Singapore’s Pavilion Energy to acquire Iberdrola’s LNG asset portfolio

Singapore-based Pavilion Energy has signed an agreement to acquire a portfolio of LNG assets from Spanish energy company Iberdrola.

The agreement was signed by Pavilion Energy Trading & Supply, a wholly owned subsidiary of Pavilion Energy.

The financial details of the agreement were not revealed.

The acquired portfolio consists of around 4Mtpa of Iberdrola’s long-term sale and supply LNG contracts. Additionally, it includes long-term regasification of nearly 2Mtpa at the UK’s Grain LNG terminal, regasification access in Spain, and on a pipeline between Spain and France.

The scope of acquisition also includes the time-charter of a newly built MEGI LNG vessel.

Pavilion Energy Group CEO Frédéric H. Barnaud said: “Building on Pavilion Energy’s success in Singapore and in the Asia-Pacific Basin, this acquisition brings us a portfolio of prime assets primarily in Europe and the Atlantic Basin.

“The combined portfolio achieves global reach with the scale and flexibility required to outperform.

“This is a critical step towards our vision to be a leading global LNG player, leveraging our LNG portfolio with deep access to strategic gas markets in Singapore, Spain, and the UK, combined with sophisticated optimisation and risk management skills.”

Concurrently, the two companies have closed a gas sales agreement, which requires Pavilion Energy to supply natural gas in Spain, to Iberdrola Generación Espana.

Pavilion Energy is claimed to cater to nearly one-third of Singapore’s downstream natural gas demand. The latest acquisition is expected to enable the company to offer competitive solutions, as well as play a greater role in energy transition.

The latest transaction is scheduled to close on 1 January next year.