Out-Law News | 29 Sep 2014 | 5:17 pm | 1 min. read
Pavilion said it had secured a total of 0.4 million tonnes per annum (Mtpa) of LNG supply from BP for a 20-year period starting from 2019. The LNG supply will come from BP’s stakes in Freeport LNG, Houston, in the US and its global portfolio supply.
Pavilion, which has a committed capital of $6.9 billion, said it is a regional LNG company “with a vision of being a global LNG company in the mid to long-term”.
The contracts with BP follow an agreement reached earlier this year to secure a total of 0.7 Mtpa of LNG supply from Total Gas & Power Asia, a wholly owned gas and power trading company of the Total Group, for a period of 10 years starting from 2018. This was an increase of 0.2 Mtpa over a previously agreed volume of 0.5 Mtpa announced in 2013. In addition, Pavilion Gas said it would be supplied with several LNG cargoes prior to 2018.
Pavilion Energy and Pavilion Gas chief executive officer (CEO) Seah Moon Ming said: “We are delighted to collaborate closely with BP. The conclusion of a long-term agreement with BP, which involves LNG supply from the US, is another significant development for Pavilion Gas. This deal is part of our continued effort to enhance and diversify our LNG portfolio to deliver sustainable and competitive LNG supply to Asia.”
The CEO of BP Integrated Supply and Trading Paul Reed said: “We welcome Pavilion Gas as a valued new partner... Supply will be from BP’s global portfolio of equity and merchant sources of LNG. This includes the Freeport LNG project where BP holds tolling rights and which is expected to reach a final investment decision before the end of 2014.”