Pavilion, Total ink LNG bunkering partnership deal

Temasek-owned Pavilion Energy has signed a 10-year fully-termed agreement to jointly develop an LNG bunker supply chain in the port of Singapore with Total Marine Fuels Global Solutions (TMFGS).

This agreement follows the heads of agreement inked by the two companies in June 2018, Pavilion said in a statement on Friday.

The cooperation includes the shared long-term use of the 12,000-cbm GTT Mark III Flex membrane LNG bunker vessel (LNGBV) newbuild that will allow each party to supply LNG bunker to its respective customers.

Pavilion Energy has taken several steps to invest in and support Singapore’s LNG bunker readiness. In May 2019, it performed Singapore’s first commercial ship-to-ship LNG bunkering operation, which comprised a reload of 2,000 cubic meters of LNG from a small-scale tanker to a receiving heavy-lift commercial vessel.

Pavilion Energy also chartered its first LNGBV newbuild from Mitsui O.S.K. Lines Ltd (MOL) in February this year, with the vessel currently undergoing construction at Sembcorp Marine’s Tuas Boulevard Yard, the company noted.

The 12,000-cbm LNGBV shared by Total and Pavilion Energy will add to the two LNGBVs already chartered by Total from MOL. The first, an 18,600-cbm vessel ordered in February 2018 will be positioned in Rotterdam from 2020, and her sister ship ordered in December 2019 will be positioned in Marseilles from 2021.

LNG as a marine fuel has gained positive momentum as the global shipping industry looks to adapt to stricter emissions standards.

Traction in developing LNG bunkering infrastructure has consequently expanded with several leading ports and LNG bunker suppliers alike having established key initiatives and made significant progress in support of these developments, Pavilion said.