Pavilion Energy Takes Two BW’s LNG Newbuilds on Long-Term Charter
- Business & Finance
Singapore’s Pavilion Energy has signed an agreement with BW Group (BW) for the long-term charter of two M-type, electronically controlled, gas injection (MEGI) LNG newbuilds.
The 173,400 m3 vessels are scheduled for delivery between 2019 and 2020, and are intended to boost Pavilion Energy’s global portfolio and LNG trading expansion.
These ships will join Pavilion Energy’s existing fleet on water which includes the BW Pavilion Vanda and BW Pavilion Leeara.
“The long-term charters of these MEGI newbuilds from our long-standing shipping partner BW will strengthen Pavilion Energy’s global LNG trading activities, especially on long-haul voyages from Atlantic liquefaction plants to Singapore and Asian markets. This will reinforce our already strong Asian LNG supply and trading strategy to connect markets and supplies regionally and globally,” Frédéric Barnaud, Group CEO of Pavilion Energy, said.
MEGI vessel offer higher efficiency and lower carbon emissions, as they consume less fuel compared to TFDE (Tri Fuel Diesel Engine) vessels, BW Group said. Such savings in consumption translate to a reduction of about 22,300 tons of carbon dioxide emissions per vessel per year, the equivalent of the emissions from 4,800 passenger cars in a single year, according to BW.
Pavilion Energy and BW formed a joint venture in 2014 intended for the acquisition, management and chartering of maritime LNG assets, including LNG carriers. BW is the majority shareholder with 51 pct stake in the JV, named BW Pavilion LNG Pte, while Pavilion holds the remaining 41 percent stake.