Vientiane – 26 November, Gazprom Marketing & Trading Singapore (GM&TS) and Electricite du Laos (EdL) have signed a carbon credits agreement. Under the agreement, GM&TS will purchase the certified emission reductions (CERs) generated by EdL’s Nam Khan 2 Project.
The deal was signed by Serguei Edrenkine, General Director of Gazprom Marketing & Trading Singapore and Sisavath Thiravong of Electricite du Laos in front of assembled dignitaries, including Khammany Inthirath, Deputy Minister for Energy and Mines and other officials from the Laotian government, and representatives from the Russian embassy in Laos. (Image attached.)
The estimated volume of CERs is 312,290 tCO2 per year from 2016 to 2020 and these emission reductions are the result of EdL’s investment in a new hydro power plant, the Nam Khan 2 Project. The project, once commissioned in 2015, will lead to generating an output of 568,700 MWh power per annum from 2016. This project is expected to receive a positive World Commission on Dams (WCD) report supporting its sustainability and respect of social concerns. The region still has a high dependence on coal fuelled energy, and this will be a significant contribution to its emission reductions and fight against climate change.
This project will follow the United Nations Framework Convention on Climate Change (UNFCCC) process via the Clean Development Mechanism (CDM) in the coming months. As per the Least Developed Country (LDC) status of Laos, these credits will be able to be used for compliance under the European Union Emissions Trading Scheme (EUETS) until 2020.
Commenting on this deal, Mr Edrenkine, General Director of GM&TS, said: “We are very pleased to have signed this agreement with EdL not only because it cements our continuing efforts to provide solutions to our partners for a low-carbon economy but also because it is our first carbon deal with EdL, a significant energy company in the region. We are very confident it will be an excellent platform for further cooperation in Laos and Southeast Asia.
Speaking on behalf of Electricite du Laos, Mr Thiravong, Managing Director of Electricite du Laos, remarked, “We too are very pleased to have signed this agreement with Gazprom Marketing & Trading because we share their commitment to a low carbon economy, and this agreement is also consistent with the larger economic development plans of Lao PDR. Gazprom is a truly global energy company and we share their optimism about future collaboration.”
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NOTES TO EDITORS
About Gazprom Marketing & Trading
Gazprom Marketing & Trading Limited (GM&T) is a UK-registered wholly-owned subsidiary of the Gazprom Group, the world’s largest gas company by asset base, accounting for 18% of the world’s total natural gas reserves and for about 70% of natural gas reserves in Russia. GM&T is headquartered in London and was established in 1999 to manage Gazprom's marketing and trading activities in the liberalised markets of Europe.
GM&T is responsible for the optimisation of Gazprom’s energy commodity assets and downstream expansion through its marketing and trading network. With subsidiaries in Houston, Singapore, Paris, Berlin and Manchester, GM&T trades energy commodities including gas, power, oil and oil products, carbon, LNG and FX. GM&T has been trading financial oil products on a number of exchanges since 2006 and can now offer 24-hour coverage of the market between Singapore, London and Houston.
For further information, please visit: www.gazprom-mt.com
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