Total’s bunkering unit and Pavilion Gas signed a cooperation deal for LNG bunkering in Singapore, the French energy firm said.
Under the memorandum of understanding, Pavilion Gas, a wholly-owned subsidiary of Pavilion Energy, will supply LNG as a bunker fuel to Total Marine Fuels Global Solutions, Total’s affiliate in charge of worldwide bunkering activities, for LNG deliveries to its marine fuel customers in the port of Singapore, Total said in a statement.
The parties may explore further cooperation in logistics for LNG bunkering activities, Total said about the MOUS, which took place in Japan at Gastech 2017.
Patrick Pouyanné, Chairman and CEO of Total, said: “Our mission is to offer global and compliant solutions to our customers to meet the 2020 Global Cap requirements. Total has a long-established bunker activity and is also a strong worldwide LNG player, thus providing the required conditions to position the Group in the emerging LNG bunker market, where our ambition is to become a key player. In this context, developing a competitive worldwide LNG bunkering network will be key for the industry; securing access in the main hubs, such as Singapore, is part of our strategy. The MOU signed with Pavilion Gas is a real opportunity for Total to make further inroads in this promising new market.”
In 2016, Pavilion Gas was awarded an LNG bunker supplier licence by the Maritime Port Authority of Singapore (MPA). Pavilion Gas was also appointed by the Singapore Energy Market Authority (EMA) as an LNG importer for Singapore.
“Pavilion Energy views LNG bunkering as a future driver for LNG demand growth and welcomes this MOU with Total. Our role as an LNG bunker supplier is reinforced by the appointment of Pavilion Gas as an LNG importer in Singapore. The supply of LNG by Pavilion Gas as a bunker fuel in the port of Singapore supports Singapore’s position as a leading bunkering port, and contributes towards establishing a global LNG bunkering ecosystem. Pavilion Energy is pleased to collaborate with industry partners to build a robust LNG bunkering hub in Singapore and the region,” said Seah Moon Ming, CEO of Pavilion Energy and Pavilion Gas.
With the International Maritime Organisation’s (IMO) 0.5 per cent global sulphur cap on marine fuels coming into force in 2020, LNG is set to play a significant role in the energy mix for the maritime sector. LNG as a marine fuel significantly reduces harmful emissions of sulphur oxides (SOx), nitrogen oxides (NOx) and CO2 and particulate matter compared to traditional bunker fuels.