LNG cargoes delivered under Qatar’s recent deal with Pavilion Energy Pte will come with statement of associated GHG emissions.
This is massive in the evolution of LNG priced with a carbon premium. Qatar is set to own this space. Here is why..
Relative to other growing LNG suppliers (Russia & U.S) Qatar is the only one with ability or aim of controlling emissions across their entire LNG value chain.
Qatargas owns upstream (North Field), is majority owner of liquefaction & controls shipping through Nakilat.
This could never happen in the US given the disparate structure of US natural gas trading, where flaring and methane leakage is a product of moral hazard no one is properly addressing.
Similarly, Russia has shown no intention of addressing carbon in its development plans.
Qatar is not hiding its strategy, look closely and you will see it. Their entire expansion will be completed with expansive CCS measures in place, capturing 2.5-5 million tons of carbon per year.
Sure its for EOR, but it is a tangible, marketable step.
While the rest of the market is concerned about oversupply, Qatar is looking at the future of LNG and recognizing it will need to be ”greener” to survive.
If the rest of the industry does not take do the same there may be no industry to speak of.
Source: Samer Mosis, Platts
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