Singapore's Pavilion Energy has signed a 10-year deal to buy liquefied natural gas (LNG) from BP's Singapore unit starting in 2024, the companies said on Wednesday, as the city-state seeks to diversify its gas supply sources.
Houston Chevron expects global LNG customers to continue pushing producers to tie commercial deals to greenhouse gas emissions control efforts, following a unique offtake agreement it signed with Singapore s Pavilion Energy earlier this year, a company official said April 28 during the FP Virtual Climate Summit.
Not registered? Receive daily email alerts, subscriber notes & personalize your experience. Register Now The carbon intensity initiative, though smaller in scale, is similar to what Cheniere Energy has said it will begin doing next year for each shipment from its two US liquefaction terminals. Gas and LNG producers, especially in North America where new projects face challenges getting off the ground, are increasingly looking for ways to show their commitment to reducing GHG emissions, or at least quantify those emissions, amid the global energy transition to cleaner burning fuels.
How Asia changed the global LNG market in the space of a year
The past year has undoubtedly been the most dramatic in the history of the global LNG industry. Demand buffeted by lockdowns and recession, liquefaction shut-in, pre-FID supply projects delayed and spot LNG prices crashing to all-time lows before going into orbit.
Yet as the world experienced its worst economic crisis since the great depression, with commodity demand tumbling across numerous sectors and oil prices briefly turning negative, Asian LNG markets proved remarkably resilient. Led by China, but with others including India playing their part, Asian LNG demand increased by around 6 Mt in 2020, higher than demand growth in pre-pandemic 2019. Economic resilience and pro-gas policies across much of Asia supported a broader recovery in LNG demand and the return to stability in spot prices. Meanwhile, Asian buyers’ appetite for ‘green’ LNG has accelerated over the past year, redefining how cargoes will be sold in
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