Total and Pavilion to develop LNG bunker supply chain in Singapore
Total and Pavilion Energy, through their subsidiaries Total Marine Fuels Global Solutions and Pavilion Gas, have signed heads of agreement (HoA) to jointly develop an LNG bunker supply chain in the port of 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. The HoA will contribute to the development of Singapore as an LNG bunkering hub.
The move towards LNG as a bunker fuel has been partly driven by the International Maritime Organization’s (IMO) decision to set new limits on sulphur content in marine fuels from 2020. LNG bunker fuel produces zero sulphur oxides emissions and will help support the IMO’s long-term strategy on the reduction of greenhouse gas emissions from ships announced in April 2018.
Patrick Pouyanné, Chairman and CEO of Total, says: ‘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.’
As part of its drive to develop the LNG bunker market, Total Marine Fuels Global Solutions has already signed LNG bunker supply contracts for Brittany Ferries and CMA CGM in Europe, as well as the long-term chartered bunker vessel with Mitsui OSK Lines that will be positioned in northern Europe.
Pavilion Gas plans to play a key role in the development of Singapore as an LNG hub. In January 2016 it was awarded an LNG bunker supplier licence to supply LNG bunker fuel to vessels in the port of Singapore, and in October 2016 it was appointed as one of two importers to supply LNG to Singapore by the Energy Market Authority of Singapore.