Qatar Petroleum (QP) has won a tender for a long-term liquefied natural gas supply deal to Singapore's Pavilion Energy, with the agreement including an innovative method of tracking the carbon emissions of each cargo.

Under the deal, state-owned QP will supply up to 1.8 million tonnes per annum of LNG to Pavilion for 10 years starting in 2023.


Energy explored: Gain valuable insight into the global oil and gas industry's energy transition from Accelerate, the new weekly newsletter from Upstream and Recharge. Sign up here.

Each LNG cargo delivered under the agreement will be accompanied by a statement of its greenhouse gas emissions measured from the well to the discharge port, said Pavilion.

The Singapore company in late March launched the competitive LNG supply tender, the terms of which called for the supplier’s commitment to co-develop and implement a thorough greenhouse gas quantification and reporting methodology for LNG.

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

QP chief executive Saad Sherida al Kaabi highlighted the unique environmental aspects of the agreement, saying: “This deal represents the first long-term LNG arrangement containing specific environmental criteria and requirements designed to ultimately reduce the carbon footprint of the LNG supplies, which is fully aligned with our long-standing position in support of our environment.”

“Qatar Petroleum is already implementing a series of projects and initiatives to reduce emissions and to capture and sequester more than 5 million tonnes of CO2 per annum by 2025, placing us firmly on the road to become a leader in the decarbonisation of the LNG value chain,” said Kaabi.

Pavilion chairman Hassan Marican noted: “The inaugural LNG cargo Pavilion Energy imported into Singapore for downstream supply in 2018 originated from Qatar.

“This partnership will strengthen our core Singapore market and our role as a global energy trader."

Pavilion and QP on Monday virtually signed the strategic LNG supply deal for the Lion City — Pavilion’s first such long-term sales and purchase agreement.