QP wins supply tender to deliver LNG to Singapore until 2032
Published by Will Owen,
Qatar Petroleum has announced the establishment and the start of operations of QP Trading LLC, as its dedicated LNG trading arm.
Wholly owned by Qatar Petroleum and based in Doha, QP Trading is mandated to build a globally diversified portfolio of third party and equity LNG. In addition, QP Trading will manage the price risk exposure of its portfolio through physical and derivatives trading.
These new capabilities, combined with a customer – and market –centric approach, will enable QP Trading to respond with greater agility to the evolving needs of its customers, and to maximise the value of its portfolio in a dynamic market.
Saad Sherida Al-Kaabi, Minister of State for Energy Affairs, the President and CEO of Qatar Petroleum made the announcement during a ceremony held virtually today to celebrate the signing of QP Trading’s first deal with Singapore’s Pavilion Energy Trading & Supply Pte. Ltd. Commenting on the establishment of QP Trading, Minister Al-Kaabi said, “This new addition to Qatar Petroleum’s capabilities and reach is a very important step in reaffirming our belief in LNG’s economic and environmental value proposition and its cornerstone role in the energy transition.”
Minister Al-Kaabi added, “I am pleased to announce that QP Trading has just concluded its first long-term LNG SPA with Pavilion Energy Trading & Supply Pte. Ltd. following a competitive process.
“Under the agreement, QP Trading will deliver up to 1.8 million t of LNG per annum for 10 years to Singapore, reflecting our commitment to respond to the needs of our customers, including supply security, price competitiveness, and flexibility.”
Minister Al-Kaabi also highlighted the unique environmental aspects of the agreement, saying, “This deal represents the first long-term LNG arrangement containing specific environmental criteria and requirements designed to ultimately reduce the carbon footprint of the LNG supplies, which is fully aligned with our long-standing position in support of our environment. Qatar Petroleum is already implementing a series of projects and initiatives to reduce emissions and to capture and sequester more than 5 million t of CO2 per annum by 2025, placing us firmly on the road to become a leader in the decarbonisation of the LNG value chain.”
On his part, Tan Sri Muhammad Hassan Marican, the Chairman of Pavilion Energy Trading & Supply said, “The inaugural LNG cargo Pavilion Energy imported into Singapore for downstream supply in 2018 originated from Qatar. We are delighted to enhance our strategic relationship with Qatar Petroleum, the world’s largest LNG producer. This partnership will strengthen our core Singapore market and our role as a global energy trader.”
The virtual signing ceremony was attended by Dr. Tan See Leng, the Second Minister of Trade & Industry in Singapore, along with Pavilion Energy Trading & Supply Chairman, Tan Sri Muhammad Hassan Marican, and Group CEO Frédéric Barnaud. The ceremony was also attended by Senior executives from Qatar Petroleum.
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/10112020/qp-wins-supply-tender-to-deliver-lng-to-singapore-until-2032/
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