SINGAPORE: Pavilion Energy Pte, the liquefied natural gas (LNG) unit of Singapore's state-owned investment company, wants to invest in Asian terminals and infrastructure to further its aim of supplying gas to the region.
Pavilion Energy, owned by Temasek Holdings Pte, will add more funds to its initial authorised capital of US$1 billion (RM3.2 billion) to fulfil its ambitions, chief executive officer Seah Moon Ming said at an LNG conference here yesterday.
He didn't say how the company will raise the additional money.
"We will acquire assets across the full LNG value chain by building strong relationships with key partners, investing and co-investing in gas acreage, liquefaction plants and assets, shipping and regasification," Seah said.
Temasek set up Pavilion Energy in April to tap growing demand for LNG in Asia, the company said at the time.
Pavilion Energy will start trading LNG in Asia within the next three months and will seek to form partnerships with existing trading companies in Japan, South Korea, China and Taiwan, according to Seah.
It will seek to reduce supply risk by considering purchases of LNG from North America, Australia and Africa, he said.
Pavilion Energy has no long-term supply contracts, according to data compiled by Bloomberg.
Pavilion Energy will adopt a mix of price indexes for contracts of different durations, according to Seah, who didn't specify which gas prices the company will use.
Long-term LNG contracts, which are typically more than 10 years in length, are usually settled on the basis of a formula with a fixed percentage linked to Brent oil or the Japan Crude Cocktail price.
Singapore imported its first LNG cargo in March to inaugurate its three million-tonne-a-year receiving facility on Jurong Island. Bloomberg