Temasek-owned Pavilion Energy has signed a five-year deal with Singapore LNG Corporation for LNG storage and reload services at the SLNG terminal on Jurong Island.
This is the first of such an agreement signed for a term longer than two years, following a competitive bid process, Pavilion Energy said in its statement.
Under the agreement, Pavilion Energy will have access to a tank capacity of 180,000 cubic meters on a segregated basis at the SLNG terminal over the next five years. Such capacity will support a higher volume of LNG trading activities, including LNG breakbulk and vessel cool-down services.
The contract’s longer tenure allows Pavilion Energy greater flexibility in managing its LNG portfolio, market fluctuations and demand dynamics.
“Tank capacity in Singapore presents greater opportunities for LNG optimization and trading in the Asia-Pacific Basin. It complements well our LNG/gas trading activities in the Atlantic Basin,” Frédéric Barnaud, group CEO of Pavilion Energy, said.
Tan Soo Koong, CEO of SLNG added that SLNG has taken steps to develop infrastructure and create new service offerings to meet the needs of the industry, and we will continue to do so.
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.
In 2018, Singapore ranked second worldwide in terms of LNG re-export volumes, and Pavilion Energy has been one of the key contributors to the total volume re-exported out of Singapore.
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, Pavillion said.