SINGAPORE - Malaysia's state energy firm Petronas said on Thursday it has signed a deal to supply three cargoes of carbon-neutral liquefied natural gas (LNG) to China's Shenergy Group Co.

Carbon-neutral LNG typically involves companies supporting nature-based projects that reduce emissions to offset those generated from the exploration and production of natural gas.

Petronas said the cargoes will load from its LNG complex in Bintulu, Sarawak in Malaysia and be delivered to Shenergy's terminals in Shanghai between October and next March.

This is the Malaysian firm's first delivery of carbon-neutral LNG to China, following its first such shipment to Japan last month, it added.

Leading industry traders and consumers have been seeking more transparency on carbon and methane emissions in the gas value chain amid a global decarbonisation push.

While LNG is generally considered a cleaner fuel than coal or oil, there is currently no accepted standard for measuring the emissions from producing and transporting the fuel, which needs to be cooled to minus 162 degrees Celsius (minus 260 degrees Fahrenheit).

Petronas had signed a non-binding heads of agreement deal with Shenergy early last year to supply about 1.5 million tonnes per annum (mmtpa) of LNG to its Wuhaogou-receiving terminal in China for a 12-year term, starting 2022.

(Reporting by Jessica Jaganathan; Editing by Sherry Jacob-Phillips) ((Jessica.Jaganathan@thomsonreuters.com; +65 6870 3822; Reuters Messaging: jessica.jaganathan.thomsonreuters.com@reuters.net; Twitter: https://twitter.com/j3ssi3))