Could Blockchain Tech Reveal How Green Croatian LNG Terminal Really Is?

By 3 November 2021

November the 3rd, 2021 - Blockchain technology is one of those things on everyone's lips of late, and while some tilt their heads in confusion, others are taking advantage. Could Blockchain tech reveal just how green the Croatian LNG Terminal actually is? Perhaps.

As Poslovni Dnevnik/Darko Bicak writes, gas is a generally accepted transitional energy source between the fossil and green eras, and in addition to the gas transported by standard pipelines, there's more and more gas from LNG. It is LNG that is increasingly the subject of analyses that question whether its use is really "transitional green" or whether it is ultimately closer to fossil fuels than anything else.

This is especially relevant here in Croatia because finally, at the beginning of this year, after decades of planning and design, the floating Croatian LNG Terminal in Omisalj on Krk was put into operation, which in the medium term should grow into a fixed project with a larger volume on the land.

As Gas outlook writes, the oil and gas industry is considering the use of Blockchain technology for digital monitoring of LNG freight transactions, and analysts estimate that this technology could be a solution to transparency concerns about carbon-neutral trading in this energy source.

The concept of a “carbon neutral” LNG isn't without its problems and Environmental, Social and Corporate Governance (ESG) and it is under the increasing control of investors, governments, lenders, employees and consumers. There are currently no standardised methods for accurately measuring and monitoring direct and indirect emissions associated with the entire LNG supply chain, but there are certain efforts that are emerging.

“There is concern among all stakeholders about the integrity of carbon dioxide reporting, the consistency and methodologies applied. Previous attempts by the industry have been fraught with problems of double counting, the origin of compensation, the transparency of verification methodologies and data quality issues,'' warned Scott Waller, consultant at EY.

This is particularly the case as the LNG industry seeks to extend and expand the use of natural gas - for example by using ships on LNG - in line with the argument that it compensates for higher emissions from the use of coal, oil and diesel.

At this point, there is a lack of evidence to substantiate this claim, but the UN estimates that Blockchain technology will be able to provide greater transparency around greenhouse gas emissions and facilitate the monitoring and reporting of reduced emissions.

This would solve the possible problems of double counting, as reporting and verification of climate measures are crucial to achieving the goals of the Paris Climate Agreement, and its even stricter modifications, some of which are likely to be agreed at the ongoing Glasgow Climate Change Conference in Scotland.

For more on the Croatian LNG Terminal, check out our business section.