Germany’s energy company Uniper Global Commodities and Singapore’s LNG company Pavilion Gas, part of Pavilion Energy, have signed an agreement to provide each other access to its LNG asset base and associated flexibility from the assets.
The multi-year agreement gives Uniper access to Singapore storage and reload facility and Pavilion to LNG Re-gas capacities in Gate LNG terminal in the Netherlands and Grain LNG terminal in the United Kingdom, Uniper said in a statement.
Therefore, the deal will provide Pavilion access to UK and Continental European gas markets, while Uniper will benefit from getting access to LNG assets in the Asian market. The agreement is expected to further create LNG logistic optimization abilities for both companies between Atlantic and Pacific basin.
“Combining Pavilion Gas and Uniper’s LNG and midstream capabilities provides a way for our respective companies to broaden our portfolios now and in the future through this cooperation,” Keith Martin, member of the board of Uniper SE, commented.
Both companies intend to cooperate further in different areas of energy trading providing experience of their home markets and venturing into new markets together, according to Uniper.
Separately, Uniper said it is currently not in discussions with either Fortum, a Finnish state controlled company, or E.ON regarding the takeover offer. Fortum and E.ON earlier confirmed they are in “advanced discussions” regarding the possible acquisition by Fortum of E.ON’s 46.65% stake in Uniper in conjunction with a possible voluntary public takeover offer for all shareholders of Uniper.