Pavilion Energy, a unit of Singaporean wealth fund Temasek, and Singapore LNG Corp. have further strengthened their cooperation through the signing of a five-year agreement for liquefied natural gas storage and reload services at the terminal on Jurong Island as regional Hub plans progress.
Pavilion said this was the first such agreement signed for a term longer than two years, following a competitive bid process.
Under the agreement, Pavilion will have access to tank capacity of 180,000 cubic metres on a segregated basis at the SLNG-owned terminal over the next five years.
Pavilion said that such capacity would support a higher volume of LNG trading activities, including LNG breakbulk and vessel cool-down services.
The contract’s longer tenure allows Pavilion greater flexibility in managing its LNG portfolio, market fluctuations and demand dynamics.
“Pavilion Energy is pleased to renew the partnership with SLNG. Tank capacity in Singapore presents greater opportunities for LNG optimisation and trading in the Asia-Pacific Basin,” said Frédéric H. Barnaud, Group Chief Executive of Pavilion.
“It complements well our LNG-gas trading activities in the Atlantic Basin,” added Barnaud.
“Pavilion Energy has held true to our commitment to facilitate wide access to the SLNG Terminal, contributing to the vibrancy of Singapore’s LNG market,” he explained.
Tan Soo Koong, CEO of terminal owner SLNG, said the company was happy to extend its cooperation with Pavilion through this longer term storage and services agreement.
“SLNG has taken bold steps to develop infrastructure and create new service offerings to meet the needs of the industry and we will continue to do so,” added Tan.
“We are primed to play our part in helping Singapore achieve its ambition of becoming an LNG Hub, through catalysing LNG-related businesses such as trading, small-scale distribution, bunkering and more,” he stated.
Despite the current over-supplied market, global LNG trade continues to grow, with import volumes reaching 313 million tonnes in 2018 and spot trades making up a quarter of those volumes.
Pavilion noted that Singapore ranked second worldwide in terms of LNG re-export volumes and Pavilion has been one of the key contributors to the total volume re-exported out of the city state.
“Given its strategic geographic position along key shipping routes and being home to over 40 LNG companies, Singapore is well-positioned to become one of the leading LNG hubs in the region,” said Pavilion.