Total Marine Fuels (TMF) on 10-year LNG bunkering contract with Pavilion Energy

Project description

Total Marine Fuels, a subsidiary of French energy conglomerate Total SA signed a 10-year contract with Pavilion Energy Singapore Pte. Ltd. to develop liquefied natural gas (LNG) bunker supply facilities in Singapore.

The agreement comprises the shared long-term use of a new build 12,000m³ GTT Mark III Flex membrane LNG bunker vessel (LNGBV) that will allow each party to supply LNG bunkers to its respective customers, and a LNG supply arrangement between the two companies.

Total is the second-largest private global LNG player, with an overall portfolio of around 50 Mt/y by 2025 and a worldwide market share of 10 percent.

Scope of work

Advising TMF on arrangements to share the use of the bunker barge and to use Pavilion’s position in the Singapore LNG terminal to establish TMF’s LNG bunker business in Singapore.

What makes the project unique

This deal paves the way toward the development of LNG as a marine fuel. The use of LNG as a maritime fuel is a very important option for the maritime sector as it seeks to meet much tighter controls on the emissions of sulphur imposed by the IMO in 2020 and on the longer term objective of reducing greenhouse emissions in the maritime sector.

This transaction brought together Singapore’s local champion in the LNG sector, Pavilion Energy, with one of the global giants of the industry, Total. The LNG Bunker vessel being built will be one of the first two to serve Singapore’s LNG marine bunkers market. We anticipate a significant growth in LNG projects involving smaller LNG vessels, and the use of regional hubs like Singapore.

Meet the Team

Working in support of Total Marine Fuels’ in-house legal team, the Norton Rose Fulbright team on the deal was led by our teams in Singapore and Hong Kong.