ExxonMobil confirms LNG bunkering tie-up with Pavilion Energy

EXXONMOBIL confirmed on Monday a collaboration with Pavilion Energy Pte Ltd to develop solutions for liquefied natural gas (LNG) bunkering and other downstream projects in Singapore.

ExxonMobil's vice-president for aviation and marine global business, Nancy Carlson, said the collaboration, in combining expertise between the two companies, "is one of the steps" the super major is taking towards "establishing its global LNG bunkering offer".

ExxonMobil brings to this partnership strengths in LNG shipping and terminal operations. It will support Pavilion in establishing LNG bunkering procedures starting with truck to ship deliveries, as well as safety and operational standards for LNG bunkering in Singapore.

ExxonMobil's announcement came 10 months after Pavilion was announced as one of two winners of Singapore's first LNG bunkering licences.

In January, the Maritime and Port Authority of Singapore awarded the licences to Pavilion and a second joint venture between Keppel Offshore & Marine and BG. Shell moves in and takes over as an LNG bunkering joint venture partner to Keppel O&M after completing a merger with BG.

These two licences were awarded ahead of MPA's target launch of its pilot LNG bunkering programme in early 2017.

Singapore as the world's top bunkering hub is embracing LNG as an alternative bunkering fuel before the International Maritime Organization's 0.5 per cent global cap on sulphur content in bunker fuels is due to come into force by 2020. LNG is widely considered as a feasible cleaner burning alternative to the conventional heavy fuel oil, although it is far from being the only option.

The collaboration between ExxonMobil and Pavilion Energy was first unveiled at last week's CWC LNG Summit in Singapore. Pavilion's group chief executive, Seah Moon Ming, identified LNG bunkering as another key market for LNG demand growth.

Mr Seah said: "As part of MPA's LNG bunkering pilot programme in Singapore, we are working with local shipowners to introduce up to two LNG dual-fuelled vessels that will deliver conventional bunker fuels to vessels in the port of Singapore.".

He also confirmed as earlier reported by The Business Times that Pavilion has roped in support from Japanese shipping companies and trading houses. "Together, we hope to embark on a journey of learning and establishing LNG bunkering procedures, starting with truck to ship LNG deliveries," he added.