The first LNG cargo under the new agreement between Pavilion Gas and Singapore LNG Corporation was delivered to the unit of Temasek-backed Pavilion Energy at the SLNG Terminal on Wednesday, delivered by Mobil Australia Resources from ExxonMobil's equity Gorgon LNG project in Western Australia. PHOTO: PAVILION ENERGY
A unit of Temasek-backed Pavilion Energy has inked an agreement with Singapore LNG Corporation (SLNG) for access rights to the SLNG Terminal on Jurong Island.
Under the agreement, Pavilion Gas has rights to access tank capacity, at 160,000 cubic m, on a segregated basis at the terminal for the next two years.
In February, SLNG had sought proposals from interested parties for the provision of storage and reload services on a segregated basis at the terminal.
Pavilion Gas received its first cargo at the terminal under the agreement on Wednesday - delivered by Mobil Australia Resources from ExxonMobil's equity Gorgon LNG project in Western Australia.
The deal will support a higher volume of liquefied natural gas trading activities, small-scale LNG opportunities, LNG break-bulk and vessel cool-down services, the two parties said in a joint statement yesterday.
Pavilion Gas - appointed as one of the two new LNG importers for Singapore by the Energy Market Authority last October - will also work with industry players to trade LNG indexed to the Singapore Exchange LNG Index Group (Sling) to support more trades based on the index.
"With increased spot trading volume, this will strengthen Singapore's position as an Asian LNG hub," said Mr Seah Moon Ming, chief executive of Pavilion Energy and Pavilion Gas.
"We will work closely with SLNG to facilitate multi-user access of the SLNG Terminal for LNG trading activities. Pavilion Gas is well-positioned to expand and grow its LNG trading presence regionally and globally," he said.
The Singapore Sling is a price benchmark for Asian LNG that aims to address the need for a representative and transparent price marker. It has 23 industry participants contributing price assessments to date, as well as more than 300 subscribers.
The Singapore Exchange (SGX) and Energy Market Company in September last year introduced the North Asia Sling - based on LNG cargoes delivered to ports in Japan, Korea, Taiwan and China - and in March rolled out a spot index for Dubai, Kuwait and India in collaboration with Tullett Prebon.
SGX director for oil, gas and power Cheong Jin Yu told The Straits Times the indices will take time to develop as the reference price for Asian LNG, with the spot market still in its relative infancy.
Still, they are "essential foundations for a liquid futures market and... (will) support the growing need for risk-management tools to enable the continued growth of LNG trading in the spot market", he said.