Revolutionary GHG Quantification Method for LNG Shipments Sets the Stage for Rigorous Cargo Surveillance

As per the recent announcement by the leading energy solution provider - Pavilion Energy Trading & Supply Pte. Ltd, Qatar’s state-owned petroleum company – Qatar Energy, and the world’s leading refiner and energy provider - Chevron U.S.A. Inc. (Singapore branch), a novel SGE methodology for the quantification of greenhouse gas emission (GHG) has been published jointly by the three companies for generating a statement of greenhouse emissions for the delivered liquified natural gas (LNG) cargoes.

The SGE methodology, which has been developed by the technical specialists representing all three participating companies, has received a green signal from the commercial organizations, academic experts, and the authorized verification bodies after conducting a thorough review process.

The developed methodology will form a crucial part of the sales and purchase agreements, particularly for the agreements by Pavilion Energy with Chevron and Qatar Energy. The methodology has also received support from Environmental Resources Management, the largest global sustainability consultancy, owing to the capability of this method to delivering calculations and reporting explicit information on GHG emission from wellhead to discharge terminal.

Liquified natural gas is a non-renewable fossil fuel which is composed of methane and other higher alkanes. LNG underpins every household and industry across the globe as it is the energy source for electricity generation, heating, and cooking. LNG is considered as a low-carbon emission fuel as it produces 45% less GHG emissions than coal.

As per ChemAnalyst, due to a significant demand for liquified natural gas in the end-user industries, the trading activity for LNG cargoes remains frequent throughout the year. As the petrochemical companies are embracing carbon neutral methodologies, the prospect of carbon-neutral LNG cargoes is gathering a lot of attention. The developed method represents a significant step towards attaining the goal of carbon emission reduction throughout the value chain of LNG cargo by supporting the establishment of a common standard for GHG emission measurement. The across-the-board adoption of this methodology shall create high degree of transparency, provide accurate emission statistics, and enable the stakeholders to take a statistically driven action on reducing GHG emission across the LNG value chain.