Under the MOU, Pavilion Gas, a wholly-owned subsidiary of Pavilion Energy, will supply LNG as a bunker fuel to Total Marine Fuels Global Solutions, Total’s affiliate in charge of worldwide bunkering activities, for LNG deliveries to its marine fuel customers in the port of Singapore.
The duo said that they may explore further cooperation in logistics for LNG bunkering activities.
In 2016, Pavilion Gas was awarded an LNG bunker supplier licence by the Maritime Port Authority of Singapore (MPA). Pavilion Gas was also appointed by the Singapore Energy Market Authority (EMA) as an LNG importer for Singapore.
According to Patrick Pouyanné, Chairman and CEO of Total, the move is in line with the company’s plans of becoming a key player in the emerging LNG bunkering market, especially in the light of the 2020 Global Cap requirements.
“In this context, developing a competitive worldwide LNG bunkering network will be key for the industry; securing access in the main hubs, such as Singapore, is part of our strategy. The MOU signed with Pavilion Gas is a real opportunity for Total to make further inroads in this promising new market,” he added.
With the International Maritime Organisation’s (IMO) 0.5% global sulphur cap on marine fuels coming into force in 2020, LNG is set to play a significant role in the energy mix for the maritime sector. LNG as a marine fuel significantly reduces harmful emissions of sulphur oxides (SOx), nitrogen oxides (NOx) and CO2 and particulate matter compared to traditional bunker fuels.