Singapore's Pavilion Energy Signs Deal to Buy U.S. Natural Gas

   By Eric Yep 
 

SINGAPORE--Singapore's Pavilion Energy Ltd. has signed an agreement with BP PLC (BP) to buy 0.4 million tons of natural gas a year, which will include supplies from the Freeport liquefied natural gas project in the U.S.

Pavilion Energy's gas trading unit Pavilion Gas Pte. Ltd. will buy the gas for a 20-year period starting from 2019, Chief Executive Seah Moon Ming told a conference Wednesday.

Earlier this year, Pavilion signed a 10-year deal to buy 0.7 million tons of LNG a year from Total S.A. (FP.FR) starting in 2018.

The Freeport LNG export terminal is co-owned by ConocoPhillips (COP) and is one of three projects that are expected to be the first exporters of U.S. natural gas. The other projects are Sempra's Cameron LNG project in Louisiana and Cheniere Energy Inc.'s Sabine Pass LNG project.

BP may also supply Pavilion with LNG from its other gas producing assets, Paul Reed, chief executive of BP Integrated Supply and Trading said.

Pavilion, a portfolio company of state-investment firm Temasek Holdings Pte. Ltd., has been rapidly expanding its presence in the LNG business with a capital of $6.9 billion.

Write to Eric Yep at [e-mail]

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