LNG

Temasek, the Singapore wealth fund that recently sold all liquefied natural gas interests to Shell, plans to focus on investing in Chinese companies with large domestic sales sales rather than those that depend on foreign markets.

UK major Shell has confirmed a deal as expected to acquire the liquefied natural gas assets of Pavilion Energy, the natural gas company set up by Singapore’s wealth fund Temasek to give the Asian island state energy security.

Saudi Arabian Oil Company (Saudi Aramco), the largest oil exporter, has just awarded a $7.7 billion engineering contract for domestic natural gas while also completing the bidding process against Shell to acquire the LNG interests of Pavilion Energy of Singapore.

Singapore wealth fund Temasek is close to completing a seven-month long sale process for the Asian island nation’s Pavilion Energy set up by Temasek in 2013 to develop liquefied natural gas assets.

Pavilion Energy of Singapore and Japanese shipping company Mitsui OSK Lines held a ship-naming ceremony at Sembcorp Marine’s Tuas Boulevard shipyard for the 12,000 cubic metres capacity bunkering vessel “Brassavola”, the largest of its kind to be built in the Asian city state.

Singapore’s largest shipping and energy sector companies, Keppel Corp. Ltd and Sembcorp Marine, have agreed a multi-billion-dollar deal to merge Keppel Offshore & Marine and Sembcorp Marine to create a global provider of offshore energy infrastructure services covering oil-to-LNG, transition fuels and reviving the Singaporean shipyards sector.

Pavilion Energy, the Singapore natural gas and LNG company, has named Alan Heng as Group Chief Executive effective from April 2022 as the company continues to support Asian expansion in trading and bunkering activities.

Sept 22 (LNGJ) - Temasek, the Singapore wealth fund and owner of the island nation’s LNG company Pavilion Energy, has made a mandatory conditional general cash offer to acquire all the issued and paid-up ordinary shares in Sembcorp Marine, the main shipyard specializing in offshore platforms and LNG projects such as ship conversions and LNG-powered tugs.

   The move was required under listing rules after Temasek's stake in Sembmarine was raised to 46.6 percent. The Temasek offer through its indirect wholly owned subsidiary, Startree Investments, is at a price of S$0.08 per share in cash. Sembmarine expects to distribute the offer document between October 6 and October 13 and the offer will close 28 days later. Morgan Stanley Asia has been appointed as sole financial advisor for the mandatory offer.

Pavilion Energy, the subsidiary of Singapore wealth fund Temasek, said its trading unit had signed an agreement with US major Chevron Corp. for the Asian city state to receive LNG shipments for six years with emissions measured along the value chain.

The trading units of Qatar Petroleum and Pavilion Energy of Singapore have signed a 10-year LNG sale and purchase agreement for the supply of up to 1.8 million tonnes per annum to Singapore with each shipment having full greenhouse-gas quantification from well to discharge port.

QP Trading LLC and Pavilion Energy Trading and Supply said the SPA would start from 2023.

Each LNG cargo delivered under this agreement will be accompanied by a statement of its likely GHG emissions.

The deal is the result of a tender that Pavilion Energy launched earlier in 2020.

In addition to reliable and competitive long-term supply to Singapore, the tender sought a commitment from the supplier to co-develop and implement a GHG quantification and reporting methodology for LNG along its value chain.

Pavilion Energy said it expected this methodology to become standardised as a common industry framework via a statement of GHG emissions, paving the way towards more environmentally responsible and sustainable natural gas strategies.

Saad Sherida Al-Kaabi, the Qatari Minister of State for Energy Affairs and President and Chief Executive of Qatar Petroleum said he was pleased with the SPA after a competitive process.

“The agreement reflects our commitment to respond to the needs of our customers, including supply security, price competitiveness and flexibility,” Al-Kaabi declared.

Pavilion Energy Chairman Mohd Hassan Marican noted that the inaugural LNG cargo Pavilion Energy imported into Singapore for downstream supply in 2018 originated from Qatar.

“We are delighted to enhance our strategic relationship with Qatar Petroleum, the world’s largest LNG producer,” said the Pavilion Chairman.

“This partnership will strengthen our core Singapore market and our role as a global energy trader,” he stated.

During a signing ceremony, Frédéric H. Barnaud, Group Chief Executive of Pavilion Energy, said the deal illustrated the support of Qatar and Singapore for lower global emissions.

“In the context of energy transition towards a low-carbon economy, this partnership is testament to the sustainability drive of both companies and the strong willingness of Pavilion Energy to pursue decarbonisation and offset strategies,” added Barnaud.

Pavilion Energy launched the world’s first tender in March 2020 with carbon neutral ambitions. The methodology is expected to be developed based on internationally recognised standards.