Chevron, Pavilion Energy to Develop Emissions Reporting for LNG
February 22 2021 - 1:30AM
Dow Jones News
By Ben Otto
U.S. energy giant Chevron Corp. and Singapore's Pavilion Energy
have signed a six-year energy deal that will include the joint
development of tools for reporting greenhouse gas emissions
associated with the supply of liquefied natural gas.
Chevron and Pavilion, a subsidiary of Singapore state investment
fund Temasek Holdings, said in a joint statement Monday that the
greenhouse gas tracking will cover emissions across the life cycle
of LNG production, including transportation. The methodology will
be based on internationally recognized standards, they added,
without providing details.
"Chevron embraces a lower-carbon future," said Law Tat Win,
country chairman of Chevron's Singapore unit. The reporting tools
will allow companies to offer "lifecycle carbon footprinted
products to the market in Singapore."
Under the deal, the companies will provide Singapore with about
a half million metric tons of LNG annually beginning in 2023, with
each cargo coming with a statement of its associated greenhourse
gas emissions. The LNG will be sourced from Chevron's Australian
portfolio, primarily its Gorgon project, a person familiar with the
matter added.
The plan to develop tools to measure greenhouse gas emissions
comes amid growing interest from politicians, customers and
investors in data on companies' environmental, social and
governance risks and practices.
S&P Global Ratings earlier this month lowered the credit
ratings of major U.S. oil producers Chevron, Exxon Mobil Corp. and
ConocoPhillips, pointing to outsized losses in the latest quarter
and growing pressure for the oil-and-gas industry to tackle climate
change.
U.S. President Joe Biden last year campaigned on requiring
companies to provide more detail on environmental risks and
greenhouse-gas emissions as part of a broader agenda to combat
climate change. In November, the U.K. became the first country to
require companies to make disclosures about the financial impact of
climate change on their businesses.
Write to Ben Otto at ben.otto@wsj.com
(END) Dow Jones Newswires
February 22, 2021 01:15 ET (06:15 GMT)
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