French oil major Total and Singapore-based liquefied natural gas (LNG) firm Pavilion Energy, through their subsidiaries Total Marine Fuels Global Solutions and Pavilion Gas, Tuesday signed Heads of Agreement (HoA) arrangements to jointly develop a LNG bunker supply chain in the port of Singapore.
The agreement covers the shared long-term time charter of a new generation LNG bunker vessel (LNGBV) to be commissioned by Pavilion Gas by 2020; it also includes an LNG supply arrangement between the two companies enabling Total to deliver LNG bunker to its customers.
“The development of infrastructure is one of the key drivers for the take-off of LNG as a marine fuel. For the past few months, Total has been very active in that direction,” says Patrick Pouyanné, Chairman and CEO of Total.
“The agreement signed with Pavilion Energy marks a new step in our commitment to provide our customers with fuels that are more environmentally friendly, particularly in Singapore which is the leading bunkering hub in the world.”
The HoA follows a Memorandum of Understanding (MoU) concluded by both companies in April 2017 on LNG bunkering cooperation in Singapore.
“Pavilion Energy is pleased to work with Total on establishing a robust LNG bunker supply chain in Singapore,” said Tan Sri Mohd Hassan Marican, Chairman of Pavilion Energy.
“Our partnership sets the stage for making LNG bunker readily and reliably available for the market. Together, we mark a decisive step forward in leading the change toward cleaner, more responsible solutions with LNG bunkering in the region.”
Total Marine Fuels Global Solutions is pursuing its ambition to develop the LNG bunker market. The first milestones of its strategy were set in Europe, with the signature of LNG bunker supply contracts for Brittany Ferries and CMA CGM, as well as the long-term chartered bunker vessel with Mitsui O.S.K. Lines that will be positioned in Northern Europe.
In October 2016, Pavilion Gas was appointed as one of two importers to supply LNG to Singapore by the Energy Market Authority of Singapore. In January 2016, Pavilion Gas was awarded the LNG Bunker Supplier Licence to supply LNG bunker to vessels in the Port of Singapore.
Photo credit: Total
Published: 27 June 2018
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