigura was also working with the vessel owner to minimise actual emissions associated with the transport of the cargo to its final destination.

The Woodside spokesperson told Upstream that measures being taken by Trafigura with the vessel owner included reducing the charter party speed throughout the voyage, as well as consuming fuel with a lower life-cycle green house gas emission factor.

“We are very pleased to be working with Woodside and its Pluto LNG joint venture participants on what we believe to be the first carbon offset condensate cargo, and for Trafigura our first carbon offset shipment,” global head of naphtha and condensates for Trafigura, Dmitri Croitor, said in Monday's statement.

“We’ve set ambitious targets to reduce our operational greenhouse gas emissions and by working with Woodside, which has similar ambitions, it is now possible to offset emissions associated with the cargo from wellhead to delivery. We are developing this offering for other oil products for our customers around the world.”

Woodside also revealed Monday it had signed a non-binding memorandum of understanding with Trafigura to further explore opportunities for carbon management in the marketing of carbon offset condensate, oil and liquefied petroleum gas in the future.

“The MoU is consistent with Woodside’s and Trafigura’s respective objectives to explore a market for carbon offset products over the long term and reduce emissions intensity across the value chain,” Woodside’s vice president for marketing, trading and shipping, Mark Abbotsford, said.

Woodside is currently aiming to achieve net zero scope 1 and 2 emissions by 2050, having also set an interim target of a 15% reduction by 2025 and a 30% reduction by 2030.