New Temasek unit wants to start regional LNG trading within three months

TEMASEK Holdings' newly set-up liquified natural gas (LNG) unit Pavilion Energy plans to begin regional trading of LNG within the next three months.

Pavilion Energy chief executive Seah Moon Ming added at a conference on Wednesday that his company, which started operations just this month, is looking at regional and global partnerships and investments as it taps into the highly-promising LNG market.

"We will secure LNG supplies from diversified global sources and at the same time create an aggregate gas demand in Singapore and the region," said Mr Seah.

"We are looking into global investments with the aim of building a diversified asset portfolio to enhance our efficiency and competitiveness."

Pavilion Energy had been set up in April by Temasek Holdings to handle its LNG business. This month, it started operations as it moved into its office in Tower 3 of Marina Bay Financial Centre.

The company has a start-up capital of US$1 billion. "More capital will be injected as our investment plans unfold," said Mr Seah, who was speaking at the World LNG Series Asia Pacific Summit, organised by British energy conference company CWC Group.

Singapore is investing in a big way in LNG, hailed as a more environmentally-friendly way to meet global energy demand than other fossil fuels. The $1.7 billion LNG terminal on Jurong Island started commercial operations in May this year with an initial storage capacity of 3.5 million tonnes per annum (tpa).