Pavilion Energy and Qatar Petroleum joins hands to sign a 10-year LNG agreement: On Monday, 9 November 2020, Pavilion Energy Trading & Supply Pte Ltd signed a 10-year LNG sale and purchase agreement (SPA) with Qatar Petroleum. This agreement includes an estimated amount of 1.8 million tonnes of LNG per year to Singapore from 2023.
The objective of this partnership is to support Singapore’s LNG supply and contribute to sustainable natural gas strategies.
A statement of the associated greenhouse gas emissions will accompany each LNG cargo delivered under this agreement.
As one of the two licensed LNG bunker suppliers in the Port of Singapore, Pavilion Energy is working with its strategic partners to develop a global liquefied natural gas (LNG) bunker supply network for customers in Singapore.
According to Manifold Times, this agreement surfaced due to a tender that Pavilion Energy commenced earlier this year. In addition to reliable and competitive long-term supply to Singapore, the tender sought for supply partners’ commitment to co-develop and implement a GHG quantification that covers reporting methodology for LNG from well to discharge port.
Pavilion Energy expects this method to be normalised as a typical industry system via a statement of GHG emissions, hoping to pave the way towards more efficient and sustainable use of natural gas strategies.
Natural gas is viewed as the cleanest form of fossil fuel over the years – mainly for energy production. With that said, the global demand for LNG has accelerated. And in 2018 alone, Singapore’s natural gas consumption equated to 9 million tonnes of LNG a year.
Tan Sri Mohd Hassan Marican, Chairman of Pavilion Energy, has stated, “The inaugural LNG cargo Pavilion Energy imported into Singapore for downstream supply in 2018 originated from Qatar. We are delighted to enhance our strategic relationship with Qatar Petroleum, the world’s largest LNG producer.”
“This partnership will strengthen our core Singapore market and our role as a global energy trader,” he added.
Dr. Tan has also mentioned that Singapore holds a strong value proposition as an LNG trading hub by developing its LNG infrastructure and boosting commercial developments.
Further to that, the agreement will deliver many benefits to the economy and achieve decarbonisation goals.
“I am pleased to announce that QP Trading has concluded its first long-term SPA with Pavilion Energy Trading & Supply Pte. Ltd. following a competitive process,” said His Excellency Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs, the President and CEO of Qatar Petroleum.
“Under the agreement, QP Trading will deliver up to 1.8 million tonnes per annum for 10 years to Singapore, reflecting our commitment to respond to the needs of our customers, including supply security, price competitiveness, and flexibility.”
Frédéric H. Barnaud, Group CEO of Pavilion Energy, further noted that “in the context of the energy transition towards a low carbon economy, this partnership is testament to the sustainability drive of both companies and the strong willingness of Pavilion Energy to pursue decarbonisation and offset strategies.”