Singapore-based Pavilion Energy, a Temasek company, informed it has firmed up a 10-year LNG sales and purchase agreement with Gazprom Marketing and Trading.
Speaking at the Gastech conference in Singapore, Seah Moon Ming, executive director and chief executive officer of Pavilion Energy confirmed the deal, adding that Gazprom M&T will provide liquefied natural gas from its portfolio.
Pavilion’s CEO said that the company has also signed a memorandum of understanding with Huadian to supply cargoes of LNG to the company from 2020 onwards. It has additionally inked an MOU with Japan’s JERA for collaboration in joint LNG procurement and investment.
Seah Moon Ming said in today’s market short term sales are being agreed with buyers turning towards the spot market to supplement their supply.
“This has resulted in spot volumes accounting for about 29% of total LNG sales today,” he said.
Pavilion Energy has also entered talks with several partners in Indonesia and the Philippines in the last 12 months to develop small-scale LNG supply.
However, he stressed that the long-term view for LNG remains positive, adding that global LNG demand would eventually rise.
He expects China and India to contribute most to the demand growth of LNG, accounting for half of total growth from 2016 to 2020.
LNG World News Staff; Image: Gazprom Marketing and Trading