SINGAPORE, Aug 24 (Reuters) - Singapore’s Pavilion Gas has won the right to use storage facilities at the city-state’s Singapore LNG Corp (SLNG) liquefied natural gas (LNG) terminal, the companies said on Thursday.
The agreement will allow Pavilion Gas the “rights to access tank capacity on a segregated basis” for storage and reload operations over the next two years, the firms said in a joint statement.
The statement did not say how much capacity Pavilion was awarded. However, in February, SLNG announced it was offering 160,000 cubic meters of storage.
“We will work closely with SLNG to facilitate multi-user access of the SLNG Terminal for LNG trading activities,” said Seah Moon Ming, CEO of Pavilion Energy and Pavilion Gas.
Pavilion has recently announced a number of LNG deals in Singapore, which has designs on becoming Asia’s trading hub for the fuel.
Pavilion Gas, along with Shell Eastern Petroleum, won the rights to supply Singapore with LNG in 2016, and is due to begin first imports under the contracts this year.
Pavilion Energy, the parent company of Pavilion Gas, also performed Southeast Asia’s first truck-to-ship transfer of LNG in May, demonstrating that the city-state was ready to begin LNG bunkering operations.
SLNG’s terminal, located on Jurong Island in western Singapore, is the country’s sole LNG import terminal. The terminal currently has three 188,000-cubic metre storage tanks and a regasification capacity of around 6 million tonnes per year. A fourth storage tank, which will add around 260,000 cubic meters of storage capacity, will be ready in 2018.
Reporting by Mark Tay; Editing by Christian Schmollinger