Clean Development Mechanism Strategy

Recognising the value of promoting fuel switching to cleaner burning natural gas, Gasol has increased its activities in the CDM sector. The Company recently engaged URS Corporation ("URS") to assist in drafting a new strategy and to carry out an assessment of the Company's portfolio of projects in order to determine the potential value of the portfolio in terms of CDM monetisation.

The brief that we gave URS covered three main deliverables:

  • Estimate CDM value, determine feasibility and draft initial plan where necessary for each project
  • Assist in the development of Gasol's own CDM network of financing partners and off-takers
  • Assist in drafting Gasol's CDM strategy and linking it with the Company's core activities

In addition to potentially enhancing Gasol's project financing capabilities, our CDM strategy ties in strongly with our commitment to safeguarding the environment by promoting the use of cleaner burning gas over liquid fuels. The estimates show that, if our forecasted volumes for replacing liquid fuels with natural gas are met, Gasol's LNG Import Project alone will reduce CO2 emissions in the region by over 2 million tonnes per annum. Reduced emissions lead to a cleaner environment for the communities living in the areas the Company serves and will thus help improve the quality of life of local inhabitants.

Although the progress made in the past year has been substantial, Gasol's goal is to build on these accomplishments as it brings its first projects to completion. The Company's future in this respect looks most encouraging, and Gasol will stay focused so it can realise the full benefits of its efforts in the areas of environmental and social activities.