By PRATISH NARAYANAN
SINGAPORE (Bloomberg) -- Pavilion Energy,
the liquefied natural gas unit of Singapores state-owned
investment company, made its first long-term deal with a European supplier.
Pavilion Energy, owned by Temasek Holdings, will receive
500,000 Mtpy of LNG for 10 years starting in 2018, the company
said in an e-mail, without identifying the seller. The contract
is with a major European oil and gas
multinational for delivery into Singapore and the region,
CEO Seah Moon Ming said in a speech at a conference in the
Singapore, Asias oil-trading center, is also
vying to become a hub for LNG, supercooled gas shipped by
tankers rather than pipelines. It opened its first LNG terminal
in May with an initial annual capacity of 3.5 MMt, increasing
to 6 MMt by the end of the year. Natural gas supplied 84 % of
Singapores electricity in 2012, according to the Energy
Market Authority, the nations energy regulator.
Temasek set up Pavilion Energy in April to tap growing
demand for LNG in Asia, the company said at the time. Pavilion
Gas, its unit that manages gas operations and LNG distribution,
has started trading the fuel and expects to complete its first
cargo delivery to Asia by February, Seah said.
We are also looking into global investments with the
aim of building a diversified asset portfolio, Seah said.
The company will add more funds to its initial authorized
capital of $1 billion to fulfill its ambitions, he said last
A fourth tank is planned to take capacity to 9 MMt by 2016.
That will allow Singapore to offer last-minute deliveries, or
spot cargoes, to buyers in Asia seeking an alternative to
BG won the contract in 2008 to supply 3 MMt of LNG to
Singapore annually over 10 years starting in 2013. Singapore
may award as many as two further supply licenses, seeking 1.5
MMtpy initially, Second Trade Minister S. Iswaran said. The
countrys energy regulator will lift a moratorium on piped
gas supplies when BG has fulfilled its contract or by 2018,