In a statement issued on Saturday, the national oil company said Petronas LNG had inked a memorandum of understanding (MoU) with Pavilion Energy’s wholly-owned subsidiary Pavilion Gas, which manages downstream natural gas operations for both piped natural gas and LNG in the republic.
Under the MoU, which was signed on Thursday (March 30) in Kuala Lumpur, the two parties will explore ways to join forces and optimise the opportunities within the LNG business, including spot trading and joint efforts relating to receiving terminals and storage facilities.
Signing on behalf of Petronas LNG was its chief executive officer (CEO) and chief marketing officer Ezhar Yazid Jaafar while Pavilion Gas was represented by Wong Vin Kee, its vice president and head of LNG operations.
Also present at the signing were Petronas executive vice president and CEO (upstream) Datuk Mohd Anuar Taib and Pavilion Energy and Pavilion Gas CEO Seah Moon Ming.
Commenting on the MoU, Anuar said Petronas’ strong presence in the integrated LNG value chain and diversified LNG portfolio, together with Pavilion Energy’s position as one of the LNG aggregators in Singapore, would allow both companies to leverage on each other’s strengths to create value and growth in the region.
According to a Singapore Straits Times report, Pavilion Gas has the exclusive right to supply LNG to the republic for three years starting 2017 or when imports reach one million tonnes a year, whichever is earlier.
Meanwhile, Seah Moon Ming said the MoU marked a major step in the relationship between Pavilion Energy and Petronas.
“I am delighted to see close collaboration between our two companies which will also strengthen and grow the regional LNG market,” he added.