Page 15 - GLNG Week 38

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Pavilion targets Europe in bid to become global LNG trader
PROJECTS & COMPANIES
SINGAPORE-BASED Pavilion Energy is target- ing new markets in Europe as well as expanding in Asia as the gas importer and marketer aims to become a global trader of LNG. Pavilion’s group CEO, Frederic Barnaud, told Reuters that the company was anticipating a turnover of $3bn next year, with its Europe portfolio compris- ing half of this amount while Singapore would account for the rest.
This follows Pavilion’s acquisition in June of the LNG assets of Spain’s Iberdrola, which dou- bled the company’s portfolio and gave it access to Atlantic supplies and European regasification terminals. In the wake of the acquisition, Pavilion is planning to open its European headquarters in Madrid in January 2020. The company is aiming to boost its global headcount to 150 by adding around 40-50 positions at its Madrid office.
According to Barnaud, the company will anchor its global LNG business around three markets – Singapore, Spain and the UK.
Pavilion is owned by Singapore’s sovereign wealth fund, Temasek Holdings. The company supplies one-third of Singapore’s downstream natural gas demand, and is seeking more
flexibility in where it buys and sells LNG in a changing market. US LNG is taking an increas- ingly larger share of the market, while a grow- ing focus on environmental goals is compelling more countries to consider switching from coal to natural gas for power generation and indus- trial use.
“We are not looking at extremely aggressive or taking excessive risk in the market; we are looking at being agile and reasonably balanced in our supply,” Barnaud said.
The company is intending to re-export LNG from Singapore to nearby countries, seeking to take advantage of the city-state’s geographical proximity to centres of Asian LNG demand such as Japan and South Korea.
According to Barnaud, the company is in talks with LNG terminal operator Singapore LNG (SLNG) to extend its storage lease, which is due to expire in March 2020. Pavilion has also indicated its interest in a potential fifth LNG storage tank that SLNG is considering building, he said. The tank space would allow the company to break up large cargoes of LNG into smaller ones for re-export.™
Romania eyes LNG via Poland
POLICY
ROMANIA has voiced interest in acquiring gas from Poland’s Swinoujscie LNG import termi- nal, its energy ministry reported on Septem- ber 19. The move comes after Ukraine recently expressed its intent to take extra US LNG sup- plies from the terminal.
In a statement, the ministry announced the signing of a memorandum of understanding (MoU) with its Polish counterpart on greater energy sector co-operation between the two countries. The accord was agreed during inter- governmental talks.
The Romanian side said co-operation would help both countries ensure their energy security and diversify energy supply.
“The Romanian side reiterated its interest in identifying the best technical solutions for pro- viding the Romanian market with the volumes of gas that will be available via the Polish Swinou- jscieterminal,”theministrystated.
The Swinoujscie facility is capable of import- ing up to 5bn cubic metres of gas per year. After its launch in December 2015, the plant initially struggled with low utilisation, although its import volumes have been steadily rising.
Its state-owned operator PGNiG wants
not only to ensure its current capacity is fully booked, but also to secure enough customers to underpin an expansion to 7.5 bcm per year. As part of this effort, it has sought to resell LNG it receives to other countries.
PGNiG recently announced it had agreed to resell a batch of US LNG to a US trader working in Ukraine. The batch is due to arrive at Swinou- jscie in early November and has been reserved for US investment firm Energy Resources of Ukraine (ERU).
PGNiG started exporting gas to Ukraine in August 2016, helping the latter country cease its direct gas purchases from Russia. The company’s executives have complained that the only thing preventing an increase in supplies is capacity restrictions at Ukraine and Poland’s shared bor- der. The Silesia-Podkarpacie pipeline between the two neighbours is due to be enlarged in 2021.
Romania’s interest in Polish-acquired LNG is interesting, as the country is preparing to become a net exporter of gas within the next few years. It may be looking to safeguard against any disruption in its Russian imports, if Russia and Ukraine are unable to reach a contract for transit starting next year.™
EUROPE
Week 38 26•September•2019 w w w . N E W S B A S E . c o m P15