Shell strikes deal to buy Singapore’s Pavilion Energy
The oil giant will buy the firm from state-owned investor Temasek for an undisclosed sum.
Shell has agreed to buy Singapore liquefied natural gas (LNG) trading business Pavilion Energy.
The FTSE 100 oil giant said on Tuesday that it reached a deal, for an undisclosed sum, to buy the firm from state-owned investor Temasek.
The new business has a contracted supply volume of about 6.5 million tonnes per year of LNG, from suppliers including Chevron.
Pavilion’s global energy business covers LNG trading, shipping, natural gas supply and marketing activities in Asia and Europe, Shell said.
The acquisition of Pavilion Energy will strengthen Shell’s leadership position in LNG, bringing material volumes and additional flexibility into our global portfolio
The acquisition is expected to complete in the first quarter of 2025.
Zoe Yuinovich, Shell’s integrated gas and upstream director, said: “The acquisition of Pavilion Energy will strengthen Shell’s leadership position in LNG, bringing material volumes and additional flexibility into our global portfolio.
“We will acquire Pavilion’s portfolio of LNG offtake and supply contracts, which includes additional access to strategic gas markets in Asia and Europe.
“By integrating these into Shell’s global LNG portfolio, Shell is strongly positioned to deliver value from this transaction while helping to meet the energy security needs of our customers.”
Juliet Teo, Temasek head of portfolio development group and Singapore market, said: “In the last 10 years, Pavilion Energy has grown from its Singapore beginnings into an international energy business marketing and trading LNG in key markets across Europe and Asia to help meet rising energy demand.
“We believe Shell is well positioned to grow Pavilion Energy’s business and strengthen its global LNG hub in Singapore.”