Pavilion Energy imports Singapore's first carbon-neutral LNG cargo
London (Quantum Commodity Intelligence) - Pavilion Energy, a unit of Singapore's investment arm Temasek, has imported Singapore's first carbon-neutral liquefied natural gas (LNG) cargo, reported Singapore's Straits Times Friday
The report said carbon emissions associated with the cargo from well to tank, including extraction and transportation, will be offset by carbon credits sourced from Pavilion Energy's portfolio of carbon offset projects.
An average LNG cargo size of 70,000 tonnes generates well-to-tank emissions of about 60,000 tonnes of carbon dioxide equivalent.
Pavilion Energy group chief executive Frederic Barnaud said the carbon-neutral cargo was another important milestone in its ambition to provide cleaner energy and develop its carbon trading activities.
"Our aim is to support our customers in their transition towards a lower carbon future with solutions to meet their climate targets and potential regulatory requirements," he said.
The carbon credits used for the offset are from two projects in Peru and China which are natural climate solutions projects certified under the verified carbon standard and climate, community and biodiversity standard.
Pavilion last year signed a 10-year agreement with Qatar Petroleum, which will see the world's largest LNG producer supply up to 1.8 million mt of LNG per year to Singapore from 2023.
Each LNG cargo shipped will be accompanied by a statement of the associated greenhouse gas emissions.
LNG storage and logistics have become a major consideration due to constraints during peak periods of demand.
Global LNG prices saw record volatility in Q1 2021, particularly in Asia as the sustained cold snap across North Asia in January led to major shortages of gas across the region.
The Asian LNG Japan-Korea Marker (JKM) benchmark had been trading at below $5/MMBtu in Q4 2020, but the demand surge saw price rally to record levels, including a cargo trading at an all-time high of around $39/MMBtu in mid-January.
