SINGAPORE, Sept 20 (Reuters) - Singapore’s Pavilion Gas and German utility Uniper SE have inked an agreement that gives both parties access to liquefied natural gas (LNG) terminals in Europe and Singapore, Pavilion Energy’s chief executive officer (CEO) said on Wednesday.
“We have concluded an option swap agreement with Uniper, whereby we will be able to leverage on each other’s access to the Gate LNG Terminal in Rotterdam, Grain LNG Terminal in the U.K. and SLNG Terminal in Singapore,” Seah Moon Ming, CEO of Pavilion Energy and Pavilion Gas, said at an industry conference in Singapore.
Pavilion Gas will gain access to Europe’s Gate LNG terminal in Rotterdam in the Netherlands and the Grain in the United Kingdom under Uniper’s user rights.
The deal will allow the Singapore-based trading firm, which has mainly struck its deals in Asia-Pacific markets, to expand its trading footprint beyond Asia and into the Atlantic basin.
The Gate and Grain import terminals convert LNG cargoes back into gas and discharge the fuel into the delivery points for Europe’s two gas benchmarks, the UK’s National Balancing Point and the Title Transfer Facility in the Netherlands.
The agreement allows Uniper to access Asian markets by being able to store and reload LNG cargoes from the Singapore LNG Corp (SLNG) terminal.
Pavilion Gas, a subsidiary of Pavilion Energy, won the right in August to use 160,000 cubic meters of storage facilities at the SLNG terminal for a period of two years. (Reporting by Mark Tay; Editing by Christian Schmollinger)