Pavilion Gas to buy LNG from BP

Pavilion Gas, a subsidiary of Pavilion Energy, has agreed to buy 400,000tpa of liquefied natural gas (LNG) from BP for 20 years, starting in 2019.

BP will supply the LNG from its equity stakes in Freeport LNG in Houston, US, and its global portfolio.

BP has a liquefaction tolling agreement for more than 4.4 million tonnes per annum LNG capacity at the Freeport LNG project.

A final investment decision on the Freeport LNG project is expected to made by the end of 2014.

Pavilion Energy and Pavilion Gas CEO Seah Moon Ming said: "We are delighted to collaborate closely with BP.

"The conclusion of a long-term agreement with BP, which involves LNG supply from the US, is another significant development for Pavilion Gas.

"This deal is part of our continued effort to enhance and diversify our LNG portfolio to deliver sustainable and competitive LNG supply to Asia."

Earlier in 2014, Pavilion signed a ten-year agreement to buy 0.7 million tonnes per annum of LNG from Total, commencing in 2018.

Pavilion Energy, a portfolio company of state-investment firm Temasek, has been expanding its presence in the LNG business with a capital of $6.9bn.

Pavilion Gas manages downstream natural gas operations for both PNG and LNG in Singapore.

The company is also responsible for the marketing, trading and distributing of natural gas in Singapore.