Singapore’s Pavilion Energy announced that it has entered into an agreement to purchase the portfolio of LNG assets of Spain’s Iberdrola.
The portfolio comprises about 4 mtpa of Iberdrola’s long-term sale and supply LNG contracts. It also includes long-term regasification of approximately 2 mtpa at the Grain LNG terminal (UK), regasification access in Spain and the Spanish-France border pipeline capacity, as well as the time-charter of a newbuild MEGI LNG vessel. In a related transaction, both parties have concluded a gas sales agreement for Pavilion Energy to supply natural gas in Spain to Iberdrola Generación Espana.
"Building on Pavilion Energy’s success in Singapore and in the Asia-Pacific Basin, this acquisition brings us a portfolio of prime assets primarily in Europe and the Atlantic Basin. The combined portfolio achieves global reach with the scale and flexibility required to outperform," said Mr Frédéric H. Barnaud, group chief executive officer of Pavilion Energy. "Today is a critical step towards our vision to be a leading global LNG player, leveraging our LNG portfolio with deep access to strategic gas markets in Singapore, Spain, and the UK, combined with sophisticated optimisation and risk management skills."
As a supplier of one-third of Singapore’s downstream natural gas demand, Pavilion Energy believes this strategic transaction will enable Pavilion Energy to play a greater role in energy transition as well as to offer competitive solutions to our customers and suppliers.
The acquisition was entered into by Pavilion Energy Trading & Supply, a wholly-owned subsidiary of Pavilion Energy. The closing of this transaction will take place on 1 January 2020.