An affiliate of Chevron Corp. has signed a deal to supply liquefied natural gas (LNG) that requires it to detail the emissions generated to produce and deliver the cargoes as more countries scrutinize their energy consumption and climate impacts.
Chevron U.S.A. Inc. has agreed to supply Pavilion Energy Trading & Supply Pte. Ltd. with 500,000 metric tons of LNG annually for delivery to Singapore beginning in 2023. Under the six-year sale and purchase agreement, each cargo delivered would include a statement of its greenhouse gas emissions (GHG) measured from the wellhead to the import terminal. Qatar Petroleum signed a similar deal in November with Singapore-based Pavilion, which supplies, markets and trades natural gas.
“Pavilion Energy and its strategic partners are committed to co-develop and implement a GHG quantification and reporting methodology for LNG.” Pavilion said. “The methodology is being developed based on internationally recognized standards and will cover emissions from wellhead-to-discharge terminal, including LNG transportation.”
The effort comes as other major LNG players, including Royal Dutch Shell plc and Total SE, have delivered carbon-neutral LNG cargoes offset with emissions certificates to help fund renewable energy and environmental projects. Liquefaction projects are also increasingly highlighting plans to use carbon capture technology and other methods to ensure their emissions profiles are lower.
“Chevron embraces a lower-carbon future, where we will continue to deliver affordable, reliable and ever-cleaner products,” said Chevron’s Law Tat Win, Singapore chairman. He added that the company is committed to partnering with Pavilion to “develop processes and tools which will enable us to offer lifecycle carbon footprinted products to the market in Singapore.”
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