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Ecopetrol and CITGO’S Offsetting Transaction

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A carbon compensated crude oil cargo sold by Ecopetrol and purchased by CITGO Petroleum Corporation is currently making its way to the CITGO Corpus Christi refinery for processing. The transaction supports Ecopetrol’s objectives on energy transition and decarbonization.

The 500,000 barrel cargo of Ecopetrol Castilla Blend® is the company’s flagship crude oil and one of the main references of heavy crude in the region and the international market.

“We plan to sell a total of four carbon-compensated crude oil cargoes this year,” said Pedro Manrique, Ecopetrol commercial vice president, “and we hope to achieve this goal by working closely with companies like CITGO and others who share our vision on energy transition and decarbonization. It is essential as an industry to contribute to the goals that the world has set for climate change mitigation.”

As part of the transaction, Ecopetrol has arranged for carbon offsets for both the emissions of the cargo itself, equivalent to 16,000 tons of CO2e and, for the first time, the emissions associated with the maritime transportation of the crude to the CITGO terminal in the US Gulf Coast (USGC), estimated on 1.110 tons of CO2e.

Both will be offset by carbon credits generated through a Verified Carbon Standard (VCS) certified natural climate solutions project located in Colombia´s western region. The project reduces deforestation and degradation of forests, protects its biodiversity, and supports local communities.

“CITGO is pleased to participate in this important initiative that protects the environment and reduces greenhouse gas emissions,” said Karl Schmidt, CITGO vice president, supply and marketing. “Purchasing this cargo from Ecopetrol, a great partner with a firm commitment to decarbonization, inspires us to advance our efforts in this area.”

The carbon compensation for the Ecopetrol/CITGO transaction offsets direct emissions generated along the crude oil value chain, which includes production, dilution, transportation into the Coveñas terminal located on the Atlantic Coast of Colombia and maritime transportation to Corpus Christi, Texas.

The Ecopetrol Group plans to achieve net zero carbon emissions for Scope 1 and 2 by 2050.

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