Qatar Petroleum Trading wins LNG supply tender to deliver up to 1.8mn tons per year to Singapore until 2032
Qatar Petroleum has announced the establishment and the start of operations of QP Trading LLC (QP Trading), as its dedicated LNG trading arm.
Wholly owned by Qatar Petroleum and based in Doha, QP Trading is mandated to build a globally diversified portfolio of third party and equity LNG.
In addition, QP Trading will manage the price risk exposure of its portfolio through physical and derivatives trading.
These new capabilities, combined with a customer - and market -centric approach, will enable QP Trading to respond with greater agility to the evolving needs of its customers, and to maximise the value of its portfolio in a dynamic market.
HE the Minister of State for Energy Affairs Saad Sherida al-Kaabi made the announcement during a ceremony held virtually on Monday to celebrate the signing of QP Trading’s first deal with Singapore’s Pavilion Energy Trading & Supply Pte. Ltd.
On the establishment of QP Trading, al-Kaabi said, ‘This new addition to Qatar Petroleum’s capabilities and reach is a very important step in reaffirming our belief in LNG’s economic and environmental value proposition and its cornerstone role in energy transition.’
Minister Al-Kaabi stated, ‘I am pleased to announce that QP Trading has just concluded its first long-term LNG SPA with Pavilion Energy Trading & Supply following a competitive process. Under the agreement, QP Trading will deliver up to 1.8mn tons of LNG per year for 10 years to Singapore, reflecting our commitment to respond to the needs of our customers, including supply security, price competitiveness, and flexibility.’
Al-Kaabi highlighted the unique environmental aspects of the agreement, saying, ‘This deal represents the first long-term LNG arrangement containing specific environmental criteria and requirements designed to ultimately reduce the carbon footprint of the LNG supplies, which is fully aligned with our long-standing position in support of our environment.
‘Qatar Petroleum is already implementing a series of projects and initiatives to reduce emissions and to capture and sequester more than 5mn tons of CO2 per annum by 2025, placing us firmly on the road to become a leader in the de-carbonization of the LNG value chain.’
On his part, Tan Sri Muhamed Hassan Marican, chairman, Pavilion Energy Trading & Supply said, ‘The inaugural LNG cargo Pavilion Energy imported into Singapore for downstream supply in 2018 originated from Qatar. We are delighted to enhance our strategic relationship with Qatar Petroleum, the world’s largest LNG producer. This partnership will strengthen our core Singapore market and our role as a global energy trader.’
The virtual signing ceremony was attended by Dr Tan See Leng, Second Minister of Trade & Industry, Singapore, along with Marican, and Group CEO Frédéric Barnaud.
The ceremony was also attended by senior executives from Qatar Petroleum.