Pavilion targets first LNG trade by February 2014
Singapore’s Pavilion Energy is planning to step up its short-term LNG trading activities and is aiming to execute its first trade by next February, the company’s CEO said on Wednesday.
“Pavilion Gas [Pavilion Energy’s direct subsidiary], is now fully operational and have commenced our LNG trading activities. We expect to complete our first cargo delivery into Asia by this February,” Seah Moon Ming told delegates at the Gas Asia Summit in Singapore.
Pavilion Energy, which was set up in April by Singapore’s state-owned investment arm Temasek Holdings, had previously said that it was targeting its first LNG trade by the end of the year.
Neither Seah nor Pavilion Energy would comment on whether the company had secured firm supply or a buyer for the trade, but market sources have said that while the Singaporean entity has a number of preliminary arrangements with suppliers, shipowners and other regional buyers it is yet to charter a vessel or secure firm supply over the winter period.
Pavilion builds supply base
Pavilion has outlined plans to use its position in Singapore to trade up to 3mtpa and the Singaporean company secured a supply platform for those ambitions with Seah announcing that it had had signed its first long-term deal with a European supplier.
“Pavilion Energy has reached its first long-term supply agreement with a major European oil and gas multinational for delivery into Singapore and the region. This strategic partnership is backed by a worldwide portfolio supply, which is critical in the face of an uncertain energy landscape,” Seah told delegates.
A Pavilion Energy spokesperson confirmed that the company will receive 500,000 tonnes per annum (tpa) over a 10-year period from 2018, although the company declined to provide further details of the deal including whether the agreement was firm or preliminary or identify the seller.
Pavilion has indicated that it plans to source supply from various geographical sources including the Americas, Australia and Africa, and it was understood to have been in talks with a number of Europe-based international oil companies and portfolio suppliers.
The company has also acquired equity in US-based unconventional gas producer Chesapeake Energy and Chinese exploration and production outfit Kunlun Energy, and sources speculated that it had focused its energies into initially securing LNG supply from the US Gulf, although this could not be confirmed.
“Pavilion Energy will continue to engage and acquire working interest in upstream gas and liquefaction projects. We are also in talks with various parties on partnerships and investments in other parts of the LNG value chain – eg in mid-stream shipping and down-stream transportation/ trucking,” the Pavilion CEO said.
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