Pavilion Energy, Gasum and CNOOC Gas ink LNG bunker supply deal

The three firms say they will strengthen a global LNG bunker supply chain across key LNG-bunker-ready ports in Singapore, China and northwest Europe.

PHOTO: Aerial view of ships in Port of Rotterdam. Getty Images

The northwest European ports will include the ARA hub, and the Chinese ports will span Shenzhen, Guangzhou, and Ningbo - which is adjecent to China's Zhoushan bunker hub.

Pavilion Energy and Gasum joined hands in October 2020 to develop LNG bunker supply networks in Singapore and northwest Europe. By partnering with China's state-run CNOOC Gas and Power Group the companies can expand their footprint to China.

LNG distributor Gasum’s chief executive Mika Wiljanen believes LNG is a vital “stepping stone” in the maritime decarbonisation process.

In terms of decarbonisation potential, LNG-fuelled vessels emit about 75% of the CO2 as oil-based marine fuels. Methane slip remains a key concern as uncombusted methane has about 28 times higher global warming potential than CO2 over a 100-year period.

Classification society DNV predicts the LNG-fuelled vessel segment will grow considerably over the next four years, says its principal consultant Martin Christian Wold.

According to DNV’s October data, there are currently 323 LNG-fuelled ships in operation and there are 65 additional orders for LNG-fuelled ships for delivery this year.

There are 840 confirmed LNG-fuelled ships on order for delivery towards 2028.

By Konica Bhatt

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