(EnergyAsia, June 9 2014, Monday) — Singapore’s Pavilion Gas has signed a new 10-year agreement to increase the annual purchase of liquefied natural gas (LNG) to 700,000 tonnes from France’s Total starting 2018, the two companies have announced.
Replacing last year’s agreement for the annual purchase of 500,000 tonnes, the subsidiary of Pavilion Energy, a unit of sovereign wealth fund Temasek Holdings, said it will also be acquiring “several cargoes” before the start of the contract.
Seah Moon Ming, CEO for Pavilion Energy and Pavilion Gas, said:
“This is an important development for Pavilion Gas as a regional LNG player in meeting the growing energy needs in Asia. This deal with Total strengthens Pavilion Gas’s LNG supply portfolio as it provides supply diversification from global LNG sources.”
Philippe Sauquet, President for Total Gas and Power said:
“This long term sales agreement to deliver LNG to Asia, including Singapore, reinforces our strategy to expand LNG trade in this region and thus to meet the growing energy demand of this market.”
The French major, which produced 12.3 million tons of LNG last year, is active in LNG production in Indonesia, Nigeria, Norway, Oman, Qatar, the UAE, Yemen, Angola, Australia and Russia. It has secured supplies from the Sabine Pass liquefaction plant under construction in the US and long-term access to re-gasification capacities located in key LNG markets.
With a US$6.9 billion capital base, Pavilion Energy is developing a global LNG supply chain as part of its vision to support Singapore’s drive to become a major gas trading centre.