Singapore’s Pavilion Energy has signed a 10-year deal to buy liquefied natural gas (LNG) from bp’s Singapore unit starting in 2024, as the city-state seeks to diversify its gas supply sources.
The long-term binding LNG sale and purchase agreement (SPA) is for the supply of about 0.8 million tonnes of LNG a year to Singapore, Pavilion and bp said in a joint statement. They did not give financial details.
This is the third long-term deal that Pavilion, owned by Singapore state investor Temasek Holdings, has signed since November 2020. The other two deals were with Chevron Corp and Qatar Petroleum Trading.
Singapore is trying to diversify its gas imports as its long-term piped-gas contracts with neighboring Indonesia start to expire from 2023.
As part of the deal, Pavilion and bp will also aim to jointly develop and implement a greenhouse gas quantification and reporting methodology. The methodology will cover emissions from wellhead-to-discharge terminal and be principled on mutual transparency and adherence to relevant international standards.
(Source: Pavilion Energy)