Image: Total

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Total and Pavilion Energy, through their subsidiaries Total Marine Fuels Global Solutions (TMFGS) and Pavilion Gas, have signed a heads of agreement (HoA) to jointly develop an LNG bunker supply chain in the port of Singapore.

The agreement covers the shared long-term time charter of a new-generation LNG bunker vessel to be commissioned by Pavilion Gas by 2020. It also includes an LNG supply arrangement between the two companies enabling Total to deliver LNG bunker to its customers.

The HoA, signed on the sidelines of the World Gas Conference 2018 in Washington DC, follows a memorandum of understanding (MoU) concluded by both companies in April 2017 on LNG bunkering cooperation in Singapore.

Patrick Pouyanne, chairman and CEO of Total, declared: "The development of infrastructure is one of the key drivers for the take-off of LNG as a marine fuel. For the past few months, Total has been very active in that direction. The agreement signed with Pavilion Energy marks a new step in our commitment to provide our customers with fuels that are more environmentally friendly, particularly in Singapore which is the leading bunkering hub in the world."

Tan Sri Mohd Hassan Marican, chairman of Pavilion Energy, remarked: "Pavilion Energy is pleased to work with Total on establishing a robust LNG bunker supply chain in Singapore. Our partnership sets the stage for making LNG bunker readily and reliably available for the market. Together, we mark a decisive step forward in leading the change towards cleaner and more responsible solutions with LNG bunkering in the region."

TMFGS has previously given a clear indication that the supply of LNG to ships is the firm's key priority, with CEO Olivier Jouny describing the emerging market as "our main focus" in December.

The first milestones of its strategy were set in Europe, with the signature of LNG bunker supply contracts for Brittany Ferries and CMA CGM, as well as the long-term-chartered bunker vessel with Mitsui O.S.K. Lines that will be positioned in northern Europe.

Pavilion Gas, meanwhile, was in October 2016 appointed as one of two importers to supply LNG to Singapore by the Energy Market Authority of Singapore.

In January 2016, the firm was one of two firms to be awarded an LNG bunker supplier licence to deliver LNG fuel to ships in Singapore.