Shell Eastern Trading Pte. Ltd., a subsidiary of Shell plc, has completed the acquisition of 100% of the shares in Pavilion Energy Pte. Ltd., according to the company's release.
Pavilion Energy, headquartered in Singapore, operates a global liquefied natural gas (LNG) trading business with a contracted supply volume of approximately 6.5 million tonnes per annum (mtpa).
The acquisition encompasses Pavilion Energy’s portfolio of LNG offtake and supply contracts, regasification capacity, and LNG bunkering operations, thereby bolstering Shell’s position in the LNG market.
The transaction aligns with Shell’s strategic objective to solidify its leadership in the LNG sector by increasing sales by 4-5% annually through 2030. Integration of Pavilion Energy’s assets into Shell’s global LNG portfolio is set to commence immediately.
On June 18, 2024, Shell announced the agreement to acquire Pavilion Energy from Carne Investments Pte. Ltd., an indirect wholly-owned subsidiary of Temasek.
Pavilion Energy’s portfolio includes about 6.5 mtpa of long-term LNG sale and supply contracts, long-term regasification capacity of approximately 2 mtpa at the Isle of Grain LNG terminal in the United Kingdom, regasification access in Singapore and Spain, and the time-charter of five LNG vessels. The LNG bunkering business, with its first vessel deployed in early 2024, is also part of the acquisition.
Certain assets are excluded from the transaction, including Pavilion Energy’s pipeline gas business in Singapore, which has been transferred to Gas Supply Pte Ltd (GSPL), a wholly-owned subsidiary of Temasek, and a 20% interest in blocks 1 and 4 in Tanzania.
Shell plc is a global group of energy and petrochemical companies with operations in over 70 countries, Shell is involved in the exploration, production, refining, and marketing of oil and natural gas, as well as the manufacturing and marketing of chemicals.
Pavilion Energy Pte. Ltd. is a Singapore-based company specializing in the global supply and trading of LNG, with a portfolio that includes LNG trading, shipping, and downstream investments in gas and power projects.
Temasek Holdings is a Singaporean state-owned investment company with a diverse portfolio covering a broad spectrum of industries, including telecommunications, media, technology, transportation, industrials, consumer, real estate, financial services, life sciences, agribusiness, and energy.