Trio Builds Method for Reporting Emissions From LNG Deliveries

Pavilion Energy, QatarEnergy, and Chevron have revealed their new methodology with the hopes of increasing transparency and helping the industry move toward a lower-carbon future.

3D rendering gas tanker sailing in ocean
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Pavilion Energy, QatarEnergy, and Chevron announced that they have jointly published a quantification and reporting methodology to produce a statement of greenhouse-gas emissions (SGE) for delivered liquefied natural gas (LNG).

This is the first such published methodology to be applied to sales and purchase agreements. Intended for wide adoption, the methodology 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 the three companies and supported by global sustainability consultancy Environmental Resources Management. The stated goal is to create a common standard for the measurement, reporting, and verification of the GHG emissions associated with producing and delivering LNG cargo to drive greater transparency and enable stronger action on GHG reduction measures.

“We jointly developed this LNG carbon-footprinting methodology for delivered cargoes to help advance a standard for GHG product-level accounting,” said Bruce Niemeyer, Chevron’s vice president of strategy and sustainability. “This methodology is expected to enhance transparency, improve accuracy, and build stakeholder confidence in data reliability to help advance net zero ambitions.”

Independent academic experts, commercial institutions, and verification bodies have reviewed the SGE Methodology. It complements key industry efforts being developed in parallel, specifically the Monitoring, Reporting, and Verification and GHG Neutral LNG Framework published by the International Group of LNG Importers.

The SGE Methodology sets a strong tone for increased accountability of emissions along the LNG value chain, paving the way for more decarbonization strategies towards a lower-carbon future,” said Alan Heng, interim group CEO of Pavilion Energy.

Find The SGE Methodology here.