Temasek-owned Pavilion Energy has entered into an agreement to purchase the portfolio of LNG assets of the Spanish energy company, Iberdrola.
The portfolio comprises about 4 mtpa of Iberdrola’s long-term sale and supply LNG contracts. It also includes long-term regasification of approximately 2 mtpa at the UK’s Grain LNG terminal, regasification access in Spain and the Spanish-France border pipeline capacity, as well as the time-charter of a newbuild MEGI LNG vessel, the company said in a statement on Thursday.
In a related transaction, both parties have concluded a gas sales agreement for Pavilion Energy to supply natural gas in Spain to Iberdrola Generación Espana.
“Building on Pavilion Energy’s success in Singapore and in the Asia-Pacific Basin, this acquisition brings us a portfolio of prime assets primarily in Europe and the Atlantic Basin. The combined portfolio achieves global reach with the scale and flexibility required to outperform,” said Frédéric Barnaud , group CEO of Pavilion Energy.
This strategic transaction will enable Pavilion Energy, a supplier of one-third of Singapore’s downstream natural gas demand, to play a greater role in energy transition as well as to offer competitive solutions to our customers and suppliers, the company said.
Pavilion Energy is a key contributor in making Singapore the Asian LNG hub and also promoting market transparency and liquidity.
The acquisition was entered into by Pavilion Energy Trading & Supply, a unit of Pavilion Energy, and the closing of this transaction will take place on January 1 2020.