02/22/2021 | Press release | Distributed by Public on 02/22/2021 07:28
Global law firm Norton Rose Fulbright has advised Pavilion Energy Trading & Supply Pte. Ltd. ('Pavilion Energy'), a wholly-owned subsidiary of Pavilion Energy Pte. Ltd., on an LNG sale & purchase agreement ('SPA') with Chevron U.S.A. Inc (Singapore Branch) ('Chevron').
Pavilion Energy and Chevron announced today a six-year LNG SPA for the supply of approximately 0.5 million tonnes of LNG per year to Singapore from 2023.
To promote increased sustainability and transparency in the LNG value chain and as required by Pavilion Energy under its supply tender, each LNG cargo delivered under this agreement will be accompanied by a statement of its greenhouse gas ('GHG') emissions measured from wellhead to discharge port.
Norton Rose Fulbright partners Ben Smith (Singapore) and Andrew Hedges (London) led the team advising Pavilion Energy which included Singapore associate William Holmden and the firm's legal process and technology team in Newcastle.
The firm provided advice on the structuring and terms of the procurement exercise as well as supporting the negotiation of the LNG SPA.
In November 2020, Norton Rose Fulbright advised Pavilion Energy on its LNG SPA with QP Trading LLC ('QP Trading'), the first long-term LNG sale and purchase agreement that required the seller to track carbon emissions associated with the LNG's delivery.
Ben Smith, who led the team, commented: 'Pavilion Energy has signed another LNG deal where GHG emissions associated with the production of the LNG and its delivery to Pavilion Energy will be tracked. These transactions are opening an important route to a low carbon future. We are very pleased to have supported Pavilion Energy on another important transaction in its evolution, after working with Pavilion Energy on its acquisition of its European business from Iberdrola in 2019 and its purchase of LNG with carbon emission tracking from QP Trading announced in November 2020.'
Andrew Hedges, a climate change and clean energy lawyer, commented: 'We are pleased to have worked with the parties to develop new methodologies to enable the accurate reporting of the carbon footprint of cargoes to a buyer. This is a step toward markets where the carbon footprint of products is known and accounted for by parties.'
Pavilion Energy is a wholly-owned subsidiary of Temasek. Headquartered in Singapore, its global energy business encompasses natural gas supply and marketing activities in South-East Asia and Europe; and global LNG trading, shipping and optimisation; as well as energy hedging and financial solutions. Pavilion Energy has also been a pioneer by developing LNG bunkering for the maritime industry and by promoting greenhouse gas emissions reduction and carbon offsets in the LNG value chain.
Louise Nelson, Head of PR - Europe, Middle East and Asia
Tel: +44 20 7444 5086;Cell: +44 79 0968 4893