The calculation of emissions levels is conducted from extraction at the gas wellhead right to the LNG re-gasification terminal. This is the first such published methodology that will be applied to sales and purchase agreements of LNG. And the methodology has already been tested on Pavilion Energy contracts with Qatar and Chevron, supported by supported by global sustainability consultancy Environmental Resources Management (ERM).
The work is intended to create an overall standard to monitor, report and verify greenhouse gases associated with production and shipment of LNG. A generally accepted methodology will allow for transparency in taking account of CO2 emissions within the framework of greater attention to climate issues.
The SGE (Statement of Greenhouse Gas Emissions) methodology complements key initiatives within the industry, elaborated along with the International Group of Liquefied Natural Gas Importers (GIIGNL) – the concept of monitoring, reporting and verification (MRV) and a system of neutralising greenhouse gases.
“We jointly developed this LNG carbon-footprinting methodology for delivered cargoes to help advance a standard for GHG product-level accounting,” Bruce Niemeyer, Chevron’s vice president of strategy and sustainability said in a statement. “This methodology is expected to enhance transparency, improve accuracy and build stakeholder confidence in data reliability to help advance net zero ambitions.”