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Singapore's Pavilion Energy Trading & Supply Pte Ltd said on Wednesday it has jointly developed with suppliers QatarEnergy and Chevron Corp (CVX.N) a method to calculate greenhouse gas emissions for liquefied natural gas (LNG) cargoes.

The calculation of emissions from wellhead-to-discharge terminal will be applied to sales and purchase agreements that Pavilion Energy has with the producers, the trading company said in a statement.

Pavilion's announcement follows a framework launched by the International Group of Liquefied Natural Gas Importers (GIIGNL) on Wednesday to establish rules to declare cargoes carbon neutral. 

Environmental groups are sceptical about the use of carbon offsets and say the ability to pay for emission reductions elsewhere could prolong the use of fossil fuels.

Pavilion, QatarEnergy and Chevron said their methodology is expected to enhance transparency and improve the accuracy of emission calculations.

"The methodology sets a strong tone for increased accountability of emissions along the LNG value chain, paving the way for more decarbonisation strategies towards a lower carbon future," said Alan Heng, Pavilion Energy's interim group chief executive officer. (Reuters)