Singapore-based Pavilion Energy signed a sales and purchase agreement with BP Wednesday to buy 400,000 tons of liquefied natural gas per year for 20 years starting in 2019.
The value of the contract wasn’t disclosed.
The LNG supply will come from BP’s stakes in the Freeport LNG facility in Houston and its global portfolio supply.
BP holds tolling rights in the Freeport LNG project. The project is expected to reach a final investment decision by the end of 2014.
The deal was made with Pavilion’s wholly owned subsidiary Pavilion Gas.
Pavilion will take advantage of a shift from long-term contracts to a spot market in Singapore as well as the availability of more import-export terminals and storage facilities to begin building an Asian LNG hub, Reuters said.
“This deal is part of our continued effort to enhance and diversify our LNG portfolio to deliver sustainable and competitive LNG supply to Asia,” CEO of Pavilion Energy and Pavilion Gas Seah Moon Ming said.
Pavilion Energy is a portfolio company of Singapore-based Temasek Holdings, a government owned investment company.
