Pavilion Energy teams up with Total on LNG bunkering

SINGAPORE - Temasek-backed Pavilion Energy has inked a memorandum of understanding with French oil and gas supermajor Total to cooperate on liquefied natural gas (LNG) bunkering in Singapore.

Under the agreement signed in Tokyo on Tuesday (Apr 4), Pavilion Gas, a wholly-owned unit of Pavilion Energy, will supply LNG as a bunker fuel to Total Marine Fuels Global Solutions, Total's affiliate in charge of worldwide bunkering activities, for LNG deliveries to its marine fuel customers in the port of Singapore.

The two parties may also explore further cooperation in logistics for LNG bunkering activities.

Pavilion Gas was awarded one of two LNG bunker supplier licences by the Maritime and Port Authority of Singapore in January last year. It was also appointed as one of the new LNG importers for Singapore by the Energy Market Authority last October.

The global maritime industry is gearing up for tighter regulations after the International Maritime Organisation said it will implement a 0.5 per cent global sulphur cap on marine fuels in 2020, well down from than today's 3.5 per cent limit - a move that will likely see LNG play a more significant role in the energy mix for the sector.

Mr Patrick Pouyanné, chairman and chief executive of Total, said: "Developing a competitive worldwide LNG bunkering network will be key for the industry; securing access in the main hubs, such as Singapore, is part of our strategy."

Mr Seah Moon Ming, chief executive of Pavilion Energy and Pavilion Gas, believes LNG bunkering is a future driver for LNG demand growth.

"The supply of LNG by Pavilion Gas as a bunker fuel in the port of Singapore supports Singapore's position as a leading bunkering port, and contributes towards establishing a global LNG bunkering ecosystem," he said.