Total, Pavilion sign Singapore LNG bunker deal

Tuesday, 07 August 2018
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Energy firms Total and Pavilion Energy have signed a Heads of Agreement (HoA) to jointly develop LNG bunker infrastructure at the port of Singapore. 

The wide-ranging deal will see Total Marine Fuels Global Solutions collaborate with Pavilion Gas to create an entirely new LNG supply chain at the port that will include a next generation LNG bunker vessel to be commissioned by 2020.

“Pavilion Energy is pleased to work with Total on establishing a robust LNG bunker supply chain in Singapore. Our partnership sets the stage for making LNG bunker readily and reliably available for the market. Together, we mark a decisive step forward in leading the change towards cleaner and more responsible solutions with LNG bunkering in the region,” Tan Sri Mohd Hassan Marican, Chairman of Pavilion Energy, said.

“Significant step forward” for Singapore LNG hub

The HoA was signed by Pouyanné and Pavilion Energy chairman Tan Sri Mohd Hassan Marican at the sidelines of the recent World Gas Conference 2018.

Backed by Singapore’s sovereign wealth-fund Temasek Holdings, Pavilion Gas is appointed by the Singapore Energy Market Authority (EMA) as an LNG Importer and is responsible for the marketing and distributing of natural gas in the country.

Both firms hailed the agreement as a “significant step forward” and highlighted LNG as an “available and competitive solution” to tackle greenhouse gas emissions.

"The agreement signed with Pavilion Energy marks a new step in our commitment to provide our customers with fuels that are more environmentally friendly, particularly in Singapore which is the leading bunkering hub in the world,” Patrick Pouyanné, Chairman and CEO of Total, said.

Total sees LNG bunkering take-off

The partnership follows several investments by Total in the European LNG bunker market, including supply contracts for Brittany Ferries and CMA CGM, alongside a long-term bunker vessel charter with Mitsui O.S.K. Lines in Northern Europe.

"The development of infrastructure is one of the key drivers for the take-off of LNG as a marine fuel. For the past few months, Total has been very active in that direction,” Patrick Pouyanné, Chairman and CEO of Total, said. 

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