Over the last decade, the global LNG market has grown rapidly and is set to continue on this trajectory.
Transactions have become more complex and sophisticated. The profile of LNG buyers, sellers and trade patterns have evolved. New players and investors have entered the market with varying trading objectives and risk appetites.
Pavilion Energy views LNG trading as a critical capability to manage market dynamics and demand fluctuations. Our trading teams that cover the Asia and Europe markets, and beyond, work to ensure reliable and cost-competitive LNG supply to our customers and partners. With a focus on speed, market innovation and operational excellence, we continue to build on our storage capabilities in key markets and develop our trading capabilities and networks. We honour not just our contractual obligations but also the counterparties we transact with.
The LNG market has not only doubled in size but has seen an evolution of the profile of LNG buyers, sellers and trade patterns. New importers that range from start-up electricity companies, intermediaries and national energy companies, have emerged; and LNG trading has evolved to mirror the dynamic needs of buyers today, allowing for shorter-term and lower volume contracts with greater degrees of flexibility.
Not only are the dynamics of spot and short-term LNG trading global in nature, the unique nature of LNG infrastructure and logistics present certain considerations and challenges for LNG transportation and storage.
Pavilion Energy has built robust capabilities in the areas of LNG storage and shipping which enables us to effectively optimise LNG trade and movements, and ensure efficient and reliable deliveries of LNG from production sources to energy demand centres in the Asia-Pacific and Atlantic Basins. This includes our strategic mid-term storage position at the Singapore LNG (SLNG) Terminal, and access to terminals in Spain and the U.K.
Our ability to connect markets and supplies is reinforced by our LNG shipping fleet on water. In 2014, Pavilion Energy established a joint venture with BW Group, a global maritime group, to jointly acquire, manage and charter maritime LNG assets, including LNG carriers. The fleet was recently augmented in 2018 with the long-term charter of two additional Singapore-flagged LNG newbuilds from BW Group.