Pavilion Energy bags long-term LNG purchase deals: Reuters

It will be supplied with 0.4m tonnes per year until 2019.

A report by Reuters says that Singapore's Pavilion Energy had signed two long-term contracts to buy liquefied natural gas (LNG) for trading and supply to Asia, adding to a previous contract as the state-owned firm seeks to become a global supplier.

Pavilion Energy said in a statement on Wednesday its wholly owned subsidiary Pavilion Gas Pte Ltd had struck a deal with BP under which the British company will supply it with 0.4 million tonnes per year (tpy) of LNG for 20 years from 2019. It did not say how much Pavilion would pay for the LNG, Reuters adds.

Pavilion has also purchased 0.4 million tpy of LNG from Sempra Energy's Cameron LNG project in Louisiana, which will be delivered to Asia according to its production schedule, a company spokeswoman said in an email.
Singapore aims to position itself as an LNG trading hub for Asia, with links to producers such as Indonesia, Malaysia and Australia and countries with growing demand such asChina, India and Thailand.

Temasek Holdings, Singapore's sovereign wealth fund, created Pavilion last year, providing it with a $6.9 billion war chest. Pavilion has already used the funds to buy a stake in a gas field in Tanzania and start an LNG shipping joint venture.

A month ago, Pavilion signed a 10-year deal with France's Total to buy 0.7 million tpy of LNG from 2018.

Here’s more from Reuters:

BP will supply the LNG from its global portfolio of equity and merchant sources, Paul Reed, chief executive of BP Integrated Supply and Trading, said in the statement issued by Pavilion.

"This includes the Freeport LNG Project in the U.S., where BP holds tolling rights and which is expected to reach a final investment decision before the end of 2014," Reed said.

Pavilion Energy said the time was ripe for an Asian LNG hub as import-export terminals and storage facilities are in place and the region is gradually shifting from long-term contracts to a spot market.