Singapore's Temasek-owned Pavilion Energy signed a 10-year liquefied natural gas (LNG) sales and purchase agreement with Qatar Petroleum on Monday, the Straits Times reported.
The agreement will see Qatar Petroleum supply up to 1.8 million tonnes of LNG per year to Singapore from 2023.
This sales and purchase agreement between Pavilion Energy and Qatar Petroleum is an important and innovative development for the LNG industry, said Singapore's second minister for trade and industry Tan See Leng at the signing ceremony.
Both companies have pledged to develop a methodology to quantify carbon emissions for LNG cargo based on internationally recognized standards, Tan said, adding this will pave the way for increased demand for carbon offset projects to reduce emissions associated with the LNG supply chain.
"This commitment by Qatar Petroleum, one of the world's largest LNG exporters, and Pavilion Energy, Singapore's global energy merchant, demonstrates leadership and partnership in creating a sustainable future," he said.
According to the second minister, Singapore started the shift towards natural gas early, given its geographical disadvantages. In 2001, 26 percent of Singapore's electricity was generated using natural gas. This figure has grown to 95 percent today.
Even as Singapore shifts towards other alternative energy sources such as solar energy, natural gas will remain a substantial part of Singapore's energy mix in the near future, Tan said.
Editor: Galia
