Global law firm Norton Rose Fulbright has advised Pavilion Energy Pte Ltd on the acquisition of Spanish energy utility company Iberdrola’s portfolio of LNG and gas assets.
From its new European headquarters in Madrid, Pavilion Energy formally launched its Europe operations with the commencement of LNG trading operations and natural gas supplies into UK and Spain.
The acquired portfolio comprises approximately four million tonnes per annum (mtpa) of Iberdrola’s long-term sale and supply LNG contracts. It also includes long-term regasification of approximately two mtpa at the Grain LNG Terminal (UK), regasification access in Spain and the Spanish-France border pipeline capacity, as well as the time-charter of a newbuild MEGI LNG vessel.
The Norton Rose Fulbright cross-border team advising Pavilion Energy was led by Singapore energy partner Ben Smith and included Singapore partners Stephen Begley, Nicky Davies and Colin Rice, London partners Nick Prowse, Hussain Kubba, Stephen Rigby and Wasim Khan. The deal team also included Singapore senior associates Ben Swift and Laura Hamilton and international trainees SuZanne Yap and Tammy Tang. Assistance was provided in London by consultant Joosje Hamilton, of counsel Alex Neovius and Lucy Bruce Jones, senior associate Charlotte Tullis and associates Inga Aryanova and Suncica Miletic.
Regarding the deal that closed on January 1, Ben Smith commented:
“We are delighted to assist Pavilion Energy on this important step to developing a global energy business. This deal gives Pavilion Energy a portfolio of prime assets primarily in Europe and the Atlantic Basin and supports the company’s global reach with scale and flexibility. Pavilion Energy’s move into Europe reflects the global importance of Singapore as one of the key locations in the LNG trading world and the growing connectivity between the gas markets in Asia and Europe.
“We anticipate that other market participants in Asia may look to replicate this transaction, as access to the liquid gas markets of Europe becomes an increasingly important element of a global LNG trading portfolio.”
Pavilion Energy is a wholly-owned subsidiary of Temasek. Headquartered in Singapore, its fully-integrated energy business encompasses a downstream & marine business, global LNG trading, shipping & optimisation, upstream investments and hedging and financial solutions. Pavilion Energy supplies a third of Singapore’s natural gas demand and is a licensed LNG importer and LNG bunker supplier for Singapore.