Temasek's Pavilion Energy imports Singapore's first carbon neutral LNG cargo

SINGAPORE – Temasek unit Pavilion Energy has imported Singapore’s first carbon neutral liquefied natural gas (LNG) cargo, the company announced on Thursday (April 15).

Carbon emissions associated with the cargo from well-to-tank, including extraction and transportation, will be offset by carbon credits sourced from Pavilion Energy’s portfolio of carbon offset projects.

An average LNG cargo size of 70,000 tonnes generates well-to-tank emissions of approximately 60,000 tonnes of carbon dioxide equivalent.

LNG makes up 95 per cent of Singapore’s energy mix, and remains a key fixture in the Republic’s energy plans even as it makes the shift to other clean energy sources such as solar.

Pavilion Energy group chief executive Frédéric Barnaud said the carbon neutral cargo was another important milestone in its ambition to provide cleaner energy and develop its carbon trading activities.

“Our aim is to support our customers in their transition towards a lower carbon future with solutions to meet their climate targets and potential regulatory requirements,” he said.

The carbon credits used for the offset are from two projects in Peru and China which are natural climate solutions projects certified under the verified carbon standard and climate, community and biodiversity standard.

Both projects are designed for the protection and restoration of forests, and promote co-benefits through supporting local communities and protecting biodiversity.

Last year, Pavilion Energy called for offers to jointly develop a methodology which could see carbon neutral deliveries of LNG and pave the way for more environmentally sustainable natural gas strategies.

It also signed a 10-year sale and purchase agreement with Qatar Petroleum, which will see the world’s largest LNG producer supply up to 1.8 million tonnes of LNG per year to Singapore from 2023. Each LNG cargo shipped under this agreement will be accompanied by a statement of the associated greenhouse gas emissions.

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