Pavilion Energy, a Singapore-based LNG company, has reportedly announced that it has signed a deal with BW Group, a renowned energy shipping firm, for the long-term charter of two low-carbon LNG carriers to reinforce its capacity of long-haul trade between Asia Pacific and the Atlantic region.
Reports cite, the two low-carbon LNG carriers (LNGCs) would be built and delivered to Pavilion between 2019 and 2020. According to a press release by Pavilion Energy, the two 173,400 m3 vessels would be used to enable the company’s global portfolio and help Pavilion with its LNG trading expansion. The new carriers would be added to the company’s current fleet on water which consists of BW Pavilion Leeara and BW Pavilion Vanda.
The group CEO of Pavilion Energy, Frédéric Barnaud stated that the long-term agreement would be strengthening the company’s LNG trading activities across the world, especially on the long-distance voyages from the liquefaction plants in the Atlantic to the markets in Singapore and other Asian nations.
The two contracted LNGCs would be specifically built to incorporate dual-fuel engines, that the company boasts of being more fuel efficient and thus having a considerably lower carbon footprint.
The company reportedly stated that the fuel savings facilitated by the new dual-fuel engines would be resulting in the reduction of emissions by about 22,300 tons of carbon dioxide per year per vessel – which is equivalent to annual combined emissions from over 4,800 passenger cars.
For the record, Pavilion Energy was established in April of 2013 by Temasek Holdings, a Singaporean holding company owned by the Government of Singapore that is focused on investment in LNG. The company formed a joint venture (JV) with BW Group in 2014. The JV was called BW Pavilion LNG and was formed to acquire, charter and manage several maritime LNG assets, including LNG carriers.
Under the terms of the long-term agreement, the LNGCs would reportedly be serving the company for over 10 years.