SINGAPORE (BLOOMBERG) - Singapore's Pavilion Energy has signed a 10-year LNG agreement with a unit of Russia's gas giant Gazprom PJSC, Chief Executive Officer Seah Moon Ming said on Tuesday.
The liquefied natural gas unit of Singapore's state-owned Temasek Holdings has also signed a memorandum of understanding with the Chinese energy company Huadian to supply LNG from 2020 onward and a similar agreement with Japan's Jera Co. to jointly procure and invest in LNG, he said at a conference in Singapore.
"Pavilion Energy is very much focused on the long-term as we continue to build expertise and capabilities across the entire LNG business," Mr Seah said, according to the text of his speech. "Pavilion Energy is currently focused on developing regional demand. We see this as an important step towards building a reliable and robust LNG ecosystem in Singapore, and hopefully for Asia."
Pavilion supports the use of a benchmark Asia LNG price traded on the Singapore Exchange, Seah said. The index, known as "Singapore SLIng" and unveiled in June, has been adopted by 16 LNG traders, buyers and producers. That number is expected to increase to 20 in the near future, according to Seah.
"Singapore is well-equipped to host this new and more open way of doing business in the LNG sector," said Seah, according to the text. "With a clearer price benchmarking, the region will clearly benefit."