Singapore's Pavilion Energy Trading & Supply has linked up with QatarEnergy and Chevron to publish a new reporting methodology for providing a statement of greenhouse gas (GHG) emissions for delivered LNG cargoes.
The three companies said this is the first such published methodology that will be applied to LNG sales-and-purchase agreements.
It will specifically be applied to S&P agreements executed by the trio.
"Intended for wide adoption, the methodology provides a calculation and reporting framework for [GHG] emissions from wellhead to discharge terminal, based on industry standards," they said.
The launch comes on the day industry body the International Group of Liquefied Natural Gas Importers (GIIGNL) produced a new set of guidelines for emissions reporting for LNG cargoes, their carbon neutrality and any offsetting.
Pavilion, QatarEnergy and Chevron said their methodology complements key industry efforts being developed in parallel, specifically the Monitoring, Reporting, Verification and GHG Neutral Framework by GIIGNL.
The trio said its methodology was developed by a team of technical specialists representing the companies, supported by global sustainability consultancy Environmental Resources Management.
"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," they said.
The methodology had been reviewed by independent academic experts, commercial institutions and verification bodies, they added.
In 2020, Pavilion Energy signed a long-term deal to buy LNG from producer Qatar Petroleum, with GHG emissions measured from well to discharge port.
Pavilion Energy interim chief executive Alan Heng said: "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.
"The ... methodology sets a strong tone for increased accountability of emissions along the LNG value chain, paving the way for more decarbonisation strategies towards a lower-carbon future."
QatarEnergy's executive vice president of surface development & sustainability, Ahmad Saeed Al-Amoodi, said: "This joint effort to develop a GHG quantification and reporting methodology is part of a series of projects and initiatives that reflect QatarEnergy’s commitment to reduce GHG emissions and to decarbonise the LNG value chain."
Chevron vice president of strategy & sustainability Bruce Niemeyer said: "This methodology is expected to enhance transparency, improve accuracy and build stakeholder confidence in data reliability to help advance net zero ambitions."
