Singapore-headquartered Pavilion Energy is talking to shipyards and owners about building small and midsize LNG carrier newbuildings.
Those following the business said Pavilion is asking for offers on ships of around 30,000 cbm and 80,000 cbm, which it needs in connection with transshipment business.
They indicated it is not a formal tender process but a “tyre-kicking” exercise to gauge likely pricing, along with interest and ability to construct this size of tonnage.
Few LNG carriers of this size built have been built, making them difficult to price.
Breakbulk and bunkering
Pavilion — controlled by Singapore’s sovereign wealth fund Temasek — has been expanding its LNG breakbulk and bunkering operations in the region with some industry players speculating its vessel enquiries could be linked to these operations.
It is a licensed LNG importer and an LNG bunker supplier in the Port of Singapore. It has secured one of two LNG bunker supplier licences from the Maritime and Port Authority of Singapore.
The Pavilion Gas arm of the company said it sees an emergence in demand for small-scale LNG in Asia, especially in remote areas where there are no pipelines and where demand is small and distributed, and is in a position to provide satellite distribution and breakbulking services.
In April, Pavilion Gas signed a long-term charter on what looks set to become Asia’s largest LNG bunkering vessel when it teamed up with Total on a 12,000-cbm newbuilding ordered by MOL at Singapore’s Sembcorp Marine.
The ship is due for delivery by early 2021.
Global vision
Parent company Pavilion Energy has been growing its LNG interests and has started to make its first moves to become a more global player.
Last week, it announced plans to open new European headquarters in Madrid. The company said it would be hiring up to 50 staff for its new Spanish base to work in areas including energy trading, shipping and risk management.
This followed Pavilion Energy's buyout of Spanish energy company Iberdrola’s LNG assets in June.
It paid €115m ($127.4m) for the portfolio, which comprises about 4 million tonnes per annum of long-term sale and supply LNG contracts, the time charter of an under-construction LNG newbuilding and long-term regasification of about 2 mtpa at the Grain LNG terminal in the UK, along with pipeline capacity.
At the same time, Pavilion signed a deal to supply LNG in Spain to electricity producer Iberdrola Generacion Espana.
Speaking about the company’s new Madrid venture, Pavilion Energy group chief executive Frederic Barnaud said last week that the company sees itself as a combination of a trader, gas marketer and market developer, and that it is not focused on trade volume.
"Our specific competence is on operations, on shipping, on hedging, on access to markets, and that's what we are building,” Barnaud said.
