Singapore JV Secures Finance for 2 New LNG Tankers

BW Pavilion LNG has secured a $360 million loan to finance the construction of the company's two new LNG vessels.

BW Pavilion LNG Pte. Ltd. (BW Pavilion LNG), a joint venture between BW Group and Pavilion Energy Pte Ltd. (Pavilion Energy), has secured a $360 million loan to support the construction of the company's two new liquid natural gas (LNG) vessels, BW Pavilion Vanda and BW Pavilion Leeara, LNG Industry reports.

"With an expanding fleet of well-built and well-maintained vessels, BW continues to provide outstanding service to customers," said Nicholas Gleeson, CFO at BW Group.

"We have strong ambitions in the LNG sector and through our joint venture with Pavilion Energy, these vessels will continue our steady growth in the sector."

Singapore-based attorney Ince & Co (Ince) is said to be acting as main legal counsel for a syndicate of banks in the deal, which includes the Oriental Bank of Commerce (OBC), Sumitomo Mitsui Banking Corporation (SMBC), DBS Bank Ltd (DBS), Crédit Industriel et Commercial (CIC), Clifford Capital Pte Ltd (Clifford Capital), and Société Générale S.A..

"We are delighted to be involved in this significant transaction, and to be part of the team putting together the deal that will enable BW Pavilion LNG to expand its fleet in the LNG sector," said Martin Brown, Lead Partner of Ince.

"We are also pleased to have the opportunity to work with SMBC, one of the leading arrangers of syndicated shipping transactions.

"It was a great opportunity for the team to demonstrate once again, our strong and efficient commercial approach to deal execution in Singapore."

The new vessels are reported to be under construction by Hyundai Heavy Industries Co., Ltd, and will be out on long-term charters to Pavilion Gas once completed.

Last year, MAN Diesel & Turbo announced the receipt of an order for four MAN B&W 5G70ME-GI dual fuel engines by DSME for use in two LNG carriers being built for BW Group.