Total commits to LNG bunker supplies in Singapore

Total commits to LNG bunker supplies in Singapore

Total and state-backed Pavilion Energy, through their subsidiaries Total Marine Fuels Global Solutions and Pavilion Gas, have signed heads of agreement (HoA) to jointly develop a liquefied natural gas (LNG) bunker supply chain in the world’s largest bunkering hub, Singapore. The agreement covers the shared long-term time charter of a new generation LNG bunker vessel (LNGBV) to be commissioned by Pavilion Gas by 2020. It also includes an LNG supply arrangement between the two companies enabling Total to deliver LNG bunker to its customers.

Patrick Pouyanné, chairman and CEO of Total, declared, “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.”

Tan Sri Mohd Hassan Marican, chairman of Pavilion Energy, 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.”

Total Marine Fuels Global Solutions is pursuing its ambition to develop the LNG bunker market. The first milestones of its strategy were set in Europe, with the signature of LNG bunker supply contracts for Brittany Ferries and CMA CGM, as well as the long-term chartered bunker vessel with Mitsui OSK Lines (MOL) that will be positioned in northern Europe.

In October 2016, Pavilion Gas was appointed as one of two importers to supply LNG to Singapore by the Energy Market Authority of Singapore.

In other important energy major news relating to Singapore, ExxonMobil said yesterday it plans to make a final investment decision in 2019 on what it called a “multi-billion dollar” project that would expand its clean fuel and lubricant output at its Singapore refinery.

The expansion would enable ExxonMobil to introduce a new high-viscosity base stock to the market as well as increasing the company’s output of marine fuels with lower sulphur content.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.

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