24 September 2014, News Wires – Singapore’s Pavilion Energy is to buy 400,000 tonnes per annum of liquefied natural gas from BP for 20 years starting in 2019 for an undisclosed sum.
The UK supermajor will supply the volumes from its equity stakes in Freeport LNG in the US and from its global portfolio that includes the operated Tangguh project in Indonesia.
BP holds tolling rights in the Freeport LNG project, which is expected to reach a final investment decision before the end of 2014.
“We are delighted to collaborate closely with BP. The conclusion of a long-term agreement with BP, which involves LNG supply from the US, is another significant development for Pavilion Gas,” said Seah Moon Ming, chief executive of Pavilion Energy and Pavilion Gas.
“This deal is part of our continued effort to enhance and diversify our LNG portfolio to deliver sustainable and competitive LNG supply to Asia,”
Pavilion Energy is a Temasek portfolio company established to provide clean energy to support growth and contribute to a sustainable future in the region, including Singapore.
Pavilion Gas is a wholly-owned subsidiary of Pavilion Energy that was incorporated to manage downstream natural gas operations for both pipeline natural gas and LNG in Singapore.
Pavilion Gas is also responsible for the marketing, trading and distributing of natural gas in Singapore and the region.