December 01, 2020

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Singapore: Pavilion Energy and Total Marine Fuels Global Solutions affirm partnership in LNG bunkering

Pavilion Energy Singapore1 and Total Marine Fuels Global Solutions (TMFGS), have signed a 10-year fully-termed agreement to jointly develop an LNG bunker supply chain in the port of Singapore. This agreement follows the Heads of Agreement inked by the two companies in June 2018. The cooperation includes the shared long-term use of the 12,000-m³ GTT Mark III Flex membrane LNG bunker vessel (LNGBV) newbuild that will allow each party to supply LNG bunker to its respective customers.

“Pavilion Energy is fully committed to leading to leading the maritime industry’s energy transition with LNG as a marine fuel – beginning in Singapore, our home base,” said Frédéric H. Barnaud, Group CEO of Pavilion Energy. “We are very pleased to be working with our strategic partners such as Total, to jointly develop robust LNG bunker logistics and supplies that are readily available for customers in Singapore and beyond.”

“We are very proud that the cooperation between Pavilion Energy and Total is paving the way towards the development of LNG as a marine fuel, especially in Singapore, the largest bunkering hub in the world,” said Jerôme Leprince-Ringuet, Managing Director of TMFGS. “With these agreements, we pursue our ambition to build a comprehensive network of supply for this clean marine fuel. It also underscores our commitment to offer our customers the best available and technologically proven solution to significantly reduce the environmental footprint of maritime transport.”

Pavilion Energy has taken several firm steps to invest in and support Singapore’s LNG bunker readiness. In May 2019, it performed Singapore’s first commercial ship-to-ship LNG bunkering operation, which comprised a reload of 2,000m3 of LNG from a small-scale tanker to a receiving heavy-lift commercial vessel. Pavilion Energy also chartered its first LNGBV newbuild from Mitsui O.S.K. Lines Ltd (MOL) in February this year, with the vessel currently undergoing construction at Sembcorp Marine’s Tuas Boulevard Yard.

Total has built up a number of pioneering achievements in the development of LNG as a marine fuel. The 12,000m3 LNGBV shared with Pavilion Energy will add to the two LNGBVs already chartered by Total from MOL. The first, an 18,600m3 vessel ordered in February 2018 will be positioned in Rotterdam from 2020, and her sister ship ordered in December 2019 will be positioned in Marseilles from 2021.

LNG as a marine fuel has gained positive momentum as the global shipping industry looks to adapt to stricter emissions standards. LNG bunker not only produces zero sulphur oxides, but also represents an available and competitive solution that contributes to the International Maritime Organization’s (IMO) long-term strategy of reducing greenhouse gas emissions from ships. Traction in developing LNG bunkering infrastructure has consequently expanded with several leading ports and LNG bunker suppliers alike having established key initiatives and made significant progress in support of these developments.

1 Wholly-owned subsidiary of Pavilion Energy Pte Ltd

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