Chevron, Pavilion Energy, and QatarEnergy announced that they jointly published a quantification and reporting methodology for greenhouse gas emissions for delivered LNG cargoes.
Firstly, the methodology is a one-of-a-kind effort intended for wide adoption. It will provide a calculation and reporting framework for GHG emissions from wellhead-to-discharge terminal, based on industry standards.
In fact, it is the first published methodology of its sort that will serve in sales and purchase agreements (SPAs); specifically, the executed SPAs2 by Pavilion Energy with QatarEnergy and Chevron.
Moreover, the methodology’s development included a team of technical specialists representing Pavilion Energy; QatarEnergy, and Chevron, supported by global sustainability consultancy Environmental Resources Management (ERM).
Specifically, it aims to create a common standard for measuring, reporting, and verifying the GHG emissions associated with producing and delivering an LNG cargo. Therefore, it will provide greater transparency and stronger action on GHG reduction measures.
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Methodology from Chevron and to compliment other industry efforts
Furthermore, independent academic experts, commercial institutions, and verification bodies reviewed the methodology. Its launching will complement other industry efforts, specifically the Monitoring, Reporting and Verification and GHG Neutral Framework by the International Group of LNG Importers.
On the other hand, Alan Heng, Interim Group CEO of Pavilion Energy, about the advancement of the initiative. “The SGE Methodology sets a strong tone for increased accountability of emissions along the LNG value chain, paving the way for more decarbonization strategies towards a lower carbon future.”
In addition, Ahmad Saeed Al-Amoodi, QatarEnergy’s VP of Surface Development and Sustainability, said. “This joint effort to develop a greenhouse gas quantification and reporting methodology is part of a series of projects and initiatives that reflect QatarEnergy’s commitment to reduce GHG emissions and to de-carbonize the LNG value chain.”
Finally, Bruce Niemeyer, Chevron’s vice president of strategy and sustainability, commented. “We jointly developed this LNG carbon-footprinting methodology for delivered cargoes to help advance a standard for GHG product-level accounting. It will enhance transparency, improve accuracy and build stakeholder confidence in data reliability to help advance net zero ambitions.”