During his Session Keynote Speech at the 5th LNG Producer-Consumer Conference in Tokyo on Nov. 24, Mr Seah Moon Ming, Group Chief Executive Officer, Pavilion Energy Pte Ltd directed the participants’ attention to three opportunities for LNG: creating new markets, greater trading cooperation, and developing LNG ecosystems. Some of his comments have specific relevance for the natural gas for transportation sector.
Sitting at the crossroads for international shipping, Singapore is neutrally positioned to offer service and supply to the emerging Asian economies. The appointment by the Government of Singapore as one of the country’s next LNG importers last month means Pavilion is keen to argue LNG has a vital role into the future. The following extracts are taken from Mr Seah’s speech, presented under the covering session title of ‘Opportunities in Emerging LNG Markets in Asia’.
Creating new and alternative markets for LNG
The persistently low oil price in the last 2 years has somewhat dampened or delayed the role of gas in driving cleaner transportation around the world. The recent ruling by the International Maritime Organisation (or IMO) to impose a sulphur cap of 0.5% (from the current 3.5% global limit) on fuel oil starting 2020, is a timely reminder of the potentially high demand for gas in fueling ships. Together with the increased use of gas in trucking, we are looking at new LNG demand of 50 Mtpa being created by 2020, growing to reach 100 Mtpa by 2030, in the transportation sector.
At Pavilion Energy, we have secured a bunkering licence from the Maritime Port Authority of Singapore (or MPA) in January 2016, to deliver LNG to ships in the port of Singapore. We are now developing LNG bunker supply and delivery models, in partnership with various international players like ExxonMobil and numerous Japanese companies. I would like to mention that Pavilion Energy had signed a MOU with Harley Marine, Mitsui O.S.K. Lines and Mitsui & Co. to jointly participate in MPA’s LNG bunkering pilot. Pavilion Energy will supply LNG bunkers to two dual-fuelled conventional bunker tankers that Harley Marine is going to build with S$4 million [USD 2.8m] funding assistance from MPA. Pavilion Energy welcomes collaboration with Japanese partners to build a robust LNG bunkering ecosystem in Singapore, Japan and the region.
Developing LNG ecosystems to fully realise LNG’s potential
From 2013 to 2040, total energy demand in Southeast Asia will grow by 80%. Promoting the transition from traditional fossil fuels to gas not only protects the environment, giving our children many more years of fresh air and blue skies; but also creates sustainable value in the lives of our people. This will stimulate more investment into the LNG sector. There is a clear need to shift our thinking away from just supply-demand dynamics, but towards investing ahead for a clean and sustainable future. We can start by not thinking of emerging countries that are in need of energy as “demand centres” or “LNG sinks”.
Our focus should instead be on developing LNG solutions including transportation, marine fuel and building LNG ecosystems. These ecosystems can be introduced into emerging markets as a turn-key solution for supplying LNG as well as generating and distributing electricity to emerging markets.
Link to speech: www.pavilionenergy.com.sg/5th_lng_conference.php
(Source: Pavilion Energy)