Singapore's Pavilion Energy to pay S$176 million for Iberdrola's LNG assets
Singapore's Pavilion Energy said on Thursday (Jun 20) its wholly owned subsidiary has agreed to buy Spanish energy company Iberdrola's portfolio of liquefied natural gas (LNG) assets.
SINGAPORE: Singapore's Pavilion Energy said on Thursday (Jun 20) its wholly owned subsidiary has agreed to buy Spanish energy company Iberdrola's portfolio of liquefied natural gas (LNG) assets.
The portfolio comprises about 4 million tonnes per annum (mtpa) of Iberdrola's long-term LNG sale and supply contracts, Pavilion said in a statement.
The portfolio also includes long-term regasification capacity of about 2 mtpa at Britain's Grain LNG terminal, access to regasification capacity in Spain and on a pipeline between Spain and France, as well as the time-charter of a newly built LNG vessel.
In a related transaction, both companies have concluded a gas sales agreement for Pavilion Energy to supply natural gas to Spain for Iberdrola Generacion Espana, Pavilion said.
Iberdrola said separately that Pavilion will pay €115 million (S$176 million, US$129.65 million) for the assets.
"This acquisition brings us a portfolio of prime assets primarily in Europe and the Atlantic Basin," said Frederic Barnaud, group chief executive, Pavilion Energy. Barnaud was previously with Gazprom's trading arm before being appointed to Pavilion in early 2018.
The portfolio acquisition by Pavilion's Trading and Supply unit will be completed by Jan 1, 2020.
"Today is a critical step towards our vision to be a leading global LNG player, leveraging our LNG portfolio with deep access to strategic gas markets in Singapore, Spain, and the UK, combined with sophisticated optimisation and risk management skills," he added.
Pavilion supplies natural gas for one-third of Singapore's industrial requirements, including the power generation, petrochemical, biotechnology, pharmaceutical and manufacturing sectors.
Pavilion was launched in 2013 by Singapore's sovereign wealth fund Temasek Holdings and is focused on LNG-related investments.
Iberdrola supplies energy to more than 30 million people in countries including Spain, the United States and Britain.