Temasek’s Pavilion Energy to buy LNG assets of Spain’s Iberdrola
Temasek unit Pavilion Energy said yesterday its wholly owned subsidiary has agreed to buy Spanish energy company Iberdrola's portfolio of liquefied natural gas (LNG) assets.
According to filings with Spain's National Securities Market Commission, Pavilion will pay €115 million (S$176 million) for the assets, reported The Straits Times Online.
The portfolio comprises about four million tonnes per annum (mtpa) of Iberdrola's long-term LNG sale and supply contracts.
It 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, plus the time-charter of a new 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.
"This acquisition brings us a portfolio of prime assets primarily in Europe and the Atlantic Basin," said Mr Frederic Barnaud, group chief executive, Pavilion Energy. The acquisition by Pavilion's trading and supply unit will be completed by Jan 1 next year.
"Today is a critical step towards our vision to be a leading global LNG player, leveraging our LNG portfolio with deep access to strategic gas markets in Singapore, Spain, and the UK, combined with sophisticated optimisation and risk management skills," he added.
Pavilion supplies natural gas for one-third of Singapore's industrial requirements, including the power generation, petrochemical, biotechnology, pharmaceutical and manufacturing sectors. - REUTERS