Singapore’s Pavilion Energy, a unit of Temasek, said it has signed a term deal to supply LNG to China’s Zhejiang Hangjiaxin Clean Energy.
Under the deal, Pavilion Energy Trading & Supply would deliver up to 0.5 million tonnes of LNG from Singapore to Hangjiaxin from 2023, Pavilion said in a statement on Tuesday.
Pavilion said it would supply the fuel from its portfolio of natural gas and LNG to the 1 mtpa Jiaxing LNG terminal in eastern Zhejiang province.
Hangjiaxin will operate the Jiaxing LNG terminal. The firm is a joint venture between city gas distributors Jiaxing Gas, the largest pipeline natural gas operator in Jiaxing, but also Hangzhou Gas, the largest natural gas distributor in Zhejiang province.
Alan Heng, interim group CEO of Pavilion, said the supply of LNG from the company’s portfolio of “diverse global sources” would strengthen the partnership with Hangjiaxin.
Moreover, supplying small-scale LNG reinforces Pavilion’s commitment to “enhance Singapore’s position as a regional LNG hub and support growing demand for small-scale LNG in Asia,” he said.
Sun Lianqing, CEO of Hangjiaxin, said the execution of this agreement would provide Hangjiaxin’s own Jiaxing terminal with stable LNG resources.
Also, it would offer Hangjiaxin’s end-users “more clean energy options in the long run, and contribute to Hangjiaxin’s dedication to the reduction of carbon dioxide emissions and achievement of carbon neutrality,” he said.
