UK supermajor BP and Singapore’s Pavilion Energy have signed a long-term sale and purchase agreement for about 800,000 tonnes per annum of liquefied natural gas for the city state.
The 10-year SPA is due to start in 2024.
Beyond the supply of LNG to Singapore, both companies will strive to co-develop and implement a greenhouse gas quantification and reporting methodology, which will cover emissions from wellhead-to-discharge terminal and be principled on “mutual transparency and the adherence to relevant international standards”, they said.
“This agreement further strengthens our relationship with BP as Pavilion Energy advances our strategies for a lower-carbon future, beginning with GHG emissions quantification, reduction and offsets for Singapore,” said Pavilion chief executive Frederic Barnaud.
Eugene Leong, president of BP Singapore, added: "BP’s ambition is to be a net zero company by 2050 or sooner and to help the world get to net zero."
Pavilion is a wholly owned subsidiary of Singapore’s government investment division Temasek.
In addition to global LNG trading, shipping and optimisation, Pavilion has also been a pioneer by developing LNG bunkering for the maritime industry and by promoting greenhouse gas emissions reduction and carbon offsets in the LNG value chain.
'Advocate for LNG'
“As an advocate for LNG and natural gas as fuels of choice, we are driving energy transition efforts towards a more sustainable future for generations to come,” the company said on Wednesday.