Pavilion Energy will acquire Iberdrola’s LNG assets in Spain and UK
Singapore’s Pavilion Energy Pte Ltd has struck a deal to purchase the portfolio of LNG assets of Spanish energy firm Iberdrola, expanding the company’s reach into the European gas market.
Iberdrola said separately that Pavilion Energy will pay US$130M for the assets, subject to the upward and downward adjustments agreed, as well as the value of the transferred LNG stock, valued at the closing date of the transaction. The transaction is expected to close 1 January 2020.
The assets comprise 4 mta of Iberdrola’s long-term sale and supply LNG contracts, long-term regasification of 2 mta at the Grain LNG terminal (UK), regasification access in Spain and the Spanish-France border pipeline capacity, and the time-charter of a newbuild ME-GI LNG vessel. In a related transaction, both parties have concluded a gas sales agreement for Pavilion Energy to supply natural gas in Spain to Iberdrola Generación Espana.
“Building on Pavilion Energy’s success in Singapore and in the Asia-Pacific Basin, this acquisition brings us a portfolio of prime assets primarily in Europe and the Atlantic Basin”, said Pavilion Energy group chief executive Frédéric H Barnaud. “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”.
Pavilion Energy, a unit of state-owned Temasek Holdings, supplies about one-third of Singapore’s downstream natural gas demand.