France's Total and Singapore's Pavilion Energy have agreed to jointly develop a LNG bunker supply chain in the port of Singapore.


Image: Officials from Total and Pavilion Energy. Photo: courtesy of Total.

The Heads of Agreement (HoA), which is expected to contribute to the development of Singapore as an LNG bunkering hub, has been signed by Total and Pavilion Energy through their subsidiaries Total Marine Fuels Global Solutions and Pavilion Gas respectively.

The deal involves the shared long-term time charter of a new generation LNG bunker vessel, which is scheduled to be commissioned by Pavilion Gas by 2020.

Additionally, the deal covers an LNG supply arrangement between the two firms whereby Total will deliver LNG bunker to its customers.

The HoA follows signing of a Memorandum of Understanding (MoU) by the two companies on LNG bunkering cooperation in Singapore, in April 2017.

Total chairman and CEO Patrick Pouyanné said: “The development of infrastructure is one of the key drivers for the take-off of LNG as a marine fuel.

“For the past few months, Total has been very active in that direction. The agreement signed with Pavilion Energy marks a new step in our commitment to provide our customers with fuels that are more environmentally friendly, particularly in Singapore which is the leading bunkering hub in the world.”

Total said that use of LNG as marine fuel is one of the solutions for shipping lines to meet the International Maritime Organization’s (IMO) new regulation, which sets limits on sulphur content in marine fuels from 2020.

Pavilion Energy chairman Tan Sri Mohd Hassan Marican said: “Pavilion Energy is pleased to work with Total on establishing a robust LNG bunker supply chain in Singapore.

“Our partnership sets the stage for making LNG bunker readily and reliably available for the market. Together, we mark a decisive step forward in leading the change towards cleaner and more responsible solutions with LNG bunkering in the region.”