Page 12 - GLNG Week 25

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strategic drivers
Pavilion, and Singapore, have been making steps to scale up their involvement in the LNG space. Pavilion is ultimately owned by Temasek Holdings, Singapore’s sovereign wealth fund, and as such their strategic plans are in close alignment.
Pavilion supplies around one third of Singa- pore’s downstream gas demand. e company said the deal with Iberdrola would allow it “to play a greater role in energy transition as well as to o er competitive solutions to our customers and suppliers”.
e Singaporean company had struck a deal in September 2017 with German power com- pany, Uniper. Under this agreement, the two sides agreed to provide access to infrastructure. Uniper was to allow Pavilion into its terminals in the UK and Netherlands, while the German company gained access to Singaporean storage and reloading facilities.
Pavilion, which was set up in 2013, received a licence from Singapore’s Energy Market Author- ity (EMA) to import LNG in october 2017. is gave it the right to bring in LNG for three years, or up to 1mn tpy, whichever came rst. Its rst cargo was imported in April 2018, from Qatargas.
Progress has been accelerating. In May this year, Pavilion carried out its rst commercial ship-to-ship bunkering operation in the Port of
Singapore. Earlier this year it ordered an LNG bunkering vessel, which is due to be delivered in 2021.
Increasing its scope in Europe demonstrates Pavilion’s plans for expansion, which should provide it with knowledge about the sector in addition to revenues. The company has major ambitions, in November 2018 it signed an agreement with Russia’s gas independ- ent Novatek, signalling a potential interest in taking a stake in the proposed Arctic LNG 2 project.
Change
The energy transition discussed by Iberdrola clearly has a number of aspects. one of these is that both Iberdrola and Pavilion can both describe this deal as transition. The Spanish company is reorienting itself to be more focused on core assets and the changing face of Euro- pean power. at its deals with Pavilion include an arrangement for LNG to be supplied to Spain demonstrate that the feedstock still has a future in Europe.
Pavilion meanwhile does have some work ahead of it in managing the portfolio. e BP and orsted demand deals are both coming to an end fairly shortly. e supply deals are also coming towards an end. Pavilion has some time to consider how best to maximise its new assets but the clock is ticking. ™
MiDDLE East
SNOC, Uniper sticking with LNG plans
invEstMEnt
SHARJAH’S SNoC and Germany’s Uniper intend to proceed with their slow-moving plans to establish regasi cation facilities in the emir- ate. e pair announced the initiative in october 2016, signing an MoU to import an unspeci ed quantity of LNG, targeting start-up in Q2 2018, just ahead of the annual period of peak demand. A start-up date of 2020 has been discussed more recently, though the lack of progress to date is unlikely to help.
e fuel will be delivered at Hamriyah and piped to the Sajaa Gas Complex before transfer into the existing pipeline network for supply throughout Sharjah and the other Northern Emirates.
“We recognise the urgent need of the North- ern Emirates for a reliable supply of natural gas that can be easily distributed to support large and small consumers, from the big power gen- eratorstosmallbusinesses,”SNoCCEoHatem al-Mosa said in a statement at the time.
SNoC’s and the emirate’s main producing
asset is the Sajaa eld, discovered in 1978 and now yielding around 7.3 billion cubic metres (bcm) per year of gas for processing at Sajaa and delivery to local power stations. Super-ma- jor BP, the government’s partner since the eld’s discovery, handed its share back to the state in 2013.
e news follows the January announcement that Italy’s Eni had further extended its UAE reach by winning all three of the blocks o ered in an onshore bid round launched in June by SNoC.
Eni will take 75% operating stakes in con- cession Areas A and C – covering respectively 437 square km in the north and 1,184 square km in the south-east – with SNoC holding the remainder.
At the 264-square km Area B, in the centre – containing both the existing Sajaa gas and con- densate eldandaknownbutunappraiseddeep gas discovery – each company will take a 50% interest, with the local rm as operator.™
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w w w . N E W S B A S E . c o m Week 25 27•June•2019