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Pavilion Energy, Total sign binding deal to develop LNG bunkering in Singapore
[SINGAPORE] Pavilion Energy Singapore and a unit of French oil major Total said on Friday they have signed a 10-year deal to develop a liquefied natural gas (LNG) bunker supply chain in the port of Singapore.
The binding agreement between Pavilion, which is owned by Singapore's Temasek Holdings, and Total Marine Fuels Global Solutions follows an initial non-binding one in June last year.
The cooperation includes the shared long-term use of the newly built 12,000 cubic metre GTT Mark III LNG bunker vessel that will allow each party to supply LNG bunker to its customers.
Singapore aims to position itself as an LNG trading hub for Asia to capitalise on an expected rise in LNG imports in the region, driven by depleting gas production and growing electricity demand.
Shipowners are looking at fuelling vessels with LNG as part of a number of options to comply with new rules by the International Maritime Organization that will go into effect in 2020. The new regulations slash the amount of sulphur allowed in the fuel that ships burn.