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Clean LNG initiatives accelerate

New initiatives related to clean LNG and decarbonisation appear to

be accelerating, with more developments announced in recent days

COMMENTARY EFFORTS to decarbonise LNG continue apace, to diversify its gas imports ahead of the expiry
and appear to be picking up momentum with of pipeline gas contracts with neighbouring
a handful of new developments announced in Indonesia from 2023. The other two deals – with
WHAT: recent days. Qatar Petroleum (QP) and Chevron – both
More initiatives related Some of the initiatives mark a continuation require each delivered cargo to be accompanied
to the decarbonisation of previously announced plans, while others are by a statement of its GHG emissions.
of LNG have been altogether new developments. And both types The deals were struck after Pavilion, which
announced in recent illustrate that decarbonisation is increasingly is owned by Singapore state-owned investment
days. becoming a priority for the LNG industry as it company Temasek Holdings, put out a call last
seeks to demonstrate that it can have a role to year for sellers of LNG to quantify their GHG
WHY: play in the energy transition. emissions and to partner with it on developing
LNG industry players an industry standard for reporting and monitor-
are increasingly trying Third supply deal ing such emissions. The three subsequent supply
to demonstrate that they Among the most recent developments is a new deals illustrate that at least some LNG players are
can have a role to play in supply deal between Singapore’s Pavilion Energy responding to the call.
the energy transition. and BP with a greenhouse gas (GHG) emissions Ultimately, Pavilion also wants producers
quantification component. of LNG to offset their emissions. The company
WHAT NEXT: Pavilion Energy Trading & Supply imported Singapore’s first carbon-neutral LNG
Yet more moves to clean announced that it had signed the long-term sale cargo in April.
up LNG are expected and purchase agreement (SPA) with BP Singa-
to follow, but the costs pore for the supply of roughly 800,000 tonnes Cheniere’s progress
involved will be a per year (tpy) of LNG to Singapore for 10 years Pavilion is not the only company to be making
concern. from 2024. The two companies said they would progress with its plans to quantify – and ulti-
“strive to co-develop and implement a green- mately reduce – GHG emissions from LNG. The
house gas (GHG) quantification and reporting US’ Cheniere Energy announced this week that
methodology”. The methodology will cover it had agreed to collaborate with five gas produc-
emissions from the wellhead to the discharge ers and several “leading” academic institutions
terminal, they added. on implementing quantification, monitoring,
This is the third long-term deal to be signed reporting and verification (QMRV) of GHG
by Pavilion since November, as Singapore seeks emissions performance at gas production sites.

P4 www. NEWSBASE .com Week 24 17•June•2021