Singapore: Fuel Supply Total Collaborates with Pavilion Energy for Establishing LNG Bunker Supply Chain
Under the terms of the agreement, Pavilion Gas will commission a new LNG bunker vessel by 2020. It will also include an LNG supply arrangement between the two companies which will further enhance Singapore’s image as an LNG bunkering hub.
Singapore – Total and Pavilion Energy, through their subsidiaries Total Marine Fuels Global Solutions and Pavilion Gas, have recently signed Heads of Agreement (HOA) to jointly develop a Liquefied Natural Gas (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 HOA, signed on the sidelines of the World Gas Conference 2018, follows a Memorandum of Understanding (MOU) concluded by both companies in April 2017 on LNG bunkering cooperation in Singapore. The HOA is a significant step forward and contributes to the development of Singapore as an LNG bunkering hub.
The move towards LNG as a bunker fuel is a suitable solution following the decision of the International Maritime Organisation (IMO) to set limits on sulphur content in marine fuels from 2020. LNG bunker not only produces zero sulphur oxides, but it also represents an available and competitive solution, which contributes to IMO’s long-term strategy on the reduction of greenhouse gas emissions from ships announced in April 2018.
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.
Pavilion Gas is committed to the development of Singapore as an LNG hub. In October 2016, Pavilion Gas was appointed as one of the 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.