Total, Pavilion Energy join forces on developing LNG as marine fuel

France’s Total signed a heads of agreement with Pavilion Energy to jointly develop a liquefied natural gas (LNG) bunker supply chain in the port of Singapore.

The agreement covers the shared long-term time charter of a new generation LNG bunker vessel (LNGBV) to be commissioned by Pavilion Gas by 2020.

It also includes an LNG supply arrangement between the two companies enabling Total to deliver LNG bunker to its customers, Total said in a statement on Tuesday.

The heads of agreement follows the memorandum of understanding the two companies signed in April 2017, to cooperate on LNG bunkering in Singapore.

Total’s unit, Total Marine Fuels Global Solutions is pursuing the development of the LNG bunker market, through the signing of LNG bunkering deals with Brittany Ferries and CMA CGM.

Pavilion Gas, a unit of Pavilion Energy, on the other hand, has been selected by the Energy Market Authority of Singapore, in October 2016, as one of two importers to supply LNG.

In January 2016, the company was awarded the LNG Bunker Supplier Licence to supply LNG bunker to vessels in the Port of Singapore.