Pavilion Gas, a subsidiary of Temasek-owned Pavilion Energy, has received its first liquefied natural gas (LNG) cargo for use in Singapore after being awarded an importer licence.

The cargo, which arrived at the Singapore LNG terminal on April 7, was supplied by Qatargas under a spot contract, said Pavilion in a press statement.

The supercooled fuel will be regasified and delivered to Pavilion Gas' downstream customers in Singapore, it added. Pavilion supplies a third of all natural gas consumed by Singapore's industries in the power generation, petrochemicals, biotechnology, pharmaceuticals and manufacturing sectors.

Pavilion chairman Mohd Hassan Marican said the inaugural cargo is a "significant milestone" for the firm, demonstrating its "readiness and commitment to supply to the domestic market".

"Pavilion Energy will work closely with our partners and customers to grow our business in Singapore, even as we continue to expand our regional and global initiatives."

At a ceremony on April 7 to mark the cargo arrival, Senior Minister of State for Trade and Industry Koh Poh Koon noted that Singapore LNG Corporation (SLNG), which operates the terminal, will complete the construction of its fourth storage tank by the first half of this year, boosting its storage capacity to 800,000 cubic metres. SLNG will soon call for proposals to use the spare terminal capacity, he said.

Pavilion Gas is one of two LNG importers - the other being Shell Eastern Trading - appointed to supply the second tranche of LNG into Singapore. Under the licence given on Oct 23 last year, both firms will have exclusivity to market LNG for three years or up to 1 million tonnes per annum, whichever is earlier.

The first exclusive franchise was awarded to BG, which has since been acquired by Shell, in 2008.

Pavilion Gas in August last year also secured access rights to the LNG terminal on Jurong Island. With that, the firm has ramped up its LNG trading and operations activities, including storage and reloads at the terminal, said Mr Marican.