Temasek-owned Pavilion Energy has entered into an agreement to purchase the portfolio of LNG assets of the Spanish energy company, Iberdrola.
The portfolio comprises about 4 mtpa of Iberdrola’s long-term sale and supply LNG contracts. It also includes long-term regasification of approximately 2 mtpa at the UK’s Grain LNG terminal, regasification access in Spain and the Spanish-France border pipeline capacity, as well as the time-charter of a newbuild MEGI LNG vessel, the company said in a statement on Thursday.
In a related transaction, both parties have concluded a gas sales agreement for Pavilion Energy to supply natural gas in Spain to Iberdrola Generación Espana.
“Building on Pavilion Energy’s success in Singapore and in the Asia-Pacific Basin, this acquisition brings us a portfolio of prime assets primarily in Europe and the Atlantic Basin. The combined portfolio achieves global reach with the scale and flexibility required to outperform,” said Frédéric Barnaud, group CEO of Pavilion Energy.
This strategic transaction will enable Pavilion Energy, a supplier of one-third of Singapore’s downstream natural gas demand, to play a greater role in energy transition as well as to offer competitive solutions to our customers and suppliers, the company said.
Pavilion Energy is a key contributor in making Singapore the Asian LNG hub and also promoting market transparency and liquidity.
The acquisition was entered into by Pavilion Energy Trading & Supply, a unit of Pavilion Energy, and the closing of this transaction will take place on January 1 2020.