Temasek-owned Pavilion Energy has signed an agreement with energy shipping giant BW Group for the long-term charters of two liquefied natural gas carriers (LNGCs), which will bolster its capacity for long-haul trades between the Atlantic and Asia-Pacific regions.
This pair of LNGCs, to be built with engines boasting lower carbon footprints, are scheduled for delivery between 2019 and 2020. The long-term LNGC charters are expected to run for more than 10 years.
The two newbuild LNGCs would double Pavilion Energy's charter-in fleet. The Temasek-owned LNG-focused player has on hire the BW Pavilion Vanda, while a second LNGC, BW Pavilion Leeara, is expected to join its fleet from 2019. Both BW Pavilion Vanda and BW Pavilion Leeara are owned by its joint venture with BW Group.
Pavilion Energy's group CEO Frédéric Barnaud said that the long-term charters on the two newest LNGCs "will strengthen the group's global LNG trading activities, especially on long-haul voyages from Atlantic liquefaction plants to Singapore and Asian markets".
The newbuild LNGCs will come with dual-fuel engines touted as consuming less fuel and thus emitting less carbon dioxide.
Such fuel savings can result in a reduction of about 22,300 tonnes of carbon dioxide emissions per vessel per year, equivalent to the combined emissions from 4,800 passenger cars annually, Pavilion said.