LNG

The trading units of Qatar Petroleum and Pavilion Energy of Singapore have signed a 10-year LNG sale and purchase agreement for the supply of up to 1.8 million tonnes per annum to Singapore with each shipment having full greenhouse-gas quantification from well to discharge port.

QP Trading LLC and Pavilion Energy Trading and Supply said the SPA would start from 2023.

Each LNG cargo delivered under this agreement will be accompanied by a statement of its likely GHG emissions.

The deal is the result of a tender that Pavilion Energy launched earlier in 2020.

In addition to reliable and competitive long-term supply to Singapore, the tender sought a commitment from the supplier to co-develop and implement a GHG quantification and reporting methodology for LNG along its value chain.

Pavilion Energy said it expected this methodology to become standardised as a common industry framework via a statement of GHG emissions, paving the way towards more environmentally responsible and sustainable natural gas strategies.

Saad Sherida Al-Kaabi, the Qatari Minister of State for Energy Affairs and President and Chief Executive of Qatar Petroleum said he was pleased with the SPA after a competitive process.

“The agreement reflects our commitment to respond to the needs of our customers, including supply security, price competitiveness and flexibility,” Al-Kaabi declared.

Pavilion Energy Chairman Mohd Hassan Marican noted that the inaugural LNG cargo Pavilion Energy imported into Singapore for downstream supply in 2018 originated from Qatar.

“We are delighted to enhance our strategic relationship with Qatar Petroleum, the world’s largest LNG producer,” said the Pavilion Chairman.

“This partnership will strengthen our core Singapore market and our role as a global energy trader,” he stated.

During a signing ceremony, Frédéric H. Barnaud, Group Chief Executive of Pavilion Energy, said the deal illustrated the support of Qatar and Singapore for lower global emissions.

“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,” added Barnaud.

Pavilion Energy launched the world’s first tender in March 2020 with carbon neutral ambitions. The methodology is expected to be developed based on internationally recognised standards.