Indian multinational conglomerate company Reliance Industries Ltd has sourced the world’s first shipment of “carbon-neutral” oil from the United States as the company aims to be a net zero-carbon company by 2035.
A division of the American oil major Occidental, Oxy Low Carbon Ventures (OLCV) delivered carbon-neutral oil to Reliance. The transaction was arranged in conjunction with Macquarie Group’s Commodities and Global Markets group (Macquarie). On January 28, the Very Large Crude Carrier (VLCC) Sea Pearl containing the carbon-neutral oil unloaded the cargo at Jamnagar, Gujarat.
OLCV stated that the oil was produced in the US Permian Basin by Occidental and delivered to Reliance in India. In a statement, the US supplier said: “Reliance, which operates the world’s largest single-location oil refining complex at Jamnagar in Gujarat with capacity of 68.2 million tonnes a year, got two million barrels of consignment Permian basin.” It also stated that the translation is a first step in the creation of a new market for climate-differentiated crude oil.
The statement said that the transaction is the energy industry’s “first major petroleum shipment for which greenhouse gas (GHG) emissions associated with the entire crude lifecycle, wellhead through combustion of end products, have been offset.” In order to make the oil “carbon-neutral”, OLCV and Macquarie will offset carbon dioxide equivalent to that associated with the production, delivery, and refining of the crude oil and the use of the resulting product through the retirement of carbon offset credits.
According to the statement, Occidental aims to eventually produce further differentiated petroleum product, net-zero oil.
In July, Chairman and Managing Director of Reliance Industries Ltd Mukesh Ambani revealed plans to turn the company into a net carbon zero company by 2035.