Singapore: Pavilion Signs Long-term LNG deal with Qatar Petroleum

Monday, November 9, 2020

Singapore's Pavilion Energy said on Monday it inked a deal with Qatar Petroleum's trading unit to buy up to 1.8 million tonnes per year of liquefied natural gas (LNG) for 10 years from 2023.

Each cargo delivered to Singapore under this agreement will come with a statement of greenhouse gas emissions from wellhead to discharge port, Pavilion Energy said in a statement.

Pavilion Energy, owned by Singapore state-owned investment company Temasek Holdings, signed the deal with Qatar Petroleum Trading, a subsidiary of Qatar Petroleum.

Qatar, which plans to increase its LNG production to 126 million tonnes a year by 2027 from 77 million currently, has been trying to secure buyers for the extra volumes.

When issuing a buy tender for LNG earlier this year, Pavilion had asked potential suppliers to outline their carbon mitigation efforts because it aims to eventually make its purchases carbon neutral.

Leading industry traders and consumers have been seeking more transparency on carbon and methane emissions in the gas value chain amid a global decarbonization push.

While LNG is generally considered a cleaner fuel than coal or oil, there is no accepted standard for measuring the emissions from producing and transporting the fuel, which needs to be cooled to minus 162 degrees Celsius (minus 260 degrees Fahrenheit).

Singapore is also trying to diversify its gas imports as its long-term piped-gas contracts with neighboring Indonesia start expiring from 2023.

The deal means that Qatar, the world's largest LNG producer, will become a significant energy supplier to Singapore.

In September, Qatar signed a 10-year deal with China's Sinopec to supply LNG at prices linked to Brent crude oil values.

Last year, Qatar commissioned a carbon capture and storage plant to remove 5 million tonnes of carbon from its LNG facilities by 2025.

(Reporting by Jessica Jaganathan; Editing by Florence Tan and Tom Hogue)

Categories: LNG Asia Singapore

Related Stories

Op-Ed: Kazakhstan’s National O&G Firm Positioning Itself as Global Energy Player

CNOOC Sees 11% Profit Growth in 2024 Driven by Record Oil Production

Shell Hires Noble’s Drillship for Work in Southeast Asia

Valeura Wraps Up Infill Drilling Campaign in Gulf of Thailand

Japan's Mitsui Eyes Alaska LNG Project

US Operator Finds Oil Offshore Vietnam

Saipem’s Castorone Vessel on Its Way to Türkiye’s Largest Gas Field

Vestas Lands First 15MW Offshore Wind Turbine Order in Asia Pacific

Floating LNG Conversion Job Slips Out of Seatrium’s Hands

Sunda Energy Closing in on Jack-Up Deal for Chuditch-2 Appraisal Well

Current News

INEOS Wraps Up Acquisition of CNOOC’s US Oil and Gas Assets

Fire at Petronas Gas Pipeline in Malaysia Sends 63 to Hospital

Japan’s ENEOS Xplora, PVEP Ink Deal for Vietnam Offshore Block

CNOOC Makes Major Oil and Gas Discovery in South China Sea

Valeura’s Assets in Gulf of Thailand Remain Operational After Earthquake

Op-Ed: Kazakhstan’s National O&G Firm Positioning Itself as Global Energy Player

Woodside to Shed Some Trinidad and Tobago Assets for $206M

CNOOC Sees 11% Profit Growth in 2024 Driven by Record Oil Production

‘Ultra-Mega’ Offshore Deal for L&T at QatarEnergy LNG’s North Field Gas Scheme

Keel Laying for Wind Flyer Trimaran Crew Boat

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com