New GHG reporting methodology for delivered LNG cargoes

Chevron, Pavilion Energy Trading & Supply and Qatar Energy have jointly published a quantification and reporting methodology to produce a statement of greenhouse gas emissions (SGE) for delivered LNG cargoes.

It is reported to be the first such published methodology that will be applied to sales and purchase agreements (SPAs). Developed specifically for SPAs executed by Pavilion Energy with Qatar Energy and Chevron, the SGE methodology is intended for wide adoption. It provides a calculation and reporting framework for greenhouse gas (GHG) emissions from wellhead-to-discharge terminal, based on industry standards.

The SGE methodology was developed by a team of technical specialists representing Pavilion Energy, Qatar Energy and Chevron, supported by global sustainability consultancy Environmental Resources Management (ERM). It aims to create a common standard for the measurement, reporting and verification of the GHG emissions associated with producing and delivering an LNG cargo to drive greater transparency and enable stronger action on GHG reduction measures.

The SGE methodology will complement other key industry efforts being developed in parallel, in particular the Monitoring, reporting and verification (MRV) and GHG neutral framework recently launched by the International Group of LNG Importers (GIIGNL).