Chevron, Pavilion, Qatar release LNG GHG reporting methodology

PAVILION Energy, Qatar Energy and Chevron have jointly published a quantification and reporting methodology to tally greenhouse gas emissions from delivered LNG cargoes.
Chevron, Pavilion, Qatar release LNG GHG reporting methodology Chevron, Pavilion, Qatar release LNG GHG reporting methodology Chevron, Pavilion, Qatar release LNG GHG reporting methodology Chevron, Pavilion, Qatar release LNG GHG reporting methodology Chevron, Pavilion, Qatar release LNG GHG reporting methodology

Transparency key

Mark Tilly

Senior Journalist

Mark Tilly

The joint-press release said it was the first such published methodology that will be applied to sales and purchase agreements by the three companies, but said it was intended for wide adoption. 

"The methodology provides a calculation and reporting framework for greenhouse gas emissions from wellhead-to-discharge terminal, based on industry standards," it said.

The method was developed by a team of technical specialists from the three companies, supported by global sustainability consultancy Environmental Resources Management. 

"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," it said. 

The announcement follows a framework launched by the International Group of LNG Importers (IGLNGI) yesterday to establish rules to declare cargoes carbon neutral. 

The framework outlines a series of steps, including for companies to monitor and verify their greenhouse gas emissions intensity, show transparent emissions data, reduce operational emissions as much as possible and offsetting the rest, including Scope 3 emissions. 

LNG companies have promoted the concept of carbon-neutral LNG cargoes, however there is scepticism around the accuracy of emissions tallying in their reporting of cargoes shipped so far.

Some operators have advertised their cargoes as carbon neutral, yet their offsets do not cover Scope 3 emissions - the largest part of a cargoes' carbon footprint. 

"There is a wide disparity in the nature of these (carbon neutral cargoes), which is why we created this framework," IGLNGI secretary general Vincent Demoury told Reuters. 

"Offsetting the residual emissions is better than nothing but this shouldn't be seen as the primary objective of the industry."

Pavilion, Chevron and Qatar said their methodology has been reviewed by independent academic experts, and complemented industry efforts being developed in parallel, including those of IGLNGI. 

"We share a common and decisive vision with QatarEnergy and Chevron to advocate for transparency and accuracy of GHG emissions associated with delivered LNG cargoes," Pavilion Energy interim CEO Alan Heng said. 

"The SGE Methodology sets a strong tone for increased accountability of emissions along the LNG value chain, paving the way for more decarbonisation strategies towards a lower carbon future."

Chevron vice president of strategy and sustainability Bruce Niemeyer said the company jointly developed the methodology to help advance the standards for greenhouse gas product-level accounting. 

"This methodology is expected to enhance transparency, improve accuracy and build stakeholder confidence in data reliability to help advance net zero ambitions," he said. 

The methodology document can be read here.