SINGAPORE - Temasek-backed Pavilion Gas has inked an agreement with Singapore LNG Corporation (SLNG) for access rights to the SLNG Terminal in Jurong Island.
Under the agreement, Pavilion Gas has rights to access tank capacity, at 160,000 cubic metres, on a segregated basis at the terminal for LNG storage and reload services over the next two years.
The deal will support a higher volume of LNG trading activities, small-scale LNG opportunities, LNG breakbulk and vessel cool-down services, said the two parties in a joint statement on Thursday (Aug 24).
SLNG in February had requested for proposals from interested parties for the provision of storage and reload services on a segregated basis at the terminal.
Pavilion Gas will also work with industry players to trade LNG indexed to the Singapore Exchange LNG Index Group (Sling) to support more trades based on the index, the statement noted.
"With increased spot trading volume, this will strengthen Singapore's position as an Asian LNG hub," said Mr Seah Moon Ming, chief executive of Pavilion Energy and Pavilion Gas. "We will work closely with SLNG to facilitate multi-user access of the SLNG Terminal for LNG trading activities. Pavilion Gas is well-positioned to expand and grow its LNG trading presence regionally and globally."
SLNG chief executive John Ng added that the deal will help further Singapore's ambition to become an LNG hub for the region.
"With the enhanced capacity and capabilities at our terminal, such as the newly installed LNG truck loading facility and upcoming additional tank capacity, SLNG will be better able to serve industry players who are keen on using Singapore as a platform to grow their LNG businesses."
Similarly, Mr Lee Ark Boon, chief executive of IE Singapore, said the partnership will enhance the LNG marketplace in Singapore by enabling more trading, storage and breakbulk activities.
"This will enable Singapore to tap into the rising regional LNG demand and create greater trading opportunities for all players. It also supports and complements our larger energy ecosystem, including our engineering and logistics companies developing innovative LNG infrastructure and solutions for the region," said Mr Lee.