Four firms ink deal for bunkering pilot scheme

Liquefied natural gas (LNG) company Pavilion Energy has inked an agreement with three foreign firms to jointly participate in Singapore's bunkering pilot programme.

The move comes after a unit of Pavilion Energy secured one of the two LNG bunker supplier licences awarded by the Maritime and Port Authority of Singapore (MPA) in January.

Chief executive Seah Moon Ming yesterday said the firm is developing LNG bunker supply and delivery models in partnership with various global players such as ExxonMobil and a number of Japanese firms.

The latest agreement with Harley Marine, Mitsui OSK Lines and Mitsui & Co will add to these efforts. Pavilion Energy, for instance, will supply LNG bunkers to two dual- fuelled conventional bunker tankers that Harley Marine is planning to build with $4 million in funding from the MPA, said Mr Seah.

He did not elaborate on the details of the group's collaboration with Mitsui OSK Lines and Mitsui & Co, only adding that it welcomes collaboration with its Japanese partners to "build a robust LNG bunkering ecosystem in Singapore, Japan and the region".

Mr Seah, who was speaking at the LNG Producer-Consumer Conference in Tokyo, also said greater cooperation for LNG trades in Asia and the development of LNG ecosystems in the region will open up more opportunities for growth.

"There is a clear need to shift our thinking away from just supply-demand dynamics, towards investing ahead for a clean and sustainable future. We can start by not thinking of emerging countries that are in need of energy as 'demand centres' or 'LNG sinks'. Our focus should instead be on developing LNG solutions."

A version of this article appeared in the print edition of The Straits Times on November 25, 2016, with the headline 'Four firms ink deal for bunkering pilot scheme'. Print Edition | Subscribe