Ecopetrol exceeds sales target of carbon compensated crude cargos
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Ecopetrol exceeds sales target of carbon compensated crude cargos
Nov 25, 2022
- By year-end 2022, the Company will deliver 4 million barrels of carbon compensated crude oil to three continents.
- Ecopetrol is the leading company in Latin America in carbon compensation for its crude sales.
- The buyers include international companies such as Citgo, Phillips 66, Petrochina Reliance and Repsol.
With the sale of two new cargoes of carbon compensated crude oil, Ecopetrol has successfully completed four transactions of this kind in 2022, totaling in volume four million barrels. This figure more than doubles the target of two million barrels established for this year.
One of the cargos was sold to Reliance Industries, an Indian multinational company and one of Ecopetrol's main customers in the Asian market. The two million barrels of crude oil will be delivered in December 2022 to the port of Sikka in India.
“It is a privilege to be associated with this initiative of Ecopetrol towards the shared interest of reaching carbon neutrality,” said Mr. J. Rajaraman, President and Head of Physical Trading.
The other shipment with one million barrels is the first carbon compensated crude sold to the European market from Colombia. The buyer is Repsol, a Spanish company and Ecopetrol's most important customer in Europe. This shipment will be delivered to Repsol's refining system in Spain at the end of the year.
Both shipments are of Castilla Blend® crude, Ecopetrol's flagship crude, which is one of the leading crude benchmarks in the region and enjoys an advantageous position in the international market.
The carbon emissions of the two shipments, which are equivalent to approximately 102 thousand tons of CO2e, will be compensated with high-quality carbon credits in two nature-based climate solution projects that will also benefit communities on the Colombian Pacific coast.
These initiatives aim to protect biodiversity by preventing the deforestation of native forests and assisting the natural recovery of degraded areas. In addition, they promote the generation of sustainable income for the communities by developing productive capacities and activities that improve well-being, foster equity, and further preserve their cultural identity.
The compensation covers direct emissions generated along the crude value chain, including production and transport to the corresponding destination terminal.
These transactions strengthen Ecopetrol's position in the international market and consolidate its leadership in the decarbonization of business activities by diversifying carbon compensated crude oil sales to markets in the Americas, Europe, and Asia.
"We are pleased to exceed the target set for this year thanks to our partner companies in the sector that seek to jointly make concrete contributions to the mitigation of climate change. We will continue working on the decarbonization of our operations and on increasing the availability of carbon compensated crude oil in the market in order to carry on driving the energy transition in a gradual, responsible and orderly manner," said Pedro Manrique, Ecopetrol’s Commercial and Marketing Vice President.
The Ecopetrol Group has established a target of net zero carbon emissions by 2050 for direct emissions. The company has also established intermediate targets and designed a varied portfolio of short, medium and long-term emission reduction projects, with additional compensation initiatives for residual emissions that cannot be mitigated.
Bogota, November 25, 2022
