Singapore-based firm Pavilion Energy, Gasum and China-based LNG importer CNOOC Gas and Power Group on Tuesday (15 November) announced the signing of a Heads of Agreement (HoA) for strategic collaboration to strengthen a global LNG bunker supply network for their customers in the world’s top three bunkering regions – Singapore, North West Europe (including Amsterdam, Rotterdam and Antwerp), as well as China coastal areas.

The agreement will allow the three parties to leverage on one another’s local expertise, strong logistics capabilities, and in-depth experience in LNG bunkering operations to bring ease, efficiency, and operational flexibility across global supply points to customers.

The HoA aims to establish central links across the West and East in key LNG-bunker ready ports that include the Baltic and North Sea ECA (North West Europe); key Chinese ports such as Shenzhen, Guangzhou and Ningbo; as well as Singapore.

This agreement follows an extension of Pavilion Energy’s partnership with Gasum in October 2020 to develop an LNG bunker supply network for both its customers in Singapore and Northern Europe. CNOOC’s latest participation will boost this industry alliance and further encourages the uptake of LNG as a cleaner marine fuel, in line with the maritime industry’s decarbonisation efforts, as well as the International Maritime Organisation’s agenda to reduce greenhouse gas emissions.

Mr. Alan Heng, Group CEO of Pavilion Energy, said, “Pavilion Energy is very pleased to deepen our cooperation with Gasum and at the same time, for the opportunity to also collaborate with another world class partner CNOOC, to complement our existing networks. The synergies of our operations will further facilitate customers’ access and demand for efficient, competitive, and optimised LNG bunkering solutions.”

Pavilion Energy is a pioneer in developing LNG bunkering for the maritime industry in Singapore and advocates for LNG as a cleaner marine fuel. Sealing this latest partnership agreement comes after a naming ceremony held on 4 October for its first dedicated LNG Bunker Vessel Newbuild – the Brassavola – and currently Singapore’s largest LNG bunker vessel for use in the Port of Singapore. It is slated for operation early next year.

Mr. Mika Wiljanen, CEO of Gasum, stated, “We at Gasum are very happy about this partnership with Pavilion Energy and CNOOC, not only because it expands our geographical reach and broadens our offering, but this agreement is also an excellent example of the kind of global collaboration that is needed to achieve a carbon-neutral future – no company can do this alone. The purpose of Gasum is to help our customers and partners transition towards cleaner energy and we see LNG as a very important stepping stone in decarbonising the maritime industry.”

As a distributor of LNG in Northern Europe, Gasum is strengthening the position of LNG in North West Europe and the Nordics, in accordance with the EU strategy for LNG. In 2021 Gasum performed over 1,300 ship-to-ship and truck-to-ship deliveries of LNG through its complete value chain which serves the distribution of both liquefied natural gas and liquefied biogas (LBG).

Mr. Rongwang Zhang, Vice President General Counsel & Chief Compliance Officer of CNOOC Gas and Power Group, said: “CNOOC Gas and Power Group is thrilled to partner with Pavilion Energy and Gasum to develop LNG bunkering business. This tripartite cooperation is a crucial measure for CNOOC Gas and Power Group to develop a world-wide LNG bunkering supply network and it hopes to promote cooperatives in facilitating a low-carbon future at sea.”

CNOOC Gas and Power Group has created a fully integrated LNG industry chain into China, directly connecting upstream resources, transportation and trading with downstream natural gas customers. The company has also taken several firm steps to build international LNG bunkering infrastructures alongside China’s coastal areas to provide integrated bunker solutions for global customers.

Related: Pavilion Energy and Mitsui O.S.K. Lines name newbuild LNG bunker vessel

Related: Singapore: LNG bunker vessel “Brassavola” launched, to undergo sea trials

Photo credit: Pavilion Energy

Published: 16 November, 2022