Pavilion Energy imports Singapore's first carbon neutral LNG cargo

SINGAPORE, April 15 (Reuters) - Pavilion Energy said on Thursday it had imported Singapore's first carbon neutral liquefied natural gas (LNG) cargo.

Carbon neutral LNG typically involves companies supporting projects that reduce emissions to compensate for emissions generated from exploration and production.

Pavilion Energy, owned by Singapore state-owned investment company Temasek Holdings, said the carbon emissions associated with the LNG cargo from well-to-tank will be offset by "retiring", or removing from the system, a corresponding amount of high-quality carbon credits sourced from its portfolio of carbon offset projects.

The carbon credits used for the offset are from Natural Climate Solutions projects Evio Kuinaji Ese'Eja Cuana in Peru and Liangdu Afforestation in China, the company said.

The company declined to give further details on the cargo including about its supplier.

Pavilion signed a long-term contract with Chevron Corp earlier this year and one with Qatar Petroleum Trading late last year requesting the cargoes be accompanied by statements of greenhouse gas emissions (GHG) measured from wellhead to discharge port.

It is working with partners to develop a methodology to quantity and calculate emissions. (Reporting by Jessica Jaganathan; editing by David Evans)