- Weather factors, the Russia-Ukraine war keep gas prices elevated
- Carbon neutral LNG key to achieving energy transition
- Pavilion Energy to continue expanding the global LNG bunker supply network
The high volatility in natural gas prices looks set to continue in the foreseeable future, with supply reliability garnering more attention after Russia’s invasion of Ukraine, Pavilion Energy Group CEO Alan Heng told, says in an article published in SP Global.
Insulation from external shocks
“The energy challenges that Europe faced in quick successions — starting with the weather affecting the stability of renewable energy supply and later the knock-on effects of the situation in Ukraine have profoundly impacted the global energy market,” Heng said on May 25.
“Not only did the episodes play up the interconnectedness of energy markets, but it is also a stark reminder that no single country can be insulated from these external shocks,” he added.
Heng, however, noted that as a supplier of both piped natural gas and LNG with customers in Singapore and across Europe, the company continues to be a reliable supplier to its customers.
Carbon neutral LNG
“Pavilion Energy sees a reality powered by the energy transition where carbon neutral LNG becomes the norm rather than the exception,” Heng said.
In April 2021, Pavilion Energy said it had imported Singapore’s first carbon-neutral LNG cargo.
The carbon credits used for the offset are from Natural Climate Solutions projects certified under the Verified Carbon Standard, or VCS, and Climate, Community and Biodiversity, or CCB, Standard — Evio Kuinaji Ese’Eja Cuana in Peru and Liangdu Afforestation in China, it said at the time.
Both projects are designed for the protection and restoration of forests, and promote co-benefits through supporting local communities and protecting biodiversity.
“In November later that year [2021], we jointly published the Statement of GHG Emissions (SGE) methodology with partners QatarEnergy and Chevron – spearheading the industry’s first published GHG quantification and reporting methodology for LNG that will be applied to sales and purchase agreements with Pavilion Energy, for supply to Singapore from 2023,” Heng said.
Intended for industry-wide adoption, the methodology will deliver greater accountability and pave the way for initiatives to proactively reduce emissions, he said.
Pavilion Energy has also been certified to trade and supply biomethane in Europe.
“Over in Asia, we are also part of a consortium to jointly study ammonia as a marine fuel and develop the ammonia fuel supply chain in Singapore,” Heng added.
LNG bunkering
In recent years, LNG has been gaining momentum as a reliable, credible, and sustainable marine fuel of choice, Heng said.
Singapore, the world’s largest bunkering port, has been at the helm of various initiatives to promote cleaner marine fuels including LNG.
As an LNG bunker supplier, Pavilion Energy believes that greater industry collaboration is the cornerstone to encouraging greater adoption by the marine industry.
“To this end, we are developing strategic partnerships to establish a global supply network with various supply nodes within key sea routes. Our aim is for industry partners to leverage each other’s infrastructure and capability to create these supply points for connectivity,” he said.
“In Singapore, we have an integrated LNG supply chain from LNG imports, and LNG barges to supply our customers,” Heng said.
In Europe, the company has partnered with Gasum to build an ecosystem that supports shipowners by enabling access to a reliable supply of LNG, Heng said.
“We will continue to expand our global LNG bunker supply network and work closely with shipowners and relevant stakeholders to proactively promote LNG as a marine fuel of choice,” he added.
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Source: SP Global
