Pavilion Energy

 

Temasek's New LNG Firm to Start Trading Within 3 Months

26 September 2013

Singapore (The Straits Times)

THE new liquefied natural gas (LNG) firm recently set up by Temasek Holdings plans to begin trading the commodity within three months.

Pavilion Energy chief executive Seah Moon Ming also told a conference yesterday that the company, which started operations this month, wants regional and global partnerships and investments as it becomes an LNG supplier.

"We will secure supplies from diversified global sources and, at the same time, create and aggregate gas demand in Singapore and the region," said Mr Seah.

"We are looking into global investments with the aim of building a diversified asset portfolio to enhance our efficiency and competitiveness."

Mr Seah raised the possibility of co-investments in LNG terminals and infrastructure within the region and supplying LNG to these countries.

He said Pavilion Energy already has stakes in US gas producer Chesapeake Energy and in Kunlun Energy, a China exploration and production company. It also wants to form trading partnerships with LNG companies from South Korea, Japan, China and Taiwan.

Pavilion Energy, which was set up in April by Temasek Holdings to handle its business in the highly promising LNG market, started operating this month from its base in Marina Bay Financial Centre.

The company has a start-up capital of US$1 billion (S$1.25 billion) but "more capital will be injected as our investment plans unfold", said Mr Seah, who was speaking at the World LNG Series AsiaPacific Summit held at Shangri-La Hotel.

Pavilion Energy's management and board includes chairman Hassan Marican, formerly president and chief executive at Malaysia's Petronas. Mr Seah is senior managing director at Temasek and was the deputy chief executive of Singapore Technologies Engineering.

Pavilion Energy has set up Pavilion Gas for downstream gas operations in Singapore and to distribute and trade LNG in the region.

The chairman of Pavilion Gas is Mr Liew Mun Leong, the chairman of Changi Airport Group and formerly chief executive of CapitaLand.

Singapore has a terminal for LNG, which is seen as a cheaper and more environmentally friendly energy source than oil.

The $1.7 billion Singapore LNG terminal on Jurong Island started commercial operations in May with an initial storage capacity of 3.5 million tonnes a year.

Mr Seah said he is confident that Singapore will soon be a major LNG trading hub in the region. "I believe we have what it takes to attract growing LNG volume into Asia and will be in a position to set LNG prices in the region… Pavilion Energy will be a key player in this effort," he said.

Ms Pat Roberts, associate director for gas at British energy conference company CWC Group, told the event: "In Asia, everyone's importing more LNG, everyone seems to be on track."

She added that Singapore's LNG terminal and Malaysia's terminal in Malacca have both started up successfully.

The conference was organised by CWC Group and supported by two Singapore statutory boards, the Energy Market Authority and International Enterprise Singapore.

-- By: Jonathan Kwok jonkwok@sph.com.sg

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