March 10, 2020 / 2:59 AM / a month ago

UPDATE 1-Singapore's Pavilion Energy signs mid-term deal with SLNG for storage, reloading

* First mid-term deal for Singapore LNG storage

* Capacity to support higher volumes of LNG trade activities

* Longer tenure to allow Pavilion greater flexibility (Adds details)

By Jessica Jaganathan

SINGAPORE, March 10 (Reuters) - Singapore’s Pavilion Energy and Singapore LNG Corp have signed a five-year deal for liquefied natural gas (LNG) storage and reloading services in the city-state, the first such agreement for a term longer than two years, the companies said.

Under the deal, Pavilion Energy will have access to tank capacity of 180,000 cubic metres on a segregated basis at the SLNG terminal on Jurong Island in western Singapore for the next five years, they said in a statement on Tuesday.

The capacity will support a higher volume of LNG trading activities, including LNG break-bulk and vessel cool-down services, with the longer tenure allowing Pavilion Energy greater flexibility in managing its LNG portfolio, they said.

“Tank capacity in Singapore presents greater opportunities for LNG optimisation and trading in the Asia-Pacific Basin,” said Frederic Barnaud, Pavilion Energy’s group chief executive, adding that it complements the company’s trading in the Atlantic Basin.

Pavilion, owned by Singapore state-owned investment company Temasek Holdings, has been expanding its presence in Europe and Asia and is developing LNG bunkering activities, in line with Singapore’s aim of becoming a hub for the cleaner alternative to shipping fuel.

It has a current agreement with SLNG for storage lease but that expires in March after a term of about 2-1/2 years.

Barnaud said in an interview last year that Pavilion has also indicated its interest in a fifth LNG storage tank that SLNG may build.

Pavilion supplies natural gas for one-third of Singapore’s industrial requirements. (Reporting by Jessica Jaganathan; Editing by Tom Hogue)

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