Singapore: Pavilion Gas, Petronas to cooperate

Singapore: Pavilion Gas, Petronas to cooperate

A company set to become one of Singapore's main importers of liquefied
natural gas (LNG) has inked a wide-ranging agreement with Malaysia's
national oil and gas company Petronas.

Pavilion Gas, a unit of Temasek Holdings-backed Pavilion Energy, has agreed
to collaborate with Petronas in a range of areas across the LNG value chain.

Under the agreement signed in Kuala Lumpur on Thursday, Pavilion Gas and
Petronas LNG, a subsidiary of Petronas, will "explore the supply and
optimisation of LNG", the two parties said in a joint statement yesterday.

This will include long-term supply, spot trading and cargo swaps.

The two firms will also look into joint efforts over an LNG receiving
terminal and storage facilities.

"Petronas' strong presence in the integrated LNG value chain and diversified
LNG portfolio, together with Pavilion Energy's position as one of the LNG
importers in Singapore, will allow both companies to leverage on each
other's strengths to create value and growth in the region," said Datuk Mohd
Anuar Taib, executive vice- president and chief executive officer upstream
at Petronas.

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Petronas' strong presence in the integrated LNG value chain and diversified
LNG portfolio, together with Pavilion Energy's position as one of the LNG
importers in Singapore, will allow both companies to leverage on each
other's strengths to create value and growth in the region.

Mr Seah Moon Ming, chief executive of Pavilion Energy, said the
collaboration will strengthen and grow the regional LNG market.

The long-term supply from Petronas and opportunities in LNG trading are
expected to add diversity and flexibility to Pavilion Energy's supply
portfolio.

It will also allow Pavilion Gas to strengthen its overall LNG supply
portfolio, and to provide competitive and reliable gas supply to its
customers.

Pavilion Gas markets and distributes natural gas in Singapore and the
region, including small- scale LNG and LNG bunkering.

Last October, it was appointed as one of the new LNG importers for Singapore
by the Republic's Energy Market Authority.

This means it has the exclusive right to supply LNG to Singapore for three
years from this year, or when imports reach one million tonnes a year,
whichever is earlier.

Pavilion Gas' latest agreement comes as Singapore takes steps to diversify
the gas supply sources for the country - with LNG expected to play a bigger
part in power generation in the coming years.

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Link to Original Article:
http://www.straitstimes.com/business/companies-markets/pavilion-gas-petronas
-to-cooperate

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com