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Uniper Global Commodities SE and Pavilion Gas Pte Ltd have agreed a deal to provide each other with access to their respective LNG facilities.

The multi-year agreement between the companies will provide Uniper with access to Pavilion's Singapore storage and reload facility while Pavilion will benefit from access to LNG regasification capacities at the Gas Access to Europe (Gate) LNG terminal in Rotterdam, Netherlands, and the Grain LNG terminal in the UK.

The collaboration is designed to provide enhanced flexibility to both company's LNG portfolios whilst optimizing LNG logistics between the Atlantic and Pacific basin.

Pavilion Gas, a wholly owned subsidiary of Pavilion Energy, is one of two companies to be awarded an LNG bunker supplier licence by the Maritime Port Authority of Singapore (MPA) - together with Keppel-Shell joint venture company FueLNG Ltd. Back in May, the company performed Southeast Asia's first live LNG truck-to-ship bunker capability demonstration.

A year ago, Pavilion announced that it was teaming up with ExxonMobil to carry out LNG bunkering at the port of Singapore. Since then, the company has also signed a memorandum of understanding (MoU) with Harley Marine, Mitsui O.S.K. Lines and Mitsui & Co. to jointly participate in the MPA's LNG bunkering pilot programme, and agreed to supply LNG bunkers to Total for deliveries in Singapore.

"We see the benefits and potential of the LNG bunkering industry, which is expected to expand to $10 billion by 2023, up from just $214 million last year. LNG is set to play a significant role in the energy mix for the maritime sector with the IMO 0.5% global sulphur cap on marine fuels coming into force in the year 2020. We look forward to a thriving LNG bunkering hub in Singapore as part of the global LNG bunkering ecosystem," Pavilion CEO Seah Moon Ming was cited as saying on Wednesday.

Keith Martin, member of the board of Uniper, remarked: "Uniper is very pleased to have signed this agreement with Pavilion Gas. Combining Pavilion Gas and Uniper's LNG and midstream capabilities provides a way for our respective companies to broaden our portfolios now and in the future through this cooperation."

Looking to the future, Uniper said: "Both companies will be looking to co-operate further in different areas of energy trading[,] providing extensive experience of their home markets and venturing into new markets together."

Image: The Gas Access to Europe (Gate) LNG terminal in Rotterdam.