The acquisition was entered into by Pavilion Energy Trading & Supply Pte Ltd, a wholly-owned subsidiary of Pavilion Energy. The transaction will close on 1 January 2020.
According to the statement, the portfolio consists of approximately 4 million tpy of Iberdrola’s long-term sale and supply LNG contracts. In addition to this, it also includes long-term regasification of approximately 2 million tpy at the Grain LNG terminal (UK), regasification access in Spain and the Spanish-France border pipeline capacity, as well as the time-charter of a newbuild MEGI LNG vessel. In a related transaction, both companies have entered into a gas sales agreement for Pavilion Energy to supply natural gas in Spain to Iberdrola Generación Espana.
Frédéric H. Barnaud, Group Chief Executive Officer of Pavilion Energy, 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.
“Today 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.”
Pavilion Energy supplies one-third of Singapore’s downstream natural gas requirements, and has been a strong advocate of natural gas as a cleaner fuel for power generation, industrial use and as a bunker fuel.
In the statement, Pavilion claims that this latest strategic transaction will allow it to play a larger role in energy transition, as well as to offer competitive solutions to its customers and suppliers.
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/20062019/pavilion-energy-acquires-iberdrolas-portfolio-of-lng-assets/