Pavilion to develop small-scale LNG business in Southeast Asia

Singapore’s Pavilion Energy, a unit of Temasek, plans to invest in the small-scale liquefied natural gas business in Southeast Asia.

“We have begun discussions with several partners in some markets, such as Indonesia and the Philippines, and look forward to progressing on this initiative,” Pavilion Energy’s CEO, Seah Moon Ming told the 7th LNG Asia Pacific Summit on Tuesday .

Outlining the positive trends in the small-scale LNG market, Ming said that Southeast Asia is very well positioned for the development of this market due to its numerous small and remote islands, of which many are permanently inhabited and require power.

“It makes sense to use small 10,000 m3 vessels, carrying about 0.05 to 0.5 million tonne per annum of LNG, to perform multi-location deliveries. Simple and low cost infrastructures such as bullet tanks and ambient air vaporizers; can also be used to bring the initial CAPEX investment down by 10–25 times as compared to conventional solutions,” he said.

According to Ming, markets are opening up to small-scale LNG solutions, and some governments have expressed their support for this initiative.

“Next steps include having governments align interests with the industry and put in place the much needed regulations and policies that can help promote and support small-scale LNG as a supply solution,” he added.

LNG World News Staff; Image: CWC Gas & LNG