Singapore’s Pavilion Energy sees future in small-scale LNG

15 September 2015 | Lee, LNG Markets Reporter, Europe and India

Singapore’s state-backed Pavilion Energy highlighted the strong potential for small-scale LNG in southeast Asia at the 7th LNG Asia Pacific Summit on 9 September.

Pavilion Energy plans to develop small-scale supply solutions for the region and is in talks with several partners in markets such as Indonesia and the Philippines, according to Seah Moon Ming, the group CEO.

The small-scale LNG market is gaining momentum in southeast Asia because it is considered a cost-effective solution for transporting natural gas to users not connected to pipeline grids or located in remote locations.

“It makes sense to use small 10,000cbm vessels carrying 0.05-0.5mtpa of LNG to perform multi-location deliveries,” he said at the CWC conference in Singapore.

Whether transported via land or sea, small-scale LNG solutions can also bring an initial capital expenditure investment down by 10-25 times as compared to conventional methods, he said.

Aside from emerging and prospective small-scale LNG markets in Indonesia and the Philippines, Pavilion Energy also plans to sell LNG through truck-loading services to downstream users with no access to pipeline gas in Singapore.

A supplier involved in the discussions with Pavilion Energy confirmed with ICIS that both companies see huge potential for the LNG truck-delivery market. However, it will be a tricky process because of Singapore’s strict safety regulations on delivering inflammable products, the source said.

“Singapore’s downstream market is huge because there are many power generators, large petrochemical factories and manufacturers in Tuas and Jurong Island that do not have access LNG,” the source told ICIS.

According to Seah, Pavilion Energy currently supplies gas to more than 30% of industrial users in the power generation, petrochemicals, biotechnology, pharmaceutical and manufacturing industries.

Pavilion Energy is also working on an LNG bunkering trial and license, as it foresees Singapore becoming a strategic location for LNG-fuelled vessels to refuel when they head through the Straits of Malacca, Seah said.

Over the long term, Seah expects LNG demand from southeast Asia to rise, when traditional LNG exporters such as Malaysia and Indonesia become net importers to meet rising domestic consumption.

About ICIS

ICIS is the world's largest petrochemical market information provider and has fast-growing energy and fertilizer divisions. Our aim is to give companies in global commodities markets a competitive advantage by delivering trusted pricing data, high-value news, analysis and independent consulting, enabling our customers to make better-informed trading and planning decisions. We have more than 30 years' experience in providing pricing information, news, analysis and consulting to buyers, sellers and analysts.

With a global staff of more than 800, ICIS has employees based in Houston, Washington, New York, London, Montpellier, Dusseldorf, Karlsruhe, Milan, Mumbai, Singapore, Guangzhou, Beijing, Shanghai, Yantai, Tokyo and Perth. Some 350 of ICIS’s staff are journalists engaged in reporting market prices and news, and ICIS is fully committed to upholding the highest journalistic principles of verification, corroboration and authentication. ICIS has a compliance framework that along with its methodologies and business processes adheres to the requirements of the IOSCO PRA Principles.

ICIS is a division of Reed Business Information, part of RELX Group plc.

LNG prices, news, analysis and real-time tracking

LNG Edge – real-time LNG tracking and analytics tool

This is the next generation in real-time, online tracking platform.

LNG Edge delivers information on LNG fleets, cargoes and prices – ALL in a single, user-friendly online platform.

It equips the whole trading team with unmatched transparency on shipping movements and availability, cargo and trade flow volumes, buy/sell opportunities, raw data and prices. It also provides user-friendly functionalities enabling faster chartering and trading decisions.  

Read more about LNG Edge

Daily and weekly reports

price reports

Report names:
LNG Markets Daily
Global LNG Markets

ICIS publishes the most extensive list of global LNG spot price assessments (22 DES, 12 FOB, East Asia index), historical prices, charter rates and availability, together with daily news, market alerts and industry analysis. 

historical prices

Request a sample of our LNG reports

Expertise in the China LNG markets

Expertise in the China LNG markets

ICIS provides unparalleled pricing and market intelligence for China’s LNG/natural gas markets. Our reports coverage include LNG China import and domestic prices, supply-demand data, investment opportunities in China, local legislations and more. 

Enquire about our China LNG reports

Small-mid scale LNG market intelligence

Small-scale LNG market intelligence

ICIS provides a free online platform on small-mid scale LNG delivering key information on the developments in this emerging market:

• European value chain
• Marine and trucking segments
• Market news including archives
• Daily and forward price of various fuels
• Unit and price converter tool

Register now to access the portal