SINGAPORE - Temasek-backed Pavilion Energy has signed an option swap agreement with German energy company Uniper, for access to liquefied natural gas (LNG) terminals in Rotterdam and the Britain.
Under the agreement, Pavilion Energy's LNG unit Pavilion Gas will be able to gain access to Europe's Gate LNG terminal in Rotterdam in the Netherlands and the Grain in the United Kingdom under Uniper's user rights, while Uniper will be able to access the SLNG Terminal in Singapore.
Pavilion Energy last month inked a storage and reload agreement with Singapore LNG Corporation (SLNG) for rights to use 160,000 cubic metres of tank capacity at the terminal in Jurong Island on a segregated basis.
Pavilion chief executive Seah Moon Ming told an industry summit on Wednesday (Sept 20) that the latest agreement with Uniper will strengthen Pavilion Gas' reach to the UK and continental European gas markets.
"Europe's demand for LNG is expected to grow as it looks to reducing its reliance on piped gas," he said in a speech at the CWC LNG Asia Pacific Summit.
"Access to these markets will also enhance the flexibility within our LNG portfolio and create further optimisation opportunities."
Mr Seah added that Pavilion Gas is set to bring its first LNG cargo into Singapore later this year or early next year, when the Energy Market Authority issues it the license to import the next tranche of LNG for the country.
Pavilion Gas will have the exclusive right to supply LNG to Singapore for three years, or when its imports reach one million tonnes per annum, whichever is earlier.