A unit of UK-based energy giant BP has signed a ten-year deal to supply LNG to Singapore’s Pavilion Energy.
Under the sale and purchase agreement, Temasek’s Pavilion Energy will buy 0.8 million tonnes of LNG per year for delivery to Singapore from 2024, according to a statement released on Wednesday.
Pavilion Energy Trading & Supply and BP Singapore signed the deal.
“Beyond the supply of LNG to Singapore, both companies will strive to co-develop and implement a greenhouse gas (GHG) quantification and reporting methodology,” the statement said.
The methodology would cover emissions from wellhead to discharge terminal, it said.
“This agreement further strengthens our relationship with BP as Pavilion Energy advances our strategies for a lower carbon future, beginning with GHG emissions quantification, reduction and offsets for Singapore,” Frédéric Barnaud, Group CEO of Pavilion Energy, said.
“BP’s ambition is to be a net zero company by 2050 or sooner and to help the world get to net zero. We are excited to enter into this agreement with Pavilion Energy not only to supply the Singapore market with LNG but also to co-develop a methodology to quantify the carbon intensity associated with the supply,” Eugene Leong, BP’s country president of Singapore, said.
This marks the third supply deal Pavilion has signed since November last year.
The new agreement follows a 10-year supply deal Pavilion Energy signed with Qatar Petroleum’s LNG trading unit in November which also included a GHG statement.
In addition, the firm has signed a six-year deal with Chevron in February this year.
Pavilion receives LNG via Singapore’s first and only import terminal on Jurong Island.
