Total Marine Fuels Global Solutions and Pavilion Gas have signed a Memorandum of Understanding (MOU) on LNG bunkering cooperation in Singapore. Under the MOU, Pavilion Gas (subsidiary of Pavilion Energy) will supply LNG as a bunker fuel to Total Marine Fuels Global Solutions, Total’s affiliate in charge of worldwide bunkering activities, for LNG deliveries to its marine fuel customers in the port of Singapore.
In 2016, Pavilion Gas was awarded an LNG bunker supplier licence by the Maritime Port Authority of Singapore (MPA). Pavilion Gas was also appointed by the Singapore Energy Market Authority (EMA) as an LNG importer for Singapore. Total is a global gas player, involved across the entire LNG chain, from extracting natural gas onshore and offshore to processing plants where it is liquefied, stored and shipped in a fleet of specially designed carriers to regasification terminals for delivery to business customers.
Signatory to the MoU Patrick Pouyanné, Chairman and CEO of Total, said: “Total has a long-established bunker activity and is also a strong worldwide LNG player, thus providing the required conditions to position the Group in the emerging LNG bunker market, where our ambition is to become a key player. In this context, developing a competitive worldwide LNG bunkering network will be key for the industry; securing access in the main hubs, such as Singapore, is part of our strategy.”
“Pavilion Energy views LNG bunkering as a future driver for LNG demand growth and welcomes this MOU with Total. Our role as an LNG bunker supplier is reinforced by the appointment of Pavilion Gas as an LNG importer in Singapore,” said co-signatory Seah Moon Ming, CEO of Pavilion Energy and Pavilion Gas. “Pavilion Energy is pleased to collaborate with industry partners to build a robust LNG bunkering hub in Singapore and the region.”
The parties may explore further cooperation in logistics for LNG bunkering activities.
With the International Maritime Organisation’s (IMO) 0.5% global sulphur cap on marine fuels coming into force in 2020, LNG is set to play a significant role in the energy mix for the maritime sector. LNG as a marine fuel significantly reduces harmful emissions of sulphur oxides (SOx), nitrogen oxides (NOx) and CO2 and particulate matter compared to traditional bunker fuels.