AsianOil: Pavilion Energy, bp Singapore agree long-term LNG supply deal to power city state

Pavilion Energy Trading & Supply and bp Singapore have finalised a decade-long agreement for the annual supply of approximately 0.8mn tonnes of LNG to Singapore. This deal underscores Singapore's emphasis on obtaining LNG from various sources to bolster its energy security and transition towards a more sustainable energy mix.

The announcement, made on May 9, but referring to a deal first put in place in 2021, also highlighted a collaborative initiative between the two firms to co-develop and implement a comprehensive greenhouse gas (GHG) quantification and reporting methodology. This methodology will encompass the entire LNG value chain, from the wellhead to the discharge terminal, ensuring adherence to international standards and promoting transparency.

As such, the partnership aligns with Singapore's broader environmental goals, as the city state seeks to balance its energy needs with its commitment to reducing carbon emissions. To this end, LNG is viewed as a crucial transitional fuel in Singapore’s energy strategy, facilitating a shift away from more carbon-intensive energy sources while supporting economic growth and energy diversification.

Mr Frédéric H. Barnaud, Group CEO of Pavilion Energy, quoted in a bp press release, said: “this agreement further strengthens our relationship with bp as Pavilion Energy advances our strategies for a lower carbon future, beginning with GHG emissions quantification, reduction and offsets for Singapore.”

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