Singaporean energy trader Pavilion Energy and Qatar Petroleum have signed a 10-year LNG sale and purchase agreement for the supply of up to 1.8 million tonnes of LNG per year to Singapore from 2023. Each LNG cargo delivered under this agreement will be accompanied by a statement of its GHG emissions measured from well to discharge port.
Under the deal, Qatar will deliver up to 1.8 million tonnes per annum for 10 years to Singapore, according to Mr Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs, the President and CEO of Qatar Petroleum.
The agreement is a result of a tender that Pavilion Energy launched earlier this year. In addition to reliable and competitive long-term supply to Singapore, the tender sought for supply partners’ commitment to co-develop and implement a GHG quantification and reporting methodology for LNG from well to discharge port.
Pavilion Energy expects this methodology to become standardised as a common industry framework via a statement of GHG emissions, paving the way towards more sustainable natural gas strategies.
The agreement comes in line with a significant focus of MPA Singapore on LNG as an environmentally-friendly solution for the future of shipping decarbonization.
The inaugural LNG cargo Pavilion Energy imported into Singapore for downstream supply in 2018 originated from Qatar, informed Tan Sri Mohd Hassan Marican, Chairman of Pavilion Energy.
In the context of energy transition towards a low carbon economy, this partnership is testament to the sustainability drive of both companies and the strong willingness of Pavilion Energy to pursue decarbonisation and offset strategies,
…noted Mr Frédéric H. Barnaud, Group CEO of Pavilion Energy, during the signing ceremony.