BP, Pavilion Sign LNG Supply Deal

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Singapore-based LNG importer Pavilion Energy has signed a long-term LNG supply deal with BP that will require both companies to keep track of greenhouse gas emissions from production of the gas to delivery in Singapore. This is the third LNG term supply deal Pavilion has signed in the last seven months that requires sellers to quantify and report the emissions associated with the supply. Under the latest such agreement, BP will supply around 800,000 tons/yr of LNG to Singapore for 10 years from 2024. BP and Pavilion will work together to develop a methodology covering emissions from all stages of the supply chain -- from production of the gas, through liquefaction, transportation and delivery. The latest deal followed Pavilion's similar agreements with Chevron (500,000 tons/yr) and Qatar Petroleum (up to 1.8 million tons/yr) (IOD Feb.22'21). Like those earlier deals, there is no explicit obligation for BP to offset carbon emissions associated with the LNG deliveries. "But the intent to reduce and offset [greenhouse gas] emissions associated with the LNG cargo is clear," a Pavilion spokesperson said.

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