Singapore’s Pavilion Energy said on Thursday 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 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. ($1 = 0.8926 euros)