Pavilion Energy Pte Ltd and Singapore LNG Corporation Pte Ltd (SLNG) have extended their co-operation by signing a five-year agreement for LNG storage and reload services at the SLNG Terminal on Jurong Island – a move that underpins Singapore’s ambitions to become an LNG hub.

Pavilion Energy will now have access to tank capacity of 180,000 m3 on a segregated basis at the SLNG Terminal over the next five years. Pavilion said in a statement that this new capacity will support a higher volume of LNG trading activities, including LNG breakbulk and vessel cool-down services. 

SLNG terminal has two jetties, three LNG 180,000-m3 storage tanks, a fourth 260,000-m3 tank and expanded regasification facilities, raising throughput capacity of the terminal to 6 mta. Each of the jetties has four uploading/reloading marine arms, with the main jetty accommodating LNG carriers with capacities of 120,000 to 265,000 m3.

The secondary jetty was modified in February to reload small-scale LNG carriers, with capacities of between 2,000 and 10,000 m3.

This is the first such agreement signed for a term longer than two years, following a competitive bidding process. The contract’s longer tenure allows Pavilion Energy greater flexibility in managing its LNG portfolio, market fluctuations and demand dynamics.

Frédéric H Barnaud, Pavilion Energy Group Chief Executive, said: “Tank capacity in Singapore presents greater opportunities for LNG optimisation and trading in the Asia-Pacific Basin.”

Tan Soo Koong, SLNG Chief Executive, said: “SLNG is primed to play our part in helping Singapore achieve its ambition of becoming an LNG hub, through catalysing LNG-related businesses such as LNG trading, small-scale LNG distribution, LNG bunkering, and more.”

Singapore has plans to become a regional LNG powerhouse and major LNG bunkering supplier. 

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6th April 2020