Pavilion Energy, Gasum and CNOOC ink global LNG bunker supply deal

(Reuters) - Singapore's Pavilion Energy, Finland's Gasum and China's CNOOC Gas and Power Group have signed an agreement to collaborate on a global network for supplying LNG as fuel for ships, the companies said in a joint statement on Tuesday.

The agreement aims to strengthen the companies' supply network at global number-one bunkering port Singapore and at key bunkering ports in North West Europe and China's coastal areas.

This includes establishing central links across the west and east in key ports ready to supply LNG as bunkering fuel, including the Baltic and North Sea emission control areas (ECA), key Chinese ports such as Shenzhen, Guangzhou and Ningbo, as well as Singapore.

"This tripartite cooperation is a crucial measure for CNOOC Gas and Power Group to develop a world-wide LNG bunkering supply network and it hopes to promote cooperatives in facilitating a low-carbon future at sea," said Rongwang Zhang, vice president, general counsel and chief compliance officer at CNOOC Gas and Power Group.

The latest agreement follows a partnership between Pavilion Energy and Gasum in October 2020 to develop an LNG bunker supply network for customers in Singapore and Northern Europe.

LNG uptake as an alternative marine fuel has risen in line with the International Maritime Organisation's goals to reduce greenhouse gas emissions.

Pavilion Energy, alongside Mitsui O.S.K. Lines, is set to launch a Singapore-flagged LNG-fueled ship in the first quarter of 2023. It will be Singapore's largest LNG bunker vessel.

Gasum has performed over 1,300 ship-to-ship and truck-to-ship deliveries of LNG, while CNOOC Gas and Power Group has taken steps to build international LNG bunkering infrastructures alongside China's coastal ar

(Reporting by Jeslyn Lerh; Editing by Bradley Perrett)

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