Pavilion Energy partners ExxonMobil for LNG bunkering solutions

Pavilion Energy partners ExxonMobil for LNG bunkering solutions

Temasek-backed Pavilion Energy is teaming up with energy giant ExxonMobil to develop liquefied natural gas (LNG) solutions for bunkering in Singapore.

Both companies will also look at developing other downstream projects here, said Pavilion Energy chief executive Seah Moon Ming yesterday.

The downstream sector typically refers to the processing and selling, or distribution of gas.

Pavilion Energy’s Mr Seah wants a flourishing LNG bunkering sector in Singapore and the region. Photo: Pavilion Energy

Mr Seah told the CWC World LNG summit at the Grand Hyatt Singapore that the collaboration is aimed at establishing and fine-turning LNG bunkering procedures, starting with truck-to-ship deliveries.

"This initiative will also help test and improve the safety and operational standards for LNG bunkering in Singapore," he noted, adding that Pavilion Energy hopes to collaborate with more industry partners to "build a flourishing LNG bunkering ecosystem in Singapore and the region".

A unit of Pavilion Energy in January was appointed as one of two LNG bunker supplier licence-holders here, as part of efforts to make LNG an alternative marine fuel option.

Mr Seah noted that the industry, amid the challenging operating environment today, is seeing a "rebalancing" led by low oil prices.

"One such development is a shift in balance from long-term agreements to more spot or short-term deals being done.

"Buyers are also looking for more flexibility, with respect to LNG prices and destinations."

In line with that, he said there continues to be opportunity in unlocking new clusters for LNG demand, in particular, small-scale solutions in South-east Asia.

Pavilion Energy inked an agreement with Indonesia's state-owned oil and gas giant Pertamina last month to work together to meet energy needs in the region.

Mr Seah told The Straits Times that Pavilion Energy's role in the partnership will involve break-bulk projects, or the repackaging of large LNG cargo into smaller lots.

These LNG lots will then be reloaded onto smaller regional barges and delivered to remote islands in the region to generate power.

"Indonesia and the Philippines - they will be very good starting points for us in terms of small-scale LNG projects," he said, noting that both countries have thousands of islands with power-generation needs.

"Our infrastructure is established and we are also near islands like the Riau Islands, so that's where we can come in - by finding a logistics solution."

Pavilion Energy's foray into LNG bunkering and small-scale LNG projects comes as Singapore gears up to become an LNG hub in the region.

This article was first published on September 22, 2016.
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