Qatar Petroleum’s newly-established LNG trading unit has secured a long-term deal to supply chilled fuel to Singapore’s Pavilion Energy.
QP Trading and Pavilion Energy Trading & Supply signed the deal on Monday during a virtual ceremony.
Under the agreement, QP Trading will deliver up to 1.8 million tons of LNG per annum for 10 years to Singapore.
Additionally, each cargo delivered to Singapore under this deal will come with a statement of greenhouse gas emissions from wellhead to discharge port.
Pavilion Energy expects this methodology to become standardised as a common industry framework via a statement of GHG emissions, paving the way towards more environmentally responsible and sustainable natural gas strategies.
Qatar’s energy minister and chief executive of QP, Saad Sherida Al-Kaabi, said this deal represents the first long-term LNG arrangement containing specific environmental criteria and requirements designed to ultimately reduce the carbon footprint of the LNG supplies.
“Qatar Petroleum is already implementing a series of projects and initiatives to reduce emissions and to capture and sequester more than 5 million tons of CO2 per annum by 2025, placing us firmly on the road to become a leader in the de-carbonization of the LNG value chain,” Al-Kaabi said.
The deal also marks the start of operation of QP Trading, that aims to build a globally diversified portfolio of third party and equity LNG, according to QP.
In addition, QP Trading will manage the price risk exposure of its portfolio through physical and derivatives trading.