Pavilion Energy Announces Strategic Partnership with Gasum, Eyes Asian Cooperation
8 October 2020

Pavilion Energy is to work with Gasum on LNG bunkering in the Port of Singapore and Northern European ports and is also in discussions with Asian industry players to develop the continent’s marine LNG sector, Managing Director for Asia, Alan Heng, tells Bunkerspot.

The strategic partnership with Gasum will see Pavilion Energy bunker the Finnish state-owned gas company’s customers at the Port of Singapore while Gasum will bunker Pavilion Energy’s LNG’s customers in northern European ports. As previously reported, Pavilion Energy will share the use of a dual-fuel LNG bunker tanker with Total Marine Fuels Global Solutions for bunkering in Singapore.

The strategic agreement forms part of Pavilion Energy’swider goal of developing a global LNG bunker supply network.

Speaking to Bunkerspot, Pavilion Energy Managing Director for Asia, Alan Heng said that the move would support the company’s aim of engendering growth of the industry by instilling confidence in LNG as a reliable, credible and sustainable marine fuel of choice.

‘We believe strongly that it’s important for a bunker supplier to be involved in a global network. Ships travel around the world and they need to be fuelled in different ports,’ said Heng.

‘Much of LNG bunkering today has been within a particular region. Europe has led the way and we see the emergence of it in China as well as in Singapore and southeast Asia. But the real uptake will only come when there’s transcontinental traffic,’ Heng added.

In order to drive this demand, Heng stressed the importance of establishing a global LNG bunkering network that crosses continents.

‘As a bunker supplier, we have to make sure that LNG bunker vessels and infrastructure are put in place,’ said Heng. ‘We have to put in place procedures to make sure we can safely deliver bunker fuel to our customers. We also have to put in place the right commercial arrangements so that customers are confident enough to sign up to LNG bunkering.’

Heng continued: ‘What we are hearing from our customers is that they want us not just to be in Singapore but also in Europe and north Asia. We are now starting to build that global network.’

According to Heng, forming ties with an established European partner, such as Gasum, is an early step to developing a global bunker supply network.

‘Gasum is a partner that had a good alignment with our interests,’ Heng said.

Pavilion Energy acquired Spanish Iberdrola’s LNG assets in June 2019 and started LNG trading operations and natural gas supplies into UK and Spain earlier this year. The company is also actively seeking to develop its LNG bunkering operations in north Asia.

‘We are in discussions with potential partners in both China and Korea in a similar way that we are doing with Gasum, to leverage on each other’s strengths and assets that we have in play.’

Heng added: ‘We have had conversations with shipowners and some of the challenges expressed by them is the reliability of the supply chain and the global network of LNG around the world. There is more confidence in Europe whereas in Asia it has lagged a little bit.

‘By building the infrastructure and network, we are giving them assurances that there will be reliable supply and I think the shipowners are now coming to the understanding that they need to move towards decarbonisation in the marine transportation sector. The more obstacles we remove as a fuel supplier, the more comfortable they will be to commit to investing in LNG-fuelled vessels.’