Pavilion, QatarEnergy, Chevron develop LNG carbon emissions methodology

Singapore’s Pavilion Energy, a unit of Temasek, said it has jointly developed with QatarEnergy and Chevron a method to calculate emissions for delivered LNG cargoes.

Pavilion Energy Trading & Supply said in a statement the “SGE Methodology” represents the first such published methodology and it would apply it to LNG supply deals it has with the two producers.

According to Pavilion, the methodology provides a calculation and reporting framework for greenhouse gas (GHG) emissions from wellhead-to-discharge terminal, based on industry standards.

Moreover, a team of technical specialists from the three partners supported by global sustainability consultancy Environmental Resources Management (ERM) developed the methodology.

It aims to create a common standard for the measurement, reporting, and verification of GHG emissions associated with producing and delivering an LNG cargo to drive greater transparency and enable stronger action on GHG reduction measures, the statement said.

Pavilion says independent academic experts, commercial institutions but also verification bodies have reviewed the SGE methodology.

It complements key industry efforts being developed in parallel, specifically the Monitoring, Reporting, Verification (MRV) and GHG Neutral Framework by the International Group of LNG Importers (GIIGNL). GIIGNL has just revealed the new framework in a statement on Wednesday.

Pavilion earlier this year imported what it says was Singapore’s first carbon-neutral LNG cargo.

“We share a common and decisive vision with QatarEnergy and Chevron to advocate for transparency and accuracy of GHG emissions associated with delivered LNG cargoes,” said Alan Heng, interim group CEO of Pavilion.

“The SGE Methodology sets a strong tone for increased accountability of emissions along the LNG value chain, paving the way for more decarbonization strategies towards a lower carbon future,” he said.

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