Singapore’s Pavilion Energy has signed a 10-year deal to buy liquefied natural gas (LNG) from BP’s Singapore unit beginning in 2024, with intentions to diversify its gas supply sources, Reuters reported.
Per the sale and purchase agreement (SPA), BP is expected to supply about 0.8 million tons (mmt) of LNG per year to Singapore. Neither company disclosed any financial details on the agreement.
The deal also entails that both companies will aim to develop and implement a greenhouse gas (GHG) quantification and reporting methodology, noting that the methodology will cover emissions from wellhead-to-discharge terminals. Through that, Singapore is attempting to diversify its gas imports as long-term piped-gas contracts with Indonesia expire in 2023.
The deal with Pavilion will not only help supply the Singapore market with LNG but also “co-develop a methodology to quantify the carbon intensity associated with the supply,” Eugene Leong, Chief Executive of BP’s Trading and Shipping Division of the Asia Pacific and the Middle East, Commented on the deal.