Project financing of two new LNG vessels for BW Pavilion underlines SG CIB’s commitment to the LNG shipping industry
Societe Generale Corporate & Investment Banking acted as Mandated Lead Arranger and Swap Bank for the project financing of two new liquefied natural gas (LNG) vessels for BW Pavilion LNG Pte. Ltd, a joint-venture set up by BW Gas and Pavilion Energy Pte Ltd in May 2014.
BW Gas is a leading global maritime group notably involved in oil and gas transportation. Pavilion Energy is wholly owned by Temasek Holdings, the Singapore government investment company, and is dedicated to investments across the global LNG supply chain as a means of securing clean energy in support of economic growth in the region.
The Singapore-flagged, tri-fuel diesel electric LNG vessels include fuel-efficient features, such as hybrid, low-duty compressors, which reduce the amount of fuel needed to cool the vessel’s liquefied natural gas cargo.
These two vessels will be chartered first to China International United Petroleum & Chemical Ltd., which is a wholly-owned subsidiary of Sinopec, and subsequently to Pavilion Gas Pte Ltd.
Societe Generale has gained extensive international experience in financing the construction, completion and operations of LNG vessels, and has thus become a proven funding partner for high-value projects in the global LNG market. This strategic, Singapore-based transaction enables Pavilion Energy to access the midstream shipping link of the LNG chain and to acquire expertise through its partnership with BW Gas, thus further positioning Singapore as an integrated LNG trading hub for Asia.