QP Trading supply up to 1.8 million tonnes of LNG annually to Singapore from 2023
Dignitaries during the signing of the SPA.(Credit: Pavilion Energy)
Singapore’s Pavilion Energy has signed a 10-year LNG sale and purchase agreement (SPA) with QP Trading.
Under the supply agreement, QP Trading supply up to 1.8 million tonnes of LNG annually to Singapore from 2023.
QP Trading has been established by Qatar Petroleum as its dedicated LNG trading arm. The agreement follows a tender launched by Pavilion Energy earlier this year.
Pavilion Energy chairman Tan Sri Mohd Hassan Marican said: “The inaugural LNG cargo Pavilion Energy imported into Singapore for downstream supply in 2018 originated from Qatar.
“We are delighted to enhance our strategic relationship with Qatar Petroleum, the world’s largest LNG producer. This partnership will strengthen our core Singapore market and our role as a global energy trader.”
For each LNG cargo delivered under the supply deal, Qatar Petroleum has to include a statement of its greenhouse gas (GHG) emissions measured from well to discharge port.
Pavilion Energy expects the methodology to pave the way towards more environmentally responsible and sustainable natural gas strategies.
Based in Doha, QP Trading, the wholly owned by Qatar Petroleum, has been set up to build a globally diversified portfolio of third party and equity LNG.
Qatar Petroleum president and CEO and Qatar’s Minister of State for Energy Affairs Saad Sherida Al-Kaabi said: “This deal represents the first long-term LNG arrangement containing specific environmental criteria and requirements designed to ultimately reduce the carbon footprint of the LNG supplies, which is fully aligned with our long-standing position in support of our environment.
“Qatar Petroleum is already implementing a series of projects and initiatives to reduce emissions and to capture and sequester more than 5 million tons of CO2 per annum by 2025, placing us firmly on the road to become a leader in the de-carbonization of the LNG value chain.”
In October, Qatar Terminal, an affiliate of Qatar Petroleum, has signed a 25-year LNG storage and regasification capacity deal with the UK’s National Grid Grain LNG.