Page 7 - AsiaElec Week 26

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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, much of which is absorbed by the country’s power plants. Other demand comes from industrial users and from fuel bunkering.
Gas accounts for 80% of the country’s power generation, with demand now standing at 7,188MW, while capacity is 12,070MW. THis high reserve margin is a major government pol- icy, ensuring that no power cuts take place.
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 solu- tions 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. ™
Week 26 02•July•2019 w w w . N E W S B A S E . c o m P7